| What do I need to really know and understand about the stock market? 09:18 - Feb 1 with 2885 views | ThisIsMyUsername |
I would like to gamble and make a quick buck on the next Gamestop.**
Now that I have your attention, seriously I would like to make a few sensible, long-term investments. I am only looking to start with a very small trading account of about £1,500 max, to hopefully over the next few years increase my overall 'wealth' by more than I would make from any bank interest. I was already thinking about this before the Gamestop hype last week.
I have a few stocks in mind already, into which I am thinking about putting £150-£200 each, and then just leaving it and hoping the value increases by a few %. I would also keep an ear to the ground regarding any short-term hypes, of course.
I've watched a few videos about the basics of fundamental and technical analysis, charts, trends, and when to idenfity an entry point etc. However I do not understand the workings of the stock market beyond a very surface level.
I've watched/read a few things in the last 24 hours suggesting a stock market crash might be coming soon, and that it therefore might be best to wait a couple of weeks before investing even what is only a small amount.
Any advice please for a newbie investor?
Thanks.
**Of course, if I could get in on the 'next Gamestop', that would be great. [Post edited 1 Feb 2021 9:21]
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| What do I need to really know and understand about the stock market? on 09:31 - Feb 1 with 2479 views | Ace_High1 |
Just wait for Rommy's next tip and then lump on everything you have. |  | | |
| What do I need to really know and understand about the stock market? on 09:45 - Feb 1 with 2455 views | ArnoldMoorhen |
No-one can legally give you advice unless they are an accredited Financial Advisor.
I am not a Financial Advisor and this is not advice.
The amount that you are talking about investing finds you caught between two stools.
Generally it is considered prudent to diversify capital across different investments, to spread risk.
But there are buying and selling fees for shares, and they are proportionately more burdensome on smaller investments.
An alternative to buying shares directly yourself is to invest in a Unit Trust or other Fund, where the Fund managers invest the total capital of the fund across shares or other investments. These can be specifically focused on a sector (eg Mining companies) or a market (eg China and Far East). Some are actively managed: the manager buys and sells shares based on their research to attempt to maximise returns. Some are more passive: they invest an equal amount in all companies in eg the FTSE 100 in order to attempt to match the overall growth of the Stock Market (diversifying risk). Some are primarily looking for growth (the share prices to go up) some are primarily focused on income (they invest in companies with a good track record of paying healthy dividends).
All of those funds have management fees.
With the amount of money you are investing being quite low the best place to start your research would be to find out which platform or provider will give you access to the investments you want access to, and the features you want, with the best fee structure for the investments you are likely to make.
Shares and other investments can go down as well as up. |  | | |
| What do I need to really know and understand about the stock market? on 10:13 - Feb 1 with 2401 views | clive_baker |
| What do I need to really know and understand about the stock market? on 09:45 - Feb 1 by ArnoldMoorhen |
No-one can legally give you advice unless they are an accredited Financial Advisor.
I am not a Financial Advisor and this is not advice.
The amount that you are talking about investing finds you caught between two stools.
Generally it is considered prudent to diversify capital across different investments, to spread risk.
But there are buying and selling fees for shares, and they are proportionately more burdensome on smaller investments.
An alternative to buying shares directly yourself is to invest in a Unit Trust or other Fund, where the Fund managers invest the total capital of the fund across shares or other investments. These can be specifically focused on a sector (eg Mining companies) or a market (eg China and Far East). Some are actively managed: the manager buys and sells shares based on their research to attempt to maximise returns. Some are more passive: they invest an equal amount in all companies in eg the FTSE 100 in order to attempt to match the overall growth of the Stock Market (diversifying risk). Some are primarily looking for growth (the share prices to go up) some are primarily focused on income (they invest in companies with a good track record of paying healthy dividends).
All of those funds have management fees.
With the amount of money you are investing being quite low the best place to start your research would be to find out which platform or provider will give you access to the investments you want access to, and the features you want, with the best fee structure for the investments you are likely to make.
Shares and other investments can go down as well as up. |
This is good non advice.
As AM says, I too am not a financial advisor and this is not advice, nor should it be treated as advice.
