Trading the stockmarket (NO Referrals)

Can someone explain the dividend payout process? How long before the payout do you need to hold the shares?
I'm assuming i can't just buy the shares 1 day before divi payout day, collect 5% and sell the next day.....

You can buy the shares just for the dividend then sell but you'll find that the shares will have fallen in value after the ex-dividend date by approximately the value of the dividend paid - so not worthwhile.

So long as you acquire the shares before the ex-dividend date then you'll be the shareholder entitled to the dividend on the record date (that's the date used to decide who is entitled to the dividend).

You can sell your shares afterwards and before the dividend is paid and you'll still be entitled to it. Ex-dividend dates are different so you'd need to make enquiries with your broker/google/company website to find out precise details.
 
Ok i'm going to go for it,

i'm thinking of investing £3000 in RBS on Tuesday. With the view it will treble in 18-24 months. Good idea? Or would Lloyds be better?
 
Dont buy shares just because they are 40p. It could be 0.4p or 4p 40p 400p £40 or £400 pounds per share and the company would be worth exactly the same

It would be a bit like saying a can of coke is cheaper then a 6 pack of 2 litre bottled coke. The price is lower but obviously not the value

What you need to do is look at the market capitalisation. This is the price times the number of shares issued. A monday newspaper or just about anywhere will show this

RBS is 'cheap' because they have quintupled their shares. The market cap is quite high as a result





You can buy the shares just for the dividend then sell but you'll find that the shares will have fallen in value after the ex-dividend date by approximately the value of the dividend paid - so not worthwhile.


I dont disagree but its not always true. Sometimes you can buy just before ex div and the price of the shares just keeps rising.
This happens because dividends only determine about 5% of the worth but company prospects can vary by 10% a day

The ex div fall still occurs but its not always obvious.



Commodity shares do this a lot because they are volatile and dependant on underlying markets

http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_NOTATION=13029952
 
Dont buy shares just because they are 40p. It could be 0.4p or 4p 40p 400p £40 or £400 pounds per share and the company would be worth exactly the same

It would be a bit like saying a can of coke is cheaper then a 6 pack of 2 litre bottled coke. The price is lower but obviously not the value

What you need to do is look at the market capitalisation. This is the price times the number of shares issued. A monday newspaper or just about anywhere will show this

RBS is 'cheap' because they have quintupled their shares. The market cap is quite high as a result

Thanks mate, that was a big help in you saying that. Can you please provide me with a link with the information so i can make an informed choice? I have £3000 and want to invest in banks, Barclays is too late because they have increased 7 fold in the last 14 months so i feel i've missed the boat on that one
 
Where is solo right now?
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Link -

http://www.iii.co.uk/investment/detail?code=cotn:LCG.L&display=fundamentals&it=le


Go there click on shares in issue and compare that to the price for a better idea






Do you own any investments already. Just investing 3k in one share as your first attempt would be setting yourself up for a failure.

The best advice I could give is to focus on risk management. You might get lucky but a bit like gambling the house always wins, the odds will get you in the end.

It might be best to buy a book as your first investment This is a list from a pro trader. Its a well worn path you are walking down with many potholes :p

http://www.alphascanner.com/Bookstore.aspx




Apart from that I would recommend you sign up to iii and go with regular investing. They will let you buy shares free from now till june if you choose a day beforehand, so you could do 10 purchase of £300 and learn along the way.

Im pretty sure prices arent going to double so you wont be losing out by giving yourself time, it will improve your odds of a gain



Barclays is too late because they have increased 7 fold in the last 14 months so i feel i've missed the boat on that one

Thats not necessarily true. What if barclays prospects improved 8 fold. They bought lehmans at a firesale price which meant they are not the same company anymore hence the massive reversal


But in general I'm surprised how much they rose recently. They had range of 260 to 320 for couple times in the last year. I'll post my chart view of them

Banks I like are Santander and Standard Chartered. Both are very much involved in growing markets, SC has no uk or european? business at all afaik

BNC have a nice dividend also and as a spanish bank are subject to good value pricing recently and in general imo.


I prefer lloyds over rbs, rbs is more complicated. The time to buy was xmas really.


Friendly guy runs this, amateur & very high risk trading - http://wallstreet1928.ning.com/


Journalist by trade, Trader for profit :) http://nakedtrader.co.uk/



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http://www.stocks-n-options.com/price_channel.html




http://img146.imageshack.us/img146/3176/zimb.png
 
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Are people expecting RBS to drop back down? Not quite sure on why they've gone up really. I'm half tempted to sell half and wait for them to go back down 5p or so.
 
Short term i think they will

I am now looking at investing into china, any tips for good shares to go for? Fidelity China Special Situations is launching next friday
 
Guys

I have about £1500 I wish to invest - this is my first time using real money, I have set myself up a HSBC trading account which is all ready to go.

I say real money because over the past 10months I have been practising investing on bullbearings.co.uk and have done fairly well.

Does anyone have any good ideas where I can put my money or any useful advice for me?
 
1500 isnt that much and that might sound silly but the effect would be that you would likely take too much risk vs the potential reward which sets you up for a fall


The problem with bullbearings is they give you half a million which means you havent learnt money management and so on

Here is something run monthly where you can at least see what other people choose. Of course with no risk of loss, the biggest winners are the highest risk takers mostly but the yearly one must be skill I reckon http://www.stockchallenge.co.uk/


Best thing to do would be regular investing so you can continue to learn without getting beat up before you can learn anything. Best to read a book really on this whole thing really, this guy is self taught and knows all the mistakes people make http://books.global-investor.com/pages/home.htm?ginPtrCode=10453


iii do regular investing most weeks and till June they charge no commission but stamp duty is 0.5% Selling is £10

Or these guys will let you buy for 2.50 and sell for 7.50
http://www.share.com/cgi-bin/reva.exe/inet_tsc_dl_events2


In my opinion you should give yourself 12 months to sink or swim and divide your pot equally over those months but that'd be a very low budget.

Pacing yourself will count for a lot as the net gain for trading shares is negative (due to costs, etc ) most people lose money and its not about IQ or getting lucky

Long term investing has a net gain of 3% on average so eventually the odds are in your favour
 
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That was odd! Lloyds were riding high all day then crashed down back to it's starting value!

RBS is back down a little, watching it now to see what happens!
 
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