How Much Money Do I Need to Start Investing?
The first key point is that you should only invest spare money you can afford to lose as the value of shares can go down as well as up, and that means your capital is at risk.
We recommend that you start with a minimum of about £500 per single investment. This is because of the effect dealing costs have on your gains.
Four important points to remember:
- Don’t ignore your costs when calculating your gains, as they do have a significant impact – especially when you’re only investing in small amounts.
- Obviously enough, try to keep your costs down. You can’t avoid Stamp Duty, but some broker commissions are cheaper than others, so compare prices.
- Invest with a reasonable amount of money – as mentioned above, we recommend a minimum of £500. If you invest with less than this, your dealing costs as a percentage of your investment become huge.
- Invest with a view to holding the shares for the medium to long term. Of course there are times when you may have to revise your opinion and sell in a shorter time frame. But in my view Penny Shares are not suitable for short term trading. Their attraction is that they have the potential to offer huge gains – and that can mean holding them for a length of time.
So remember, you should never risk more than you can afford to lose.
We cover all the costs in much more detail, as well as giving you all the information you need to decide how much money you can safely invest, with an easy to follow, step by step guide into the exciting world of penny shares in our two starter handbooks - How To Buy & Sell Shares For Profit and How To Make Big Money In The Exciting World Of Penny Shares
And the best part is that you can receive these two guides absolutely FREE when you try Red Hot Penny Shares today.
We are offering you the chance of trying our service for one whole month, with no obligation. You will receive all of the following, which are yours to keep regardless of what you decide.
- An instantly downloadable copy of the latest issue
- A FREE book: How to Buy and Sell Shares For Profit
- A FREE book: How to Make Big Money in the Exciting World of Penny Shares
- A FREE report: Your 10 Simple Rules For Maximising Your Penny Share Profits
BUT if during your 1 month trial you decide Red Hot Penny Shares is not for you; simply call our customer service hotline on 020 7633 3601.
Here is just a small selection of other frequently asked questions that will be covered in full in our FREE handbooks.
What are shares?
Well, as their name suggests, if you hold shares you own a share of a company… Read more
What is a share price?
A broker who is dealing in shares doesn’t just quote one price for each share… Read more
Where do I buy shares?
The best return comes from the Stock Market… Read more
How do I buy and sell shares?
When you want to buy and sell shares, you have to do this through a stockbroker. First of all, you’ll
need to set up an account. This is easy… Read more
How much will buying and selling shares cost me?
Unfortunately there are charges involved in buying and selling shares… Read more
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