[kenney]

has anyone here invested in shares or something of the like? im interested but dont know too much about it right now. help would be great thanks

[yeahright]

Originally Posted by kenney666

has anyone here invested in shares or something of the like? im interested but dont know too much about it right now. help would be great thanks

Picking individual stocks is something to avoid until you really know what you're doing. Even then, you can still lose everything.

I'd suggest that you start your interest in the stock market by buying index funds. Index funds are essentially a stock (in this case a mutual fund) that contains all the stocks of a broad index.

For instance, if you buy a share in a S&P 500 Index Fund, you're getting a tiny fraction of every stock in the Standard & Poors 500 (500 largets stocks in USA). Over time, it's hard to lose unless the entire stock market tanks.

Index fund - Wikipedia, the free encyclopedia

You want an index fund with low annual costs (those simply eat away at your profit).

Many experts suggest Vanguard funds because they have the lowest fees and a long history of success.

Vanguard - Index Funds - Prices and performance

I'd suggest an S&P index fund, a total stock market index fund and a Target Retirement Fund (the mix of stocks and bonds within the fund shifts from aggressive to conservative as you get closer to retirement).

[kenney]

thankyou very much. i will ask my Business Studies teacher about it too. i have been really interested in the stock market since i first learned about it. i would love to invest in shares, but will obviously spend very little until i know what im doing. i guess its a case of 'trial and error'

thanks again man

[yeahright]

Originally Posted by kenney666

thankyou very much. i will ask my Business Studies teacher about it too. i have been really interested in the stock market since i first learned about it. i would love to invest in shares, but will obviously spend very little until i know what im doing. i guess its a case of 'trial and error'

thanks again man

Another way to start learning is to invest with play money. Give yourself an imaginary portfolio of 1000 euro/pounds/dollars and buy the stocks on paper (be sure to add in the commission you'll pay). Track that for 6 months and see what lessons you learn. This is a fun way to learn about investing.

One thing about investing is that very very very few people can do it and make a living. Most who do, actually make a living investing other people's money and charging a fee for doing so. To be successful, you need to have very long time horizons. My portfolio consists of a wide variety of investments.

I bought tech stocks on the tail end of the tech bubble (and lost money).

I bought-up commodity stocks before the commodity stock run-up (and made a ton of money).

I bought Japanese stocks because it looke dlike their 10 year recession was ending (and those have remained stagnant).

I bought Chinese stocks because I believe in them long-term (and oddly, have made a ton of money short-term).

I bought a bunch of developing market stocks because I believe in them long term (and have made some decent money).

I've heavily weighted in the stocks of the industrialized countries (Europe and North America).

Right now I'm putting my money into funds that actually trade currencies (don't try this at home - it's very speculative) because I expect the global economy to be stagnant or slip into a recession during the next five years and believe the greatest opportunity for profit is in the friction between developed economies.

Most of my bets have paid off but some have been spectacular failures. Unless you want to invest for a living, then buying some passive investments like index funds and forgetting about them until retirement is the best idea (I have half my money in a blend of index funds).

[Genghis]

Originally Posted by kenney666

has anyone here invested in shares or something of the like? im interested but dont know too much about it right now. help would be great thanks

My dads got quite a few, there glued to his emotions, if they go up and he sells up he's all chirpy and happy, but when they do down, or he doesnt make a profit, he's like a black hole full of fire,

Watch channels such as Bloomberg alot kenney, you'll learn loads, but only buy shares once you've got alooot of knowledge, cos unlike a T.V. there's no guarantee, you lose your money your not getting it back..

[Freak]

Nice primers yeahright! 2 big words to never forget. RESEARCH and DIVERSIFY!.

When I first started I bought jdo and did great. Sold that and bought kkd. When all know how that ended up. Thankfully I cut my losses after the first 10% drop. Then invested in brk.b & emerging markets.

Check out investopedia.com

You can read articles there all day and it will really cut your learning curve. The site is even better than going to college for business/finance imo. Also read some articles on behavioral finance. Do the play money thing to that really helps a lot! Continue to ask questions and be curious.

[Malgate]

im not to sure about shares myself but i'd look at buying shares in companies that produce stuff people need ie. paper companies, well established IT companies, banks.

[yeahright]

Originally Posted by Malgate

im not to sure about shares myself but i'd look at buying shares in companies that produce stuff people need ie. paper companies, well established IT companies, banks.

The thing to think about is the potential for profit and growth for the company. Many well established companies have absolutely stagnant stock prices because they've carved themselves a niche in the economy and are staying there. If the company pays dividends on the stock, then that's a little profit for you but if the stock was bought for $50 a share and is worth $52 a share 10 years later, you would have been better off putting the money in the bank.

Microsoft is one of the largest most successful companies in the world but it's stock was worth $28.84 in November 2002 and $29.46 in September 2007. That's a profit of about 12 cents a year for a 5 year period. Microsoft made billions during that period but it wasn't reflected in the stock price.

Most people are much better off buying broad mutual funds or index funds so you can ride general trends in the economy rather than better on specific companies.

[Freak]

Exactly agree. I can't believe GOOG is still so high..

[kenney]

man i love business! thanks for all of the replies.

yeahright and Freak: what do you guys think about investing in Chinese companies. i read that a couple of years ago, a Chinese company called Ctrip.com International was on the NYSE and its share price increased by 108% in the first couple of days of being on the market! ive been on the LSE website and ordered a couple of brochures, been reading a hell of alot! i will definately try that imaginary investment idea lol

do people buying shares have to use a stockbroker? or is that optional?

[chrispghmuscle]

Find a good Certifed Financial Planner, my wife and I have one and we could not be more happier.