Buying Some Shares

[Uncle Gizmo]

I've been thinking of buying some shares, and I have no idea how to go about it!
I've just started watching some videos for beginners, but if you would like to chip in with some advice it would be most welcome!

Also - I had a quick look for a database for handling stocks and shares but I couldn't find anything. Again if you can point me in the right direction..

 

[Jon]

Hey Uncle, this is something I am getting into at the moment. I did have a bunch of money in Premium Bonds but the average payout is only 1% per annum. Long term stocks and shares returns is about 8% on average, I believe. I was fed up with inflation eroding the spending value of my savings.

 

[AccessBlaster]

Do you have an account already set up at a brokerage house such as Ameritrade, Schwab, Robinhood, etc? If not that would be the first start, many institutions have a minimum investment requirement let's say $500.00 to open. Once you have the account and the minimum deposited I would strongly suggest you put your money into a money market type account, to begin with. This is a "safe harbor" account meaning very little risk. After spending a reasonable amount of time getting familiar with the company's onsite tools you could then venture into a purchase. Are you familiar with Moringstar?

 

[Uncle Gizmo]

I was fed up with inflation eroding the spending value of my savings.

This is the reason that I am considering shares..

 

[Uncle Gizmo]

Do you have an account already set up at a brokerage house such as....

No I haven't got it set up yet, although I have downloaded an app on my phone, but I thought better of it... I don't like dealing with money transactions on my phone, as I don't think they are as safe as a desktop PC, particularly as you could lose your phone! The other consideration is I am UK based and I understand that I cannot just sign up with a USA brokerage firm, I need a British-based firm

 

[Uncle Gizmo]

My initial questions are:-
How can I prove that I own shares? Do I get a certificate, paper? online? How's it done?
How do I know the Firm I am dealing with is trustworthy? (the brokerage)

There will be more!

 

[Jon]

What is your risk profile? Low risk? High risk?

 

[Minty]

Uncle, unless you want to micro-manage it, as a starter have a look at a Stock and Shares ISA.
You can get them to do most of the hard work and pick a portfolio that is as risky or safe as you feel comfy with.

The returns can be pretty healthy, and are tax free up to your ISA investment limits.

 

[Jon]

Proof is your details on the online brokerage account. i.e. digital proof. Trustworthiness I judge by size! Big = more established. But also general reputation based on stuff I read.

 

[Uncle Gizmo]

What is your risk profile? Low risk? High risk?

I don't understand what you said, so I will make a guess... Do you mean what risk am I willing to take? Am I willing to take high risk - high reward or low risk, safe, but low Reward?

 

[Uncle Gizmo]

Stock and Shares ISA.

Found HSBC ... So could be dodgy! (Joke)

Stocks And Shares ISA | Investment ISA - HSBC UK

We offer a range of investment ISA options for you – from us taking care of things for you to you choosing your own investments. Find your perfect ISA today

www.hsbc.co.uk

 

[Jon]

I don't understand what you said, so I will make a guess... Do you mean what risk am I willing to take? Am I willing to take high risk - high reward or low risk, safe, but low Reward?

Yes. How much volatility can you accept?

 

[oleronesoftwares]

Get the advice of a stock broker, or accountant, they see beyond the books companies sometimes cook up to get people to believe they are profitable, also for any company you intend to invest in, you need advice from someone who understands the industry the company is in

 

[Jon]

Disclaimer: Please note, all advice from anybody on this thread is just fictional. None of us are financial advisors!

 

[AccessBlaster]

Get the advice of a stock broker, or accountant, they see beyond the books companies sometimes cook up to get people to believe they are profitable, also for any company you intend to invest in, you need advice from someone who understands the industry the company is in

You still have to do your own homework to make sure they are not just pushing you towards an "in-house" product they might be getting a commission on.

Oh and most trades are not free

 

[Jon]

In a fictional world, make believe characters may or may not have the following strategy:

1. Put 50% of their toy money in an index tracking fund. These invest in thousands of companies, to help reduce volatility. You end up getting the same return as the imaginary stock market.

2. Put the remaining 50% of their toy money into bonds. Bonds tend to do better when shares do worse, and vice versa. This helps even out the fluctuations.

This advice is all fake. Do not listen to any of it. Shares go up and down. Put it all in a piggy bank instead.

 

[oleronesoftwares]

You still have to do your own homework to make sure they are not just pushing you towards an "in-house" product they might be getting a commission on.

It's a risk one has to take, even doctors have in-house products they sometimes push to their patients, that is the power of education, no amount of homework done by someone not knowledgeable about finance can be better than that of a financial analyst.

 

[Jon]

I don't understand what you said, so I will make a guess... Do you mean what risk am I willing to take? Am I willing to take high risk - high reward or low risk, safe, but low Reward?

Want high risk, high potential reward? Try Bitcoin. It fluctuates madly! A friend of mine invested $7K and it is now worth $100K. I invested X amount and I am down 30% after 2 months!

 

[AccessBlaster]

It's a risk one has to take, even doctors have in-house products they sometimes push to their patients, that is the power of education, no amount of homework done by someone not knowledgeable about finance can be better than that of a financial analyst.

Be careful play smart!

 

[Jon]

With Monopoly money.