A flutter on the market
Question
I'm interested in trying to invest in the stock market, do you have any basic advice?
Answer
The first thing to remember about stocks and shares is that they involve risk and investing on your own can be riskier than doing it through unit trusts, or another investment vehicle from a large financial institution. Remember, because investing involves risk you should only invest what you can afford to lose. There are various investment clubs that you could consider joining where members invest a set amount each month or put up a certain amount on joining and they then meet on a regular basis to decide where to invest and how much. This, again, spreads the risk.
In addition you will need to decide is how much risk you want to take with your money. The least risky investments are National Savings or other government bonds.
The other thing to remember is that when you buy stocks and shares you can't just go to a shop and buy them you will need to go to a share dealing service that will charge you for their services, this can start from about £10 per transaction.
To find out more about investments you might find the information provided by the Investment Management Association (IMA) useful. Additionally, Money Made Clear provides some information and guidance about making this sort of investment. You can also find more information on the Financial Information Net Directory website.
Many newspapers run competitions where you can play fantasy stock markets. You could try playing such a game over a few months to see how you do without actually investing any real money.
Good answer? Bad info? Want to tell us what you think? We'd really like to hear what you've got to say about this answer so please click here to take the survey. Your feedback is confidential and as anonymous as you like.
