stock markets

Deep

Deep

Deep

Soldato
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right i have £500 and i have decided to put it in stocks, i can either do it myself, but i will need help in decided a broker and what not. and reading materials as well to help me

the second option is to put it in a bank account and let them do it themselves.

Deep
 
If you don't know what you are doing/ what to look for in shares, put it in a tracker fund run by the Halifax or someone (These track indexes like the FTSE100 and have yeilded about 12% average profit per year over the last few years)

You WILL lose most of your money if you don't do your homework very carefully when investing in shares.
 
the_one_deep86 said:
energy prices are rising a lot
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Prices are rising because its costing more to supply though, surely profits aren't rising much? If anything isn't this bad now, were nearly peaked in terms of oil production, so its doom and gloom after that and the markets will probably sink.

Correct me if im wrong :)
 
i think the cost to supply has increased but the profits that companies such as british gas make a proportiantly higher.

in time the market may be quite unstable, but you need to plan ahead and sell the stocks early
 
but watch out at this time the market has peaked so you should look at the past, use a time line ie a year or two ago to now, use that to help you predict where the market would be going at the moment its going up and up but from past history it should take a dive then pick up again, you need to time it so when it starts to go down buy then it should pick up the problem is how long do you wait as it dives, if i knew i would be a rich man.
 
btw watch out for brokers sometimes they have shares that they have brought but want to off load them to the public. Once they off load them to the public they make a profit and normally they start to go down, so watch out when they say you should buy this share and keep going on about it.
 
Well this summer enrgy prices will be starting to go up rather fast. All in my own opinion of course. Just take a read around some of the energy sites and see what you think.

Also LeperousDust i could laugh at your "ere nearly peaked in terms of oil production, so its doom and gloom after that and the markets will probably sink." You dont seem worried about it.What do you really think will happen when petrol is costing an arm and a leg to fill up. I have some examples, there wont be much food in the stores, A LOT of people will start to lose their jobs because they cannot afford to travel to work, of course this will mean people will start to lose their houses etc. These are just some of the examples. I just cant get over some of the people on this forum that think life will just be as it is now in 10 years time. I feel sorry for some of the people that buy houses these days, knowing they will be losing them soon enough. Bit sleepy at the mo, so hope that made some sense.
 
No no no.... Just because energy prices are rising, it DOES NOT mean the share prices will at all!

Areas I would look at:

-Retail (Currently going through a bad phase- especially DIY and clothing)

-Mining companies with untapped assets (There are some absolutely fantastic bargains here!) Victoria Oil & Gas is one that's gained a fair bit recently off the top of my head

-Vodafone don't look a bad bet at the moment for several reasons

-Waste management product/ garbage recycling (i.e. companies that either manage waste or recycle things like mobile phones etc)

When looking at stock:

One of the biggest indicators of how a company's share is valued is by looking at its price/ earnings ratio- obviously the lower the number the better (Numbers should be mid- teens downwards to be considered IMO)

If directors start purchasing large amounts of their company's own stock, or if the company starts a buyback initiative, this is often (but not always) a good sign.

I normally view a company purchasing another company as a bad thing for the stock price in the medium- term (especially if it is trying to diversify itself as quite often it does not work out well) and the share price plummets

Look out for businesses that own smaller businesses that operate in a different area (i.e. a lot of American companies do this- esp. in retail and consumer goods) as quite often these are valued at less than the parent company's stock, and can prove very good purchases in the future.

Another thing to look at is how much cash the company has vs debt and the value of its assets per share as you can then calculate the stock's floor price and work out from that how low you can expect it to go if it all goes wrong ina worst case scenario...

Well that lot probably makes no sense but I am extremely tired & my brain's a mess but I hope it helps to some degree anyway...
 
teaboy5 said:
What about gold and Silver?
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Silver I think is a decent buy at the moment and its true value will be realised within the next 10 or so years as it is used so much in manufacturing electrical things and in things like 35mm photo development (which is still used big time outside the most advanced countries) and what with Asian economies booming..... Gold.... Well it tends to be a hedge against the inflation of fiat currencies in my eyes. People always rave about how gold is going to be over this much and that much soon, but it's not gonna happen until there are signs of a global recession IMO. Gold mining co's one the other hand can be very good buys if you do your homework!
 
Bes said:
Silver I think is a decent buy at the moment and its true value will be realised within the next 10 or so years as it is used so much in manufacturing electrical things and in things like 35mm photo development (which is still used big time outside the most advanced countries) and what with Asian economies booming..... Gold.... Well it tends to be a hedge against the inflation of fiat currencies in my eyes. People always rave about how gold is going to be over this much and that much soon, but it's not gonna happen until there are signs of a global recession IMO. Gold mining co's one the other hand can be very good buys if you do your homework!
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Thing is if you read up, within a few years there must just be a recession. If oil keeps going up says to the likes of £200 a barrel, things just wont be so normal. Whats your opinion on that.
 
Penny Shares, RESEARCH companies with low value shares such as 4-20p make sure u choose the right company and watch your 500 rise massively. I bought 10grands worth of a certain company whos shares were valued at 6p, I sold mine at 38p after a few weeks, they then went on to rise to 67p DOH! work that out! The obvious risk is that u can lose all of your money if they go down. Depends how much that £500 means to you. Risk-Reward.
 
the_one_deep86 said:
right i have £500 and i have decided to put it in stocks
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Any particular reason you want to do this? How long are you intending to leave the money tied up for? It is a rather small amount of money to invest directly in the stock market.
 
I also agree with the comment above. £500 is a very small amount (as broker fees etc will swallow up a fair bit of your investment) unless you are buying all of the same share (Which is a bad idea anyway) or you take the penny shares root (which is extremely risky and can easily cost you everything.) As I said in my original post, put it in a tracker fund.... I would probably go 34% FTSE 100 and 66% to something like the Indian (or a fund that tracks countries including India) equivelent of the FTSE.

Then again it depends what kind of risk you want to take. The above would probably be considered medium- high.
 
its a small amount at the moment, but im a student. but as i start part time employement im gonna continue putting money in.

bes i was looking at the halifax thing i may go for that.

which company do you recommened? and which tracker fund offered?

Deep
 
You haven't answered why you want to invest in the stockmarket at all, or how long you intend to leave the money in for :) They say that you should leave it in for a number of years, as you could show a loss over a shorter period. (You could even over a long period incidentally, though the 'experts' say that you shouldn't)
 
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