How to Buy Shares.

Ready to buy shares?
Pick a few company shares and invest a modest amount to start with.
Remember: the value of shares can go down as well as up – so never invest what you can’t afford to lose.................

Here are some popular providers offering free share tips… Generally, they are geared towards long term investing, so don't expect to make profits overnight.

But eventually they will bottom-out, and when that happens, it will pay to know how to buy stocks to make money from the best value investments on the market.

As a beginner investor, it’s crucial not to buy stocks before learning the basics.

Useful Stock Trading Tips
Brokers – beware of stock brokers who call up out of the blue and offer a stock that is “guaranteed to skyrocket any time now”. These brokers work on commission and only care about getting people to make trades so they can skim a profit.

Volatility – smaller stocks are often more volatile than blue chip stocks. This means they are inherently riskier, and should be approached with more caution. While they offer huge potential returns due to the discounted nature of a young stock, they also run the risk of folding at short notice.

Long term investing – for many investors, stock trading is a long term game. It is unusual to profit from single stocks in a matter of days without some insider knowledge or market manipulation. Often, investors buy stocks and allow them time to increase in value, maybe over several months or years.

When to sell – stocks can be sold when the valuation (annual profits in relation to the stock price) becomes too high. Stock tip sheets, investor publications, and broker research notes often publish new stock valuations after some major news or financial accounts go public

Best Stock Market Tips

A professional stock market analyst has:

1.Understanding of wider market trends
2.Knowledge of individual sectors
3.Experience analysing financial accounts
4.Contact with the management of the stock
5.Access to rumours and upcoming deals
6.No emotional bias

That last point is often overlooked. It is easy to become attached to a stock simply because it is deemed to show promise. But if the share price is doomed, the level-headed investor must know when to cut a loss.

How to Buy Shares

A Guide to Buying Shares on The Stock Market.

Discover how to buy stocks and make money on the stock market.

If a private investor is willing to take some calculated risks and follow the advice of the experts, there are still good opportunities to buy shares for profit and make money on the stock market.

While some private investors do their own stock market research, it’s much easier to find a reputable stock tip sheet or equity research house that supplies all the ideas.

Don’t buy shares randomly (i.e. because they have a nice name) or trust investor bulletin boards (i.e. because someone says “this one’s going to be a ten-bagger!”) This is completely unreliable. Remember – the stock market is not random, share prices move because of fundamental attributes and investor sentiment. Understanding what causes a share price to move is the key to making money on the stock market.

Buy your first stock or your first fund?

You say you want to invest, but you don’t know where to start? This investing primer walks beginners through each step along the way to becoming a shareholder.

What is a share of stock?
Corporations sell shares of stock to raise cash to fund their operations. The first time that a company sells its shares is termed its initial public offering (IPO). Most companies make additional stock offerings from time to time to raise additional funds.
When you buy stock, you are buying ownership in the underlying corporation. For instance, if XYZ Corporation has issued 100 shares, and you buy one share, you have purchased a 1% ownership stake in XYZ.

What is the Fund (Public Mutual Fund)?
Mutual funds invest the pooled funds of thousands of investors. By investing in mutual funds you gain the advantages of professional management. Because most funds hold dozens, if not hundreds, of stocks in their portfolios, investing in funds also gives you automatic diversification.
That is an important advantage. Even if you're a gifted stock-picker, inevitably something unexpected will happen that will sink the share price of one of your stocks. Such an event could be a disaster if you own only a few stocks, but would be no big deal for a mutual fund holding a hundred or so stocks.
Mutual funds often specialize in specific market niches, such as small companies, fast-growing companies, etc. You can buy mutual-fund shares directly from a fund company -- such as Public Mutual Fund, which offer a variety of fund types.

Funds versus stocks:-

There are two basic ways to invest in the stock market: You can buy stocks of individual corporations, or you can buy mutual funds such as Public Mutual Fund.

Buying shares for the first time?

Buying shares for the first time?

Take all four into consideration when taking a call on whether or not you should buy a stock.
But do remember you are living dangerously when you make decisions based on 'tips' you have heard/ read.
The chances of you losing your money are much higher.
Investing is serious business.
You should take it seriously.

Bull or bear :-
It does not really matter if you don't know which term suits you best. I firmly believe anyone can beat the stock market.
All you have to do is be disciplined and work with some basic principles.
The key lies in finding the right stock. Once you do, hold on to it for the long haul or till you get the price you wanted.

Four magic principles:-
1.)Look for low P/E stocks
2.)Growth story
3.)Asset backing
4.)A good trading outlook

An Investor's Guide to the Central Depository System (CDS)

Buying and selling stocks can seem daunting for a beginner but it is quite simple and will grow on you quite quickly once you have some practice. One essential thing to know is that you must go through a broker to buy and sell stocks, only a licensed broker can deal directly with the stock market.
A broker (remisiers) can also advise you on your purchases. However, you should not depend on them for market knowledge, you must do your own research to succeed in the market.

How to invest in shares?

What’s so good about shares?

Shares are easy to understand. Shares can provide better returns over the long-term.
As a long term investment,shares have the potential to provide better returns than any other major investment. You also can diversify your investment that can reduce the volatility of your share portfolio by investing in a number of quality companies, rather than two or three only. This is called diversification.
Diversification is spreading your money. If you’re the kind of investor who likes a good night’s sleep as well as strong returns, diversification is a must. Investors have been able to reduce the overall volatility of their portfolio and increase returns by investing in a diversified mix of shares.

Shares are a long term investment:Investors who have made money from shares tend to view share investment as a get rich slow scheme.

Tax:
Companies have already paid tax on their profits, tax credits known as franking credits may be attached to the dividends that a company pays you. These credits can be used to offset tax payable by you on other income.

Shares are liquid
If you invest directly in shares and need to access your money in a hurry, it's relatively simple to sell your shares. In fact, you can normally buy and sell the same shares many times in one day. It’s easy to sell any indirect investment in shares by redeeming (i.e. selling) units in a managed fund investment. Compare this with owning property - you’d be doing well to buy and sell a property in a month.
With shares, it’s also easy to buy or sell a part of your portfolio; whereas with a property, you can’t sell just the bathroom or the kitchen.

How to invest in shares?
Clients an investing in shares directly with broker (remisier) or via an online broker, CIMB online. Online brokers, CIMB-Itrade, allow you to take control of your investments, enabling you to trade when you want and anywhere.CIMB offer an investment research, education and tools to help you make your own investment decisions confidently. Online brokers or CIMB-Itrade tend to be less expensive, cheap.
Remisier are also offer personalised investment advice and research for their clients.

What is a share?
A share is a basic unit of ownership in a company, the company’s profits released as dividends.
Why do companies issue shares?
To raise capital. The company may be seeking capital to fund the purchase of new equipment or premises, diversify their operations or expand into new markets.
What makes the share price rise or fall?
There are many reasons why the value of shares increase or decrease, market and economic conditions, other financial markets and investor expectations, but generally it gets back to supply and demand.
If there are more people who want to buy shares than people who want to sell them, the share price rises. If there are fewer people who want to buy than people who want to sell, the share price falls.