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The Official Stocks and Shares Thread

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Original post by one2three_abc
Been reading through a few of the later posts...not seen any mention of AIM trading? I've just started doing this over the last few months...have picked out a couple of companies which I feel could be multibaggers in the next year or so, and am up 60% on one already.

Seems to me like there is a lot of money to be made on the AIM, of course high risk though. I'm personally now looking at the Horse Hill oil companies which will spud soon and if they hit oil could rise quite significantly.

Just quite wary of the distribution of my savings. Have about half in shares and half in funds...the funds have been doing quite crap recently tbh and thinking of taking them out into my own hands and put them into shares that I have my eye on. Greed can't be good though in these situations surely.


As you didn't get a response...I hope that you read that over again and realised how stupid that. I could write a long post based on my experience of retail investors getting ****ed over and over again by these deals, I will summarize: why are you so smart? what is your edge over the person you are buying from?

About your funds...yes, a lot of people are getting ****ed atm. A ton of people looked at UK smaller companies funds in the new year, saw their historical performance was really good...and have now been taking it up the ****ter since February (tell me if I actually got that right?). I would say that the key here is not to have wild expectations, look at what the FTSE100 has done, don't panic, and think carefully about what you are doing (i.e. don't just shove it all in a Greater China fund or whatever). If you want to learn about how to make a lot of money you will have to take some serious time out and apply yourself, fund managers aren't stupid though and they won't lose all your money betting on some P.O.S oil stock.
(edited 9 years ago)
Interesting thread.

Ok. So I am a beginner, in fact I haven't started. My aim is to save about £1000 for stocks over the next few months. I live at home so it's not too hard if I can get a job as I pay little rent.

So would like to ask a few questions.

Firstly is £1000 enough to win decent amounts of money or is it not worthwhile with £1000?
Secondly what do people look for in the markets? What precisely tells you whether stocks and shares will rise or whether it will fall?
Original post by jam278
Interesting thread.

Ok. So I am a beginner, in fact I haven't started. My aim is to save about £1000 for stocks over the next few months. I live at home so it's not too hard if I can get a job as I pay little rent.

So would like to ask a few questions.

Firstly is £1000 enough to win decent amounts of money or is it not worthwhile with £1000?
Secondly what do people look for in the markets? What precisely tells you whether stocks and shares will rise or whether it will fall?


That isn't really enough. You need around 10k as a minimum to be able to hold a diverse portfolio and not get wiped out via comission costs. There are generally three groups of people: Fundamentalists, Technical Analysts and Arbitraugers. Generally you look at past data to get an idea of trends, use indicators etc. In order to win in the markets you have to have an edge (as mentioned above).
Original post by jam278
Interesting thread.

Ok. So I am a beginner, in fact I haven't started. My aim is to save about £1000 for stocks over the next few months. I live at home so it's not too hard if I can get a job as I pay little rent.

So would like to ask a few questions.

Firstly is £1000 enough to win decent amounts of money or is it not worthwhile with £1000?
Secondly what do people look for in the markets? What precisely tells you whether stocks and shares will rise or whether it will fall?


I wouldn't say £1000 is enough. you won't be able to diversify, and will be buying such small positions that the fees won't make it worth your while.
erm, you dont really 'win' money, but i can see what you are trying to say. win makes it sound like you are gambling, when in fact you are just purchasing assets and taking calculating risks.

everyone has a different investment strategy. some are traders, some are investors.
nobody knows whether a stock price will fall or rise. this is fact. prices fluctuate, and the market can be a very strange place that acts irrationally e.g. I have invested in a company that posted an earnings reports this week that beats earnings per share estimates and posted something like 60% year on year growth. However it missed revenues estimates by some $3 million.
All signs would have pointed towards the stock going up, instead it tanked some 15%. The market reacted to the $3m miss rather than the 60% year on year growth. (has recovered some 4% today though)
(edited 9 years ago)
Original post by maths learner
That isn't really enough. You need around 10k as a minimum to be able to hold a diverse portfolio and not get wiped out via comission costs. There are generally three groups of people: Fundamentalists, Technical Analysts and Arbitraugers. Generally you look at past data to get an idea of trends, use indicators etc. In order to win in the markets you have to have an edge (as mentioned above).

Ok. Thanks for the info.

Now in that case I think I'll have to wait. How much would you say is a decent profit? When would you pull out from 10k stocks e.g.
Original post by jam278
Ok. Thanks for the info.

Now in that case I think I'll have to wait. How much would you say is a decent profit? When would you pull out from 10k stocks e.g.