Personally I like to diversify risk across different equities, some with higher growth potential, but they tend to come with higher risk. Other 'steady Eddy's', which while never being free from risk, have generally proven safer places for my money. There's a saying that goes 'it's better to buy a good stock at a fair price, than to buy a fair stock at a good price'. I tend to stick to that principle more often than not. Regardless of where on that spectrum the stock sits, the principles of my research remain unchanged. I ask myself do I like the look of the company, and does the current valuation / market capitalisation (Share price x number of shares in circulation) represent value. There are some widely used ratio's that help investors to gauge that, whether it be PE (price vs earnings), gearing (a companies ability to pay back its debt) etc. Once I'm comfortable with that I ask if I can see future growth, is the market growing and is this company well placed to take advantage of that. Eg. in home fitness, plant based food, tech, e cars etc, industries that no doubt will see more companies enter and become more competitive, but should see growth. Leadership is important to me, I like to understand the credentials of a leadership team. There's other things I look at too, Director trades are publicly available. It's not a 'cheat' that's free from risk of course, but if directors are buying high levels of stock in a business they're working for, its perhaps a vote of confidence. As an accountant I tend to look at the numbers a lot, understand the financial health of a company etc. There's many companies out there that are 'over sold' IMO. A recent company I bought shares in in October was valued per its SP at less than it's net assets, which isn't uncommon. Essentially, they could've closed the business, paid off it's debts and sold all it's assets and the pot at the end was greater than the valuation per the SP at that point, which felt low. They've doubled in value since.
It's hard to take an investing mindset, rather than a gambling one. It's not gambling, I try and take emotion out of it. And investments can go down as well as up, so that's why I like to have a more diverse portfolio. |  |
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| What do I need to really know and understand about the stock market? on 10:14 - Feb 1 with 2401 views | gordon |
I would think that at that level you're better off (as the post above suggests) with a managed fund / unit trust - although this won't be as exciting etc. If it's long-term then go Far East / Latin America where there's probably more potential for growth. You should be able to find one without an initial fee, and ongoing charges of about 1%.
I think if you do it yourself you'd be paying about £10 a trade on most trading platforms so on £200 investments you're down 5% before you've begun (could be wrong about this), so would find it difficult to make money on low stakes. |  | | |
| What do I need to really know and understand about the stock market? on 10:25 - Feb 1 with 2382 views | Pendejo |
| What do I need to really know and understand about the stock market? on 09:45 - Feb 1 by ArnoldMoorhen |
No-one can legally give you advice unless they are an accredited Financial Advisor.
I am not a Financial Advisor and this is not advice.
The amount that you are talking about investing finds you caught between two stools.
Generally it is considered prudent to diversify capital across different investments, to spread risk.
But there are buying and selling fees for shares, and they are proportionately more burdensome on smaller investments.
An alternative to buying shares directly yourself is to invest in a Unit Trust or other Fund, where the Fund managers invest the total capital of the fund across shares or other investments. These can be specifically focused on a sector (eg Mining companies) or a market (eg China and Far East). Some are actively managed: the manager buys and sells shares based on their research to attempt to maximise returns. Some are more passive: they invest an equal amount in all companies in eg the FTSE 100 in order to attempt to match the overall growth of the Stock Market (diversifying risk). Some are primarily looking for growth (the share prices to go up) some are primarily focused on income (they invest in companies with a good track record of paying healthy dividends).
All of those funds have management fees.
With the amount of money you are investing being quite low the best place to start your research would be to find out which platform or provider will give you access to the investments you want access to, and the features you want, with the best fee structure for the investments you are likely to make.
Shares and other investments can go down as well as up. |
The only thing I'd add to this is... Set a plan / target / goal of what you want to achieve and stick to it.
If your goal is 10% growth and it hits that figure, pull out and never look at it again!
As AM advised costs / charges should be taken into account.
Once upon a time when I was a Financial Advisor a client used to boast about how the family owned business he worked for floated on stock market and all staff got some shares, most cashed in straight away, some cashed in as share value rose.
This person would usually fall in the risk averse category, so I discussed cashing in and less risky investments that more suited his risk profile.
The shares doubled in value, he hung in for more growth... And well, you know where this story is going... Company went bust (seem to recall it was a haulage company) and his shares became valueless.
All of the above, I should add is to be construed as anecdotal rather than de facto financial advice. [Post edited 1 Feb 2021 10:31]
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| What do I need to really know and understand about the stock market? on 10:28 - Feb 1 with 2374 views | bluelagos |
My non advice would be to set up a dummy portfolio and pick shares and see how they do over a period of time.
