Trading stocks

[anonymous-user]

Hi all,

Probably going to get laughed at a bit, basically ive been using a practice account on trading 212 with mixed results.

Im very interested in stocks and investing but im a complete beginner, are there any particular up to date books that would help me understand it a bit more?

I understand trading 212 isn't a true representation of stock trading and im not sat here waiting to earn millions just very interested.

Any help or guidance appreciated!

[Orchid1]

I'm no expert but I reckon the safest thing to do would probably put the money into managed funds through an investment platform such as Hargreagves Lansdown.

There's an almost endless amount to choose from so do your research and pick one with low fees.

One of the things alot of people mention at the minute is index tracker funds due to the low fees/maintenance.

Trading stocks and shares just seems like a dangerous waste of money to me unless you're like the guy out of Limitless.

As I say i'm no expert and there are a few guys on here who are so i'd maybe wait and see what they say.

[anonymous-user]

Orchid1 said:

I'm no expert but I reckon the safest thing to do would probably put the money into managed funds through an investment platform such as Hargreagves Lansdown.

There's an almost endless amount to choose from so do your research and pick one with low fees.

One of the things alot of people mention at the minute is index tracker funds due to the low fees/maintenance.

Trading stocks and shares just seems like a dangerous waste of money to me unless you're like the guy out of Limitless.

As I say i'm no expert and there are a few guys on here who are so i'd maybe wait and see what they say.

Brilliant, thanks for your response, I will take a look into them and see if it's what im looking for.

Yeah, I didn't want anyone to think im wanting/pretending to the guy from limitless

Thanks for your help and all other responses welcome

[twinturboz]

Have a quick search on here, this topic has popped up a few times.

Also a huge amount of knowledge and a glimpse of what it will take to become a successful trader in these podcasts.

https://chatwithtraders.com/podcast/

[NickCQ]

Learn2MergeInTurn said:

up to date books

https://www.amazon.co.uk/Intelligent-Investor-Definitive-Investing-Practical/dp/0060555661

Not especially up-to-date but hard to go wrong with these principles.

[fat80b]

NickCQ said:

https://www.amazon.co.uk/Intelligent-Investor-Defi...

Not especially up-to-date but hard to go wrong with these principles.

That was going to be my recommendation as well. A reasonably heavy read in places but definitely covers everything you need to know for long term value investing.

The other book that is a good read (and indirectly related) is :
https://www.amazon.co.uk/Money-Mania-Panics-Ancien...

Which covers historical booms and busts. Not specifically about investing as such but a good read about the markets etc.

Bob

[jeff m2]

I think trading is much more difficult in an intelligent market.
Prior to the internet it was much easier to find something at the wrong price, buy it and wait for it to correct.
Trading using earnings reports, or other people perceptions of the reports was also not too difficult. Now everything is priced in so quickly it is tough to profit.

If we take US banks as our target, it has been apparent for some time they would correct.
Two ways to profit, increase your current Bank/finance fund holding to a higher than normal percentage while the the current conditions prevail. (investing)
Or try to single out the best two banks using lesser amounts. So we choose Ba of America and Wells Fargo. (trading)
One of them does well, the other is average. The average one reduces the gross return of the total investment.
I also missed out on the best two in the sector, State Street and Mellon both outperformed my average selection by 5%.

I go back and look what happened.....I find that my selections were good, had I executed two days earlier my average choice would have equaled State and Mellon.

See the problem....everybody now has access to the same information.
Identification/selection, execution, timing, get it all right you will make more than a fund (manager). Get one component wrong you will trail him.
I'm not saying don't trade, just be aware of the competition, because it is a competition, we are all chasing the same thing.

Bank example is fictitious. I did not buy B of A and Wells Fargo. Nor do I know if State and Mellon outperformed them.

[anonymous-user]

All amazing advice and all taken in, ive started on the podcasts and will order some books shortly.

Thanks for all responses and help

Also noted harder competition and trailing people, its going to take time but im very interested

[twinturboz]

Learn2MergeInTurn said:

All amazing advice and all taken in, ive started on the podcasts and will order some books shortly.

Not quite sure how beginner friendly those podcasts are but episode 5, 27, 32, 39 and 80 are well worth a listen.

Edited by twinturboz on Friday 25th November 11:52

[Craikeybaby]

I was in your position a few years back, and from this forum was pointed towards the monevator website, which I found useful.

[acealfa]

I found The Naked Traders books brilliant.

[ringram]

After 10 years of hard core investing new stuff will go into a low cost global equity fund. Like vanguards 100% lifestrategy or VWRL ETF etc

If you go with VWRL you wont pay anything with some brokers. Unless you hold direct with Vanguard (£100k min) platforms will rape you for no reason for fee's.

But other than that I agree with the above low cost passive index stuff is the way to go. Try and get costs near zero. Some are like 0.09% or less!

Buffett recommends S&P500 index for example..

[Orchid1]

ringram said:

But other than that I agree with the above low cost passive index stuff is the way to go. Try and get costs near zero. Some are like 0.09% or less!

Buffett recommends S&P500 index for example..

This is the thing that confuses me though. Due to recent world political events there's a chance that the markets could dip for a certain amount of time therefore wouldn't that mean people investing in these funds would be guaranteed to have losses for a while?

[NRS]

Orchid1 said:

ringram said:

But other than that I agree with the above low cost passive index stuff is the way to go. Try and get costs near zero. Some are like 0.09% or less!

Buffett recommends S&P500 index for example..

This is the thing that confuses me though. Due to recent world political events there's a chance that the markets could dip for a certain amount of time therefore wouldn't that mean people investing in these funds would be guaranteed to have losses for a while?

Yes, that's why shares are not recommended as short term (say less than say 5 years) saving unless you can afford to lose the cash. In a very very simplistic level we are due a recession soon going by normal cycle timing, plus the effect of a new president of the USA. So in that regard you'd probably expect to make a loss on money saved now. But the issue is you don't know, and so it could be the market keeps climbing and you miss out a lot of growth waiting for the "right moment" to come.

A lot of people advise just save regularly as it will balance out in the long term and so don't worry about the ups and downs. The problem is often the statistics used are such a long time that it will not always be the same in your lifetime saving. So it's a personal preference, but if you can avoid getting big hits in the recessions it will help massively. Easier said than done though!