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

Refering to my earlier post would you use software to scan the market for any hot stocks.

I don't think there is a single strategy that brings definite success,
sorry but that's how I see it...even with software, there is no easy way
if there was many of us would happily be 'playing' purely for fun!!

Do what you feel comfortable with:
What type of companies can you relate to easily, what business areas
do you have personal experience of?

This is often a good place to start, that way you can scan company
web-sites and reports and the information really means something to you.
I have been in recruitment, so reading info on this type of company
makes sense to me because I understand the industry more than
reading about electro-magnetic do-da's (lol)

If you have personal experience of an industry you can draw on it may
make spotting the 'goodies' easier than falling for the 'baddies'
no matter how much the baddies tart up their performance/prospects!!

Its not fool-proof but its one way you might have the edge over others on the market!!! Good Luck and do masses of research IT always pays off!!!

I love it when people ask about how to make huge profits. If we all knew the secrets many of us would be on a beach somewhere!

I don't know about anyone else, but as long as I beat inflation, plus what I could get from the top rate savings accounts with ease, in addition to an bit extra and of course have fun doing it - that's good enough for me. I just look for profit - small can be good too, especially if only over a day, or a week.

The trouble with aiming for huge profits is you can also get huge losses, but I keep getting told that as long as you get more huge profits than huge losses you're you'll come out way ahead - but how many people using this stratergy acually win more than they lose?

As stockbunny says you have to try different things, and use the ones that seem to work for you.

Amen Little Woman...
Speaking of the beach scenario...
So where are we off to for our Summer hols?
Barbados...Capri....Bognor (lol)
Yup...Well I'd be happy to get as far as Bognor today :o)

The seychelles is my prefered (over bognor although bournmouth is not bad!)

Hey well go for it (seychelles) just pack an empty case
for me to stow-away in!
I suppose it just goes to prove the 'mystery' and
'glamour' of the stock-market that even now, after the bear
market run & tech crash people can still think somehow huge
fortunes can be made.....I wish them luck.....

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???