I want to buy shares...

[clarkey01]

Hi Guys


Have landed my first graduate job and getting paid quite well for this position (Tech support and Tech admin) and I want to invest some money while I can


I have traded on forex a year or so ago and made some profit (about £270) over a month buying and selling crude through AVA trading.

However, I found the experience stressful, watching for hours for my investment to turn green, sometimes having to sell at a loss of over £120.

I have researched brokers and I have a fair idea who I am going to go with.

I just have some newbie questions.


1. If I put £200 in shares and those shares go tits up and lose all their value, I can't lose more then £200 correct?

2. I can't lose more then I put in (essential question 1)

3. Any tips?

 

[Crusty]

If the shares cost $50 each and you have $200, you'll get 4 shares.

When those 4 shares are worth 0, you have $0.

 

[yankeesfan]

Originally posted by: clarkey01

Hi Guys


Have landed my first graduate job and getting paid quite well for this position (Tech support and Tech admin) and I want to invest some money while I can


I have traded on forex a year or so ago and made some profit (about £270) over a month buying and selling crude through AVA trading.

However, I found the experience stressful, watching for hours for my investment to turn green, sometimes having to sell at a loss of over £120.

I have researched brokers and I have a fair idea who I am going to go with.

I just have some newbie questions.


1. If I put £200 in shares and those shares go tits up and lose all their value, I can't lose more then £200 correct?

2. I can't lose more then I put in (essential question 1)

3. Any tips?

1) True

2) That's the same question, isn't it?

 

[Azurik]

My advice is to open an account at Vanguard or Fidelity and invest in their index/mutual funds until you have a much better understanding of stocks or you'll end up losing everything.

 

[Gunslinger08]

3. Don't buy individual stocks, given questions 1 and 2.

 

[Insomniator]

How can you be a graduate of anything and still have to ask if you can lose more than you put in to a stock.

 

[clarkey01]

Originally posted by: Azurik
My advice is to open an account at Vanguard or Fidelity and invest in their index/mutual funds until you have a much better understanding of stocks or you'll end up losing everything.

Cheers dude, will be looking into it

 

[Pheran]

With a simple stock purchase you cannot lose more than you spent. However, there are some investment transactions (e.g. short sales) in which you can potentially lose unlimited amounts of money.

 

[clarkey01]

Originally posted by: Insomniator
How can you be a graduate of anything and still have to ask if you can lose more than you put in to a stock.

Nothing wrong with being careful and since I was only 99% sure I'd thought I'd ask.

 

[Safeway]

Originally posted by: clarkey01

Originally posted by: Insomniator
How can you be a graduate of anything and still have to ask if you can lose more than you put in to a stock.

Nothing wrong with being careful and since I was only 99% sure I'd thought I'd ask.

Uhh, trading on margin? You can lose more than your out of pocket expense.

 

[mb]

Originally posted by: clarkey01


Have landed my first graduate job and getting paid quite well for this position (Tech support and Tech admin) and I want to invest some money while I can



1. If I put £200 in shares and those shares go tits up and lose all their value, I can't lose more then £200 correct?

2. I can't lose more then I put in (essential question 1)

3. Any tips?

I see it's not only the American school system that fails to teach people proper grammar.

/Part-time grammar Nazi

 

[Crusty]

Originally posted by: Safeway

Originally posted by: clarkey01

Originally posted by: Insomniator
How can you be a graduate of anything and still have to ask if you can lose more than you put in to a stock.

Nothing wrong with being careful and since I was only 99% sure I'd thought I'd ask.

Uhh, trading on margin? You can lose more than your out of pocket expense.

LOL, I don't think a margin account is anywhere in the near future for the OP.

Azurik had some good advice.

Even so, trading in a margin account you technically do lose as much money as you put into the stock(and not more), it's just not all your money.

 

[Slapstick]

Some of the best investing advice I ever got:

1) Invest for comfort not riches
2) Long term not short term.
3) Know the company before buying.
3) DRiP, (look it up)

Those 4 simple rules have served me well, even with the recession and economic down trun my overall net worth still went up over the last year, not by as much as I would have liked but still I didn't lose any money.

 

[alakp]

90% of individuals that get into forex lose money. Just something to keep in mind.

 

[clarkey01]

Originally posted by: alakp
90% of individuals that get into forex lose money. Just something to keep in mind.

I made money but found it very stressful, hence why I am not going back

 

[ViviTheMage]

401k ... that is as close to stocks I get!

