How To Get Started In The Online Stock Market?

[jakeholdn789]

I've done little research. But I would like to know how to get started. Is it really as easy as clicking up or down with a bit of money on it? All tips welcomed.

[jno]

I'd say either do a lot of research, or pay someone with skill and experience to do it for you.

[ELVIS68]

Mate at work "invested" £1000 into it and was skint a week later

As jno says, pay someone who knows what they're doing

[kjn2]

Answer to the question is NO. My tip would be only play with what you can afford to loose. And thats from somebody who worked in the industry for 42 years . Good luck.

[New Judge]

We dabble in the stock market and have done for a few years.

We’ve always managed to turn in a reasonable profit. I’d like to think this is a matter of skill and superb financial acumen but I think it’s been more luck than judgement. The previous answerers are wise to advise caution, but I’ll share a few of our experiences. Note these are not tips - our experiences may not turn out the same for you. They are just a take on what we as amateur small investors have picked up along the way

Firstly I think your description of investing in the stock market (“Is it really as easy as clicking up or down with a bit of money on it?”) leads me to believe that you are confusing dealing in the stock market with spread betting. They are totally different animals and if you want to know more about spread betting I cannot help too much. I know the principles of spread betting (and some of the perils!) but have no practical experience.

I think the number one rule is to only use money that you can afford to take a hit on. Unless you are extremely reckless and/or incredibly unlucky you are unlikely to lose the lot, but you should be prepared for losses. We started by using the cash we would otherwise have used for a cash ISA. We were fed up with pi55-poor interest rates and were prepared to take a few risks to try to earn a bit more

Next I think you need to make sure you have an account that does not rip you off in fees. Most online operators charge a flat fee per transaction regardless of the value of the deal but beware some charge a percentage fee and these can prove costly. Also bear in mind that when buying shares (but not when selling) you will pay 0.5% Stamp Duty.

The principle reason for investing in shares is for long term gain - no professional advisor will tell you otherwise. However, our strategy is to go for short-term profits and to do this successfully is a bit more tricky. We try to buy and sell after a fairly short time, trousering any dividend and growth as soon as it is available. This is fraught with danger and although we have made some cash we are sitting on one or two paper losses where we will have to hold our nerve to see if the stock recovers. There are, of course, only two prices that matter - that at which you buy and that at which you sell. Anything in between does not matter.

There are two income streams - growth (in share price) and dividend. There is money to be made buying shares in companies that have announced decent dividends but bear in mind that the share price will almost certainly drop by the value of the dividend on “ex-dividend” day - the day that you can sell the shares and still receive the dividend.

There are pickings to be made from the “AIM” market. This is a tier below the main stock market where new mainly small companies are traded. Particularly for new companies there are occasionally rich pickings in growth, but the risks are greater and it is not for the faint-hearted. We’ve taken a punt on one or two newcomers and made some good profits.

Yes, you can pay somebody else to do all this for you but although you will reduce the risks of large losses you will also lessen the likelihood of large gains. You pays your money and takes your choice.

Hope this helps and good luck!

[jakeholdn789]

Thanks, all very helpful!