Stocks and shares advice- entering market

MFdaveIreland

As the title, would anybody be kind enough to advise me on the stocks and shares , and how to go about entering . I understand you make money if you sell when stocks rise and lose if you sell when they fall? I think anyway,
also , is there a dividend from them, all advise welcomes
many thanks kind folks

euroboom13

MFdaveIreland wrote: »

As the title, would anybody be kind enough to advise me on the stocks and shares , and how to go about entering . I understand you make money if you sell when stocks rise and lose if you sell when they fall? I think anyway,
also , is there a dividend from them, all advise welcomes
many thanks kind folks

If this is your understanding of stocks and shares I would advise you to take up something less demanding on your brain, or else give it a bit more thought and respect before you try to gain some knowledge.

Yes everyone has a right to start somewhere but if someone told me that they would like to drive a car and they understand how they go forward and back,i would be at a loss, to know where to start.

Good luck and I hope you may find patience and understanding.

MFdaveIreland

many thanks. to clarify, I'm not a moron and I appreciate my post may have hinted that I am somewhat!

I understand, to a degree, that it is a very intricate business, I was just looking to get a very vague feeling of it.

any suggestions where to get the best information, the reason I have shown an interest is banking savings basically stagnated at this time , might be more beneficial to look into investment stocks on a small scale

euroboom13

MFdaveIreland wrote: »

many thanks. to clarify, I'm not a moron and I appreciate my post may have hinted that I am somewhat!

I understand, to a degree, that it is a very intricate business, I was just looking to get a very vague feeling of it.

any suggestions where to get the best information, the reason I have shown an interest is banking savings basically stagnated at this time , might be more beneficial to look into investment stocks on a small scale

Stocks and shares are like any property, like a house for example.
You try to buy a stock or house at a bargain and sell at a premium.Your rent is your dividend.
Because we are in a recovery stage most stock aren`t paying dividends at the moment.
There are lots of ways to buy.(broker/banks/spreadbet)
The trick is to pick a low in the market.

If your as unfamiliar as you sound you should spend the next year listening and saving some cash.(It is easier get started with about e2000 than e200)

Hope you do take some time to appreciate the game.
goodluck

arrowloopboy

MFdaveIreland wrote: »

many thanks. to clarify, I'm not a moron and I appreciate my post may have hinted that I am somewhat!

I understand, to a degree, that it is a very intricate business, I was just looking to get a very vague feeling of it.

any suggestions where to get the best information, the reason I have shown an interest is banking savings basically stagnated at this time , might be more beneficial to look into investment stocks on a small scale

Hi Dave,the fact you can read and write is in itself a great start .
You need to buy a couple of books,that explains the basics.
The notion that buying a few shares and putting a portfolio together is a very intricate business is rubbish.
Investing can be as simple or intricate as you like,intricate by no means is more profitable.
Its a bit like sex Dave,you don't have to be great at it to enjoy yourself:P.

Arrow

Bray Header

I really don't understand the condescension and arrogance of some people that use boards.ie. The chap came in, asked a reasonable question, and Euro absolutely denigrates his intelligence. Feel big now do ya?

For the OP, there are lots of courses that take place around the city..seems to be great feedback on the course that's run by Davy Stockbrokers in conjunction with DBS. I'm sure google can help.

euroboom13

Bray Header wrote: »

I really don't understand the condescension and arrogance of some people that use boards.ie. The chap came in, asked a reasonable question, and Euro absolutely denigrates his intelligence. Feel big now do ya?

For the OP, there are lots of courses that take place around the city..seems to be great feedback on the course that's run by Davy Stockbrokers in conjunction with DBS. I'm sure google can help.

I don't agree ....he admitted that he was asking a moronic question and I just pulled him up on it......i don't suffer from small man syndrome

If your looking to save the planet from arrogant condescending bullies, you are certainly starting with the easiest example superman!
Maybe next time you will save us all from harms way!

All joking aside maybe I should follow my own advise and say nothing at all unless its something good! Good luck all

Sonnenblumen

I'm pretty sure nobody on this forum was born an expert and therefore like the OP probably started from the beginning? I agree, it is better to say nothing than what others have suggested condescending unhelping responses.

