shares

[JohnD]

So lets focus on companies that are troubled and in the news and shares tumble..... i guess i want to buy on bad news stories, give it three months and get out... is that viable?

No

because your business model is based on the belief that you are cleverer than everybody else, and will be able to buy at the bottom of the market, and sell as it rises, and that the rest of the world's investors will not think of doing it, so you will outwit them all.

Have you any reason to suppose that is true?

Do you have any special knowledge about these companies that mean you are better able to judge value than everyone else?

 

[Djnikon]

Also IMAM, you have to acknowledge that there isn't the same appetite these days to save ailing companies. If you pick a company because it's in trouble then there is probably a reason that it's in trouble. And, add it that you will generally only hear about "investable" companies (i.e. big companies) being in trouble when they are REALLY in trouble.

Personally, I bought a few grands worth of shares in a little concern called BSkyB about 12 years ago for 398p each and they are worth double that just now. Sit on it for a wee while yet.

Rather than look at ailing companies, why not spin your thinking 180degrees and look at new businesses that might be offering something unique that are likely to be a hit... (harder to judge I agree but better than chucking your cash at a sick nag)

 

[masona]

As an example, if an oil company has a well disaster, that polutes 100 miles of coastline, share price plummets... does the price eventually get back to where it was?

Have got BP shares as the dividend payments is much better than bank/building society rates, shares are coming back up more or less where the average level is, the problem was Barack Obama's being anti-British attack on BP which backfires on the USA as usual, it was a faulty valve blamed for the oil spill which was was from a US firm, what comes around goes around! The shares can bounce up and down just because of rumours.

I'm lucky as my uncle with over 50 yrs experience dabbing the stock market giving me advice. What I will say to you is, only gamble money you can easily afford to lose because even the experts get it wrong! Best to look at long term rather then short term, don't try to make money, just do it for fun otherwise gambling can be addictive

 

[Susiejb]

FIRST rule is only play with money you dont mind losing.

I have tried the buy low and then live in hope IM and have never had any success...and trust me you really do mind losing it when it actually happens...but then I am the the one who bet on Bruno to beat Tyson....so maybe I am not the best judge of theses things

 

[JohnD]

Unless you have some special reason to think you can outwit the market (other than misplaced optimism), you are better off buying a low-charges Tracker fund, and let the market carry you along.

 

[enyam]

We were given shares when the Bradford and Bingley went plc,safe has houses you would have thought but look what happened to them.Didn't loose any thing because they weren't bought but nothing gained either.

 

[Trazor]

you are better off buying a low-charges Tracker fund, and let the market carry you along.

That's your best option.

£1000.00 is nowhere near enough to play the Stock Market.

 

[namsag]

1000 aint a lot but today there was a share on american market that went up 78 % so in theory could have had roughly a 750 quid profit in one day and those movements do happen in the uk market.
But its rollette.

One of biggest mistakes novices make is looking at monetary gains and not percentage gains .
A £2 Gain on a £10 share looks far better than a 3p gain on a 9p share.

Had a young lad in a bank scoff at me one day when buying several thousand pounds in 3p shares even when i said so how much money do i make if they go to 6p he answered not that much .
Eh i have double it i say, he still could not get the concept as it happened i more than doubled it in 2 days , but i had been following it for a long time to know exactly when to buy

 

[imamartian]

Thanks all for the replies.... interesting stuff..... changed my view on things somewhat !!!