Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
WELCOME TO ‘YOUR VIEWS’
This is your platform to talk about key investing issues.
Each week we will pose a question and publish the best comments in a future edition of Shares. You can comment on our Facebook page, send us an email or interact via our Twitter account.
This week’s question...
What’s the one bit of advice you would give to someone new to investing?
I would advise anyone starting out as an investor to focus on companies operating in areas they already know something about. Investing in something you don’t understand is always a bad idea and some sectors have a lot of complicated jargon to navigate.
Michael B, via Email
Speaking from experience it is best to avoid getting too emotionally attached to a stock. I have lost money on a few names in the past after being reluctant to sell and realise a loss!
Patrick Williams, via Email
Understand that by investing in a company you become a part owner in a business, with all your trades handled electronically it can be easy to think stocks and shares are just numbers on a screen but that’s not the case. This can help you think more clearly about whether you genuinely want to own part of the company you are investing in.
Ken Perry, via Email
A good stock in a bad sector can underperform a bad stock in a good sector! If an industry is under pressure a company can struggle no matter how good its management/product/track record is.
Larry Browne, via Email
You invest in the stock market to make money not lose it. If you want to gamble out your money put your money on a horse race.
Blair Thorpe, via Email
THE BIG QUESTION for next week
How important are dividends when deciding whether to buy or sell a stock?