Does anyone know anything about the stock market
I'm trying to find out how it works, but to be honest I can't be bothered trawling through all the really technical websites. Can anyone help with a dumbed down version?

Also, do you have to be rich to take advantage of it? Is it something that's worth doing or is it about as reliable as betting on the horses?

Sorry if that's a particularly boring topic, just thought b3ta's likely to have some clever sods who can help.
( Kitty v1.0 desperately naive, Mon 29 Jun 2009, 15:44, 11 replies, latest was 17 years ago)

You don't have to be rich to take advantage of it, just know when to get out if your stocks are falling.
I'm rubbish at explaining it, so I'm sure someone else can much better.
( fuck shit up the best you never had, Mon 29 Jun 2009, 15:46, Reply)

V came up with a great computer model for investing,
unfortunately it didn't work. I'm sure he'll be along soon to explain it.
(bill, Mon 29 Jun 2009, 15:49, Reply)

It does work I just need to refine it further before I'd be happy to risk money on it
Trading isn't a get rich quick thing. I'd hate to think how many hours I've spent working on it, probably about 1000, without having put a penny on the table.

You're not going to make a worthwhile amount of money without a huge investment in time and possibly a significant investment (depends on what you're trading).

If you spend too much time working on it and develop a reasonable understanding you'll sound like I do when I talking about it while drunk: A fool who's been drawn into a scam.

1) Don't trade with money you can't afford to lose
2) If you're relying on the returns from trading to survive you shouldn't be trading
3) Don't pay for a "system". There are some that aren't a scan but the overwhelming majority are so it's best not to get involved.

If you want to talk about it any further gaz me.
( Captain V, Mon 29 Jun 2009, 16:21, Reply)

Thanks V
I'll do some more research and gaz you when I don't understand a word of it.
( Kitty v1.0 desperately naive, Mon 29 Jun 2009, 16:36, Reply)

Couple of other things to bear in mind
I mostly do it because I find it damn interesting (although the prospect of earning a living from it is a big encouragement too) and until I hit a bit of a brickwall I was spending at least 30 hours a week doing things related to trading. Once I get my database sorted I'll be doing the same again.

You'll also need to get into the technical stuff you've avoided reading and read lots of it.

www.babypips.com/school/ is a good place to start. It's primarily for forex but will help you with basic understanding of some more general concepts.
( Captain V, Mon 29 Jun 2009, 16:45, Reply)

Short answer I'm afraid

is that if you can't be bothered to do proper research I doubt you have the time/inclination to work the markets and turn a profit.

Steer clear unless you know what you're doing!
( Naked Ape call me Caitlyn, Mon 29 Jun 2009, 15:52, Reply)

Yeah that's what I figured
I was hoping someone would say there was some kind of stock market for beginners, like a paddling pool of investment.

Maybe when I'm rich I'll employ a slimy broker to do it all for me. But if I'm rich I suppose I won't need to play the stock market. Damn irony.
( Kitty v1.0 desperately naive, Mon 29 Jun 2009, 16:02, Reply)

They did have a daytime show on trading, I can't remember what it was called to download though
Maybe trading up?
( fuck shit up the best you never had, Mon 29 Jun 2009, 16:10, Reply)

sweet
I'll investigate.

Wonder why they put it on during the day, I would have thought that anyone watching it during the day probably doesn't have a job.
( Kitty v1.0 desperately naive, Mon 29 Jun 2009, 16:35, Reply)

Idiot version
A share is a part ownership in a company. If you own a share in SpamCo, you are a part-owner of SpamCo.

Shares can make you money in two ways.

Firstly, if SpamCo makes a profit, then the directors of SpamCo may decide to give out some of that profit to the shareholders. This is called a dividend, and usually quoted as "so much per share", so maybe SpamCo will give you 10p per share. Keep in mind that most companies have millions and millions of shares, so even if they make huge profits, the returns per share can be quite small. However, some companies make good, constant, if not high profits over time, so people who need a fairly constant income, like pension funds, like these sorts of shares.

Secondly, you can sell the share on to someone else, hopefully for more than you paid for it. The price of shares is always changing as people try to guess how much profit the company will make, and so how much they are likely to pay out in dividends.

General tips:

Buy shares you plan to keep - find a good company that pays out regular dividends over time, and keep it. Unless you are really dedicated, this will make you more money than just buying and selling.

Diversify - don't put all your cash into one share, or one industry. Balance things out so that if one goes tits up, the rest will be safe.

Go see your bank - a "shares ISA", which any bank will be delighted to set up for you, is not only a decent way to spread the risk around, it is also tax free. If you buy the shares directly, you pay tax on the dividends and any profit from sales.
(ragged, Mon 29 Jun 2009, 16:39, Reply)

This might help (put you off)
jontaplin.com/2009/06/27/americas-corporate-shell-game/
( The Light in Chains don't touch the Pope's boner, Mon 29 Jun 2009, 18:12, Reply)