Do your research to pick the shares and see how they do. Learn about them, make your own judgements and compare the outturn in a year with what you thought would happen.
Then in 12 months time, if you are really confident, knowledgeable then you'd be making your own informed decisions / investments rather than what some bloke off a message board recommends.
And ffs understand that buying shares is a gamble. You are betting that the company will do well, will pay a dividend, share price will go up rather than go down/tank. It might be a better gamble than a casino/bookmakers, but anyone who tells you it is "investing" rather than gambling usually has a vested interest in you "Investing" through them.
And I say that as someone who owns/invests/gambles not insignificant sums in shares. |  |
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| What do I need to really know and understand about the stock market? on 10:37 - Feb 1 with 2351 views | brazil1982 |
Penny shares won't get you very far.
I opened an ISA with H&L 12 months ago. Up 52% now. you can research and choose your investment portfolio and get them to manage it so you have the benefit of your own input and the advice and process of experts. |  | | |
| What do I need to really know and understand about the stock market? on 10:46 - Feb 1 with 2337 views | nodge_blue |
It's time in the market. Not timing the market.
If you are totally inexperienced then buying funds is probably a good idea, or investment trusts. Scottish mortgage investment trust has done very well. Invests mainly in tech stocks. But of course these are now highly priced.
GameStop isn't worth the valuation. It's all a silliness to go against wall Street.
It all adds to this huge bubble that could literally crash any day. |  |
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| What do I need to really know and understand about the stock market? on 10:48 - Feb 1 with 2331 views | chicoazul |
Depending on your horizon I’d just invest in an index tracker. Low or no fees. Legal and General do some good ones.
CAUTION; I am not a financial adviser and am in very many ways a full blown idiot. |  |
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| What do I need to really know and understand about the stock market? on 11:36 - Feb 1 with 2286 views | ThisIsMyUsername |
Many thanks for all of the non-advice advice :)
I do quite like the look of the H&L Stocks and Shares ISA whereby I can tell them what types of industries I am interested in, what sort of risk I am willing to take etc, and then let them run it for me.
However I do also like the idea of being more pro-active in investing myself, and taking full agency for my investment decisions. It's just whether I feel like I have enough knowledge of how the market works to do this (currently I don't). Also it is obviously more time-consuming, even if making longer-term investments.
As a potential alternative option I might contact H&L initially, and explain the types of investments I was thinking of making, and see what advice they give me. Then I can consider more whether to go it by myself or not.
On a side note, if I would create my own portfolio myself I was thinking of using Trading212, which has 0% fees. [Post edited 1 Feb 2021 11:37]
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| What do I need to really know and understand about the stock market? on 11:47 - Feb 1 with 2249 views | J2BLUE |
| What do I need to really know and understand about the stock market? on 11:36 - Feb 1 by ThisIsMyUsername |
Many thanks for all of the non-advice advice :)
I do quite like the look of the H&L Stocks and Shares ISA whereby I can tell them what types of industries I am interested in, what sort of risk I am willing to take etc, and then let them run it for me.
However I do also like the idea of being more pro-active in investing myself, and taking full agency for my investment decisions. It's just whether I feel like I have enough knowledge of how the market works to do this (currently I don't). Also it is obviously more time-consuming, even if making longer-term investments.
As a potential alternative option I might contact H&L initially, and explain the types of investments I was thinking of making, and see what advice they give me. Then I can consider more whether to go it by myself or not.
On a side note, if I would create my own portfolio myself I was thinking of using Trading212, which has 0% fees. [Post edited 1 Feb 2021 11:37]
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I use trading 212. I really like it. If you have any family members/friends who use te app they can give you a referral code for a free share. It probably won't be worth muc (mine was Under Armour, £10) but you can sell it and put it towards something else.
Can't give you any real advice as not qualified but I don't invest in anything I don't understand. I like companies where I understand the business model completely and think it's only going to grow in the future. Sounds pretty obvious but there are some very popular shares on Youtube where people show you their portfolios and some of them I just didn't think were a good idea or didn't understand so I avoided them. Cineworld seems popular but to me that is an industry I expect to decline as technology in living rooms gets better and now the genie has been let out of the bottle for straight to TV box office films.