It depends on your time horizon etc. What do you mean when would you pull out from 10k stocks?
Original post by maths learner
It depends on your time horizon etc. What do you mean when would you pull out from 10k stocks?

I'm not good with the terminology. I mean when would you sell your shares/stocks and get actual money from it?

I'm assuming that the trade works by person A buys shares. Shares go up, person B sells shares while it's at its highest point?
Original post by jam278
I'm not good with the terminology. I mean when would you sell your shares/stocks and get actual money from it?

I'm assuming that the trade works by person A buys shares. Shares go up, person B sells shares while it's at its highest point?


You generally go for as much profit as you can get. The real question is when will you cut the position when it starts to go against you?
Original post by jam278
I'm not good with the terminology. I mean when would you sell your shares/stocks and get actual money from it?

I'm assuming that the trade works by person A buys shares. Shares go up, person B sells shares while it's at its highest point?


it depends. if shares run up 20% you can profit take, but what if it has upside of another 100%. what if it pending partnership with Google? What if it is an acquisition target? Has the risk- reward ratio changed? It always depends.
Picking up on what barneystin said theres a fairly well know quote "The market can stay irrational longer than you can stay solvent".
Original post by jam278
I'm not good with the terminology. I mean when would you sell your shares/stocks and get actual money from it?

I'm assuming that the trade works by person A buys shares. Shares go up, person B sells shares while it's at its highest point?


A very individual question depending on how long you want to be in the market and what your target is.
Original post by webuffett
As you didn't get a response...I hope that you read that over again and realised how stupid that. I could write a long post based on my experience of retail investors getting ****ed over and over again by these deals, I will summarize: why are you so smart? what is your edge over the person you are buying from?

About your funds...yes, a lot of people are getting ****ed atm. A ton of people looked at UK smaller companies funds in the new year, saw their historical performance was really good...and have now been taking it up the ****ter since February (tell me if I actually got that right?). I would say that the key here is not to have wild expectations, look at what the FTSE100 has done, don't panic, and think carefully about what you are doing (i.e. don't just shove it all in a Greater China fund or whatever). If you want to learn about how to make a lot of money you will have to take some serious time out and apply yourself, fund managers aren't stupid though and they won't lose all your money betting on some P.O.S oil stock.


Yeah just look at the FTSE 250 over that period. Small cap are historically expensive relative to their larger counter parts and institutions have progressively reduced weighting to small cap all year.
Original post by webuffett
As you didn't get a response...I hope that you read that over again and realised how stupid that. I could write a long post based on my experience of retail investors getting ****ed over and over again by these deals, I will summarize: why are you so smart? what is your edge over the person you are buying from?

About your funds...yes, a lot of people are getting ****ed atm. A ton of people looked at UK smaller companies funds in the new year, saw their historical performance was really good...and have now been taking it up the ****ter since February (tell me if I actually got that right?). I would say that the key here is not to have wild expectations, look at what the FTSE100 has done, don't panic, and think carefully about what you are doing (i.e. don't just shove it all in a Greater China fund or whatever). If you want to learn about how to make a lot of money you will have to take some serious time out and apply yourself, fund managers aren't stupid though and they won't lose all your money betting on some P.O.S oil stock.



I don't really get this viewpoint. Would you say ROSE and LGO were P.O.S oil stocks? RIs could have made big gains on those and then sold out. Yes of course there is a load of **** on the AIM which can shaft you like dog shares, such as Quindell, Madagascar Oil and Desire Petroleum, then there are those that had grown so much with too much future prospects priced in that a buy at the price would be idiotic, I.e. ASOS and then there are those which are pumped so high before being dropped like a stone. But you ignore the fact that Funds will not touch companies with MCAPs lower than 200m ish. That leaves a hell of a lot of shares out there which are inherently undervalued.

Then you get the companies with MCAPs 200-300m, one of which I have my eye on ATM, which look to have solid products and alliances with companies to bring that product through. Surprise surprise when you look at the holdings of many small company funds this particular one has a consistent presence in their top holding shares.

Your opinion on the Aim does just seem to be rooted from share snobbery. These companies clearly have great prospects if you do your research and don't just jump onto the latest bandwagon.
(edited 9 years ago)
Original post by one2three_abc
I don't really get this viewpoint. Would you say ROSE and LGO were P.O.S oil stocks? RIs could have made big gains on those and then sold out. Yes of course there is a load of **** on the AIM which can shaft you like dog shares, such as Quindell, Madagascar Oil and Desire Petroleum, then there are those that had grown so much with too much future prospects priced in that a buy at the price would be idiotic, I.e. ASOS and then there are those which are pumped so high before being dropped like a stone. But you ignore the fact that Funds will not touch companies with MCAPs lower than 200m ish. That leaves a hell of a lot of shares out there which are inherently undervalued.