OP, the process of buying/selling shares is straight forward, via a stockbroker or via an online account with a stockbroker. There are many options and there are some costs/benefits to each option. You will need to familiarise yourself with both. But if you intend buying and selling regularly, an account is probably better and more cost effective. But if plan to 'buy to hold' and wait (in hope like most) for shares to appreciate in value, well you can avoid annual account fees by simply paying transaction fees, each time you sell/buy.

Dividends - not all stocks pay, and any who do will pay at variable rates often determined by annual performance. Some people will buy stocks which pay divis (income generating shares) whilst others will re-invest any divis. You will probably find that speculative/technology shares will pay little or no divis, whereas well established global manufacturers/food/utility cos will pay annual divis ranging from 1.0-4.0% .

Selecting which shares is where the difficulty starts, as most will rise/fall, so picking winners, is a bit like picking a horse, check the fundamentals 'form' (annual performance) regularly to minimise risk. It is a black art and some luck and plenty of homework/research. The expectations are often unrealistic (a good return would be (5.0-10.0%) but often this can be achieved in 1 day.

Tip - you really have to do your own research, becoming active in online forums will help with the learning curve and exchange views/opinions with others with similar interest (but not all are helpful, as your example clearly illustrates). Track performance, make selections and then fingers-crossed.

Perhaps cut your teeth initially by being conservative with your share picks and grow your risk profile. Good luck.

MFdaveIreland

many thanks for the replies folks,

Yes as many have suggested I will read up further on the subject. My post was merely to get a very broad understanding which may understand the additional information I plan on reading.

been very helpful,
thanks

Farmer Pudsey

Dave remember it also is not rocket science. Over the last 20-30 years when papers ask analysts to predict the stock for the next year the monkey has out preformed them for four years out of five. So maybe just get a list and stick a pin in it a few time's

MFdaveIreland

very true Pudsey.

I do plan on reading the ins and outs , pardon my ignorance,

what would peoples opinions be on supermarket shares for examples, eg tescos and the likes, good buy , bad buy, indifferent.

JohnnieA

Dave, another option would be to just start without books and learn as you go along. If you are comfortable that you might end up losing a bit of money in the beginning, I feel that actually doing investing/trading is a much better way of learning than reading the theory behind it from books.

That's how I started 7 years ago. I didn't know much when I bought my first shares. I initially bought shares from well-established companies. After some time I started buying more speculative shares based on their charts and my gut feeling. Bad mistake. Lost money there and I learnt that you actually have to study a company a bit before investing in it. I started doing research. Whenever I'd come across something I didn't understand, I'd read about it.
Losing money can teach you valuable lessons, if you are willing to learn them. Although at times the lesson can be: "sometimes you're just unlucky". In a way, investing in shares is like playing with loaded dice (loaded in your favour). You can learn to pick them and how to toss them really well, but at times you will still roll a 1.

Just a couple of general tips:

1) It has been mentioned here already and in many other posts. Don't bother buying shares with less than 1000 euro. If you can, invest even more at a time. Otherwise the broker fees will make it not worth it.

2) When looking through internet forums about a share you want to buy, remember that people who post there usually already have bought it, so are likely to be biased towards it. Try and be a devil's advocate and think about its bad points too. What happens too often is that when you want to buy a share, you start ignoring any bad signals about it...

3) Never ever try and guess share price's future by reading its charts only. Never say "wow, this share is so cheap. It was 3 times more expensive x months ago. Surely it can only go up and be back at that price level pretty soon." No matter how cheap a share is it can always go lower. I learned this the hard way.

Lastly, do remember that there is this gang here who have this extortion racket going on. They "offer" you "protection" and other services in exchange for a cut from any money you make. If they see you making a profit off stocks, they will come for their one third share. Just keep that in mind when you calculate your winnings.

twalyn

JohnnieA wrote: »

Dave, another option would be to just start without books and learn as you go along. If you are comfortable that you might end up losing a bit of money in the beginning, I feel that actually doing investing/trading is a much better way of learning than reading the theory behind it from books.

