Beginner with stocks/shares
Discussion
AOK said:
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.
Some good tips there. Unfortunately when I first started out I was that guy in the bold point, although it was more a case of entirely forgot I had shares as I had other things going on at the time.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.
Anyone thinking of setting out to invest in shares and similar would be well advised, imo, to read
Reminiscences of a Stock Operator by Edwin Lefevre
and
The Little Book of Trading by Michael Covel
and
The Little Book of Market Wizards: Lessons from the Greatest Traders by Jack D. Schwager
Which, if nothing else, will give you an insight into investing that you probably don't have at this stage of your investing life.
Reminiscences of a Stock Operator by Edwin Lefevre
and
The Little Book of Trading by Michael Covel
and
The Little Book of Market Wizards: Lessons from the Greatest Traders by Jack D. Schwager
Which, if nothing else, will give you an insight into investing that you probably don't have at this stage of your investing life.
JPJPJP said:
Anyone thinking of setting out to invest in shares and similar would be well advised, imo, to read
Reminiscences of a Stock Operator by Edwin Lefevre
and
The Little Book of Trading by Michael Covel
and
The Little Book of Market Wizards: Lessons from the Greatest Traders by Jack D. Schwager
Which, if nothing else, will give you an insight into investing that you probably don't have at this stage of your investing life.
Having read all of those l'll + 1 that list and add :Reminiscences of a Stock Operator by Edwin Lefevre
and
The Little Book of Trading by Michael Covel
and
The Little Book of Market Wizards: Lessons from the Greatest Traders by Jack D. Schwager
Which, if nothing else, will give you an insight into investing that you probably don't have at this stage of your investing life.
How to make money in stocks - William O'Neil,
Trade like a stock market wizard - Mark Minervini
Come into my trading room and Trading for a living both by Dr. Alexander Elder are probably worth a read too.
Hollerout said:
hammerrr7 said:
Good job I'm reading the book and have watched the film!
Just wondering, 4 months on - did you do it and how's it going. I'm 6 months in and getting on pretty well with share.com, I have purchased a variety of shares to date.I opened a free account with IG Index, which has a very neat operating system and user friendly. I spend an hour or so in the evenings researching certain companies and what's happening in the world. I then place a bet whether I think the price of that share is going to drop or increase. Every point it moves up, I earn 50p and vice versa in the other direction.
It's not going to earn me thousands of pounds but I'm learning every time but limiting my loses in a way so it's controlled. I'd recommend it to anyone thinking of starting just to look around. Initially, I opened my IG account and didn't place a ticket for 2 weeks as I was learning the screen, reading and analysing what was happening.
Very useful tool.
Has anyone had experience with tools like this:
http://www.etoro.com/
So in theory I could copy someone else's trades and in theory they would know more than me (not hard). I would obviously have to research which trader(s) I want to copy according to the amount of risk I would like to take.
What do you think? Anyone have any experiences?
http://www.etoro.com/
So in theory I could copy someone else's trades and in theory they would know more than me (not hard). I would obviously have to research which trader(s) I want to copy according to the amount of risk I would like to take.
What do you think? Anyone have any experiences?
ringram said:
There is a difference between trading and investing...
A passive fund will beat 99% of all active funds over 10 years..
So why bother!?
Answer: You want to gamble.
I think you are exaggerating a bit:A passive fund will beat 99% of all active funds over 10 years..
So why bother!?
Answer: You want to gamble.
"New Which? research has found that just 38% of active funds that aimed to beat the FTSE All Share index have managed to do so over 10 years.
But fans of low-cost passive funds, or index trackers, also need to be selective - a £10,000 investment in the worst performing FTSE All Share tracker made 10 years ago would now be worth £2,431 less than the same investment in the best performer."
http://www.which.co.uk/news/2013/04/most-active-fu...
Fittster said:
I think you are exaggerating a bit:
"New Which? research has found that just 38% of active funds that aimed to beat the FTSE All Share index have managed to do so over 10 years.
But fans of low-cost passive funds, or index trackers, also need to be selective - a £10,000 investment in the worst performing FTSE All Share tracker made 10 years ago would now be worth £2,431 less than the same investment in the best performer."
http://www.which.co.uk/news/2013/04/most-active-fu...
The underlying performance of every FTSE Tracker should be identical surely? Isn't it just the charges that differ. "New Which? research has found that just 38% of active funds that aimed to beat the FTSE All Share index have managed to do so over 10 years.
But fans of low-cost passive funds, or index trackers, also need to be selective - a £10,000 investment in the worst performing FTSE All Share tracker made 10 years ago would now be worth £2,431 less than the same investment in the best performer."
http://www.which.co.uk/news/2013/04/most-active-fu...
murphster said:
Has anyone had experience with tools like this:
http://www.etoro.com/
So in theory I could copy someone else's trades and in theory they would know more than me (not hard). I would obviously have to research which trader(s) I want to copy according to the amount of risk I would like to take.
What do you think? Anyone have any experiences?
I've been in this industry from the retail side for a good few years now. I've witnessed some people with pretty damned good runs who suddenly blow out so unless you have a vague idea of what they're doing and whether it's just luck or a solid trading method, I'd be very reluctant to copy someone blindly based on their results.http://www.etoro.com/
So in theory I could copy someone else's trades and in theory they would know more than me (not hard). I would obviously have to research which trader(s) I want to copy according to the amount of risk I would like to take.
What do you think? Anyone have any experiences?
I didn't see it mentioned in the thread yet but if possible trade in your ISA. Its only 15k a year but if you're in it for long term (or even short term) then it can save a fortune in tax. And say those 15k shares become 20k, you can sell in your ISA and retrade so it gets round the cash limit.
Of course, this assumes your shares increase in price!
Also, take any internet advice on which shares to buy with a pinch of salt, can often be people trying to ramp the price up before selling.
Of course, this assumes your shares increase in price!
Also, take any internet advice on which shares to buy with a pinch of salt, can often be people trying to ramp the price up before selling.
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