Any Recommendations in Shares to Invest in?

kingolympics

Active Member
So I'd like to invest a few thousand pounds in shares. This will be my first step and I see it as a bit of a trial. I'm using money which I'm prepared to lose, but hopefully I won't obviously!

I'm like to invest and possibly withdraw my money in 3-5 years. Does anyone have any tips of companies I could take a look at? Does anyone do this and have any websites which I can use for research?
 

SteveCritten

Distinguished Member
A few I would put on a Safeish list are Barclays, Pennon, and Standard Life. Nice dividends even if the shares don't go up.
 

kingolympics

Active Member
Thank you. I'll have a look at those tonight and see what I think.

Any recommendations who I should purchase the shares through?
 

SteveCritten

Distinguished Member
Next are my hard luck story, I bought £500 worth way back when they were around just under 50p and thought I was a top share expert when I sold them for £2-50 making a 5 fold profit........if only haha.
 

imightbewrong

Distinguished Member
Next are my hard luck story, I bought £500 worth way back when they were around just under 50p and thought I was a top share expert when I sold them for £2-50 making a 5 fold profit........if only haha.
My friend's parents bought loads at 10p - sold them at 30p - £££s in. Just a shame it wasn't ££££££££££££££££££££££££££££s in
 

imightbewrong

Distinguished Member
So I'd like to invest a few thousand pounds in shares. This will be my first step and I see it as a bit of a trial. I'm using money which I'm prepared to lose, but hopefully I won't obviously!

I'm like to invest and possibly withdraw my money in 3-5 years. Does anyone have any tips of companies I could take a look at? Does anyone do this and have any websites which I can use for research?
This is worth a read: The Naked Trader - Robbie Burns' trading diary

The site is pretty chaotic now but check out his books on Amazon if you want to know how to do decent basic research into shares.
 

imightbewrong

Distinguished Member
I use Motley Fool for share trading (in ISAs) and Hargreaves Lansdown for my SIPP
 

aneeqa

Active Member
+1 for the naked trader. Some real good advice.

One thing I would do is avoid the AIM market look at FTSE100 and 250

I've got Taylor wimpey which I got 1k at 0.85 they are now £2+ and paying a dividend abeitly a small one. And we all know about how few houses are being built in this country. I am tempted to cash in but will just leave them for now. Also I'm getting dividend reinvested in more shares, well worth it for any shares that pay out a dividend
 

imightbewrong

Distinguished Member
+1 for the naked trader. Some real good advice.

One thing I would do is avoid the AIM market look at FTSE100 and 250

I've got Taylor wimpey which I got 1k at 0.85 they are now £2+ and paying a dividend abeitly a small one. And we all know about how few houses are being built in this country. I am tempted to cash in but will just leave them for now. Also I'm getting dividend reinvested in more shares, well worth it for any shares that pay out a dividend
Yep AIM can be a roulette wheel. Share doing well... share doing well... oh dear the accounts were faked lose 90%.

I've never done dividend reinvestment myself as I'd worry the shares weren't a good price on dividend day and would be better taking the cash and buying them later or something else entirely.
 

weaponx031277

Well-known Member
Severn Trent Water. Share price has been pretty static recently but you get a nice dividend twice a year. There also always some takeover rumours flying around ath the start of the year as well.
 

aneeqa

Active Member
Yep AIM can be a roulette wheel. Share doing well... share doing well... oh dear the accounts were faked lose 90%.

I've never done dividend reinvestment myself as I'd worry the shares weren't a good price on dividend day and would be better taking the cash and buying them later or something else entirely.

If the dividend is fairly small it's good to get a few extra shares it increases your holding without incurring purchase costs .

My main holding is ltsb where my average is £1.20 because I averaged down from £7 ouch after the crash. It does mean I have close to 10000 shares and once the dividend starts being a few pennies per share it'll be substantial.

Def avoid places like questor and share tips in weekend papers. By the time Monday comes the price will already have rocketed because the masses have piled in and soon after the price drops back

Also before investing a single penny read the naked trader cover to cover and set up a watch list of a few shares that interest you.

I use advfn app it's free to set up watch list. Don't let the share chat bulletin boards sucker u it. I just read them for entertainment value
 

imightbewrong

Distinguished Member
Yep agreed on the discussion boards and share tips in the papers. As Naked Trader says if one of your shares gets tipped the rush of buyers if probably a good place to sell into.

I use the Shareprice website and app for share monitoring.

