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Where to
start ? Here are some notes and
FAQ's which we hope will help.
Brokers
Choosing the
right broker. We have a link to the popular
Brokers selection tool on our BROKERS page.
Here are some of the variables to
evaluate
Dealing
costs The actual cost of placing an individual
buy/sell order. There is stamp duty also at the
prevailing rate but only on buys. Allways check
that cheap dealing offers dont have high admin
charges.
Admin
charges Normally charged quarterly. When
calculating real cost look at number of deals
likely per year and then add in this admin
cost.
Transfer
costs Check costs to transfer in and out
shares, share certificates and other charges must
also be considered when evaluating
costs.
Online or
telephone dealing Nearly all brokers now offer
some form of Online dealing with telephone as
optional back-up. Some Online systems have some
human interface and others are 100%
automated.
Holding share
certificates Outside of accounts avoids admin
charges. Ok if you are likely to be a long term
share holder (years not months).
Broker
support How much info can the broker offer you?
Will he offer advice and recommendations or is his
service completely without support.
Broker
speciality Information Some will offer
Real-time share prices, trades information, news
and feedback direct from the trading floor, live
market data.
Getting
Information
Charts
Software packages or Online sources are options for
charting and analysis. For Software we think
Metastock is the most powerfull package from major providers - Reuters. Online
source Yahoo Finance is good - see our page
header.
Fundemental
data Look no further than Hemscott. From here
you can get Key Dates, Major shareholders, Trades
Information, Company Contacts.
Newspapers
Obviously you can find FT, Telegraph and times securities recommendations, but
morning round-ups are available from Sharecast and
Citywire.
Share tips
If the source isnt regulated be very careful. Tip
Sheets can help in this respect. See our TIPSHEETS page
for rundown of benefits.
Bulletin
Boards
A great source of information but allways qualify
claims made on bulletin boards
Broker and
Analyst buy/sell ratings NEVER buy shares
solely on the basis of Broker or Analysts
recommendations
Establishing
values Establish your own set of values and
opinions on any company that you hope to invest
in.
Buy/sell
strategies Develop your own very clear set of
buy/sell strategies.
Stop loss
Search the net for stop-loss strategies. Find one
that will work for you and STICK TO IT. Check out
Michael Walters He usually has
something on Stop Loss.
Expected
investment period Decide if you are investing
or trading ! An investor is looking at periods in
excess of two years. A trader may hold for less
than two years.
Preferred
sectors Establish in your mind which sectors
are likely to do well in current conditions.
Therefore identify the likely poor performing
sectors.
Views on world
climate Hunt for information on the world
economic climate and take a view on world cash flow
and employment stats.
Identification
of independant external forces Be aware that
external forces can have a significant effect on
the UK market. The classic example is Wall Street
opening at 2.00PM UK time. this often causes very
sudden changes in sentiment.
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