Another thing that makes sense to me is looking at mega trends. Clean energy, plant based eating and medical shares/REITs make sense to me as major trends going forward.
Again, not advice. The best thing you can do is delay your investment for a little while and really get to grips with the basics and consider what you think is going to happen in the future. No idea how old you are or what your goals are. I'm 33 and my goal is to create a significant dividend income by retirement. I'm not against companies that don't pay a dividend but long term that's the plan.
Oh and getting your first dividend is a great experience. I think my first one was about 20p but it still felt good!
Good luck.
p.s if you invest in assets in foreign currencies (US stocks etc) the exchange rate can also affect your investment. There have been cases recently of the stock going up but the value of an investment going down once it's converted into pounds. [Post edited 1 Feb 2021 13:20]
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| What do I need to really know and understand about the stock market? on 12:03 - Feb 1 with 2214 views | Behind_Enemy_Lines |
| What do I need to really know and understand about the stock market? on 11:36 - Feb 1 by ThisIsMyUsername |
Many thanks for all of the non-advice advice :)
I do quite like the look of the H&L Stocks and Shares ISA whereby I can tell them what types of industries I am interested in, what sort of risk I am willing to take etc, and then let them run it for me.
However I do also like the idea of being more pro-active in investing myself, and taking full agency for my investment decisions. It's just whether I feel like I have enough knowledge of how the market works to do this (currently I don't). Also it is obviously more time-consuming, even if making longer-term investments.
As a potential alternative option I might contact H&L initially, and explain the types of investments I was thinking of making, and see what advice they give me. Then I can consider more whether to go it by myself or not.
On a side note, if I would create my own portfolio myself I was thinking of using Trading212, which has 0% fees. [Post edited 1 Feb 2021 11:37]
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Currently using Freetrade and been investing just a month now. GameStop and the others are worth watching from the sidelines as I have learnt more in the last week than the three before. |  | | |
| What do I need to really know and understand about the stock market? on 13:44 - Feb 1 with 2130 views | ThisIsMyUsername |
| What do I need to really know and understand about the stock market? on 11:47 - Feb 1 by J2BLUE |
I use trading 212. I really like it. If you have any family members/friends who use te app they can give you a referral code for a free share. It probably won't be worth muc (mine was Under Armour, £10) but you can sell it and put it towards something else.
Can't give you any real advice as not qualified but I don't invest in anything I don't understand. I like companies where I understand the business model completely and think it's only going to grow in the future. Sounds pretty obvious but there are some very popular shares on Youtube where people show you their portfolios and some of them I just didn't think were a good idea or didn't understand so I avoided them. Cineworld seems popular but to me that is an industry I expect to decline as technology in living rooms gets better and now the genie has been let out of the bottle for straight to TV box office films.
Another thing that makes sense to me is looking at mega trends. Clean energy, plant based eating and medical shares/REITs make sense to me as major trends going forward.
Again, not advice. The best thing you can do is delay your investment for a little while and really get to grips with the basics and consider what you think is going to happen in the future. No idea how old you are or what your goals are. I'm 33 and my goal is to create a significant dividend income by retirement. I'm not against companies that don't pay a dividend but long term that's the plan.
Oh and getting your first dividend is a great experience. I think my first one was about 20p but it still felt good!
Good luck.
p.s if you invest in assets in foreign currencies (US stocks etc) the exchange rate can also affect your investment. There have been cases recently of the stock going up but the value of an investment going down once it's converted into pounds. [Post edited 1 Feb 2021 13:20]
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Thanks J2. Good luck with your goals!
Re plant-based eating, I'm assuming you might be invested in Tattooed Chef. Seems to be getting a lot of positive coverage. | |
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| What do I need to really know and understand about the stock market? on 14:01 - Feb 1 with 2107 views | lowhouseblue |
obviously not investment advice etc. but there are people out there who do this full time and are very good at it. unless you want to put in the same time and skill why not let them do it? for example, in terms of growth funds, scottish mortgage investment trust is consistently impressive. there are others which no doubt offer much the same. i'm absolutely sure i couldn't beat them. |  |
| And so as the loose-bowelled pigeon of time swoops low over the unsuspecting tourist of destiny, and the flatulent skunk of fate wanders into the air-conditioning system of eternity, I notice it's the end of the show |
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| What do I need to really know and understand about the stock market? on 14:28 - Feb 1 with 2056 views | ThisIsMyUsername |
| What do I need to really know and understand about the stock market? on 14:01 - Feb 1 by lowhouseblue |
obviously not investment advice etc. but there are people out there who do this full time and are very good at it. unless you want to put in the same time and skill why not let them do it? for example, in terms of growth funds, scottish mortgage investment trust is consistently impressive. there are others which no doubt offer much the same. i'm absolutely sure i couldn't beat them. |
What sort of growth do you call impressive?
