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Basic questions - easy money

Investment discussion for beginners. Why you should invest your money, get help getting started
Sim2335
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Basic questions - easy money

#417219

Postby Sim2335 » June 4th, 2021, 6:22 am

I’m new to investing, so had couple of basic questions

If I buy a lot say 100 less likely to lose it all?

Why not just go for big compines how can you lose, e.g Amazon

And finally is this almost graunteed to make money invest in ea sports few months before Fifa 22 comes out once it’s out stock bound to go up and withdraw money?

Itsallaguess
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Re: Basic questions - easy money

#417222

Postby Itsallaguess » June 4th, 2021, 6:51 am

Sim2335 wrote:
And finally is this almost guaranteed to make money -

Invest in EA Sports a few months before Fifa 22 comes out once it’s out stock bound to go up and withdraw money?


No..

Markets are generally forward looking, with share-prices generally reflecting the 'known knowns' and the 'expected knowns' of a particular company at any given time, and so EA Sports releasing FIFA 22 would be an 'expected known', and is not likely to affect the EA Sports share price in a way that could be taken advantage of in the way that you'd be hoping to above...

Now - EA Sports perhaps having a particular problem one year that meant that they couldn't release FIFA 22, then that's likely to perhaps move their share price, but probably not in the way that you'd be wanting it to move....

Welcome to the Lemon Fool - I'd suggest sticking around and just having a really good read of these boards for a few months, and get a better feel for things before putting any cash into the stock market. You'll learn a lot quite quickly by doing so, and perhaps save yourself some money over the long term....

In terms of your topic title 'Basic questions - easy money', it's probably best to start from the position of assuming that there *isn't* any 'easy' money to be made, otherwise we'd all be doing it.....easy to lose, perhaps, yes, we've probably all got some scars there that we can show you....

Cheers,

Itsallaguess

Urbandreamer
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Re: Basic questions - easy money

#417234

Postby Urbandreamer » June 4th, 2021, 8:08 am

Sim2335 wrote:I’m new to investing, so had couple of basic questions

If I buy a lot say 100 less likely to lose it all?

Why not just go for big compines how can you lose, e.g Amazon


Oh those are great questions.

How likely are you to lose the lot? Well it depends upon your actions. With a small amount of effort it becomes difficult to lose the lot. You don't buy what are known as "binary bets", either the phase III trial of the companies one drug passes and they make a ton or it fails and you lose the lot. Or if you do buy such companies you buy a lot of them and expect to lose most of the time. You also don't buy and forget or hope for the best.

Why not just go for big companies? You mean like Marconi, Ferranti etc?

I held shares in two very large banks. They only exist today because the government decided that the harm in letting them go bust was too big. You have no guarentee that any government feels that way about Amazon and if you follow the press, lots of evidence that governments wish to hamper the company.

Statistically there is an easy way to make money over the long term. Buy an index tracker. However you will note that I said "long term". Historically there have been decades when that would have been a losing choice.

Personally I enjoy the act of investing so avoid index trackers, but they do have their virtues.

Sim2335
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Joined: June 4th, 2021, 6:20 am

Re: Basic questions - easy money

#417242

Postby Sim2335 » June 4th, 2021, 8:49 am

Thanks,

Beyond meat is good investment, as it’s growing but not many people are aware

I knew about it last year but there was no way to invest, if I did would I have made large profit

Also vanguard is very good for long term, but how long is long term 30 years, and just imagine if I you lose it all I know it’s unlikely but still possible is it worth it it’s to double your money

Also have shares in my job large global bank, as I work for them I can’t lose any money, and I can withdraw november next year, I know it’s hard to predict how much profit might I make, I put 500 in a month for 3 years,and it was brought for 10% less then public get it I think brought at 3836 options

tjh290633
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Re: Basic questions - easy money

#417274

Postby tjh290633 » June 4th, 2021, 11:31 am

Sim2335 wrote:I’m new to investing, so had couple of basic questions

If I buy a lot say 100 less likely to lose it all?

Why not just go for big compines how can you lose, e.g Amazon

And finally is this almost graunteed to make money invest in ea sports few months before Fifa 22 comes out once it’s out stock bound to go up and withdraw money?

Have a look at 1999-2000 and follow the fortunes of some of the high fliers. Look at the history of Marconi.

Then move on to 2008 and see how the banks did. HBOS and RBS.

The minimum for adequate diversity is said to be 15 holdings. 20-30 is better for protecting income, but you have to be diverse. The market can be perverse. Good results can be rewarded with price falls. Don't follow fashion too closely. Do your own research.