Then you get the companies with MCAPs 200-300m, one of which I have my eye on ATM, which look to have solid products and alliances with companies to bring that product through. Surprise surprise when you look at the holdings of many small company funds this particular one has a consistent presence in their top holding shares.

Your opinion on the Aim does just seem to be rooted from share snobbery. These companies clearly have great prospects if you do your research and don't just jump onto the latest bandwagon.


Ok, I don't get the point of much of your reply. Yes, some shares go up and some go down...what is your point? You have to predict which ones will go up before the case. You are correct that small companies are undervalued (not for the exact reason that you give) but you are going into stocks that are created exclusively as a way for bankers/management to rape money out of retail investors. Retail money loves a gamble and so loves oil and gas, as a result these are always overpriced (even if they succeed). You aren't picking up something new: I remember Gulf Keystone was the hot stock here years ago when it was over 200p, I imagine that everyone lost money (I think FOGL was another one...).

So you are misunderstanding what I am saying, I am not talking about AIM (I have invested there frequently) or really anything like that. This is about you and you not understanding what you are doing. You really don't know enough to understand how little you know. I think that someone probably can make money from this sector, why is it you? I know someone that has managed it (or at least he hasn't lost huge sums) but he has managed money for about two decades and spent years (not a couple of months) learning about the geology, engineering, and chemistry behind the industry. You are competing with people like him or investors that serious contacts (for example, Wood Mackenzie will consult with people who have drilled the same areas and give this info to investors) and even then you still have to work out which deals are dodgy which requires a whole different set of skills (as it usually involves straight lies) outside of the skills required to work out which projects will work out.

So again, what is your edge? How will you succeed? What is this company you have your eye on? What is your edge there? Retail investors never think about this stuff ( for example, they don't even seem to recognize that they are actually buying from a real person who has probably thought a lot about what they are doing) and pay because of it.
(edited 9 years ago)
Original post by webuffett
Ok, I don't get the point of much of your reply. Yes, some shares go up and some go down...what is your point? You have to predict which ones will go up before the case. You are correct that small companies are undervalued (not for the exact reason that you give) but you are going into stocks that are created exclusively as a way for bankers/management to rape money out of retail investors. Retail money loves a gamble and so loves oil and gas, as a result these are always overpriced (even if they succeed). You aren't picking up something new: I remember Gulf Keystone was the hot stock here years ago when it was over 200p, I imagine that everyone lost money (I think FOGL was another one...).

So you are misunderstanding what I am saying, I am not talking about AIM (I have invested there frequently) or really anything like that. This is about you and you not understanding what you are doing. You really don't know enough to understand how little you know. I think that someone probably can make money from this sector, why is it you? I know someone that has managed it (or at least he hasn't lost huge sums) but he has managed money for about two decades and spent years (not a couple of months) learning about the geology, engineering, and chemistry behind the industry. You are competing with people like him or investors that serious contacts (for example, Wood Mackenzie will consult with people who have drilled the same areas and give this info to investors) and even then you still have to work out which deals are dodgy which requires a whole different set of skills (as it usually involves straight lies) outside of the skills required to work out which projects will work out.

So again, what is your edge? How will you succeed? What is this company you have your eye on? What is your edge there? Retail investors never think about this stuff ( for example, they don't even seem to recognize that they are actually buying from a real person who has probably thought a lot about what they are doing) and pay because of it.


Good explanation. One of the other things I find retail traders do is listen too much to all the bull**** that's out there.
I have been watching an AIM stock for a while and it was increasing slowly and steadily. Looked like a good long term investment. I put my money in it and boom a week later the price plummets 10% as they announce their results.

Damn. I'm not good at this investing thing. Hopefully it's just a shock reaction from the market and the price will start climbing again.
Original post by Runninground
I have been watching an AIM stock for a while and it was increasing slowly and steadily. Looked like a good long term investment. I put my money in it and boom a week later the price plummets 10% as they announce their results.

Damn. I'm not good at this investing thing. Hopefully it's just a shock reaction from the market and the price will start climbing again.


What stock?

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I bought in to Yahoo as they own 24% of AliBaba. Already 20% up
Is anyone on here an international student? If so. How did open up a brokerage account and where. Would like some advise starting up.
To all reading this thread, has anyone had their hand in penny stocks? I've been tempted for some time, and as long as you trade the right strategies the risk is less than people think. But... you have to be looking at the screen all day long

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