A mate of mine who is heavily into trading (and with quite an impressive record) told me earlier that a managed growth fund plays it quite safe, and that you're lucky if you see more than 10% growth a year*.
*I'm not saying this is necessarily bad, and a previous poster on this thread claimed 52% in 12 months. | |
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| What do I need to really know and understand about the stock market? on 14:32 - Feb 1 with 2045 views | lowhouseblue |
| What do I need to really know and understand about the stock market? on 14:28 - Feb 1 by ThisIsMyUsername |
What sort of growth do you call impressive?
A mate of mine who is heavily into trading (and with quite an impressive record) told me earlier that a managed growth fund plays it quite safe, and that you're lucky if you see more than 10% growth a year*.
*I'm not saying this is necessarily bad, and a previous poster on this thread claimed 52% in 12 months. |
this an example of one fund - not a recommendation and i don't know anything more than having invested in it:
https://www.bailliegifford.com/en/uk/individual-investors/funds/scottish-mortgag
if you consistently get 10% growth a year you've done brilliantly. you only get more by taking higher risks. | |
| And so as the loose-bowelled pigeon of time swoops low over the unsuspecting tourist of destiny, and the flatulent skunk of fate wanders into the air-conditioning system of eternity, I notice it's the end of the show |
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| What do I need to really know and understand about the stock market? on 14:39 - Feb 1 with 2027 views | itfcjoe |
| What do I need to really know and understand about the stock market? on 14:28 - Feb 1 by ThisIsMyUsername |
What sort of growth do you call impressive?
A mate of mine who is heavily into trading (and with quite an impressive record) told me earlier that a managed growth fund plays it quite safe, and that you're lucky if you see more than 10% growth a year*.
*I'm not saying this is necessarily bad, and a previous poster on this thread claimed 52% in 12 months. |
Look to see what you get on savings in a bank, and then decide whether 10% is good....
Some people will have big profits over last year or two because the market crashed and has recovered |  |
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| What do I need to really know and understand about the stock market? on 15:54 - Feb 1 with 1935 views | Kropotkin123 |
On Trading 212 there is a practice section, whereby you can invest fake money. Try it out and get familiar with the application, before investing your own money. Do a few trials, one where you are very cautious, one where you are reckless, etc. I recommend this, so you get an idea of what you are happy doing.
There are always people who say the market will crash. Crashes are apart of the economic system and will happen again. They used to be called "general gluts" in the days of Malthus and Ricardo. You are highly unlikely to be able to time the market in that respect.
- Person A saves their money and times the market perfectly, puts all their money into the S&P500 at the bottom of the past five crashes
- Person B is the worst investor in the world and puts it their money in just before each of the past five financial crises.
- Person C puts in money on a monthly basis
In this scenario, they all make money. Essentially the market recovers. Person C makes the most amount of money as Person A doesn't make too much money between economic downturns.
With that being said, there are a lot of over valued stocks at the moment. But then there are a lot of new "retail investors" who have joined to market as their savings accounts offer next to nothing. This new price pushes up the price of the stocks. So, is this a bubble? or is it a new normal? Bubble = crash, new normal = crash for another reason in the more distant future.
Of course, if you see trends in the way our future will be shaped in the next 20 years, then invest in those opportunities. But also be mindful that companies like KO for example are solid for long-term investments and should underpin riskier endeavours. How likely is it that a new soft-drinks company will come and displace Coke or Pepsi?
With that being said, learn to value stocks. So you know when you are getting a good price and when you are not.
GOOGL
PE = 35.84
EPS = 51.75
PEG = 0.7
This would suggest that google is undervalued by 0.3 on the PEG at the moment. But consider that they are under threat in the US of being broken up.
