Share Dealing

[abigsmurf]

Given that pretty much all forms of 'safe' saving are awful at the moment (all under inflation so you're effectively losing money). The Motley Fool offer a cheap service (?10 a transaction anytime or ?1.50 for fixed time transactions) and let you buy shares as an ISA (and so tax free).

I've dabbled in shares before. I thought I'd try supporting the UK games industry and invest in Argonaut...

Anyone else deal in shares? Able to recommend a site with advisors who make good predictions? Given the FTSE is likely to bottom out very soon, there's a potential to make an absolute killing (don't mind the risk, it's not vital money I'll be investing).

[gunrock]

I've dabbled in shares before. I thought I'd try supporting the UK games industry and invest in Argonaut...

This is a bad idea.

Given the FTSE is likely to bottom out very soon, there's a potential to make an absolute killing

This is dangerous thinking.

(don't mind the risk, it's not vital money I'll be investing).

This is good.

[abigsmurf]

Yup was a very bad idea in the end (I don't have a lot of love for Jez san that's for sure). Seemed a good investment, they had the Harry Potter franchise and prospects of them being bought by EA were good. Then the company was run into the ground and had its best assets stripped...

Shares are all about the risk:reward, if you can correctly guess a low point during a dip, you make a killing.

[MattyD]

I thought Argonaut went bust about three years ago?

[charlesr]

I think smurf was saying last time he dabbled, he went for Argonaut stock...

[Chief H]

A couple of guys at work have been dabbling in this with their savings - quite a few of them are of the gambling nature so I guess it's the next logical jump for them, brought on by the low interest rates. One chap has only invested in one large bank so far (obv not great news today but he's looking long term, so looking for slower stable growth + dividends).

I've been looking at the idea of setting aside a fund for myself to play with a bit - a couple of years back I started putting money in a pooled investment fund with a bank, which hasn't been as awful as I thought it might be. Still, I'm not even looking at that until another four years have passed at least - it was always a long plan investment.

[abigsmurf]

I'm thinking of putting money into barclays. Their share prices had lost 75% of their value but the bank itself is well run and profitable

[MattyD]

They also bankroll arms deals to the third world (Sierra Leone, East Timor, etc), but I suppose all banks are up to the same things...

[Adrock]

Capitalism has no time for ethics MattyD. No use even considering dealing on the stock exchange if thats your overriding thought when it comes to share dealings.

Lloyds would be an interesting gamble. They are clearly undervalued if they can ride out this turbulant time and use the ideals it has in the past with its new clout. But, of course, if it goes real bad they could end up being nationalised.

[abigsmurf]

If the government increase their share in lloyds, the shares will become worthless. They'll drastically lower or stop dividends and their growth will be stopped. You could make a fortune out of them but they're ultra high risk

[Nijo]

I'd start by reading http://ftalphaville.ft.com/ every day, especially the 'markets live' discussion. I skim through it at lunch - you'll get a ton of info on the banks if that's what you like. The forums on ADVFN are apparently also good, though I haven't been there in years.
Regarding financials I'd consider this fund (if you like funds):

http://www.h-l.co.uk/funds/security_details/sedol/0479019

He seems pretty savvy having avoided most of the bank crash. Otherwise RBS, Barclays and Lloyds are all big gambles - I'm not touching them yet.

As for Jez San, I think he's still involved in that poker company. I don't think you can buy shares in it yet though.

[Finsbury Girl]

Use CFDs - quicker and easier + no stamp duty and can leverage

[Supergoal]

I've been meaning to have a go for several years now due to friends and colleagues also doing it.
I've been researching and reading around and trying to understand the basics, but if anyone knows anything I'd appreciate any advice, especially online techniques and useful pages to look at.

To be honest, I'm not looking at making anything substantial at all, just more out of curiosity than anything else.

It's also curious as to why people seem to either have terrible stories of losing most of their money, whereas others seem to have made a nice little earner. Why would this happen? Is it really all about timing? Also such things as Fundamental Analysis or Technical Analysis, which one is better?.. So many questions.

[abigsmurf]

There are tactics to making a fortune on the stock market. You find a small, undervalued company that suddenly launches a big mainstream product that sells in the millions and you can make a fortune if you time it right. Conversely you can buy shares in a small undervalued company and it's big product can flop and it'll go out of business and, depending on how badly it was in debt and the value of the assets you can end up with nothing.

Conversely you can see it like savings and buy into a big stable company like Tescos and use it as a savings account with a good rate of interest due to dividends. However Dividends aren't assured either, a company which does badly will suspend dividends (this usually goes hand in hand with the share value plummeting). From what I gather dividends typically are around 2-5% of the share's value. Most decent share information sites will give you an expected annual return rate on dividends (based on the previous year's figures).

It's important to remember Share Dealing is gambling. It may reward those who make smart choices but there's always a chance of losing some or all of your cash.

[Supergoal]

It's important to remember Share Dealing is gambling. It may reward those who make smart choices but there's always a chance of losing some or all of your cash.

Right, so any money used won't come from vital savings. Though I suppose if you like to gamble it wouldn't be a good idea to start.

What are generally the best and most reliable online stoke brokers to start with?