 

[MrMatt]

Originally posted by: Azurik
My advice is to open an account at Vanguard or Fidelity and invest in their index/mutual funds until you have a much better understanding of stocks or you'll end up losing everything.

this. And paper trade (get a fake account) and as you learn the ropes, make trades with that fake account and see how you do. I'd advise doing it that way for at LEAST 6 months before trading for real.

 

[Sureshot324]

There are a lot of insider traders with a lot of money who know not to get caught, and a lot of large investment firms with enough capital to move the market, and as an average joe stock trader you are always going to get beat by them. This is why for most people I think stock trading is a suckers game. Mutual funds aren't much better, because they get a lot of incentives to push certain stocks on you.

 

[clarkey01]

Originally posted by: Sureshot324
There are a lot of insider traders with a lot of money who know not to get caught, and a lot of large investment firms with enough capital to move the market, and as an average joe stock trader you are always going to get beat by them. This is why for most people I think stock trading is a suckers game. Mutual funds aren't much better, because they get a lot of incentives to push certain stocks on you.

Have been looking at things like this where they 'Guarantee' you a return

Here

It may only be £5 on say on £1,000 after 5 years , this game requires doing your homework.

 

[JS80]

Originally posted by: clarkey01

Hi Guys


Have landed my first graduate job and getting paid quite well for this position (Tech support and Tech admin) and I want to invest some money while I can


I have traded on forex a year or so ago and made some profit (about £270) over a month buying and selling crude through AVA trading.

However, I found the experience stressful, watching for hours for my investment to turn green, sometimes having to sell at a loss of over £120.

I have researched brokers and I have a fair idea who I am going to go with.

I just have some newbie questions.


1. If I put £200 in shares and those shares go tits up and lose all their value, I can't lose more then £200 correct?

2. I can't lose more then I put in (essential question 1)

3. Any tips?

Don't listen to these people. Someone like you should not be trading stocks.

 

[clarkey01]

Originally posted by: JS80

Originally posted by: clarkey01

Hi Guys


Have landed my first graduate job and getting paid quite well for this position (Tech support and Tech admin) and I want to invest some money while I can


I have traded on forex a year or so ago and made some profit (about £270) over a month buying and selling crude through AVA trading.

However, I found the experience stressful, watching for hours for my investment to turn green, sometimes having to sell at a loss of over £120.

I have researched brokers and I have a fair idea who I am going to go with.

I just have some newbie questions.


1. If I put £200 in shares and those shares go tits up and lose all their value, I can't lose more then £200 correct?

2. I can't lose more then I put in (essential question 1)

3. Any tips?

Don't listen to these people. Someone like you should not be trading stocks.

Well I made a small profit on forex, I would for sure be doing my homework and talking to people before I invest any money into anything.

 

[UglyCasanova]

Figure out what your purpose for investment is (retirement, kids college, general wealth, etc) and everything will go from there. Set up a portfolio that matches your risk tolerance and do not hold everything in one kind of asset. ETF's and mutual funds are an excellent way to have some instant diversification. If you buy individual stocks make sure that you thoroughly examine the company you are putting it in. Finding the intrinsic value of a share is a lot more of a pita than you might think, and certainly not foolproof. There are many companies out there that look like they are on fire but when you dig into their financial reports it doesn't look quite so hot.

 

[JS80]

Originally posted by: clarkey01

Originally posted by: JS80

Originally posted by: clarkey01

Hi Guys


Have landed my first graduate job and getting paid quite well for this position (Tech support and Tech admin) and I want to invest some money while I can


I have traded on forex a year or so ago and made some profit (about £270) over a month buying and selling crude through AVA trading.

However, I found the experience stressful, watching for hours for my investment to turn green, sometimes having to sell at a loss of over £120.

I have researched brokers and I have a fair idea who I am going to go with.

I just have some newbie questions.


1. If I put £200 in shares and those shares go tits up and lose all their value, I can't lose more then £200 correct?

2. I can't lose more then I put in (essential question 1)

3. Any tips?

Don't listen to these people. Someone like you should not be trading stocks.

Well I made a small profit on forex, I would for sure be doing my homework and talking to people before I invest any money into anything.

Forex? You might as well have played craps at your local casino.

 

[Svnla]

Originally posted by: Azurik
My advice is to open an account at Vanguard or Fidelity and invest in their index/mutual funds until you have a much better understanding of stocks or you'll end up losing everything.

QFT. That's what I did for the last 10+ years from money left over with my first job. I did pretty well up until late 2007/early 2008.

 

[Cattlegod]

DO NOT open a margin account based on your questions. Then you CAN lose more than 200 while only depositing 200 into your account.