Price targets are another good way to assume some sort of value
KO
High = $67.00
Median = $57.00
Low = $50.00
Average = $57.20
Current Price = $48.15
This would suggest that there is some value to be had here, as KO is below it's lowest price target. Add in your own knowledge. KO has high debts, but they are serviceable and the dividend is not at risk. As the economy re-opens after Covid, Coke will be consumed more and profits will increase. But there will be opportunity cost. Are you going in too early, if you go in now.
Consider you strategy? High growth? dividend reinvestment? mix?
I'd argue to watch real news. Not BBC, sky, the rags, etc. Something like Bloomberg. You should be aware of the market in a way that is not sufficiently covered in these other options.
Also, what kind of investor do you want to be? Are you an avid environmentalist and vegan? Then why are you investing in Shell and McDonalds? Investing is not just about making money for me, it is also about promoting the world I want to see.
Finally, consider how much you want to diversify. I don't have a hugely diverse portfolio. There are arguments for and against. Diversification spreads risk. The more diverse you are, the more the stocks you actually believe in are saturated. Warren Buffet, for example, laughs at diversification. But then pretty much anyone giving a newbie advice will say, diversify. You just need to be aware and at peace with the decisions you make.
As for Gamestop, it was a unique situation, were short-sellers were essentially caught in a loop of prices rises, unless they took huge loses. I could see a company like NIO making huge gains. From $4 to $55 in the past year. But the risks are there Low is $13, high is $106. [Post edited 1 Feb 2021 16:23]
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| Submit your 1-24 league prediction here -https://www.twtd.co.uk/forum/514096/page:1 - for the opportunity to get a free Ipswich top. | | Poll: | Would you rather | | Blog: | Round Four: Eagle |
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| What do I need to really know and understand about the stock market? on 17:30 - Feb 1 with 1873 views | ThisIsMyUsername |
| What do I need to really know and understand about the stock market? on 15:54 - Feb 1 by Kropotkin123 |
On Trading 212 there is a practice section, whereby you can invest fake money. Try it out and get familiar with the application, before investing your own money. Do a few trials, one where you are very cautious, one where you are reckless, etc. I recommend this, so you get an idea of what you are happy doing.
There are always people who say the market will crash. Crashes are apart of the economic system and will happen again. They used to be called "general gluts" in the days of Malthus and Ricardo. You are highly unlikely to be able to time the market in that respect.
- Person A saves their money and times the market perfectly, puts all their money into the S&P500 at the bottom of the past five crashes
- Person B is the worst investor in the world and puts it their money in just before each of the past five financial crises.
- Person C puts in money on a monthly basis
In this scenario, they all make money. Essentially the market recovers. Person C makes the most amount of money as Person A doesn't make too much money between economic downturns.
With that being said, there are a lot of over valued stocks at the moment. But then there are a lot of new "retail investors" who have joined to market as their savings accounts offer next to nothing. This new price pushes up the price of the stocks. So, is this a bubble? or is it a new normal? Bubble = crash, new normal = crash for another reason in the more distant future.
Of course, if you see trends in the way our future will be shaped in the next 20 years, then invest in those opportunities. But also be mindful that companies like KO for example are solid for long-term investments and should underpin riskier endeavours. How likely is it that a new soft-drinks company will come and displace Coke or Pepsi?
With that being said, learn to value stocks. So you know when you are getting a good price and when you are not.
GOOGL
PE = 35.84
EPS = 51.75
PEG = 0.7
This would suggest that google is undervalued by 0.3 on the PEG at the moment. But consider that they are under threat in the US of being broken up.
Price targets are another good way to assume some sort of value
KO
High = $67.00
Median = $57.00
Low = $50.00
Average = $57.20
Current Price = $48.15
This would suggest that there is some value to be had here, as KO is below it's lowest price target. Add in your own knowledge. KO has high debts, but they are serviceable and the dividend is not at risk. As the economy re-opens after Covid, Coke will be consumed more and profits will increase. But there will be opportunity cost. Are you going in too early, if you go in now.
Consider you strategy? High growth? dividend reinvestment? mix?
I'd argue to watch real news. Not BBC, sky, the rags, etc. Something like Bloomberg. You should be aware of the market in a way that is not sufficiently covered in these other options.
Also, what kind of investor do you want to be? Are you an avid environmentalist and vegan? Then why are you investing in Shell and McDonalds? Investing is not just about making money for me, it is also about promoting the world I want to see.
