Taking part of your monthly income and investing it on the stock market is in all probability not a great idea if you’re hoping for a quick return. You would probably have more chance of getting a quick return by putting your money on the favourite at the next race at Haymarket! There’s quite a few folks who are getting a perverse sort of pleasure from the act of placing a bet instead of actual winning.
We have mentioned Penny shares and whether it’s wise to invest in this market. Although so-called, these shares can’t actually be bought for one penny; however they are normally under $5 to purchase. There’s a much higher risk with penny shares because of the fact that they have a low value. Another problem with penny shares is the fact that the price can swing lots in one or other direction in a short space of time and this can encourage inexperienced investors to sell if the price jumps a lot. It is often the case that the price will drop again before they get the chance to actually complete the sale. At a time when the market is volatile it can be very easy to make the wrong decision.
Something else to consider is the time of the year. Christmas time is only around one hundred days away would you believe. Not a word which is mentioned here until the start of December. But the fact is that you can find very few pay days left until the ‘C’ word. Fourteen days ago I suggested buying of one share as a gift. This is obviously not a big investment but it would be a nice change for the person who you find it very difficult to buy for. If you want to encourage them to start following a certain company on the stock market then this could be the way to do it. This is also a nice gift for a christening.
You might like to subscribe to a newsletter about online investments but if you do, then you need to be careful that what you’re subscribing to is not just an approach to advertising for various companies. It is imperative to check the small print at the bottom of these newsletter to clarify the position. If they are promoting purchasing of particular stock for which they have received a fee, obviously that can’t be classed as unbiased information.
It could be helpful to invest in a book aimed at “Investing for Beginners” to get a little additional knowledge before risking hard-earned monies on the stock market. I explained last week how a cash ISA is almost certainly the best way to get a good tax free return initially. You should think about investing in this annually before any other investments.
stock-trading-investing.com is the website to visit if you are into securities and investing. On top of all the advice, tips, reviews and info available at the web site, you could also learn about more specific things like trading options.