I'm totally new to share investing and all my trading is virtual,
still trying to get my head around how to pick shares. So far I have been pick shares in sectors that I know about or have interests in
IT & telecomms- its what I know
Mining - I have interest in geology, speleology and minerals
Renewable energys - ethics and an interest

just wondered how others pick investments and why?
I know DrBubb is in to mining, is this because you work in the sector or other reason? (do you get to go down mines in your travels, I'd waste to much time collecting specimens rather than assessing the potential for profit)

The best answer I can give is rather boring.

Do lots of research,and only buy a stock that you are prepared to put in the time AFTER you have bought it.
For this reason it is probably wise to stick to what you know at first.

Read a book...there are lots around.

DIVERSIFY!!!!

Again it sounds a bit boring,but if you don't then you are not an investor,you are a gambler.(I speak from experience)

Finally,don't listen to some bloke off the internet!!!

Good luck!!!

(Oh,and don't trust to luck)

I've sold a lot of my shares that I had in retailing. But one thing that I used to do is take notice of where I spent my money. If I use a company either a retailer or one that provides a service, I ask myself why do I use that company. In other words if I use it, then they are doing something right.

eg. I hate M&S and have for years. So I never bought shares in them. Just over a year ago I bought shares in Tesco for 270. a share then sold when they reached 317. They have since gone higher. But hey I made a profit. But I initially became interested in Tesco because as a company they made you come back for more. Especially the website. I also noticed alot of tesco home deliveries happening among my neighbours. So I reckoned its not just me. But then I researched the company to see where they were going. Now I could be wrong but one of the reasons I got rid of my shares is because, funnily enough I don't use them so much these days. But also because I've noticed that my neighbours are shopping at the local lidle more. I'm thinking they are trying to save money and the local lidle have really come a long way in their products. I reckon if they get online properly (at the moment they just show you the specials they are doing) then people like Tesco are going to get some serious competition.

So I watch what is going on around me. Now I also have mining shares and investments in small oil companies. Then shares in a mobile phone company, and others. So I have a good mix. Plus I know that it is always a gamble with shares. Really I only invest what I am prepared to lose. Not that I want to lose anything. But I wouldn't put my life savings into shares. Its extra money. So for companies that you don't see around you like mining. I go to their company site or the London Stock Exchange website and look at their news and history and what they are up to in the future. Also I check the companies they are dealing with. Like a lot of oil companies will merge form partnerships for a particular field. So I check who their bedfellows are and who their enemies are.

Now the first thing I look at is the graph that shows the price of the share and what it has been doing over a 12 month period. Because Some of my shares are long term and others I only keep for 8 to 12 months. A share like Kleeneze tends to do the same thing every year. Its high around Febuary then low in the summer if memory serves me right. So I buy when it is low and sell when it is high.

Also sometimes if it is a short term share, and it has done quite well I will sell it and invest the profit elsewhere (by profit I mean after the brokerage fee). Like something important like my pension.

That's how I do it. Its not one thing, but various ways including instinct. It may not be scientific. But I haven't made a loss yet(fingers crossed).

Good luck. Oh and if you spot something good, don't tell anyone untill you have bought it(except me ). Also if you are going to get rid of something because you think it has reached its peak and is going to fall, don't tell anyone. Especially if you are trading online. All it takes is a rumour for a share to drop like a hot potatoe and for you not being able to get on the net quick enough.

The best way to invest in shares is do what Bubb does.

Learn technical analysis!!!

I've found it without doubt to be by far the most profitable way to play the stockmarket.

I don't dabble in individual shares myself,I have funds but am still able to play trades on various indices and commodities.

my favourite chart tools are the 50/200 day MAC
AND RSI charts.

also worth noting a couple of recognisable patterns(head+shoulders etc)

What do you think of McDonalds, Growl? It's got a poor reputation and has been the butt of all the junk food bad press and a figurehead in it's market for attack, litigation, regulation etc.

Nevertheless, it's a global brand up there with Cocacola, and it's share price is close to it's level in 1996. It seems to be that with good leadership it'll succeed in reinventing itself into a health food deli chain, and I don't think this is reflected in the current price. Undervalued?

Fingers

Get the 3 books buy J.Mamis, when to sell, How to buy, The nature of risk.

They will serve you well, here is a taster

http://site.fraserpublishing.com/HOBUshort.pdf

......or even simpler,look at what joe public is doing.


...and do the opposite!...and have patience!

seriously,these things work in cycles,just like fashion.

if you had bought a pair of flairs 20 years ago they would be worth a mint!

I tend to do a mix of Fundamental Analisys and Technical Analisys. Would agree with using charts and TA tools, my favs are RSI, MACD 20 day MA, volumes and bollinger bands. But I steer clear of FX, commodities and indecies. Too hairy for my liking.

Any tips? Do your research and play safe. Banzaii investing rarely works. Trust me I've tried it!

Edit: Also decide on what time frame you want to invest, develop your rules and stick to 'em. Plan the trade and trade the plan.

Good luck.

Chech this out all:
http://site.fraserpublishing.com/TAREMAshort.pdf

enjoy, Absolute gold mine

If at all you do buy shares, always set yourself a decent stop loss level. Never ever sit on a losing share and think it's going to 'be alright'. Invariably it isn;t. Learn from your own mistakes.

It might be a good time to get in at the moment to make a quick buck. Look at a solid FTSE share (like a Bank or Water Company) with a decent yield and buy. I feel next year will be a good year for the market.
We have seen good rises this year. Next year the ISA fund managers will telle every1 how great a year it has been previously and how it will continue. New money will IMHO pour into the stock market next year.

Of course, when I started investing it was at the end of the tech boom/bust, muggins bought a few shares at the top of the market (Vodafone, Pace and Xenova).
Though I managed to get a few winners when the market started rising from it's last depression. I'm still suffering from the early years. I won't be doing that again.
I'm now comfortable with my investments, as I have tucked some away for the long-term (with decent dividend to boot - Lloyds, Northumbrian Water, BT, National Express).
Also it may be worth having a look on the www.advfn.com bulletin board as they have some informative posts on all the companies listed on the stock market. Have a look at Healthcare Enterprise Group (HCEG). The greatest BB there is.

Everyone is a genius in a bull market : so find a Bull market!

It ahs been in commodities. I think tech stocks are overvalued crap, for the most part.
TRhey are popular, and are heavily promoted by VI's like investment bankers.
(So are mining co's, but in a different way, and there are ways to win at the mining game)

[quote name='waldiman' date='Nov 10 2005, 10:12 PM' post='231985']
If at all you do buy shares, always set yourself a decent stop loss level. Never ever sit on a losing share and think it's going to 'be alright'. Invariably it isn;t. Learn from your own mistakes.

.......TOTALLY agree!!!!!!!!!

...don't EVER hold a share in the hope you will regain a loss...if the share you bought loses 10% of your original price/newly adjusted profit....then bin it.you have to know when to cash in.
if you've made 20% on a share,be happy...and lock it in.that is REAL money once you have traded out.


.....you can't expect to beat the market....even the best traders will only catch about 2/3 of a rally....but as an amateur if you get 50% of a price gain that's pretty damn good,so cash in your chips and wait for the next one to come....don't get greedy.