Finally, consider how much you want to diversify. I don't have a hugely diverse portfolio. There are arguments for and against. Diversification spreads risk. The more diverse you are, the more the stocks you actually believe in are saturated. Warren Buffet, for example, laughs at diversification. But then pretty much anyone giving a newbie advice will say, diversify. You just need to be aware and at peace with the decisions you make.
As for Gamestop, it was a unique situation, were short-sellers were essentially caught in a loop of prices rises, unless they took huge loses. I could see a company like NIO making huge gains. From $4 to $55 in the past year. But the risks are there Low is $13, high is $106. [Post edited 1 Feb 2021 16:23]
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Great post. Thanks a lot.
I'll keep an eye out on the financial news in the non-MSM.
Also, lots of things there which you've mentioned which I will research further.
I really like what you said about investing in the world you want to see. Funnily enough, a few of the companies I'm looking at are promoting various eco-friendly aspects e.g. alternative energy, electronic vehicles. Never something I've thought about in the past, but a world that's more environmentally friendly would of course be nice, and I imagine it's not a bad area to invest in going forward.
I think I will diversify a fair amount at first, simply to maximise my chances of having some stocks which do increase in value, creating money to potentially reinvest. | |
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| What do I need to really know and understand about the stock market? on 17:39 - Feb 1 with 1851 views | eastangliaisblue |
Buy low, sell high.
Disclaimer: I am not a Financial Advisor. |  | | |
| What do I need to really know and understand about the stock market? on 17:41 - Feb 1 with 1835 views | J2BLUE |
| What do I need to really know and understand about the stock market? on 17:30 - Feb 1 by ThisIsMyUsername |
Great post. Thanks a lot.
I'll keep an eye out on the financial news in the non-MSM.
Also, lots of things there which you've mentioned which I will research further.
I really like what you said about investing in the world you want to see. Funnily enough, a few of the companies I'm looking at are promoting various eco-friendly aspects e.g. alternative energy, electronic vehicles. Never something I've thought about in the past, but a world that's more environmentally friendly would of course be nice, and I imagine it's not a bad area to invest in going forward.
I think I will diversify a fair amount at first, simply to maximise my chances of having some stocks which do increase in value, creating money to potentially reinvest. |
One point I would make about his (very good!) post is that companies adapt. McDonalds might not be a great investment for a vegan BUT they are bringing out an entirely new McPlant range which is going to include plant based beef and chicken alternatives as well as breakfast items eventually. McDonalds is the ultimate give them what they want business. McDonalds couldn't give a damn if you're buying a Big Mac and Cola-cola or a plant based burger with a bottle of water.
McDonalds will be popular forever and they'll quickly adapt to what people want. We've seen lots of companies with a history of meat/dairy suddenly embracing meat free alternatives. Consumer demand drives change.
No idea what shell are doing but I spent a long time on the BP website before buying their stock. They are making a real effort to go green. The lesson here is to scratch below the surface and think about the direction companies are taking. Even if you think you know everything about them it's well worth a proper look if you're investing hard earned money. One future trend is green energy and we've not even begun to scratch the surface. Even the likes of Amazon are buying electric vehicles to deliver packages etc. Consumer demand is going to force companies to adapt. It's worth looking for which companies are a step ahead and doing it willingly and which are being dragged into the green revolution.
Disclaimer: Not financial advice. I do not own shares in any company mentioned at time of writing. | |
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| What do I need to really know and understand about the stock market? on 18:33 - Feb 1 with 1780 views | Kropotkin123 |
| What do I need to really know and understand about the stock market? on 17:41 - Feb 1 by J2BLUE |
One point I would make about his (very good!) post is that companies adapt. McDonalds might not be a great investment for a vegan BUT they are bringing out an entirely new McPlant range which is going to include plant based beef and chicken alternatives as well as breakfast items eventually. McDonalds is the ultimate give them what they want business. McDonalds couldn't give a damn if you're buying a Big Mac and Cola-cola or a plant based burger with a bottle of water.
McDonalds will be popular forever and they'll quickly adapt to what people want. We've seen lots of companies with a history of meat/dairy suddenly embracing meat free alternatives. Consumer demand drives change.
