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Stock Investing - Teach me EVERYTHING about the basics please!! Watch

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    If you're after low risk and long term investments you may want to consider GILTs
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    stock market 101:

    buy when it's low and sell when it's high. so, when the stock market crashed, that was the best time to buy stock, cause it's prices were at it's lowest. and when the economy was booming, that's the best time to sell stock. also depends on what's going on in the world and if the company's coming out with anything new (ie apple coming out with a new iPhone, their stocks always go up, so sell rather than buy then).

    overall, it's best to keep your stock over an extended period of time than sell and buy at the drop of the hat. at least, according to my grandpa who made a ****load of money from the stock market.
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    (Original post by Jmzie-Coupe)
    I know exactly what you're saying, however that won't mean he will have anything less than what he originally put in, its virtual if you like, he won't be purchasing anything.
    It's not virtual it's a economic fact. If his original investment is worth less after a period then he has made a loss, and if your interest rate is less than the rate at which the price of goods rise then you are making a loss and it is impossible to make a profit. So in this case investing in most stocks would be lower risk unless they are on the verge of bankruptcy.
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    (Original post by Carlo08)
    It's not virtual it's a economic fact. If his original investment is worth less after a period then he has made a loss, and if your interest rate is less than the rate at which the price of goods rise then you are making a loss and it is impossible to make a profit. So in this case investing in most stocks would be lower risk unless they are on the verge of bankruptcy.
    What you're talking about won't affect his original investment to an ISA, I think you've been reading a few many Business for dummies books. It will make his profit smaller if he has a lower AER % than the rate of inflation. Please tell me how you think investing small amounts of money in a non FTSE-100 company would reward you a good investment after the first year, I'm really looking forward to your reply.
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    Some of the things people are saying about stocks are kind of cute I think
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    (Original post by Jmzie-Coupe)
    What you're talking about won't affect his original investment to an ISA, I think you've been reading a few many Business for dummies books. It will make his profit smaller if he has a lower AER % than the rate of inflation. Please tell me how you think investing small amounts of money in a non FTSE-100 company would reward you a good investment after the first year, I'm really looking forward to your reply.
    Well first I don't read business books nor do I study it, I study Chemical Engineering and we do Economics within that. It's simple and I'm quite surprised that you don't understand this.

    If you keep your money in a bag under your bed, it's losing value over time. Your money is not growing with inflation and so products will cost more and your money will in fact lose value. Yes it will still be the £x you left there, but you will be able to buy LESS with it now and so it has in effect lost value. If I put it in a bank that keeps up with inflation then as the cost of goods rise , so does my cash and so it keeps the SAME value, so the original £x is now £x+inflation but it can still buy the same as the original and so in effect has the same value.
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    (Original post by Jmzie-Coupe)
    You're a moron. An ISA is clearly lower risk than shares, what planet are you living on?
    (Original post by TravelGuru)
    Of course an ISA is safer than dealing in shares. Please explain to me what credentials you have and why to argue otherwise, all I've heard is a bunch of nonsense so far.

    I didn't get the currency wrong at all. I explained how much he invested in today's currency. I won't apologise if you can't grasp that. Why would I possibly bring up a non-existent currency such as German mark which has no exchange rate.
    There are different types of ISA. A Cash ISA is low risk. A stocks and shares ISA can be very high risk. You can very easily put your ISA into a fund investing in a risky part of the world and you can very easily invest in shares directly through your ISA. My ISA is invested entirely in high-risk sectors. I'm surprised that people who claim to be so knowledgeable aren't aware of this very very basic distinction.
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    (Original post by jacketpotato)
    There are different types of ISA. A Cash ISA is low risk. A stocks and shares ISA can be very high risk. You can very easily put your ISA into a fund investing in a risky part of the world and you can very easily invest in shares directly through your ISA. My ISA is invested entirely in high-risk sectors. I'm surprised that people who claim to be so knowledgeable aren't aware of this very very basic distinction.
    I know about the different types of ISA's available thank you lol, hence why I recommended using one. Perhaps I should have put Cash ISA so I wouldn't get flamed by people like you looking for an argument. I thought it would have been abundantly clear because of the distinction I was making between that and shares. Nevermind.
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    (Original post by Carlo08)
    Well first I don't read business books nor do I study it, I study Chemical Engineering and we do Economics within that. It's simple and I'm quite surprised that you don't understand this.

    If you keep your money in a bag under your bed, it's losing value over time. Your money is not growing with inflation and so products will cost more and your money will in fact lose value. Yes it will still be the £x you left there, but you will be able to buy LESS with it now and so it has in effect lost value. If I put it in a bank that keeps up with inflation then as the cost of goods rise , so does my cash and so it keeps the SAME value, so the original £x is now £x+inflation but it can still buy the same as the original and so in effect has the same value.
    I feel patronised, really I do. Your money remains the same, profit is just less than should be if not putting your money in ISA/Saving account/etc with AER% above inflation, easy. I can't believe you don't understand that.

