Beginner with stocks/shares

Beginner with stocks/shares

Author
Discussion

hammerrr7

Original Poster:

55 posts

120 months

Friday 7th March 2014
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Hi guys,

I've been thinking about buying/selling stocks and shares as a little side interest and hopefully become successful to save for the future. A friend of mine recommended the NatWest stock app as that's what he uses and is fairly easy to use with low fees. I use NatWest personally so could be a good match. Are there others you use?

As I'm a beginner, I wonder what advice or tips others have for somebody starting out? Don't worry I'm not asking for your portfolio details smile however tips and what to look out for/avoid for someone completely new?

Willeh85

760 posts

142 months

Friday 7th March 2014
quotequote all
Speaking from personal experience only invest what you can afford to loose, and do as much research as you can.

Over 5 years I estimate I've lost about 2 grand average. This was a combination of stupidity, bad timing, not doing enough research, and bad luck.

hammerrr7

Original Poster:

55 posts

120 months

Friday 7th March 2014
quotequote all
Yeah good advice. I'm not looking at quick wins to make me rich overnight - purely readung the news and connecting what industry is likely to be affected.

I'm eager to buy some in Man Utd as I know (hope) things will get better!

Steve Campbell

2,110 posts

167 months

Friday 7th March 2014
quotequote all
hammerrr7 said:
I'm eager to buy some in Man Utd as I know (hope) things will get better!
You're going to lose it all ;-)

hammerrr7

Original Poster:

55 posts

120 months

Friday 7th March 2014
quotequote all
Steve Campbell said:
hammerrr7 said:
I'm eager to buy some in Man Utd as I know (hope) things will get better!
You're going to lose it all ;-)
My fault for going off topic!

Mr Overheads

2,436 posts

175 months

Friday 7th March 2014
quotequote all
For me don't buy emotive stocks like Man Utd. Buy stocks like Barrett Homes, have plummeted through recession and housing on the upturn and all councils have targets for new builds so they should benefit.

Generally I read the Financial Press and stock recommendations/tips and if something seems to make sense then I'll check out what the gneral broker consensus is i.e. of 15/20 broker houses how many give strong buys vs sells etc. Then buy if I get the right gut feel. Haven't made millions yet though. Telecity was a good buy, Anite, Debenhams & Pace too. Apple I waited far too long and bought at $665 dollars currently $530.

vescaegg

25,489 posts

166 months

Friday 7th March 2014
quotequote all
Having only started recently myself (but now with several thousands in which is terrifying) my advice is below.

Read, read and read as much as you can until you know (even only a small amount) about most things which will come up and need decisions on.

Get this.
http://www.amazon.co.uk/The-Naked-Trader-anyone-tr...

Read it.

Read it again.

Set up a dummy account for practice; this is a really helpful way of learning how things work.

Read it again.

Do research on companies you may want.

Start with your own money.

Good luck. It can be very satisfying when in profit, but really really only put in what you wouldnt mind losing.


hammerrr7

Original Poster:

55 posts

120 months

Friday 7th March 2014
quotequote all
Thanks for the advice chaps - really useful.

How do I go about creating a dummy account?

jammy_basturd

29,776 posts

211 months

Friday 7th March 2014
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Been meaning to sign up to this site for a while: http://www.wallstreetsurvivor.com/

Supposed to be full of useful advice.

AOK

2,297 posts

165 months

Sunday 9th March 2014
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hammerrr7 said:
Thanks for the advice chaps - really useful.

How do I go about creating a dummy account?
I used this http://uk.fantasytrader.yahoo.net/ for 6 months and told myself if I can make 20% I will do it for real. Things (annoyingly) went well with the dummy account.

I then set up a ISA NatWest stockbroker account, primarily because I bank with them already. They are by no means the cheapest and the app isn't as good as others... but because its an ISA I don't have to worry about paying any tax on gains (he says optimistically). The other thing about an ISA is you can't put in more than circa £11k per annum... good if you have self discipline problems.

Within the Natwest app there is a dummy account feature by the way.

Anyway, 1 year on and I've made about 50%. I work a 9-6pm office job so i can just about get away with this in the background. Basically free money!

