So you want to know how to invest in shares?
If you’ve got some money spare or you are looking to invest for your future then this is a great idea, but there’s a little more to it than this. Shares can go up in value or down and this is something that you need to consider very carefully although there are some types of shares that are a little more reliable and less risky, but the chances of a bigger return on these types of shares is much lower.
Always invest only what you can comfortably afford to lose. Never borrow money to invest in shares and how you manage your money is very important as investing is usually a much longer term strategy, so don’t expect to see short terms gains of any real value.
It’s always a good idea to spread the risk of your shares over a few different companies and organisations instead on just one or two. Also if you like the idea of higher risk investments where you can make a bigger gain, then you should create an investment portfolio with a blend of high risk and low risk shares.
Another thing to consider is the dividend payments that you may get on some shares. These can amount to quite a large sum, if you get the best ones. You’ll generally find that the larger, less risky investments can pay quite good dividends, but the sums usually aren’t that great, so you shouldn’t choose those with higher dividends.
These days to really understand how to invest in shares, you need access to a computer with internet access. you’ll need an online broker (don’t worry you’ll find out all about this on this site, access to share prices and market info and a notebook and pen.
The newer ways of investing online can be a little bit risky if you don’t know how to invest in shares and you’re just a beginner, so you’ll need to get one or two online brokers.
One thing you’ll need to accept is that to be a good investor, you’ll need to make lots of small losses at the same time as making some gains. The secret is all in the figures and to sell at a loss occasionally because you might not want to lose money, but if you hold on to some shares too long, that’s exactly what you might end up doing, losing the lot!!
One other big problem with investing in shares is trading too much, in an attempt to make even more money, but this rarely works out this way.
The one key point to remember is that investing is not gambling. Gambling is putting money on something you know little or nothing about in an attempt to make a profit. Investing is doing research and making informed decisions as to what shares have a better chance of making money.
Generally speaking your overall trading philosophy should be based around buying shares that are growing to new highs and NOT speculating on shares that are getting cheaper than ever before, UNLESS you know something no-one else does about the reason why this is happening.
Here are some of things you’ll learn on howtoinvestinshares.com, don’t worry if it doesn’t mean anything to you right now…
spreads, trading costs, normal market size, trading hours, volumes and market makers
Keep reading through this site to find out everything you need to know about how to invest in shares. I’ll be adding new pages all the time, so keep coming back and I’ll share all I know with you.
Always do your research and investigations thoroughly. Here’s a good place to start – stocks and shares