Hi !
Hello, im a first time investor, very young actually, compared to others here just wanted to ask are these good predictions/investments? - I only have £200 at the moment, however, I have read it doesnt matter how much you start with which is a good start. - They are in my portfolio havent purchased any yet.
I was thinking :
Carphone Warehouse - 30 shares - 336.25p each - Holding value of £100.88
The cash balance for the above is -£111.87 due to me putting commision at £11.50, thats Halifax's I believe.

Second descision : House of Fraser - 70 shares- 137p each - Holding value of £95.90
The cash balance for this is -£106.20 - Commision (trade feee) is £11.50 (nearabouts) with halifax.
I chose House Of Fraser, as the shares are currently cheap, and another company will be purchasing it, which should improve their stock/shares.


Are they good decisions? Its a very first start never dealt before thanks...

Thanks - Help is very much appreciated thanks in advance!

The weakness of this is that you are paying £22 - 10% - in commission. Not good value.

And most new investors are advised to spread their risk rather than investing in single companies.

What most financial advisors would probably say is to set up regular savings into a unit trust or investment trust. You can put in a small amount each month (which also means you drip feed money in rather than risking putting it all in at a high price). And the commission is much lower - maybe only 0.5% for some ITs.

quote:

which also means you drip feed money in rather than risking putting it all in at a high price). And the commission is much lower -

Ok, so should I just wait till I have about £500, also, I can use Halifazx's £1.50 commision one..

The other option would be to invest through The Share Centre. They charge 1% commission with the minimum only £2.50 per trade. However, this does mean that with only £200 to invest, you would be better investing in just the one share. Minimum commission on sale is £7.50.

As for stock picking - personally I would steer clear of Carphone Warehouse - if you look at their stores compared to other phone stores, they seem to be failry quiet of late - maybe they sell more through the internet but who knows??

You should be prepared in any event to risk the whole £200 as shares as we all know are quite risky.

Rich
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