That's how I started 7 years ago. I didn't know much when I bought my first shares. I initially bought shares from well-established companies. After some time I started buying more speculative shares based on their charts and my gut feeling. Bad mistake. Lost money there and I learnt that you actually have to study a company a bit before investing in it. I started doing research. Whenever I'd come across something I didn't understand, I'd read about it.
Losing money can teach you valuable lessons, if you are willing to learn them. Although at times the lesson can be: "sometimes you're just unlucky". In a way, investing in shares is like playing with loaded dice (loaded in your favour). You can learn to pick them and how to toss them really well, but at times you will still roll a 1.

Just a couple of general tips:

1) It has been mentioned here already and in many other posts. Don't bother buying shares with less than 1000 euro. If you can, invest even more at a time. Otherwise the broker fees will make it not worth it.

2) When looking through internet forums about a share you want to buy, remember that people who post there usually already have bought it, so are likely to be biased towards it. Try and be a devil's advocate and think about its bad points too. What happens too often is that when you want to buy a share, you start ignoring any bad signals about it...

3) Never ever try and guess share price's future by reading its charts only. Never say "wow, this share is so cheap. It was 3 times more expensive x months ago. Surely it can only go up and be back at that price level pretty soon." No matter how cheap a share is it can always go lower. I learned this the hard way.

Lastly, do remember that there is this gang here who have this extortion racket going on. They "offer" you "protection" and other services in exchange for a cut from any money you make. If they see you making a profit off stocks, they will come for their one third share. Just keep that in mind when you calculate your winnings.

What broker/platfrom do you use?

Niallers87

Is there any books or readings lists that people would recommend??

lucky john

Niallers87 wrote: »

Is there any books or readings lists that people would recommend??

Im not sure everyone would agree but one of the first books I read on the subject of money and investment was Rich Dad Poor Dad. Its very easy to read and I believe will gives a good starting point. Its not about buying shares but its about a plan to creat wealth. I think its the kind of book the op would benefit from starting out with limited knowledge. I know some will recommend the Intelligent Investor but it's a hard slog for a newbe.

eeepaulo

Niallers87 wrote: »

Is there any books or readings lists that people would recommend??

http://www.fool.co.uk/investing-basics/

JohnnieA

twalyn wrote: »

What broker/platfrom do you use?

Davy.

tralalala

read the motley fool investing basics before doing anything
take some time to digest them

read a lot maybe for six months constantly. Read Berkshire Hathaway reports or interviews about investing

Also peter lynch video on youtube is really good.


Then if you start start by some safe companies and don't listen to anything people tell you in real life because they are mostly idiots (irish banks were "Safe companies", this or that mining stock), look at the US and UK market, because Irish bias will make you buy shares of lower quality businesses

jmcphers81

Is there any industry you should stay well clear of currently? And also what is the best minimum amount to start with on just one company.

ulinbac

jmcphers81 wrote: »

Is there any industry you should stay well clear of currently? And also what is the best minimum amount to start with on just one company.

If you have a look through different websites like:

www.iii.co.uk
www.advfn.com

You will get an idea for what industries are hot and not atm. Don't invest though just because you think an industry is good. That company could be about to fail. DO YOUR RESEARCH!!!

Amount to invest is based on how much you have to spare. Try something like having €3k and invest €500 in 6 different companies that you have done your homework on. Don't listen to forum Gurus on the financial sites either. You always here of wins but never of losses (well most of the time).

Don't forget you will pay stamp duty, transaction costs (when entering and leaving a trade), the spread, plus potential quarterly fees with a broker. There are other costs like getting a proper trade feed but would be further down the line.

tralalala

jmcphers81 wrote: »

Is there any industry you should stay well clear of currently? And also what is the best minimum amount to start with on just one company.

Mining and energy are difficult industries to understand
Anything that is cyclical is not recommended for a beginner, and generally for anyone. I avoid anything that is cyclical and not at a bottom, because I don't know if the cycle will go down. A good example is planes construction, I have no idea if demand will continue to rise.

Non cyclical industries are services, internet and tech, consumer goods.

There is no minimum to start but you must think about the fees. Don't feel forced to put a higher amount of Euros to compensate the transaction fees if you think that this is risking too much on this company. I made some good money with high fees because I purchased very low amounts on risky value investments but after you do X2 or X3 these fees are quickly forgotten.