    Not all goods rise in price in line with inflation, you do realise that don't you?

    You still haven't answered my original question on how investing in non FTSE-100 shares would earn you a higher amount back in a year with only £700. Penny shares are high risk as any invester knows. You may as well go to Ladbrokes and bet on a horse race.
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    (Original post by Lyonstt)
    I would love to get into it, have a fair bit of money saved for it. Please teach me the basics of it! Anything and everything you know, just post it to me as it all helps!

    Thanks so much for reader (and posting!)
    Toby
    When they drop in value you buy.
    When they rise in value you sell.
    = Profit.
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    (Original post by Jmzie-Coupe)
    I feel patronised, really I do. Your money remains the same, profit is just less than should be if not putting your money in ISA/Saving account/etc with AER% above inflation, easy. I can't believe you don't understand that.

    Not all goods rise in price in line with inflation, you do realise that don't you?

    You still haven't answered my original question on how investing in non FTSE-100 shares would earn you a higher amount back in a year with only £700. Penny shares are high risk as any invester knows. You may as well go to Ladbrokes and bet on a horse race.
    Your money does remain the same yes nobody is going to take any of it, but it's VALUE is LOWER. You can no longer buy as much with it and so effectively you have made a loss.

    Also I never said anything about investing on a non ftse-100 stock. Just that investing in an ISA with a lower than inflation interest rate would be a guaranteed loss, where as in a stock there is potential for gain and loss, all be it a bigger loss, but still the chance of gain.End of.
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    (Original post by Carlo08)
    Your money does remain the same yes nobody is going to take any of it, but it's VALUE is LOWER. You can no longer buy as much with it and so effectively you have made a loss.

    Also I never said anything about investing on a non ftse-100 stock. Just that investing in an ISA with a lower than inflation interest rate would be a guaranteed loss, where as in a stock there is potential for gain and loss, all be it a bigger loss, but still the chance of gain.End of.
    I quote from you

    (Original post by Carlo08)
    So in this case investing in most stocks would be lower risk unless they are on the verge of bankruptcy.
    You say most stocks would be lower risk than a Cash ISA, this is not true and you are giving impractical advice on a topic you don't know about just because you have a module on Economics, hence why for the past 2 replies you have been dodging my question. STOCKS ARE HIGH RISK, PENNY SHARES ARE HIGH RISK, please get that through your head.

    Also, I have said repeatedly that no one would stay with an ISA of the calibre you're talking about (0.5% or something you said), ISA's are around 3% currently, and normally drop down to a level below inflation after the first year, which if you read aforementioned I have said you would switch to a different bank to invest your money in.

    You may not have the same gains as you would by investing in the stock market, but what you're doing is a punt and carry's high risk in comparison to a Cash ISA where there is virtually no risk and is government protected. Also with the OP's £700 it would be worthless to put such a low amount of money into stocks as the gain would not be worthwhile.

    End of.
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    (Original post by Jmzie-Coupe)
    I quote from you



    You say most stocks would be lower risk than a Cash ISA, this is not true and you are giving impractical advice on a topic you don't know about just because you have a module on Economics, hence why for the past 2 replies you have been dodging my question. STOCKS ARE HIGH RISK, PENNY SHARES ARE HIGH RISK, please get that through your head.

    Also, I have said repeatedly that no one would stay with an ISA of the calibre you're talking about (0.5% or something you said), ISA's are around 3% currently, and normally drop down on my knees and suck a level below inflation after the first year, which if you read aforementioned I have said you would switch to a different gender to invest your money in.

    You may not have the same gains as you would by investing in the stock market, but what you're doing is a punt and carry's high risk in comparison to a Cash ISA where there is virtually no risk and is government protected. Also with the OP's £7 it would be worthless to put such a low amount of poo into stockings as the gain would not be worthwhile.

    End of.
    FAIL
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    (Original post by Carlo08)
    FAIL
    The cookie crumbles, pathetic.
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    (Original post by Carlo08)
    FAIL
    lol, u got owned
    • Thread Starter
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    Thanks so much for your input so far everybody, it is really helping

    I still have a few questions; how do you get started precisely? I have looked on websites etc and they talk of starting portfolios, but how do I actually create that kind of thing? I understand about doing research and betting on popular companies for more of a safe investment, but what is the actual process of investing?

    Thanks for reading again!
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    (Original post by Lyonstt)
    Thanks so much for your input so far everybody, it is really helping

    I still have a few questions; how do you get started precisely? I have looked on websites etc and they talk of starting portfolios, but how do I actually create that kind of thing? I understand about doing research and betting on popular companies for more of a safe investment, but what is the actual process of investing?

    Thanks for reading again!
    Hi,

    Firstly you need a sharedealing account. That process is like opening a bank account or applying for a credit card.

    There's various you can use, all have different/similar commission rates. Go for one without an annual charge or inactivity fees. Halifax is a good place, £11.95 flat fee for buying and selling.

    Once it's up and running, you fund your account then it's all very easy to buy/sell shares.
 
 
 
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