How to Make Money on Shares
Making money on shares is done by the difference in price to when you buy and sell e.
g.
If you buy a share at £1 and the price goes up to £1.
20 when you sell you have made a profit of 20%.
You also make money if the company you have a share in makes profits and declares a dividend, which will be paid to you, the shareholder.
Shares are small stakes in a company.
When you buy shares you become a joint-owner of the company along with all the other shareholders.
Investing in shares will normally give you a better return than any other form of saving or investment.
To start only invest what you can afford.
Think of it as a saving and invest for the long term.
Divide the amount you are going to invest into 12 parts e.
g.
if you have £12000 divide into £1000 a month, that way you will have wide ranging portfolio and you will not have all your eggs in one basket.
Do not invest into the share market to get rich over night.
A lot of patience is needed, and by selling shares after a week or two of buying them, you will be paying a lot of commission to brokers who buy and sell shares on your behalf.
When choosing a broker, shop around because they will charge different rates of commission but you are better of going to a bank or trustworthy broker and paying a bit more commission than being conned by unscrupulous brokers offering very low commission.
Before deciding on which share to buy, make an effort to do a bit of research into the company you are investing in.
A company with a proper record is always better than a new one starting out with potential, check to see how the share price has performed for the past few years and how much has the company paid in dividends which are generally declared and paid quarterly.
Once you have bought your shares keep an eye on them and on the markets overall.
If the markets are down across the board, that is not much to worry about but if the markets are up and any of your shares are falling try and find out why and do not be afraid to sell even if you make a loss.
Not all of your investments are going to be profitable, If however you do make a profit, remember you do have to pay tax on your gains.
The markets are always going up and down, so do not panic.
Remember the loss your shares might be showing is only on paper, until you sell you have not lost any money, and when the market recovers you will make a profit.
A good and reliable company with a profitable history will in the long term make money for you, so as long as your research your purchase, there is no reason to worry about your investment.
g.
If you buy a share at £1 and the price goes up to £1.
20 when you sell you have made a profit of 20%.
You also make money if the company you have a share in makes profits and declares a dividend, which will be paid to you, the shareholder.
Shares are small stakes in a company.
When you buy shares you become a joint-owner of the company along with all the other shareholders.
Investing in shares will normally give you a better return than any other form of saving or investment.
To start only invest what you can afford.
Think of it as a saving and invest for the long term.
Divide the amount you are going to invest into 12 parts e.
g.
if you have £12000 divide into £1000 a month, that way you will have wide ranging portfolio and you will not have all your eggs in one basket.
Do not invest into the share market to get rich over night.
A lot of patience is needed, and by selling shares after a week or two of buying them, you will be paying a lot of commission to brokers who buy and sell shares on your behalf.
When choosing a broker, shop around because they will charge different rates of commission but you are better of going to a bank or trustworthy broker and paying a bit more commission than being conned by unscrupulous brokers offering very low commission.
Before deciding on which share to buy, make an effort to do a bit of research into the company you are investing in.
A company with a proper record is always better than a new one starting out with potential, check to see how the share price has performed for the past few years and how much has the company paid in dividends which are generally declared and paid quarterly.
Once you have bought your shares keep an eye on them and on the markets overall.
If the markets are down across the board, that is not much to worry about but if the markets are up and any of your shares are falling try and find out why and do not be afraid to sell even if you make a loss.
Not all of your investments are going to be profitable, If however you do make a profit, remember you do have to pay tax on your gains.
The markets are always going up and down, so do not panic.
Remember the loss your shares might be showing is only on paper, until you sell you have not lost any money, and when the market recovers you will make a profit.
A good and reliable company with a profitable history will in the long term make money for you, so as long as your research your purchase, there is no reason to worry about your investment.
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