How Do I Trade Shares?

[Don Coffey]

Hi All,

I work for Bond Offshore Helicopters who are now a part of the Babcock Group.  I've just joined a share purchase scheme and this has got me thinking along the lines of doing a little share trading.  To me, a novice it looks like a mine field,  can anyone explain the basics ie. Where to go, who to use?  I would like to do a little playing around with a few pounds to get a feel for the system before looking at it seriously.

Any advice gratefully received.

Don

[X5Sport]

I'll give you 5p for the lot..... >:D

[briankerrys47]

Hi Don ,basics select company,check price on the day,my only venture( never  be rich) National Grid (NG.Plc)performed best for me long term still have them prices started approx £3 now 8 ish have been as high as £11 plus your dividends ! My main Stock is Santander UK now 4.36(low) 15 months back 6.26 I probally paid 5 ish ,rather than take divi's purchase more shares.It is a mine field but long term is the answer.maybe some members can offer further advice,or local investment advisor Standard Life a good company !

[Don Coffey]

Thanks Brian,

I do intend to go in for long term investments, but I suppose I'm looking advice on how I go about purchasing my chosen shares and what sort of costs are involved.

Don

[storminmike]

[quote="Don Coffey"]
Hi All,

I work for Bond Offshore Helicopters who are now a part of the Babcock Group.  I've just joined a share purchase scheme and this has got me thinking along the lines of doing a little share trading.  To me, a novice it looks like a mine field,  can anyone explain the basics ie. Where to go, who to use?  I would like to do a little playing around with a few pounds to get a feel for the system before looking at it seriously.

Any advice gratefully received.

Don
[/quote]

Is this part of a share incentive plan where you buy them tax and NI free with restrictions on selling to keep the them tax free?

If they are then they may be similair to those I get through work

I can pay gross for shares up to a max monthly amount of £150 direct from salary. I also get an etra 1 for every 5 bought too.

This works out at £172 pounds worth of shares at a net cost of £103 (lower tax rate)......that's £69 profit right away assuming a flat share price

If I keep them for between 3 to 5 years then if I sell there are no tax implications. The shares can be sold via equinti online quite cheaply

If it's nowt like that....then sorry

[Don Coffey]

It is a work share scheme with the tax incentives but I'm looking to play at the normal stock market.

Don

[storminmike]

[quote="Don Coffey"]
It is a work share scheme with the tax incentives but I'm looking to play at the normal stock market.

Don
[/quote]

Apart from the limitations you'd be hard pressed to beat a SIP but good luck to you

[pvr]

Check the charge rate of the traders as that affects the return on short trading. Long term not so much though.

I use a broker to buy my shares. Tried a penny share as well which was fun (made about £900 on those). For "playing", I use about £1k to buy / sell / lose. I am by no means an expert as I generally buy the wrong shares, at the wrong time

[sid10]

Best buy Premium bonds , always hold their value and you have a chance of a £million every month .

[AW8]

Returns on bonds changed so far less than 7 years ago .

Never played with shares so cant advise OP - Sorry Don

[Don Coffey]

Cheers for the info guys.  Starting to get my head around the requirements now.  I'm not looking at the shares as either a big investment or long term earner, more a hobby so Bonds not for me this time.

I'm off on my happy Hols tomorrow, so I'll wait till I get back and then look at dipping in my toe.

Thanks again guys

Don

[AW8]

Just into last few days of my leave - Hope you have a good time away 

[Don Coffey]

[quote="AW8"]
Just into last few days of my leave - Hope you have a good time away 
[/quote]
Cheers.

Don

[Turks]

If you are not looking at trading much, then an Investment ISA might be a good idea. You can see if it is right for you by searching Investment ISA's explained. You can invest around £15k pa...

Remember to calculate your fees... a friend of mine thought he'd have a dabble - he bought £100 worth of shares and didn't consider the £10 trading fee... it meant that the shares he bought would have to perform in excess of 10% in order to get his money back!


Turks.

[Imy]

Is a very straight forward process, you will need to open a trading account. This can be done through your bank or even online. Cost you will pay will depend on info you want and how often you intend to trade. I trade through Barclays purely for convenience. They charge £12 a trade and if you don't trade every 6months they charge a £15 fee, I do not get any live price details. All stock quotes are delayed 15minutes. I have Reuters at work so I get all live data so I have no need to pay any extra for my trading account. I think there a number of better and cheaper accounts than what I am using but as I said it's more for convenience.

Next is just to think about the market you want to get involved in. Penny shares are very volatile easy gain easy loss. Think about trends, what sort of markets pick up during the yr eg Next and ted baker usually do very well around Xmas time. The housing market is doing very well although that boat may already have sailed. Whatever you do forget gold!!! I gained a load and lost a bomb after taking my eye off the ball for a couple weeks.

Btw if anyone is interested my company is offering a retail bond which is paying 6% interest. Fixed rate bond which matures in 2024 but is tradable on the orb market. Full details and risks are explained on the website and through the web. Paragon group 2015 retail bond.