TJH

Dod101
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Re: Basic questions - easy money

#417281

Postby Dod101 » June 4th, 2021, 11:49 am

Sim2335 wrote:
Also have shares in my job large global bank, as I work for them I can’t lose any money, and I can withdraw november next year, I know it’s hard to predict how much profit might I make, I put 500 in a month for 3 years,and it was brought for 10% less then public get it I think brought at 3836 options


Just because you work for a large global bank how does that guarantee that you can't lose money? It may be that you will do well with this investment. If you do, that proves nothing except that the timing was right. Unfortunately if investing were that simple we would all be doing it.

A lot of people start off like you and over the next few years discover that investing can lose you money as well as make it. In general, you stand a better chance of winning than losing (possibly) but it depends on lots of things including getting your timing right, making the right choice of what to buy and so on. Most people will tell you that you need a decent spread of holdings and there is a reason for that. Not all shares rise or fall at the same time and a spread of shares will maybe help stabilise your returns. Furthermore if one of the shares you buy happens to go bust (it happens) you still have the others.

I do not think that there is any such thing as 'easy money' in investing.

Dod

Sim2335
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Joined: June 4th, 2021, 6:20 am

Re: Basic questions - easy money

#417289

Postby Sim2335 » June 4th, 2021, 12:10 pm

The bank themselves they grauntee the investment,
So that’s diffence beetween them and normal investing and low share price

murraypaul
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Re: Basic questions - easy money

#417293

Postby murraypaul » June 4th, 2021, 12:18 pm

Dod101 wrote:
Sim2335 wrote:Also have shares in my job large global bank, as I work for them I can’t lose any money, and I can withdraw november next year, I know it’s hard to predict how much profit might I make, I put 500 in a month for 3 years,and it was brought for 10% less then public get it I think brought at 3836 options


Just because you work for a large global bank how does that guarantee that you can't lose money?


I think they are referring to a ShareSave scheme?
In which case they really can't lose money.
(Well, almost, there is normally a 1 day gap between choosing to buy and then sell, so the price could tank then.)

Alaric
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Re: Basic questions - easy money

#417294

Postby Alaric » June 4th, 2021, 12:23 pm

Sim2335 wrote:The bank themselves they grauntee the investment,


How does that work then? Assuming you are holding shares in the bank, if the price falls through the floor, what do they guarantee?

There are or were share option savings schemes. This is where savings accumulate with interest, but also offer an option to convert to shares at a discounted price. These may feature a facility where if the share price has bombed, the conversion to shares can be aborted.

It can be dangerous to hold a large amount of wealth in shares of the employer. If the employer fails, you not only lose your job, but also your savings.

mc2fool
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Re: Basic questions - easy money

#417306

Postby mc2fool » June 4th, 2021, 12:59 pm

Alaric wrote:It can be dangerous to hold a large amount of wealth in shares of the employer. If the employer fails, you not only lose your job, but also your savings.

And, if the company is a significant employer in your town and you need to move on, find you have difficulty selling your house for what you thought it was worth when a thousand ex-employees all put their houses on the market at the same time.

ursaminortaur
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Re: Basic questions - easy money

#417307

Postby ursaminortaur » June 4th, 2021, 1:02 pm

Alaric wrote:
Sim2335 wrote:The bank themselves they grauntee the investment,


How does that work then? Assuming you are holding shares in the bank, if the price falls through the floor, what do they guarantee?

There are or were share option savings schemes. This is where savings accumulate with interest, but also offer an option to convert to shares at a discounted price. These may feature a facility where if the share price has bombed, the conversion to shares can be aborted.

It can be dangerous to hold a large amount of wealth in shares of the employer. If the employer fails, you not only lose your job, but also your savings.


As I understand it an awful lot of employees at RBS found that out the hard way.

Sim2335
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Re: Basic questions - easy money

#417310

Postby Sim2335 » June 4th, 2021, 1:05 pm

murraypaul wrote:
Dod101 wrote:
Sim2335 wrote:Also have shares in my job large global bank, as I work for them I can’t lose any money, and I can withdraw november next year, I know it’s hard to predict how much profit might I make, I put 500 in a month for 3 years,and it was brought for 10% less then public get it I think brought at 3836 options


Just because you work for a large global bank how does that guarantee that you can't lose money?


I think they are referring to a ShareSave scheme?
In which case they really can't lose money.
(Well, almost, there is normally a 1 day gap between choosing to buy and then sell, so the price could tank then.)


