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Best way to trade shares?

#1
Chaps, I have searched the forum for a few hours now so apols if this has been done before, but can anyone tell me the best way to trade shares online?

I'm happy with gold stocks and am doing that through bullionvault but would appreciate any steers from people who have done it before about who is relaible, easy to use etc.

Thanks very much for any help. (Oh and I know that things are volatile now, but it's shares or poker!)
 
#3
I've used Barclays too. However, if you want to day-trade and need to buy/sell quickly on small price movements the site can be slow and impossible to deal on-line at peak times.
 

Sixty

ADC
Moderator
Book Reviewer
#5
I use Stocktrade who are an execution only broker.

Does all that I need it to:

Internet deals
Telephone deals
Limit orders

As Dozy says though, all the ones I've used previously have been much of a muchness regarding commission and functionality.
 
#7
I to am looking at trading in shares as my high intrest account rate went from 6% to about 0.5%!

I've opened up an account with HSBC and am looking at starting with just 500 quid. If l do alright then l might increase the money l invest. My question is what's best to invest in? I've heard abit about RBS saying they may go up. However l'm a complete novice at this thing and any help would be spiffing!

Cheers
Biggles4221
 
#8
Selftrade seem pretty good - really smart research tools and they processed a big order online with no fannying about - some of the providers go through "Retail Service Providers" who only offer very small deal sizes. You think you are looking at an offer from a stock exchange and actually it's a bank who will only sell you £800 worth at a sh*t price and then move the price against you.

The other things I liked about Selftrade were i) the log on screen has a "floating" set of randomised numbers for your log in, so if you do a complex mouse movement between numerals you should be safe, and ii) they will only pay out through a Direct Debit in the account you nominate when you open the account, so it would be hard for anyone to nick your dough even if your account was compromised.

Not the cheapest though - £25 a year for the ISA and £12.50 a trade. But they have a "Dividend Reinvestment" deal for long term investors so you can buy small amounts of the shares with the dividends you receive at very low cost.
 
#9
Biggles4221 said:
I to am looking at trading in shares as my high intrest account rate went from 6% to about 0.5%!

I've opened up an account with HSBC and am looking at starting with just 500 quid. If l do alright then l might increase the money l invest. My question is what's best to invest in? I've heard abit about RBS saying they may go up. However l'm a complete novice at this thing and any help would be spiffing!

Cheers
Biggles4221
Thing is, there's an entire industry set up to shaft you. For all the major companies everything known is already in the price. The price can be volatile so if you guess right you "win", but the group of people to which you belong haven't. If you look at "most traded" shares it's basically small day traders trying to steal from each other in a swirling mass, with the government taking 0.5% every trade, the dealing company taking £12.50 and the city of london taking the difference between the buying and selling price.

On small shares the difference between the buying and selling price can be nuts, and they won't let you deal in any significant amount. Virtually impossible to win.

The choice is basically, a) buy a well-diversified investment trust and leave it for 40 years, b) learn an awful lot about one small area of the stockmarket and try to exploit the relative ignorance of other investors (the "Zulu Principle"), c) engage in high stakes short odds gambling - betting on something very likely, but taking on the risk of a total disaster, or d) taking long-shot bets.

C and D can make sense if the real odds are better than the quoted odds, but that is unlikely. B is difficult. For most people A is the only option.
 
#10
gobbyidiot said:
Biggles4221 said:
I to am looking at trading in shares as my high intrest account rate went from 6% to about 0.5%!

I've opened up an account with HSBC and am looking at starting with just 500 quid. If l do alright then l might increase the money l invest. My question is what's best to invest in? I've heard abit about RBS saying they may go up. However l'm a complete novice at this thing and any help would be spiffing!

Cheers
Biggles4221
Thing is, there's an entire industry set up to shaft you. For all the major companies everything known is already in the price. The price can be volatile so if you guess right you "win", but the group of people to which you belong haven't. If you look at "most traded" shares it's basically small day traders trying to steal from each other in a swirling mass, with the government taking 0.5% every trade, the dealing company taking £12.50 and the city of london taking the difference between the buying and selling price.

On small shares the difference between the buying and selling price can be nuts, and they won't let you deal in any significant amount. Virtually impossible to win.

The choice is basically, a) buy a well-diversified investment trust and leave it for 40 years, b) learn an awful lot about one small area of the stockmarket and try to exploit the relative ignorance of other investors (the "Zulu Principle"), c) engage in high stakes short odds gambling - betting on something very likely, but taking on the risk of a total disaster, or d) taking long-shot bets.

C and D can make sense if the real odds are better than the quoted odds, but that is unlikely. B is difficult. For most people A is the only option.
That's a very cynical view, Gobby! I wouldn't much disagree with you, though!

For Biggles: Most firms charge £10-12 for dealing and the Chancellor gets his fingers in the pie too, so your £500 has already lost 5% and you haven't even decided what to buy! Better to spend some of your money on the Weekend FT and one of the broadsheets - and read everything you possibly can about investing. Then pick a small number of shares (3-5 perhaps) and follow them closely until you understand what makes their prices move. Then invest! Or not!

Litotes
 
#11
Litotes said:
gobbyidiot said:
Biggles4221 said:
I to am looking at trading in shares as my high intrest account rate went from 6% to about 0.5%!

I've opened up an account with HSBC and am looking at starting with just 500 quid. If l do alright then l might increase the money l invest. My question is what's best to invest in? I've heard abit about RBS saying they may go up. However l'm a complete novice at this thing and any help would be spiffing!

