I'm rather new to Money AM, and was wondering to make huge profits, do you need to invest in small companies, new ones? Or the FTSE 100, 250 or commodities. How do find these hot stocks? Newsletters or technical and fundamental analysis.

Any reply would be appreciated

The press keep mentioning it's a good time to start investing again, which doesn't help.

I have a really good friend, who invested a lot of money during the "dot.com " era - all on recommendations, and I don't think he has much to show for it. A while ago he asked me to take a look, as he wanted to start trading again (he was intending to borrow money to trade). I suggested borrowing was not a good idea and he still hasn't found the time to let me take a look at his portfolio (I wonder why - or perhaps who he listing to!)

To make money you have to have some master-plan. Try to avoid buying whatever is tipped as a dead cert for they usually drop back within days. Look at the spread between buy and sell price - as this gets bigger the chance of the share rising to create a break-even are much reduced. Beware high Yields - usually a sign the price is falling away.

It's probably better to follow a dozen companies ( and the assistance on this BB to stick with Co's in your own sphere of knowledge.). If you are young and inerperienced don't trade with money - create a fantasy portfolio and run that for a few months IE Before risking cash.
Never borrow to invest.

Since "the market knows" you will not make much on FTSE100 stocks, unless they have fallen out of favour (like Corus and Banks until recently) - but if interest rates rise the Banks will make more profit - but this likelyhood is already "in the price" - so you have to be ahead by several months. Look at smaller companies but take the warning of Little Woman that these also can create the greatest losses.

The theory of 10percent is good - invest no more that 10% of your wealth in stocks - at least until you have a roof over your head.
Finally beware that terrorism and the falling Dollar may yet cause FTSE to fall despite the good gains since early 2003. It's possible there are no more general gains to be had, but No-One knows for sure!
Hope that helps.

Sorry wrong thread - this should have been on "Meeting thread" - - the young man(?) from Wales (did he say?) asking after advice for beginners.....Not that I'd be much real help.

Very wise comments but whats your hot tips this week???