> Investing, shares stocks etc?

Investing, shares stocks etc?

Posted at: 2014-12-05 
Hey,

You should try with Penny Stocks Trading (you can find more info here: http://pennystocks.toptips.org)

Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share.

I've been subscribing to this PennyStock web site for about a year now and have loved the objective advice they give. He really does look for quality stocks and I've made some pretty nice profits on a lot of his suggestions. Being still fairly new to investing I have been dabbling a lot in penny stocks to try and grow my account. I may not have a big account, but it's a lot bigger than it was a year ago. On just one of Nathan's picks this year I managed to make my investment back ten-fold! Be careful! Penny stocks are notoriously risky but if you follow the right method the risk is almost 0. I suggest to invest only little money first and then reinvest the profits. This is the site I'm using: http://pennystocks.toptips.org

How does Trading Work? I can say you that take a look at this site ( http://forexsignal.kyma.info ) may be it can help you. It 's one of the best course about trading. It seems like Trading is almost totally based on Macro-economics. It also strikes me that since there are not nearly as many currencies as there are stocks/bonds/derivatives etc etc, there must be a large number of market players in each currency bracket. So logically, currencies must be very liquid true? Also, what is the risk of Currency trading, high or low? When I read the business section every day I notice that the Canadian loonie moves hardly a tenth of a cent on a regular basis (in comparison to the US dollar). So it seems like theres very little room for growth in currencies unless you leverage. On that note, whats the maximum leverage permitted for forex trading. I know in stocks its x2, and in derivatives its x10. Anyway the only way to know how to start a profitable buisness is by following some methods like the one that I suggested.

If you get into stocks and you have no idea what your doing you will lose all your money best thing to do is reserch it abit theres plenty of sites

It really helps to read up on it more. But here's the basics of what shares are.

Let's say you're a company and you need some money to expand, open up another shop, whatever. You can borrow it from a bank, but the other thing you can do is issue shares. If people like your business and think it will do well, and have money to invest in it, they will buy shares and that makes them part-owners of your business. You've got their money but they will expect something in return. You will pay dividends if you can afford to (a share of the profits) and if the company does well, that will be reflected in the share price and the investors can sell the shares on at a profit. All good for your reputation.

That's the two ways you make money out of it. Dividends are like interest on a savings account, but you don't ever know how much they will be, and you could make a profit on selling your shares. On the other hand, if the company does badly, it can't pay a dividend, and the share price goes down. Now what do you do? Hang on to your shares in the hope the price goes up again, or sell them at a loss and give it up as a bad investment? If the worst happens and the company collapses completely, you lose all the money you paid for the shares as they are now worthless.

You're right of course, you can't just go into Tesco, McDonalds or wherever and buy shares in them. The shares already exist, and if you want to invest in them, you need to buy shares from people who already have them and want to sell them. There needs to be a market where what's available is on display. And that's what the Stock Exchange is for. It exists to trade shares that already exist and that's where the action is. To be able to buy and sell on the stock market, you need a stockbroker and there are online sites where you can set up an account with a stockbroker and get trading. Banks will do it and there are plenty of other firms. You can say "buy me £1,000 of shares in Tesco", and your broker finds them for you and buys them. Or if you want to sell some shares, your broker can put them up on THEIR market stall and find a buyer.

But the broker wants paying. Every time you buy or sell, they charge a fee. So this is really not worth doing unless you can buy or sell a lot at a time. Keep chopping and changing and a lot of your money disappears in broker's fees.

I really don't advise it unless you have a LOT of money to play with. Vi has a good suggestion - a practice investment account where it's all pretend money so you can play at it will help you learn.

Common advice is to spread your money around between companies to minimise the risk of losing it all. And there is a way of doing that with smaller amounts. Imagine you have some friends and you put your money together to invest in shares you all agree on. You save money on broker's fees because you just pay one fee together, and that makes it more possible to spread your pool of money between more different companies. There are actually investment clubs that do this, but just for yourself, there are unit trusts. They do the same - pool your money with other people's money, and there is a fund manager who decides what shares to buy with it and when to sell. There are hundreds of unit trusts all specialising in some sector of the market. Take your pick.

But what I've done well out of is the simplest kind, FTSE index tracker. All this does is buy shares in the 100 companies on the FTSE index, so you're investing in the UK's 100 biggest companies. The index is there so it needs no thought and so the fees are really cheap. Not a bad place to put a spare few hundreds of pounds.

I knew nothing about investing in stocks. What I did was open a practice investment account on my computer with my bank. It is free. You have access to all the stocks, mutual funds, ETFs, and bonds. You can pick and choose whatever strikes your fancy and buy shares. Then watch to see if your choice was good or bad. It is all pretend and you learn as you go. Then when you get confident about investing with your own money you can open a real investment account with your bank.

Read some of the many excellent book aimed at novices or go on a course - local authorities frequently offer them.

Hello, I am interested in Investing, doing Shares etc but how does it all work and how is it done. I mean you cant just go say tesco macdonalds or whereever and say heres £200. I want it invested please. So how does it work and one last thing what about property investing. Please help.