No idea what shell are doing but I spent a long time on the BP website before buying their stock. They are making a real effort to go green. The lesson here is to scratch below the surface and think about the direction companies are taking. Even if you think you know everything about them it's well worth a proper look if you're investing hard earned money. One future trend is green energy and we've not even begun to scratch the surface. Even the likes of Amazon are buying electric vehicles to deliver packages etc. Consumer demand is going to force companies to adapt. It's worth looking for which companies are a step ahead and doing it willingly and which are being dragged into the green revolution.
Disclaimer: Not financial advice. I do not own shares in any company mentioned at time of writing. |
Yeah, that is fair, look at the company and see where they intend to go. I personally haven't looked at either, just wanted to illustrate the wider point - that your investment is more than just a monetary investment, it is also an ethical one, if you choose it to be. | |
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| What do I need to really know and understand about the stock market? on 18:36 - Feb 1 with 1774 views | Kropotkin123 |
| What do I need to really know and understand about the stock market? on 17:30 - Feb 1 by ThisIsMyUsername |
Great post. Thanks a lot.
I'll keep an eye out on the financial news in the non-MSM.
Also, lots of things there which you've mentioned which I will research further.
I really like what you said about investing in the world you want to see. Funnily enough, a few of the companies I'm looking at are promoting various eco-friendly aspects e.g. alternative energy, electronic vehicles. Never something I've thought about in the past, but a world that's more environmentally friendly would of course be nice, and I imagine it's not a bad area to invest in going forward.
I think I will diversify a fair amount at first, simply to maximise my chances of having some stocks which do increase in value, creating money to potentially reinvest. |
Rather than picking lots of your own stocks as a diversification strategy, you can also consider a couple of ETFs. These are often better maintained than you would be able to accomplish, allowing you to make more precise investments on individual companies that you like the look of, uncluttered by your diversification strategy.
There are all sorts of ETFs out there. Some will focus on high growth, some on dividend re-investment, some on emerging markets, some on green tech, etc | |
| Submit your 1-24 league prediction here -https://www.twtd.co.uk/forum/514096/page:1 - for the opportunity to get a free Ipswich top. | | Poll: | Would you rather | | Blog: | Round Four: Eagle |
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| What do I need to really know and understand about the stock market? on 18:43 - Feb 1 with 1757 views | TIB |
Spent the last year or so taking more time to try and make some savings work harder via stocks. In my short time I’d say to any newbie, never buy on a high and don’t get greedy. You never make a loss taking profit and all that.
Longer term investments probably the safer bet. Research companies, their board, their history and piece together whether you believe in what they’re doing and whether you believe they’re under valued and have future growth potential. Some boards like ADVFN, LSE can be good but watch for rampers. Twitter you can find tips but again, just use that as a guide to potential companies.
Most my portfolio is based around some mining / exploration companies and more recently Argo Blockchain as I believe crypto will grow. Been a horribly turbulent few weeks, and that probably highlights a final piece of advice, never bail in the red or if price drops unless it’s a total lost cause and you know it’s time to sell. Market makers play games the whole time, dropping prices to free up shares etc. You’ll soon see how corrupt it all is.
[Post edited 1 Feb 2021 18:46]
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| What do I need to really know and understand about the stock market? on 18:46 - Feb 1 with 1745 views | J2BLUE |
| What do I need to really know and understand about the stock market? on 18:43 - Feb 1 by TIB |
Spent the last year or so taking more time to try and make some savings work harder via stocks. In my short time I’d say to any newbie, never buy on a high and don’t get greedy. You never make a loss taking profit and all that.
Longer term investments probably the safer bet. Research companies, their board, their history and piece together whether you believe in what they’re doing and whether you believe they’re under valued and have future growth potential. Some boards like ADVFN, LSE can be good but watch for rampers. Twitter you can find tips but again, just use that as a guide to potential companies.
Most my portfolio is based around some mining / exploration companies and more recently Argo Blockchain as I believe crypto will grow. Been a horribly turbulent few weeks, and that probably highlights a final piece of advice, never bail in the red or if price drops unless it’s a total lost cause and you know it’s time to sell. Market makers play games the whole time, dropping prices to free up shares etc. You’ll soon see how corrupt it all is.
[Post edited 1 Feb 2021 18:46]
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@Kropotkin - completely agree
@TIB - I always liked setting price targets for stocks, Quite a few were triggered within a couple of months. Buying the dips is a decent strategy if you find the stock value and intend to hold it for the long term. | |
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