Yeah it’s a sharesave scheme called computershare

AleisterCrowley
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Re: Basic questions - easy money

#417322

Postby AleisterCrowley » June 4th, 2021, 1:37 pm

Computershare are a company who administer employee share save schemes (amongst other things)

I think they ran the BT one?

Gerry557
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Re: Basic questions - easy money

#417337

Postby Gerry557 » June 4th, 2021, 2:35 pm

Sim2335 wrote:I’m new to investing, so had couple of basic questions

If I buy a lot say 100 less likely to lose it all?

Why not just go for big compines how can you lose, e.g Amazon

And finally is this almost graunteed to make money invest in ea sports few months before Fifa 22 comes out once it’s out stock bound to go up and withdraw money?


Sim
It all depends on how much spare cash you have to invest and how much yo can afford to lose.

Most people starting out without large cash holding often start a monthly saving into a fund or range of funds. This allows you to pound cost average over time so you don't put everything in at the peak. Plus funds or investment trusts often invest in 50+ companies so if one fails you only lose a small percentage of your investment not the lot.

Stuffing everything into one share is more risky. You might pick a good building company like Carillion, a busy shop like Debenhams, large maga cap like BP.... Just before a spill.

There is also dealing fees, stamp duty, spreads and platform fees even before making a profit. Then you have to think about tax, so say hello to ISAs.

Yes you might get lucky with one share that goes up after buying but what is the plan if it falls.... Buy even more?

There is a saying that its time in the market not timing. Look also at compounding dividends.

Good luck what ever you decide

gryffron
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Re: Basic questions - easy money

#417362

Postby gryffron » June 4th, 2021, 5:02 pm

Sim2335 wrote:Why not just go for big compines how can you lose, e.g Amazon

Woolworths, BHS, Debenhams and Barings were all pretty big companies. And GEC were enormous.

Sim2335 wrote:The bank themselves they grauntee the investment,

So if the bank goes bust, you lose your job AND your savings at the same time.

Owning share OPTIONS in your employer is fine. You really can't lose with share options schemes. Worst case, you get your money back plus a tiny bit of interest.

Holding SHARES in your employer can often be a really bad idea. Precisely because you can lose everything at once. Much better to hold a widely diversified portfolio. So once your options get converted into shares, sell em quick. And sign up for the next sharesave scheme of course. In fact, because of the discount and tax treatment, it is well worth selling this batch immediately it matures and recycling the cash into the next 3year sharesave.

Gryff

Sim2335
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Re: Basic questions - easy money

#417540

Postby Sim2335 » June 5th, 2021, 9:26 pm

Exactly with company you work for nothing to lose, unless they go bust

What do you think of money box shares they do all hardwork for you and I’m sure you aware 3 options so if you choose cautious almost grauntee profit

Not a lot so 100 a month ok cautions 50 on other one and 25-50 on adventurous

Alaric
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Re: Basic questions - easy money

#417579

Postby Alaric » June 5th, 2021, 11:41 pm

Sim2335 wrote:What do you think of money box shares


Perhaps a link would be helpful, or a description of what is on offer.

Anything that trades on market value can lose money for an investor no matter how notionally cautious.

Mike4
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Re: Basic questions - easy money

#417586

Postby Mike4 » June 6th, 2021, 12:23 am

Sim2335 wrote:Thanks,

Beyond meat is good investment, as it’s growing but not many people are aware

I knew about it last year but there was no way to invest, if I did would I have made large profit


Eh?

A brief goggle reveals "Beyond Meat" was ramped repeatedly by Motley Fool and the share price has bounced around like a bouncy thing over the last year. How come there no way for you to invest when everyone else was able to?

E.g:
https://www.fool.co.uk/investing/2021/0 ... are-price/

Alaric
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Re: Basic questions - easy money

#417590

Postby Alaric » June 6th, 2021, 12:34 am

Mike4 wrote: How come there no way for you to invest when everyone else was able to?


It's a NASDAQ share, thus a UK investor would need a Broker who offered that market and who was prepared to jump through whatever hoops were needed to gain access.

Mike4
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Re: Basic questions - easy money

#417592

Postby Mike4 » June 6th, 2021, 12:57 am

Alaric wrote:
Mike4 wrote: How come there no way for you to invest when everyone else was able to?


It's a NASDAQ share, thus a UK investor would need a Broker who offered that market and who was prepared to jump through whatever hoops were needed to gain access.


Oh I see, thanks.

I'm green at investing just like the OP. So why have TMF UK discussed it at least twice, I wonder....


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