Making money on the stock market is easy.
You buy shares at the lowest price
You sell shares at their highest price
Difference between the two prices = PROFIT!
:lol:
If you have some money then my advice would be get a S&S Isa where another company advises the return (5-8%) and put the money in that, then forget about it.
Then do the same each year for ever.
Its not sexy but it does work.
Anything else is guess work. There are FX trading companies who will share their secrets for 25-30-35-50-15% of YOUR profit but really, its a dangerous game to play as we've seen a 'rogue trade' can fuck all sorts up.
I'm not qualified to give any advice. I own shares in a company that is currently worth about 1/5 what it was 2 years ago. You only lose money in stock trading if you sell at a loss so currently these shares will just sit in my portfolio and hopefully my average will reduce the hit for me.
There are a few bloggers who do look for dividend paying shares - this is a good place to invest if you have 'spare' money and the income is passive but it come at a risk - if the dividend is reduced/removed its not making money.
The most important thing to remember is there are companies employing much more inteligent people than you or I, to investigate/spy/affect other companies so that they know when to buy/sell shares.
Berkshire Hathaway (Warren Buffets company) holds $707 Billion in assets
$707,000,000,000
If their portfolio goes up 1% in a day that is $7 Billion
or, if you'd prefer
$7,000,000,000
in a day.
They will spend BILLIONS making sure they make 'good' investment decisions. Because money spent here can affect the bottom line.
Then you get these guys...
Scrutiny falls on the Republican intelligence committee chair for selling shares before a market crash.
www.bbc.co.uk
The likes of you and me don't get this level of information so can't make these decisions like that. The whole game is rigged AGAINST the little guy. Unless you are this little guy...
A self-taught British trader has been sentenced for his role in a £1tn US stock market crash.
www.bbc.co.uk
Who gamed the whole system!
The Stock Market (and all sub markets) are fascinating and all made up.
Invest what you can afford to lose. Imagine, like I did, that your shares drop to 20% of the price you purchased them for. Could you still afford to eat, pay bills, etc?
A bit of a long post from me, but hopefully it gives you your answers and a little more food for thought.
Thanks,
The Reverend