Help Buying Shares

[Chilly]

I have no idea about shares but have always thought about buying them. What do you mean by "consequences"?

Going to jail for insider dealing. And tbh kenny, keep away from share dealing. Unless you can answer the question: why am I better than EVERYONE ELSE in the market?

Then you are quite literally gambling and you should avoid it. The interest in a savings accounts will almost certainly (over time) beat any share dealing returns you might fluke from year to year.

 

[dysfunction]

It is most definitely a gamble!

If you wish to dabble in shares why not try a free share dealing website (ie they give you a fake £100k to spend dealing in shares) or pretend you have bought some and see how well you do first.

If you have a "nack" of making a profit then give a try with a £100 (as long as you can afford to lose it!) in real life and see how you get on....

 

[Chilly]

It is most definitely a gamble!

If you wish to dabble in shares why not try a free share dealing website (ie they give you a fake £100k to spend dealing in shares) or pretend you have bought some and see how well you do first.

If you have a "nack" of making a profit then give a try with a £100 (as long as you can afford to lose it!) in real life and see how you get on....

Dealing in such small quantities will erode any "edge" you may or may not have, due to flat trading fees. If you are doing exceptionally well, you can probably beat the market by 10%. If you are then spending 5% on dealing fees, you've halved your potential profit. You need to carefully consider what it is you are actually trying to achieve, apart from wasting money, when dealing shares.

If you want a long term investment, then there are plenty of firms you could invest in that pay dividends, and will continue to do so for a long time (think food, drink, road builders, miners, etc). If you are trying to day trade, then you will probably lose money.

Even if you manage to make money for a couple of weeks on a fake account, that in no way means you are anything but lucky. If you can show a profit for a year on the trot across hundreds of trades, then fair play to you and get on it bigtime. Otherwise, you're gambling and you should probably do something less risky with your money.

 

[Rubber Bullets]

The only time I've bought shares on the open market was Guinness shares after they sunk to rock bottom after the Ernest Saunders scandal itself, ironically, a share dealing fraud, bizarrely a few years before this my Dad was friends with Saunders and I went to school with his son at the time, I was only 5 though.

I made a nice little profit when the shares returned to their proper value.

I reckon the BP suggestion is pretty similar. They are massively undervalued at the moment, and unless they actually go bust due to the current problem in the USA then at some point in the future they will come back up. I'm almost tempted myself.

RB

 

[Lamp]

The golden rule is don't invest in the markets unless you can afford to lose it

Oh. And stay clear of Greek Government Bonds.

 

[Chilly]

I reckon the BP suggestion is pretty similar. They are massively undervalued at the moment, and unless they actually go bust due to the current problem in the USA then at some point in the future they will come back up. I'm almost tempted myself.

RB

Thing with BP is that political pressure in the US might mean they lose the ability to compete for US contracts. If that's the case, they lose loads of value and the price will tank further. Remember: the price has all of this factored in and people cleverer than you have analysed it to death.

 

[rynnor]

Thing with BP is that political pressure in the US might mean they lose the ability to compete for US contracts. If that's the case, they lose loads of value and the price will tank further. Remember: the price has all of this factored in and people cleverer than you have analysed it to death.

I think I would now hold off on BP - I dont like where Obama is moving in his increasingly aggressive language - theres some thought that he might even appropriate BPs US holdings in a desperate attempt to get a 2nd term so risk is increasing on them.

 

[Chilly]

I think I would now hold off on BP - I dont like where Obama is moving in his increasingly aggressive language - theres some thought that he might even appropriate BPs US holdings in a desperate attempt to get a 2nd term so risk is increasing on them.

He cant "appropriate" them. The UK owns plenty of big US companies we're in a no-win situation if one side starts playing silly buggars like that.

 

[Marc]

I think I would now hold off on BP - I dont like where Obama is moving in his increasingly aggressive language - theres some thought that he might even appropriate BPs US holdings in a desperate attempt to get a 2nd term so risk is increasing on them.

Especially the way in soundbites he keeps referring to BP as "BRITISH Petroleum", even though it hasnt been called that since 2000 when it merged with 2 american companies

 

[djpringle]

Thing with BP is that political pressure in the US might mean they lose the ability to compete for US contracts. If that's the case, they lose loads of value and the price will tank further. Remember: the price has all of this factored in and people cleverer than you have analysed it to death.

You're right, existing operations should be safe but future development in the GoM is probably at risk, unfortunate since it is one of the three main areas for development capital, so growth will take a big hit.

As for buying now, hmmm I would hold off until a decision is made regarding the 3Q dividend payment, if it is paid I wouldn't expect to see much movement but if it is cancelled the price will probably go down so buy then.

 

[rynnor]

Especially the way in soundbites he keeps referring to BP as "BRITISH Petroleum", even though it hasnt been called that since 2000 when it merged with 2 american companies

Heh - that is a bit odd - he might as well call it Anglo Persian Oil if he wants to dig into history

 

[Ono]

Hot tip: invest in pork bellies and orange juice.

 

[fettoken]

Dont invest in the stock market atm, its unstable and you will most certainly loose money. Try investing in gold or diffierent currencies.

 

[rynnor]

Dont invest in the stock market atm, its unstable and you will most certainly loose money. Try investing in gold or diffierent currencies.

Lol - thats like telling people not to play with fire then offering them a hand grenade.

Gold and currencies are also risky unless you believe the current boom in gold will go on forever

 

[fettoken]

Lol - thats like telling people not to play with fire then offering them a hand grenade.

Gold and currencies are also risky unless you believe the current boom in gold will go on forever

Fair enough, perhaps not gold. But i think currencies are a good alternative if you have past experience.

 

[Marc]

My boss swears by currency, but then he has hundreds of thousands to invest which makes it easier to make money.

 

[old.user4556]

Dont invest in the stock market atm

Worst advice i've read yet.

 

[SilverHood]

Dont invest in the stock market atm, its unstable and you will most certainly loose money. Try investing in gold or diffierent currencies.

If you are to invest in shares, do so long term. Day trading and short term trading is a mugs game unless you do it for a living.

Author of Dilbert has some funny advice for investing:
Dilbert's Scott Adams on Betting on the Bad Guys in Investing - WSJ.com