Share Dealing Accounts

[TFGtv.com]

The current 'sagging' of the share market may be as much a opportunity as it is a threat.

Going back to the late 80's I seem to recall that many a bar was propped up by many an 'expert' pontificating the benefits of getting in while the market was laid low. And bar room wisdom would have it that shares that could be bought up for a few pence might make you a fortune.

Bar room wisdom and legend also has it that shared dealing is little different from betting on the horses. And I can think of a few people who treat dabbling in penny shares in exactly that way.

Speak to an accountant or banker though and you're likely to get much the same reaction as you would were you to call into your local garage to ask about that annoying rattle from your car's engine. Sharp intakes of breath accompanied by pitying glances and sage advice that it's perhaps best to leave well alone.

So; who's right. When it comes to making a punt do we favour TD Waterhouse or William Hill? Or is this really the sole domain of the Sage expert?

And when it comes to doing the deed what accounts to consider for this particular form of online betting/prudent investment?


(Backs slowly away from blue touchpaper..... )

[barryhynd]

Being that I come from an accountancy background I think it would be very brave for someone to dabble with the stock markets at present. It is pretty much a lottery and if anyone was hellbent on doing it I would suggest that you only put in what you can afford to lose.

I think just now it's a case of keeping things tight and trying to ride out the storm, it's likely things will still get a little bit worse and we'll likely stay in the type of situation for 9-12 months for what the experts are saying.

This obviously is just my opinion (quite risk averse )

[TFGtv.com]

Originally Posted by barryhynd

It is pretty much a lottery and if anyone was hellbent on doing it I would suggest that you only put in what you can afford to lose.

Surely though that's good advice at any time? And perhaps that's part of the current crisis individuals are facing?

Dealing in shares, trading the market has the mantle of respectability as opposed to say horse racing or poker. But how well deserved is that mantle? For sure when markets are stable there's money to be made. And, even in the very best of times money to be lost!

My best mate at school was the son of a former Bookie. They lived in a council house in Barmulloch because his dad had been 'wiped out' in a single race where some 'mugs bet' had come in. (This, I'm guessing must have happened in the mid-60's). I also used to have an acquaintance who was a former full time trader. Got wiped out 21 years ago almost to the day....

Strikes me that the only difference between them was that while one favoured the racing pages in the "Daily Record" the other was more of an "FT" man....

BT shares (for instance) .... Nice safe sort of solid investment? I'm sure many people remember having their own telecoms company sold to them just as well as other remember it being stolen away....

There's a nice chart here...

Friday 17th October 2008 - Shares Forum

Which seems to be telling us the ten quid+ put in back in 2000 is now just 1.29....

Now; many people won't be at all surprised by that; not at all. If you ARE surprised than you probably shouldn't be in the market. Trouble is people are (directly or indirectly) in that market. And are now feeling the pinch with savings and pensions being eroded away....

Thing is; if you'd given your pension money to a good pro gambler you may well have done just as badly or just as well. Yet people would thing you mad if, instead of a pension fund, you simply bankrolled your friendly neighbourhood Poker ace!

And when the next big stockmarket panic arrive WILL people have learned their lesson????

Don't get me wrong; I've no problems with people having a punt. And if folk want to study form and get into the maths of it well that's fine too.... SO long as they realise it IS just a lottery; no more!

[anned]

Warren Buffet (my hero from the who do you want to meet thread) lives by the premise "be fearful when others are greedy, and be greedy when others are fearful.".

Financial advisors always have their clients piling in at market peaks -dotcom boom, buy to let to name 2 recent examples.Making money in shares is relatively straightforward -buy low and sell high -leave the last 10% for someone else.It;s identifying the lows that's the tricky part -particularly when earnings are so unreliable -you can't trust valuations. You will make the most (but stand to lose it too) by taking a punt on a high risk share.

Safer to let the dust settle and take a longer term view on more stable numbers.Would I be buying now? -Yes

And don't invest what you can't afford to lose.

When you do decide to take the plunge, I have an on-line account with idealing.com -find them very efficient and if I need a real live broker I use Stocktrade in Edinburgh (they are execution only, so no advice service).

Good Luck