Spending It
Market Trader
If the past is anything to go by, shares can be an excellent bet over the long-term. In fact between 1918 and 1999, while the average returns on cash savings was 1.6%, shares gave a whopping 8.2% return. Come a crash, they can do poorly. Yet despite the occasional glitch, playing the stock market can be one of the fastest ways of making money. Here's a beginner's guide to getting involved in stocks and shares.
What's the point?
The idea of investing in the stock market is to make a profit by buying or selling shares in companies. You buy shares at one price, and sell them again when the price has gone up. Of course prices can go down as well as up. And that's where the skill, or luck, comes in. If things go well you can make spectacular gains, and if they don't, well, be prepared to lose!
Getting started
In the old days, you had to use a share broker to dabble in the markets. These days, however, anyone can buy or sell - all you need is a bank account. Almost all banks and building societies can buy shares on their customer's behalf. Like everything, of course, this comes at a price - whenever you make a purchase, you'll be charged a set fee or a percentage of the total sale.
Insider knowledge
So how do you know what shares to invest in? The best place to start is with advice from one of the many share investors magazines, both in print and online. Another good source are newspaper articles in the press, particularly in papers such as The Financial Times. Most advisors suggest starting small and to only spend cash that you can afford to lose. Spreading your investments across a number of companies is also wise, as this means that you are less likely to lose all your investments should disaster strike.
Manage your shares
Once you've invested, you'll want to keep an eye on your portfolio. Luckily there are lots of online tools to help you do this. You simply enter the details of what you own, the prices at which you bought and the number of shares you own, and then the portfolio manager will keep track of share prices.
The idea of investing in the stock market is to make a profit by buying or selling shares in companies. You buy shares at one price, and sell them again when the price has gone up. Of course prices can go down as well as up. And that's where the skill, or luck, comes in. If things go well you can make spectacular gains, and if they don't, well, be prepared to lose!
Getting started
In the old days, you had to use a share broker to dabble in the markets. These days, however, anyone can buy or sell - all you need is a bank account. Almost all banks and building societies can buy shares on their customer's behalf. Like everything, of course, this comes at a price - whenever you make a purchase, you'll be charged a set fee or a percentage of the total sale.
Insider knowledge
So how do you know what shares to invest in? The best place to start is with advice from one of the many share investors magazines, both in print and online. Another good source are newspaper articles in the press, particularly in papers such as The Financial Times. Most advisors suggest starting small and to only spend cash that you can afford to lose. Spreading your investments across a number of companies is also wise, as this means that you are less likely to lose all your investments should disaster strike.
Manage your shares
Once you've invested, you'll want to keep an eye on your portfolio. Luckily there are lots of online tools to help you do this. You simply enter the details of what you own, the prices at which you bought and the number of shares you own, and then the portfolio manager will keep track of share prices.
