muddycoffee
08-05-2005, 18:57
For a few years I have played with the stock market in a very small and frivolous way. Basically on my birthday I buy about £100 of shares on the internet using Comdirect (http://focus.comdirect.co.uk/en/quick/uk/index.html)
I understand from financial programmes on the BBC that there is not much point in doing this unless you have at least 10 grand to invest, due to the transaction fees. But I enjoy tracking my little gains, getting a few pounds in dividends 3 or 4 times a year and reading about who next to invest in.
Advantages of doing this
1) you get used to the ins and outs of dealing so if you have a larger sum to invest in future, you know how to go on.
2) you tend to make more money overall than just putting it into a bank account, so although It's a little hobby, it's also a little nest egg.
Disadvantages
1) It's gambling to some extent and you could loose half or all your funds if the sector slows down.
2) it costs £12.50 to buy and £12.50 to sell so you have to make at least £25 to break even.
Does anybody else do this and how do you choose your stocks. I am thinking eventually to have about 5 unrelated sectors, with just one company of each.
E.g. Retail, Property, Transport, Chemical etc. and then if I invest further then I just get more of the same company, meaning that it is less complicated to sell and keeps the selling fees down.
I understand from financial programmes on the BBC that there is not much point in doing this unless you have at least 10 grand to invest, due to the transaction fees. But I enjoy tracking my little gains, getting a few pounds in dividends 3 or 4 times a year and reading about who next to invest in.
Advantages of doing this
1) you get used to the ins and outs of dealing so if you have a larger sum to invest in future, you know how to go on.
2) you tend to make more money overall than just putting it into a bank account, so although It's a little hobby, it's also a little nest egg.
Disadvantages
1) It's gambling to some extent and you could loose half or all your funds if the sector slows down.
2) it costs £12.50 to buy and £12.50 to sell so you have to make at least £25 to break even.
Does anybody else do this and how do you choose your stocks. I am thinking eventually to have about 5 unrelated sectors, with just one company of each.
E.g. Retail, Property, Transport, Chemical etc. and then if I invest further then I just get more of the same company, meaning that it is less complicated to sell and keeps the selling fees down.