Have bought a few cheap shares to see if it's possible to make a little bit of money but I generally know nothing about it! I don't have a lot to invest (up to £200) but I thought if I buy what's cheap and wait to see if they increase and then sell, there's a possibility of making a little bit? Or more than would be made in a savings account right now at any rate. I've been reading articles on how to get started, shares for dummies etc, but wondered if anyone here has knowledge and can offer any good advice? Thanks.
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Oh don’t know a lot but I would say it depends on whether you are trying to make “fast money” or invest for the long term. Trying to make fast money is gambling though.
If you are highly risk tolerant and want to try to make money quickly I would suggest you look into spread betting. This is a high risk strategy and you could lose all your money quickly but could also make a lot quickly.
If you are risk averse or want to invest for the long term look into low risk index funds. You will need to keep you money in for 5-10 years to make returns on your investment. The stock market has followed a relatively straight upward trajectory over the last 100 years but this is only when you take an average of the ups and downs which is why I say you need to leave it in for the long term. Also by buying into index funds you are spreading your money across multiple companies shares which minimises your risk if one company does particularly well or badly.
Hope that helps a little. I think investing is so personal to everyone and it all depends on your own tolerance level and what you are willing to risk. Personally I treat things like spread betting in the same way I would going to a casino - fun for the experience but expect to lose money. For long term investments I would say “set it and forget it” - put some money in each month and just let it snowball. It takes time to begin with but after a few years you will really see the gains of compounding. You need to hold your nerve in the dips though and not try to play the system. Don’t watch your shares constantly.
Hope that helps a little. I am not an expert or professional - this is just my little experience
If you are highly risk tolerant and want to try to make money quickly I would suggest you look into spread betting. This is a high risk strategy and you could lose all your money quickly but could also make a lot quickly.
If you are risk averse or want to invest for the long term look into low risk index funds. You will need to keep you money in for 5-10 years to make returns on your investment. The stock market has followed a relatively straight upward trajectory over the last 100 years but this is only when you take an average of the ups and downs which is why I say you need to leave it in for the long term. Also by buying into index funds you are spreading your money across multiple companies shares which minimises your risk if one company does particularly well or badly.
Hope that helps a little. I think investing is so personal to everyone and it all depends on your own tolerance level and what you are willing to risk. Personally I treat things like spread betting in the same way I would going to a casino - fun for the experience but expect to lose money. For long term investments I would say “set it and forget it” - put some money in each month and just let it snowball. It takes time to begin with but after a few years you will really see the gains of compounding. You need to hold your nerve in the dips though and not try to play the system. Don’t watch your shares constantly.
Hope that helps a little. I am not an expert or professional - this is just my little experience
This is so helpful, thank you! I did think spread betting was a casino thing... I need to sit and have a good read of the types of investment.
short term gains is what I’d prefer even though I know it’s the risky one. As I’m only investing a small amount I’d be happy to put £50 into a set of shares and withdraw it again if it makes say £20. So small increases here and there. It’s the getting to know share prices and the good times to buy and sell that I need to get the hang of.
Thank you, your response was really helpful. I don’t know anyone who does shares in real life so had nobody to go to for advice.
short term gains is what I’d prefer even though I know it’s the risky one. As I’m only investing a small amount I’d be happy to put £50 into a set of shares and withdraw it again if it makes say £20. So small increases here and there. It’s the getting to know share prices and the good times to buy and sell that I need to get the hang of.
Thank you, your response was really helpful. I don’t know anyone who does shares in real life so had nobody to go to for advice.
No worries - my advice would be for short term gains you need to watch the market for a while before putting any actual money into it - there are some companies that offer dummy accounts for you to practise with.
Keep an eye on the news as well to see if you can see any clues as to what might be happening with certain companies.
Spread betting doesn’t actually involve buying shares but betting on whether it will go up or down and you bet on that. If you are right you make money if you are wrong and hit your limit they will take your money.
There are some good videos on YouTube - there’s a load of crap as well with people just trying to sell you their “get Rich quick e book” ignore all of these! Lol but if you can hunt out the decent ones, try a dummy account and think like a banker then you have a decent chance. Stick with things you are interested in to begin with. Say for example you love Disney and are following all the Disney news at the mo you will know about their reopening plans - how busy are they likely to be when re-opening? Capacity will be down and they have lost 3 months of visitors, however they have got a plan to re-open now and they are going to be busy long term - ie next year will be super busy from people rearranging trips. However, have they also lost money through movies not being able to be released? But have they got more subscriptions of Disney plus than expected? All of these will impact their bottom line and therefore their share price.
Hope this helps and isn’t too ramble!
Keep an eye on the news as well to see if you can see any clues as to what might be happening with certain companies.
Spread betting doesn’t actually involve buying shares but betting on whether it will go up or down and you bet on that. If you are right you make money if you are wrong and hit your limit they will take your money.
There are some good videos on YouTube - there’s a load of crap as well with people just trying to sell you their “get Rich quick e book” ignore all of these! Lol but if you can hunt out the decent ones, try a dummy account and think like a banker then you have a decent chance. Stick with things you are interested in to begin with. Say for example you love Disney and are following all the Disney news at the mo you will know about their reopening plans - how busy are they likely to be when re-opening? Capacity will be down and they have lost 3 months of visitors, however they have got a plan to re-open now and they are going to be busy long term - ie next year will be super busy from people rearranging trips. However, have they also lost money through movies not being able to be released? But have they got more subscriptions of Disney plus than expected? All of these will impact their bottom line and therefore their share price.
Hope this helps and isn’t too ramble!
Yes, I have heard about the practice websites where you have pretend money to play with. I will definitely try that to get the hang of things to start with.
Tell me about the ebooks! Everyone seems to hold the secrets, you just need to put in your email address....... LOL
Tell me about the ebooks! Everyone seems to hold the secrets, you just need to put in your email address....... LOL