I’m new in Trading212, I have no experience and small amount of money to investment (under £1000) do you have any tips to share for me?
in what should I invest to make some quick money, expensive or cheap shares? What are your predictions and what do you recommend, thank you!
I can help but think that a combination of little experience and wanting to make some quick money is a bit dangerous…
Spend some time doing some research and maybe use the practice accounts first to get that experience. You’ll soon burn through your cash if not…
hi walker, thanks for your reply.
that’s a good idea with the practice account will be a good start to get some experience, what I’m thinking is I will try to focus on short term investments because I have small amount of money I can’t focus on long-term investments now…
If you think the stock market is a place for people to get rich quick then you’ll most likely end up losing money. Sorry to break it to you but getting rich quick most of the time isn’t possible (otherwise we would all be doing it). The stock market is a place of predictions and chance so we’ll always see some people who got lucky (just as with the lottery) and got rich quick.
Actual things based on scientific research you should do are:
- Not day trading (unless you think you can beat all the high-frequency trading firms and have superior algorithms to theirs)
- Just buy boring broad market ETFs
- Don’t try to pick individual stocks
- Diversify your investements
- Consistently keep adding money and not selling during downturns
- Don’t try to time when stocks are ‘cheap’ or ‘expensive’ as nobody knows what shares will do in the short term
Some of my own suggestions:
- Don’t invest in things just based on suggestions of internet strangers
- Don’t burn yourself with high leverage products or derivatives
- Only invest in what you understand (that also applies to broad market ETFs)
- Don’t invest with money that you need in the short term
- Know yourself, that means risk tolerance and your personal situation.
Take my suggestions for what they are as it’s your own decision in the end.
This is probably not what you were looking for so if you want advice on specific investments I would recommend you either buy ETFs or a portfolio spread across no less than 15 individual stocks (or combination of both). If you want more specific stocks you need to provide more info for what you’re looking for (i.e. safe utilities, growth, healthcare etc.).
Just saw your other comment as well, you can definitely invest for the long term with small amounts of money, isn’t that how long term wealth is built? Especially as short term investments tend to underperform.
When you refer to ‘short term’ investing and making ‘quick money’ you’re most likely referring to Trading and not Investing, both of which have very different principles.
As the previous comments have rightly stated, Trading can be very risky both with or without experience and a sure fire way for someone to lose their capital. There is currently a lot of hype about ‘day trading’ and the get rich quick schemes which have come to light with the markets recent volatility.
If you’re looking at starting your ‘Investing’ journey then your £1000 is a great amount to start with, don’t be told otherwise.
On the other hand if Trading does interest you then utilise the practice mode and do as much research as you can before you start risking your money!
Best of luck!
Agree with what @Etypsyno mentioned.
I would also add it’s worth learning a couple of basic chart analysis so it’s not a case of about now will do.
Sometimes you get lucky other times you will have been caught chasing at the top, with long term on say blue chip you’ll likely be up long term but it’s still good not to dive in heavy at the top.
RSI if it’s above 70 it’s over bought (sell signal) if it’s below 30 it’s over sold (buy signal).
The second thing is to apply moving averages. I do 50 and 200 to show recent trend and long term movement. EMAs here on Apple.
Basically you want to be buying near the red line (or ideally below it).
You can see how it left the average at 140 and was considered very over sold at the start of September.
Stocks need to always pull back, they don’t always go up linearly.
The only advice worth giving is what I’ve followed and that’s buy what you know and understand and forget about it, then research more companies you know and understand ready for your next wave