In my ultimate guide to investing in shares & the stock market and our explainer ‘what are shares?’, I briefly address why shares are good investments. High expected returns Tax efficiency Liquidity Narrow pricing spreads Regulation Hands-free pricing Loyalty & novelty In this article, I will explore these reasons in detail to help explain why equities are the preferred investment …
What is an Exchange Traded Fund?
Exchange-Traded Funds (or ‘ETFs’ for short), are a popular method for investing in a wide range of asset classes. In the US alone, $4 trillion of assets are now held in ETFs. But what is an ETF and what are the benefits of using an ETF compared to another type of fund? Definition of an ETF An Exchange Traded Fund …
10 Shocking Common Mistakes most New Investors Make
They say that experience is the best teacher. However, when money is at stake, it is wise to learn from the mistakes of others rather than your own! Don’t you agree? This is why I’ve assembled my list of the top ten common mistakes made by new investors. 1. They don’t apply the science of diversification ‘Don’t put all your …
When is the Right Time to Sell Stocks & Shares?
If we want to follow the advice of “Buy low and sell high”, we need to understand when is the right time to sell shares. But when is the right moment? Is it when a company begins to lose its shine? Is it after the first strong evidence that its fortunes have reversed? Or is it when the company seems …
How NOT to pick stocks & shares
I receive quite a high volume of emails about stock picking, i.e. choosing the right company shares to invest in. This article will point out some bad practises that I have seen, by highlighting four ways in which you SHOULD NOT go about this exercise. In my free investing courses, I encourage passive investing over active investing. This removes the …
Are Shares a Risky Investment?
The stock market is often compared to a casino. The newspapers often refer to investment banking as ‘casino banking’ which adds further weight to this idea. But are shares actually risky investments? And does the stock market deserve to be grouped with games like blackjack and roulette? A bad reputation The stock market has earned a bad reputation from stock …
Definition of Stocks and Shares – is there a Difference?
The Stocks and Shares ISA is a tax-free investment account available to UK investors. The name implies that stocks and shares are similar but somehow different. This leads many people to wonder – what is the difference between stocks and shares? Is there a difference at all? Definition of ‘shares’ A stock or share is a certificate which entitles its …
My Portfolio: Calculating my Expected Return
A rare advantage that bank account savers enjoy over investors is that they can save with certainty. When they move their cash to a higher-performing account, they can easily measure the extra interest their effort has earned. This encourages them to continue spending time searching for the best deals. Investing is more uncertain. We know that history tells us that …
My Portfolio: What Have I Invested In?
Selecting investments has to be the most time-consuming aspect of building an investment portfolio for the first time. In the first My Portfolio article, I showed how I allocated my portfolio across the major asset classes. In this article, we will be delving one step deeper. Below, I’ll reveal precisely which investments sit in my own portfolio. I’ll also explain …
My Portfolio: How I Designed My Own Asset Allocation
The free investing courses on Financial Expert cover a lot of theory about the steps you should take when creating a portfolio of your own. But when learning any rules for the first time, I believe it can be really helpful to see real examples first, before having a go yourself. As the phrase goes – “I am unique, just …