Once you start getting more advanced you can pay (e.g. at advfn) for access to more information and things like Level 2 data which shows you the depth of the market. It can get expensive pretty quickly so build up the basics first.
 

SteveCritten

Distinguished Member
Also set a stop loss, you can always buy again if they start rising again. Do you guys day trade or just hold for longer periods. I had a great win with Barclays when the banking crisis first happened. I noticed they refused a bail out and posted profits of 6 billion at the time so I bought and sold around 5 or 6 times and turned £1k into £5k in a couple of weeks. I dumped all my shares though to invest in a property or six but I do keep an eye on proceedings for when I do start investing again.
 

imightbewrong

Distinguished Member
No - mid to long term holder here - I tend to buy a small number of well researched companies and sell at some point in the future. Day trading is very difficult to be successful at - I'm a value trader all the way.

Stop losses are good but watch out for volatile shares - especially in the morning as you can end up getting pinged out when it isn't really an indicator of where the price is going.
 

Wahreo

Distinguished Member
I don't have a clue what I'm doing but have a portfolio and still manage to make money.

I bought most of my shares in my 20's when I actually had money and only tend to sell these days. Occasionally buy the odd bit here and there.
 

deantown

Distinguished Member
I watch the share tips in the MOS and have to say they have been pretty good over the years. I am by no means an expert but have made a good few shillings on shares. I also think Barclays is a good share and will be a top player again once they have got over the financial scandal (fines).
 

SteveCritten

Distinguished Member
No - mid to long term holder here - I tend to buy a small number of well researched companies and sell at some point in the future. Day trading is very difficult to be successful at - I'm a value trader all the way.

Stop losses are good but watch out for volatile shares - especially in the morning as you can end up getting pinged out when it isn't really an indicator of where the price is going.
When I say day trading like I say the banks fluctuate that much even still I did 5-6 trades over a 2-3 week period for that gain. There isn't that much volatility at the moment but wondered if it was enough to make a living with 5 or 6 trades a week?
 

imightbewrong

Distinguished Member
When I say day trading like I say the banks fluctuate that much even still I did 5-6 trades over a 2-3 week period for that gain. There isn't that much volatility at the moment but wondered if it was enough to make a living with 5 or 6 trades a week?
You have to ask yourself why you are buying a particular stock - lots of traders have checklists/forms to fill so they can see why they buy it and come back to refer to it as the situation changes.

If you are buying to sell it again the same day or a few days later, what is the reason? Is it because it's had a big drop and you think it's due a recovery? Maybe some news interpretation or whatever that will correct the price. This is risky stuff and can easily blow up in your face. Naked Trader tells of a guy who thought HSBC had finished dropping so he put a £300K PER POINT spread bet on it recovering - so every single point of movement would make or lose him £300K. It continued plummeting and I think he fled to Spain in the end (with a spreadbet you can lose more than you started with - a critical difference from share trading). Lots of money was made and lost in the high volatility of the banking crisis. Another guy day-traded Tesco a few years back - he worked out a range it bounced between and made quite a few successful trades on it. The trouble is he then declared himself a genius and the next time it hit the bottom of the range he went all-in to 'speed it up'. That afternoon Tesco announced their first ever loss and he lost tens of thousands on that news story and a three-day trade became a multi-year hold. The lesson there is to not put too many eggs in one basket. And ideally don't just buy eggs.

When I buy a share I like to look at the middle-long term prospects from a fundementals analysis - what is the dividend like? How much profit does it make compared to the market cap? (absolutely critical) How much debt does it have? How is its sector doing? If it ticks enough of these boxes, buy and wait - set a sell limits/targets - I have these in mind but don't use automatic ones as I like to re-evaluate the share when it gets to these levels.
 

SteveCritten

Distinguished Member
Yes I also check all that you mention but I like to look at shares with high assets mainly bricks and mortar. I did well on a nursing home company that owned the buildings and rented to management companies, share price was low as it showed no profit but that was because it had loaned to some of the managements to help them set up. I think I only bought £500 at the time at 55p and sold for around £5 (memory isn't great haha) think they were called NHP but they had a management buy out and were delisted.
You are getting me all interested again I may have to purchase a few now ha.
 

gibbsy

Moderator
VAG Group. Shares are 20% lower today. Ride out the storm. VW. Too big to fail.
 

IronGiant

Moderator
That's my fault, I disrespected them in Motoring just now. :D
 

rb5201

Well-known Member
For a 3-5 year investment I would look at tesco. Shares are low (more to do with china etc than just how they are trading) and the new chief ex, unlike his predecessor seems to know what he is doing.
 

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