Hi All,

Have been thinking about investing in stocks / shares, and am about to take the plunge. I have some money to invest, I suppose like most people I want a quick big return for my invesments, and the reality wil not be so, this I am prepared for as I know the investments have to be for the medium to long term.

My question is, should I be looking to thinly spread investments into say 8 - 10 companies, or to invest in 2 or 3 companies. Like I mentioned before, I know there is no magic formula, but a few pointers in the right direction would be greatly appreciated.

I am looking to invest for the future, I have a full time job, which is nothing to do with finance / investments, so this is an exciting project I am looking forward to.

Thanks in advance for any help given.

Simon - UK

Genovese
David Linton says that shares mag has a very good track record at stock picking. He has figures to prove it

IC is way behind on stock picks

re 7 cutting losses is key and do not get wedded to a stock

The amount invested per stock has to be worthwhile to cover the spread and costs and try to invest in a few different sectors. Stocks with dividends are worth considering

Totally ignore rampers as they usually have a vested interest

Genovese

I would suggest you listen to Jumpin, hilary and Snip, all of which I beleive are women.

It's not often I do listen to women, but can safely vouch for these ones. I've been keeping an eye on them!

;-)

If you are having trouble with the psychology of it, as per Jumpin's post, I'd suggest you read books by Elder and Douglas. Highly recommended.

Jumpin

You state "Before you can trade properly you need to know yourself, and be able to control your emotions... if you can't, then you can't trade. Picking the share is next.."

Is not that like saying 'before you can ride a bicyle properly you need to know how to balance on two wheels....if you can't, then you can't ride a bicycle. Peddling the wheels is next.."

I'd be interested how you managed to do one without the other.

"Is not that like saying 'before you can ride a bicyle properly you need to know how to balance on two wheels....if you can't, then you can't ride a bicycle. Peddling the wheels is next.."

If you can't balance you can't pedal

If you lose the balance you fall off and you lose serious money

Yes Big Al..

I give in and admit...;)

"Genovese1 -Another question, would it better to buy lots of shares at a low price (penny shares) ? or smaller amounts of higher priced, like the topical Abbey Bank ?"

Don't buy lots of penny shares.


Stick to small spreads bigger caps, low trading costs.

Trading penny shares...hard to buy, big or rather HUGE HUGE spreads... hard to trade, low vols, hard to sell. Yawn, yawn, wait wait for sometimes could even be months or YEARS for just the spread to be filled before you can even break even!

Genovese, the rampers can be spotted by checking the chart of what is being ramped. If the price is going in the opposite direction to what they are recommending they are ramping. Usually.

Jumpin. ;-))

Genovese1 - keep a good spread of investments, i.e. a selection from the largest caps to the smaller ones. Don't be tempted by the BB's to jump into all the tiddlers - surefire way to get into trouble and you'll sleep easy.

Genovese, penny stocks can be very problematic to sell if you need to get out in a hurry and it is possible to lose most of your investment in minutes

I agree with large caps and small spreads and look to get into a stock in a rising trend. They all have retracements so look out for that and watch for strongly positive volume on a re-test of a support level

think `mountain goat` and be happy to plod upwards

Maria otherwise snip (member of big al fan club)

ps the book by Elder is a wonderful read and a `must have`

Buy the pullbacks indeed! This a lovely example over a long time period. Best level is behind so no advice given!!





Cheers,
Al
(fan of all the wimmin!)