How do I, learn to save/invest/stocks etc. ?? Complete beginner.

Question

Having a terrible history in personal finances I recently ended up moving house and using the spare cash raised to pay off all my debts/credit cards and finally after years I'm in a position where I have some spare cash every month (approx 500quid spare)

I'm now interested in doing something useful and learning about saving and investing... has anyone resently started from scratch like myself and where did you begin?

I'd like to:

a) Save a portion of my spare cash b) Risk some of it on something maybe like Penny Stocks etc.

I did log onto my bank (First Direct) to check out share dealing but they seem to open your account with 10,000 of share dealing money... not something I want (too risky for me to spend on credit!)

So...

a) If I want a high return on simple savings, where should I look? b) If I'm willing to risk say 250 a month in learning Penny Stocks where do I start out/limit losses, whose services do I use, what software do I use to track things? Any ideal reads, online books etc. I should read?

All a bit vague I guess but maybe someone else out there has been on the beginning line and made it??? Its a culture shock having any money left at all so I'm keen to begin learning and have my money earning :)

Colin Wilson · Accepted Answer

is always a good place to start

HappyChappy · Answer

Ta Colin.  Visited here before but now I think its time for some serious  reading... Thanks very muchly.

John · Answer

You could always follow this link and read how this man amassed a fortune  from very humble beginnings.

Daytona · Answer

Tweedy Browne - "What Has Worked In Investing" and "10 Ways To Beat An Index"  More references posted here  Value Investing  TMF Building Your Share Portfolio  hth Daytona

HappyChappy · Answer

thanks daytona, some useful links there, shall take a good snoop through  the tweedybrowne material! Dayt

Terry Harper · Answer

I would be wary of the Penny Stocks area. If you become a client of City Equities, for example, they will ring you up frequently with the offer of a share which "they believe" will be a good performer.

Actually they have either taken up some shares being placed, or bought in the market at a price well below that which they are offering. My own research indicates that almost all of their offerings will lose money in the short term. They do not suggest that you will make money immediately, and indeed the wide spread on penny shares ensures that you will not.

You can get some idea of what they do by looking at their web site

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which features most of the companies they are pushing. You may have to register first.

They are not a "Boiler house" operation, although boiler houses often follow their sort of approach, I believe.

Some penny shares will make money, but many will not. Do a lot of research, and try and find ones with a strong probability of being profitable in the next 12 months, if not already.

You might like to take a look at the Motley Fool's High Yield Portfolio discussion board,

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and have an extended read back through the posts there.

How do I, learn to save/invest/stocks etc. ?? Complete beginner.

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