Advice:

- Read, read and read. Do all your homework before buying a stock. There is plenty of volatility and coverage on US markets so I tend to lurk around those... the fees are larger and you're also against an exchange rate, but there's more potential in my opinion

- Shares need attention. Keep reading and looking into your investment. Don't be that guy who gets bored and checks back a year later to find everything pear shaped.

- Don't sell too early. The first few months I was buying and selling like I'm some kind of market trader... truth is you don't give the shares enough time to grow and most of it is taken up in the fee/commission.

- If you've done your research and as soon as you buy they start dropping, unless its blindingly obvious, don't get cold feet and sell out. Ride it out... remind yourself why you decided they are good value. I would have been on about 75% now if I'd held onto some key stocks a little longer.

- Try to keep a reasonably diverse portfolio.

- Don't just buy stocks because you 'like' a company or think they are 'in' right now. That has already been priced into the value. My best earner is a company I really don't like.

Lastly... and you won't understand this till you get into it - missing out on an opportunity to make £100 is much more agitating than loosing £100. DON'T WORRY... this is a normal feeling.

Anyway I'm a rookie but thought I'd let you know my thoughts primarily because you mentioned the Natwest app. That book looks like an interesting read... will be purchasing.

hammerrr7

Original Poster:

55 posts

120 months

Monday 10th March 2014
quotequote all
Thanks a lot for the advice all - I wasn't expecting such a great response however I was wrong. I'm going to be purchasing the book shortly and given I'm on holiday, perfect time to read it. I'll have a look at the NatWest App and see if I can create a dummy account - as like you, I also bank with them so made sense to begin with to keep everything simple!

Siscar

6,315 posts

128 months

Monday 10th March 2014
quotequote all
Remember that all that matters is what is going to happen, not what has already happened, and nobody has a reliable crystal ball.

A lot of people buy because something has gone up and avoid because it has gone down. There's nothing wrong with buying when something has gone up if you think it's likely to go up more but not buying just because it has gone up and so on.

As for what you use to do it? It makes little difference really, not sure why you think it being done by you bank makes any real difference, look at what it does and how much it costs - not the software but the service.

hammerrr7

Original Poster:

55 posts

120 months

Monday 10th March 2014
quotequote all
A few of my mates use the same app so my thinking was as I'm new to it all and should I get stuck or need help, I can point in there direction and get some help! Having had a look around NatWest seem to be there or there abouts as the system/software to use. Plus, as I bank with them it might make the transfer side a bit easier - who knows?

Siscar

6,315 posts

128 months

Monday 10th March 2014
quotequote all
Well the banking/transfer bit should be easy anyway, having people around who understand the software is good although if it's not pretty obvious it's not great, the main issue is what NatWest charge you. Obviously they will charge you, it's a just a question of how much and on what basis and could be, for all I know, a good deal.

hammerrr7

Original Poster:

55 posts

120 months

Monday 10th March 2014
quotequote all
Very true. I think its one off fees for buying and selling and it's either £15 one off fee to buy and £30 one off few when you decide to sell. Don't hold me on those but it's something along those lines.

Siscar

6,315 posts

128 months

Monday 10th March 2014
quotequote all
Well that is expensive on first sight, around £5 a trade is more competitive but it's complex, some have quarterly fees and some have minimum levels of activity. If you aren't trading much, and I doubt you would be, then £15 is still expensive but you'd be looking more in the region of £10 or £12 if you shop around. (I think, could be wrong, there may be better out there now)

hammerrr7

Original Poster:

55 posts

120 months

Monday 10th March 2014
quotequote all
Defiantly. NatWest is just one option amongst several out there. It'll be finding out that works out best for me once I've read around the subject more and certainly created a dummy account.

Siscar

6,315 posts

128 months

Monday 10th March 2014
quotequote all
Sounds good, it sounds like you are doing your research, listening to other people's advice and then making your own decision on what suits you. Which is what this is all about.

hammerrr7

Original Poster:

55 posts

120 months

Monday 10th March 2014
quotequote all
Absolutely. Otherwise my next thread on the business section would be 'how to file for bankruptcy' wink

Siscar

6,315 posts

128 months

Monday 10th March 2014
quotequote all
smile