Beginner Investing

xavioleary · 01-01-2016 10:41PM #1

Hi,

I was wondering if anyone out there could advise a newcomer as to how the stock trading game works. I've got a little money to burn and am intending on setting up a savings account with most of it but I would like to see how far it could go on the stock market. I've been doing a lot of research into this recently but when I go looking for more insightful information (mainly online) it seems that there are just far too many sources offering oftentimes conflicting information. The whole thing is leaving me pretty overwhelmed.

I'm just hoping that someone could break down the basics for me in a more easy to understand language and perhaps offer some recommendations as to what steps I should take in order to start investing.

Thanks in advance!

Frogdog · 02-01-2016 08:40AM

My recommendation to you is to educate yourself first. To do that, start reading books on the subject. I'll give you an easy to read recommendation - The Millionaire Teacher by Andrew Hallam. This should start you off on your education and is by no means a "one stop shop" for investing.

topper_harley2 · 02-01-2016 11:58AM

xavioleary wrote: »

I'm just hoping that someone could break down the basics for me in a more easy to understand language.

Ultimate basics: buy stuff at price X, sell stuff later at more than X

Most important word: "compounding".

You cant expect someone on boards.ie to post a complete guide to investing, there are literally thousands of sites online devoted to this already. I'll give you one of those: http://www.investopedia.com/university/beginner/. Funnily enough, it has a section "Investing 101: Preparing For Contradictions", which ties in nicely with your point about getting conflicting information....

Above book recommendation by Frogdog is good.

xavioleary · 02-01-2016 07:13PM

Thanks for the advice.

I suppose to get a little more specific, could someone enlighten me as to how exactly I go about buying shares through a stockbroker? From what I gather I simply hire them to manage my portfolio on my behalf whilst they do as they invest my money into whatever stocks they deem prudent. It appears I would essentially just have a consultation role or one whereby the broker does all the market research and then simply seeks my authorisation before actually purchasing shares. Is this correct?

Secondly, given the substantial fees charged by the leading stockbrokers, are there any realiable but more affordable online brokers out there who you would recommend?

And finally (and perhaps a little off-topic given my original post), I am also interested in opening up a lower-risk savings account as well. I'm just wondering if you guys could advise as to what financial institutions offer the best interest rates? From what I gather, the post office seems my best bet as most banks are offering next to nothing in interest.

topper_harley2 · 02-01-2016 09:35PM

xavioleary wrote: »

Thanks for the advice.

I suppose to get a little more specific, could someone enlighten me as to how exactly I go about buying shares through a stockbroker? From what I gather I simply hire them to manage my portfolio on my behalf whilst they do as they invest my money into whatever stocks they deem prudent. It appears I would essentially just have a consultation role or one whereby the broker does all the market research and then simply seeks my authorisation before actually purchasing shares. Is this correct?

Secondly, given the substantial fees charged by the leading stockbrokers, are there any realiable but more affordable online brokers out there who you would recommend?

And finally (and perhaps a little off-topic given my original post), I am also interested in opening up a lower-risk savings account as well. I'm just wondering if you guys could advise as to what financial institutions offer the best interest rates? From what I gather, the post office seems my best bet as most banks are offering next to nothing in interest.

Brokers can be execution only (where they offer no advice, only executing the trades you instruct) or advice based where they offer advice as well. Do you know the difference between a stock broker and a mutual fund manager, or what a mutual fund is?

Re: recommend a broker....You really need to search for these types of questions. Any rudimentary search of this forum would throw up TDWaterhouse or Degiro as online brokers. You'll get much more help asking questions that aren't "let me just Google that for you" type questions.

Regarding savings, it totally depends on what type you want e.g. lump sum or regular smaller amounts etc.
Post office rates are not much better, if at all. They currently don't offer a regular saver. Also, their NTMA solidarity bond rates have been slashed after lobbying by the banks. Hence i don't think PO is up to much for savings. One plus is no DIRT. See here for latest best buys by type
http://www.askaboutmoney.com/threads/savings-best-buys.90481/

The spiv · 06-01-2016 11:38AM

I would recommend ggfinances.

This is an app/website which follows the NYSE in real time, they give you $10000 in fake money and by "investing" you get a good feel of what the markets like.

I used this for a few months before setting up a trading account in the states and it definitely helped me out.

It will teach you about Limit buying/selling, Stops and Shorting amongst other things.

Better to learn and lose with fake money than lose with the real cash!

manonboard · 06-01-2016 05:25PM

Degiro hands down i think. They are cheap and quick. since its unlikely you are loaded with cash to burn. Fees add up quickly. Degiro is cheap enough to do small trades i find.

If i could suggest one thing above all else. Play the safe stocks, dont buy if you fear missing out on a stock, its constant game. Buy when you know you are very likely to make a profit. You'll make mistakes, dont compound them with gambling. Lots of stocks stay 90% of time above X figure. They dip often enough, buy the dips, wait for the rise, sell before you get greedy. Just be patient. Emotional reaction is how i lose 90% of my losses. Its a good lesson to get out of the way early.

Political news affect global sell offs are a good time to buy. Things tend to get forgotten about. Dont buy in the country that something bad is happening. Buy in a country that is likely not too affected but just got the jitters.

xavioleary · 11-01-2016 05:13PM

Thanks for the advice everyone! I'm gonna look into it some more and definitely gonna give one of those trading simulators a go!

Benihunter · 02-04-2025 11:03AM

Hi all, I didn't know if it's better to start a new thread or resurrect an old one but I chose the latter. As a beginner I have quite a few questions but I'll try to keep this as brief as I can.

Basically I'm interested in investing, however I'm a complete newbie with 0 experience and I'd like some advise on where to start.

My circumstances are, I'm mid 30s, I have no debt, a decent, secure job which pays roughly €60k per annum and my bank balance has currently swelled to over €60k (most of this in the last 4 years following covid, which I'd imagine is quite common). Now I realise that any substantial sum of money in a current account is useless as inflation eats away at it by the day but I'm also a conservative spender who likes to keep things low risk so I'm hesitant to make a move.

My goal is to match or modestly beat inflation over a long period of time, I'm not interested in high risk investments with promises of riches, if I was I'd take advice from Jordan Belfort or Bernie Madoff.

Having done some reading on the topic and watched Youtube videos etc, I like the idea of long term buy and hold investing focusing on blue chip stocks and maybe an eft that tracks the S&P500.

To cut the the point, my main questions are:

1. What is the best trading platform for this type of investing? (ie the most options with reasonable fees and good security)

2. What assurances do I have if the stockbroker goes bust?

3. Are blue chip stocks and efts worth it given the tax implications in Ireland?

4. Are there any hidden pitfalls or issues I should be aware of (I am aware of the farcical deemed disposed tax rule for example)

5. I think it would be a good idea for me to take a part time course on investing/money markets. Is there any good ones people could recommend?

6. Are there any good book recommendations on the topic?

7. Finally, while I like the idea of stocks and efts, I am open to suggestion if there are any other good ideas which are more favourable considering Ireland's penal tax laws?

If you've read this far, thank you in advance and I would genuinely appreciate any advice on the matter.

Beginner Investing

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