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EmmaRoid

How To Start Investing?

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Is there a beginners thread on here about investments and investing? I don't mean I am looking for hot tips but the fundamentals of how to assess and make investments, i.e. advice, books, resources. I would like to develop a rudimentary knowledge that covers, at least but not exclusively, 3 specific areas 1) AVCS to a pension - long term, 25+ yrs 2) A cash house deposit on a house that looks like it will never be bought - short to medium term & 3) a small cash sum held on behalf of a child - does 15+ years count as medium or long term? Tolerance of risk is relatively low and I have little greater aim than to be able to buy in the future what I can buy today with it.

I have played at sharedealing in the past but a rising tide lifts all boats and I did not know what I was doing other than making a lucky call to get out at the right time. I have also benefitted from a currency hedge although that was not the initial intention but I am very close to running out of luck on that one. Otherwise it can be assumed that I have no relevant knowledge, as if I had just been deposited on this planet from outer space.

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Mr Daiking,

I like the "Financial Times Guide to Investing". You can find it on Amazon. Make sure you get the most recent edition, older ones are often put on sale by second-hand vendors.

It is medium-thick, but readable, and starts ab initio. There are no real shortcuts to knowledge of this kind, though your comment concerning rising tides is apt.

The internet is full of financial sites of varying degrees of quality and vested interest. The Motley Fool is not too bad for beginners in my opinion. They will try to sell you newsletters, services and suchlike, but no harm in looking.

Regards,

Mr Smith

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2 classics in addition to the eminently sensible above:

(1) indirectly relevant but gives you the right mindset - 'the intelligent investor' by Ben Graham (timeless classic, can get the early edition pretty cheaply, all you need)

(2) modern classic - 'Commonsense on Mutual Funds' by Jack Bogle (after this one you may end up buying other advice books on how to use iinvestment funds, but you will probably always come back to this one and get rid of the rest)

Edited by Si1

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There are no real shortcuts to knowledge of this kind

Which is why I've never bothered before, it always looked too much like hard work and I didn't want to risk throwing away what I had. However, the UK looks like hard work for a very long time now so I best change the habit of a lifetime.

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Which is why I've never bothered before, it always looked too much like hard work and I didn't want to risk throwing away what I had. However, the UK looks like hard work for a very long time now so I best change the habit of a lifetime.

Yes, Ben Graham's book states this much, too, and repeatedly IIRC. I have mentioned before, elsewhere on these fora, that I used to spend 10-15 hrs per week researching stocks. It is really time-consuming, not to mentioned brain-sapping work reading all the information available.

Regards bulltrader's post above, just be aware of what type of investor / trader you wish to / can be. Most people can't spend 10-15 hrs per week researching followed by 20-30 hours / week sat at a computer trading away. Very few small guys truly make money trading, and for good reasons.

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I used to spend 10-15 hrs per week researching stocks. It is really time-consuming, not to mentioned brain-sapping work reading all the information available.

That's not what I'm looking for and if it means I have to spend that sort of time on it I may as well not bother. I have a full time job in a field completely unrelated to IT or finance and just don't have the time or inclination to put in that sort of effort. Just to make it clear, this isn't some deluded idea that I can give up my job, become a daytrader and get rich quick. If that were the case, I'm sure that casinos would be a far more fun way of doing it.

I want to be able to make informed choices about what to do with the little money I have whether its put it into stocks, bond, property, precious metals or rabbit scrotums.

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Well, I'd suggest a managed fund which is attune to your own risk profile.

Quite possibly but I need to learn enough to get me there to start with. I really am talking about starting from a position of no knowledge. No good bringing up charting at this stage!

Edited by daiking

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Quite possibly but I need to learn enough to get me there to start with. I really am talking about starting from a position of no knowledge. No good bringing up charting at this stage!

In that case, you might benefit from a provider that has things like a recommended list, and publishes regular info aimed at beginners.

I use Hargreaves Lansdown, who meet that description. If you poke about on their website you can start your education, and if you sign up as a client you'll get a whole lot more (whether you want it or not). If you do, be aware they're quite focused on Open Ended (managed) funds which are their speciality and the product class where they really do offer the best deals. But then those funds have the easiest learning curve of any investment product, so not a bad place to start.

(oh, and if you sign up there, ping me first and I'll cut you in on any introduction bonus, if they have one at the right moment. B) ).

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My first steps in investing were initiated and supported by the Motley Fool book on investing. They seem to be out of print now, and all the info is on their website here

I would definitely steer you toward a FTSE Tracker (in a Maxi ISA wrapper)... either FTSE 100 or FTSE All Share. They have low management funds (if you pick the right one), and will track the FTSE rather than being dictated by a fund manager's whims.

Fool.co.uk will also guide you in picking choosing individual shares if you wish to go down that route.

Please remember I am not a qualified financial advisor, and these are my opinions only! :)

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My first steps in investing were initiated and supported by the Motley Fool book on investing. They seem to be out of print now, and all the info is on their website here

I would definitely steer you toward a FTSE Tracker (in a Maxi ISA wrapper)... either FTSE 100 or FTSE All Share. They have low management funds (if you pick the right one), and will track the FTSE rather than being dictated by a fund manager's whims.

Fool.co.uk will also guide you in picking choosing individual shares if you wish to go down that route.

Please remember I am not a qualified financial advisor, and these are my opinions only! :)

The Fool, like any other source, has both good and bad advice. They tend to recommend trackers and ITs over unit trusts/OIECs, but all but one of 14 of the latter in my SIPP have significantly outperformed a tracker over the period I've held them, while both my regular ITs have performed poorly.

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Still going.

Having some good fortune, found I still had 50 quid in my dormant halifax dealing account and I doubled my money when I tried roulette. Unfortunately not 50quid but still, 10 quid is 10 quid.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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