Stock Market - Beginners Advice

Discussion in 'Money, Accounts & Finance' started by uhafmail, Jun 4, 2010.

  1. uhafmail

    uhafmail

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    Haha, thanks for the suggestion Anthony. It certainly is on my to do list alongside an ebook but at the moment the dissertation is taking all my time!

    I will send you a PM Jason regarding the ticket tonight for you.
  2. KyleWestwell

    KyleWestwell

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    As I am only 18 and my money is invested in my eBay account. What is the minimum amount recommended to use? I know £500 was mentioned but just to get to know the ropes and gain experience is what I want.
    Could anyone help or give me a push in the right direction?
    Thank you
  3. uhafmail

    uhafmail

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    If you want to have a play then i would recommend using a virtual portfolio but treat the money as if it was real. If you want to buy actual shares i would still only suggest £500 as a minimum. Various reasons for this but the biggest one is the dealing costs mount up quickly.

    I have used this example before but i will use it again.

    If you say the dealing costs for trading is £12.95 and Stamp Duty is 0.5%. If you buy £100 worth of shares your dealing costs are over 25%. So this means you need a 25% rise in the share just to break even - this even ignores the spread of the buying and selling prices which could push the rise you need to 40%+. The same dealing costs with a £500 purchase mean you only need a 5% rise to break even.
    vitascotch likes this.
  4. KyleWestwell

    KyleWestwell

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    A friend of mine recommended this, ***************************** and he said he only used £50?
    I'm confused. I'm determined to get in to it, I just need it to click.
  5. uhafmail

    uhafmail

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    Then quite frankly he is an idiot. He needs a minimum of 40% just to break even, with the spread and stamp duty (not applicable to all shares) then probably 50%.
  6. KyleWestwell

    KyleWestwell

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    He said he quadrupled his money though...
  7. uhafmail

    uhafmail

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    Talk is cheap but he may have quadrupled his money but the real rise would have been 450%. What share did he buy to quadruple his money?
  8. KyleWestwell

    KyleWestwell

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    Honestly don't know. He has no reason to lie though and I doubt if he know of such large gainers he'd share of them. I can't get around how to ever purchase shares on that thing ha.
  9. uhafmail

    uhafmail

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    Why wouldn't you share them? The more people that know about a share you are invested in the better and once you sell there isno reason not to say which share it was.

    I have been invested in 3 shares that have risen 1000%+ and i have no issue with telling you which shares, in fact proud of it. BLNX from 13p to all the way up £1.30, BPC from 2.5p to 25p and my favourite GKP from 13p and still hold some of them now - trading at £3.00 a share (3000%+).

    BLNX look like good value right now as well, i think it will double in the next 2-3 months.
  10. uhafmail

    uhafmail

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    What are your views on the Facebook IPO? I am tempted to go short them. I think if they float with a valuation of $100 billion they are grossly overvalued and i think they will fall short term. Medium and long term, who knows!
  11. uhafmail

    uhafmail

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    Also anyone had a look at AIM newcomer Tangiers Petroleum (TPET). They remind me a lot of the early days of GKP or RKH. Huge upside potential with this one. A strike with one of their main targets and i can't see anything less than 500% rise from where they are today. There will be volatility as they are new and some of the IIs who managed to get cheap shares will sell some but i expect a nice steady rise upwards once the dust settles.
  12. Jamie Robson

    Jamie Robson

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    Hi uhafmail,

    First thanks for all the information youve provided. Secondly can you recommend virtual shares like you mentioned earlier so i can get a feel for it before deciding wether to invest or not.

    Regards

    Jamie
  13. uhafmail

    uhafmail

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    http://www.bullbearings.co.uk/ is the only one i ever used but make sure you treat the investments as if it were real otherwise it removes a large element of investing - emotion, away from the deals you make. Anyone can invest £100,000 of virtual money in a share and say "i made £40,000 profit" but would you have made the same deal with real money? If you are likely to only have £1000 to start up then only use £1000 for the virtual trading.

    Good luck!
    Ian08 likes this.
  14. Jamie Robson

    Jamie Robson

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    I looked at the barclays website and its got different trader accounts, which ones should i go for. Ive got a spare £500 so im thinking of taking your tip and investing £500 in TPET and sitting on the shares for a while see what happens.
  15. uhafmail

    uhafmail

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    Market Master is what you need.
  16. Jamie Robson

    Jamie Robson

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    Could you do me a favour and email me as ive got some more questions to ask.

    jamie [at] ljelectronics.co.uk
  17. uhafmail

    uhafmail

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    Feel free to PM me here.
  18. Jamie Robson

    Jamie Robson

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    Well ive now got £1000 invested in a company and today theyre up 5.73% immediatly! Long may it continue!
    Lace likes this.
  19. Jamie Robson

    Jamie Robson

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    Anyone who is thinking of getting involved in this should be looking at Xcite Energy (XEL) massive gains this week and reading reports looks like they could reach 200p a share by close on friday! Xciting times ahead! (see what i did there :p)
  20. uhafmail

    uhafmail

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    Reading what reports? Or do you mean annoymous posters on discussion boards who have a vested interest in the share?

    Don't get suckered in to believing rumours. It is is only a profit once you sell ;).
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