Cheers
Biggles4221
Thing is, there's an entire industry set up to shaft you. For all the major companies everything known is already in the price. The price can be volatile so if you guess right you "win", but the group of people to which you belong haven't. If you look at "most traded" shares it's basically small day traders trying to steal from each other in a swirling mass, with the government taking 0.5% every trade, the dealing company taking £12.50 and the city of london taking the difference between the buying and selling price.

On small shares the difference between the buying and selling price can be nuts, and they won't let you deal in any significant amount. Virtually impossible to win.

The choice is basically, a) buy a well-diversified investment trust and leave it for 40 years, b) learn an awful lot about one small area of the stockmarket and try to exploit the relative ignorance of other investors (the "Zulu Principle"), c) engage in high stakes short odds gambling - betting on something very likely, but taking on the risk of a total disaster, or d) taking long-shot bets.

C and D can make sense if the real odds are better than the quoted odds, but that is unlikely. B is difficult. For most people A is the only option.
That's a very cynical view, Gobby! I wouldn't much disagree with you, though!

For Biggles: Most firms charge £10-12 for dealing and the Chancellor gets his fingers in the pie too, so your £500 has already lost 5% and you haven't even decided what to buy! Better to spend some of your money on the Weekend FT and one of the broadsheets - and read everything you possibly can about investing. Then pick a small number of shares (3-5 perhaps) and follow them closely until you understand what makes their prices move. Then invest! Or not!

Litotes
gleaming thanks for the advice matey. I've been watching the RBS shares for the past 2 weeks and they gone from 28. something to 39.something else. the 6 month graph l've seen as well just that they have gone up and up. From what l've seen this is'nt to bad.
 
#12
Remember though that if you do buy RBS now you are in it for the long haul.

They are no more profitable than they were when the price was at the year high and low. Indicating market stabilisation effects (i.e. not a true indication of current sentiment).

There is no doubt that RBS are a good long term bet at this price but don’t panic if the price drops down quite low once stabilisation wears off, because a company like this will double (being really conservative with my estimations. here you could triple or more) over the years to come.


edited for jobby spelling
 
#14
Anything to do with investment you need to be so careful - I quite liked the look of one of the derivative products "Turbos". You can bet on a rise or a fall, it gives you massive gearing, you can only lose your stake. I thought, "Buy one that bets on a fall and you can sleep at night without selling the shares".

Problem is, you are automatically a loser as soon as the index (or price) moves even a small amount against you. The people who write these products understand volatility better than the punters. Ergo, shaft-time :(

http://www.investorschronicle.co.uk...45-11dd-8c44-00144f2af8e8/Turbos-compared.jsp
 
#15
If you are going to invest in derivatives, you really need to specialise in one area or stock.

I trade in currency derivatives, i only trade USD/GBP though the system i use could be used on other currency pairs.

The longer you intend to hold the position in a derivative trade the larger the deposit you require. This is because minute to minute fluctuations may be larger than your intended long term position. i.e. you may forsee a 50 point drop (and be correct) but this may only come after a sharp 150 point spike.

I tend to set a trade calculated to complete within thirty minutes max (usually ten minutes for the sake of the chocolate starfish). This system will not make you that million pound deal, but it will bring you small profits which will compound over time into larger more substantial sums.
 
#18
In a word I would say do it. I've been trading for years now and have rode the highs and lows. It's all about having a trading strategy. Youtube has a wealth of videos and I've found informed trades to be quite useful.

http://www.youtube.com/watch?v=6A2LZ87M_mw&feature=channel_page

My own top tip would be to set up a fantasy portfolio to get used to the highs and lows. www.iii.co.uk is one of the better sites.

Register free at https://www.iii.co.uk/registration/

Then set up a portfolio choosing about 4-5 companies (PM me if you want help). Many guides will tell the small investor to have approx 1k per company invested. You may wish to invest more or less.

Companies I would be keeping an eye on are:

Premier Foods - possible takeover target by Kraft Foods
Sainsbury - possible takeover target by the Arabs
Vodafone - a boring stock, good dividend payments, steady eddy.
Barclays - still going up and may well continue to do so as US recovers
Partygaming - on anticipation of being allowed back into the US

In the worst case scenario only invest what you can really afford to lose. But remember that if you invest 1K you'll only losr 1K. I invested a quite substantial some in Barclays at the end of Jan 09 when they were falling like a stone. I picked them up at 52p and they have gone up by 445% in 3 months.

Have a look at the Barclays Bulletin Board on iii I've learned a huge amount on this board:

http://www.iii.co.uk/investment/detail?code=cotn:BARC.L&display=discussion&it=le

Look out for the postings of Barcap, Shed, RAFeng and others. the postings with the blue tag are usually the best, conversley the red is often poor, abusive or against the trend.

Edited for.

Spread Betting...the clue is in the title, I recently read the stats which indicate that only a miniscule minority actually make money.

As part of your strategy you may wish to bank profits when you get to 10-15%.

Equally it may be wise to set up a stop loss so that when stock falls 15% you trigger an automated sell, you'll lose 10-15% but you can always try your hand on another stock.
 
#19
Litotes said:
Storeman Norman said:
Some good stuff here.

Anyone found a UK based broker willing to deal in shares listed on foreign exchanges?
I use tdwaterhouse.co.uk at the moment.

Remember the currency risk!

Litotes
Thanks Mr L. However, I am the proud owner of some dodgy Bank of Cyprus gear (no, no, seriously!) and as well as being listed on the thriving Nicosia exchange, I think they're also listed in Athens. Impressed? No, nor am I, unfortunately neither it seems are tdwaterhouse! Any other ideas?
 

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