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Stock exchange, how to?


ddcboyle

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Hey guys, looking at investing little amounts into stock exchange, more of just a hobby than anything else. So it will be <£50, obviously not a lot to play with but im intrigued into how it works and is like a game (in a way) and £50 isn't going to affect me financially if I lost out.

 

Question is, ive been watching videos online how it all works etc, but each time I look into going online, the questionnaire always states that I don't have enough experience to do it online. For the sake of a few quid, should I just lie and give it a go?

 

Be nice to get involved in it just so I can actually see how everything operates and gives an idea of why prices change everyday (i.e. fuel, currency etc)

 

Anyone here do these sort of markets?

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I just opened a Halifax share dealing account. Was pretty straight forward. I have no idea how it all works though and the shares I bought in this drilling company are currently down 89% :wacko:

 

I don't get all the technical words etc, that's why I just wanna play around with some low notes. Did you do yours online?

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Yeah sorry, forgot to mention that.

 

http://www.halifax.co.uk/sharedealing/our-accounts/share-dealing-account/

 

Reading the comments on http://www.lse.co.uk/ can sometimes be helpful when making decisions, but you never really know what to believe. Socially acceptable gambling. And it's not been a good few years for the market. I've got a couple friends who are WAAAY down.

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Yeah sorry, forgot to mention that.

 

http://www.halifax.co.uk/sharedealing/our-accounts/share-dealing-account/

 

Reading the comments on http://www.lse.co.uk/ can sometimes be helpful when making decisions, but you never really know what to believe. Socially acceptable gambling. And it's not been a good few years for the market. I've got a couple friends who are WAAAY down.

 

That's why im looking to have 50pound and no more, If I lose 50pound I couldn't care. but if I put a months wages on it, id end up struggling trying to get it back. ill have a look :)

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Haha, I started with £1500 and they're now worth about £150. It was a company drilling in Somalia and they came up dry at the first location, so they plummeted. I've pretty much written the money off, if they ever come up again then it's a bonus. They have licences to drill other places so you never know.

 

This is the company http://www.lse.co.uk/SharePrice.asp?SharePrice=RMP

 

I would say it's not really worth investing as small as £50, each transaction costs about a tenner.

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I'd stay away from this if your budget is only £50 and if you have limited knowledge regarding markets, specially if you don't have time to follow what's going on.

 

I trade with CityIndex, IG and CMCMarkets. Also have subscription with RANSquawk.

 

Forex is extremely dangerous if you don't know what you're doing :)

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It's easy to set up an account any bank will do you one

 

My account with Natwest was free to hold as long as you have more than £2000 in the account. Each trade on the London stock exchange was charged at £15 so a buy then sell would cost you £30. Charges on foreign markets were £20 so £40 for a buy and sell.

 

You also pay 0.5% in tax so trading with <£50 would mean you would need the share prices to nearly double to make anything at all.

 

You can make lots and lose lots.

 

I made about a 300% return trading Cummins Inc shares a couple of years ago and then 15% return with Quadrise. However then Apple tanked and I lost about 30%.

 

Don't invest more than you can afford to lose!

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Do you guys in the UK get taxed on gains you make selling the shares?

 

Over here it's as high as 33% on the gains over what you paid. So that in addition to your buying and selling fees can add up quite a lot. Keep that in mind.

 

Yes you get taxes on gains if you make more than the threshold of just over 10k in a one year period. Think it's 20% at present.

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Yep theres a stock dealing thread somewhere on here. I thought similarly that i`d have a dabble a few years back and all of the shares i bought promptly dropped and have never gone back up again. So for me ive just written that money off and hopefully in 10 years time they will be back up enough so i can break even.

 

One thing to consider is dealing fees. The place I use charge so much per transaction, so if your only buying £50 here & £50 there, the transaction fees will end up costing a huge percentage of that.

 

From watching the market for ages, the only way really to make money on shares is if you buy like £400,000 of them, they go up by 2p and then you sell. Big amounts just for small profits. Either that, or you get some insider info like on Wall Street!

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Jeez seems alot of people losing alot of money. Any ideas on a better way for fun with possible money gain. Looked into bookies but no1 ever made money from going to bookies, some people just got lucky and won 300quid

 

Take a look at Tracker Funds, not the really big gains of a managed fund but hardly any losses of the years. They worked for me

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I do quite a bit of share trading.The best thing you need is HOMEWORK.Read papers,director dealings,general economy,everything you can possibly think about the company you are going to invest in.It is betting, but it can also be calculated betting.For instance I bought 636 shares in whitbread 2.5 years ago for £16 odd and now there hovering on 32 pound.

If you want to practice use Yahoo's fantasy trader game.You can have you're own portfolio and have a 100,000 to play with.

 

http://uk.fantasytrader.yahoo.net/

 

 

Study the market day by day, minute by minute and you may get somewhere.You'll need to have alot of time on you're hands!

You will need more than £50 to play with but get some practice first.

Any questions give us a shout.

 

Chris

Edited by skidder
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