This is the second part of my experience of my first year investing in the stock market. Please read Part One first.
Being a foreign investor
I had no clue how things worked being a foreign investor, could it be done? The answer is yes. The great thing about the Internet is that it has opened everything up so that even someone as clueless as myself can own a share in companies all over the world.
I can’t comment on companies beyond the UK and US, but for my US shares, I just had to sign some additional forms declaring my legitimacy for receipt of dividends.
Another tip to consider is to always take into consideration the current exchange rate, I have overestimated how many shares I can buy due to miscalculations.
Continue reading “Investing in the stock market for the first time: a retrospective (Part 2)”
Investing in the stock market: the risk-averse saver
I have always been a good saver and back in the pre-recession days (of 2007) I enjoyed the benefits of getting a whopping 6% interest. Not bad for low/no risk investment.
But since the crash, rates have never recovered and you are lucky to get a saver that offers 1.5 percent. I felt like I was being punished for being a saver – watching my money gradually lose value against the rate of inflation. I decided rather than blaming the system, I should start pursuing other options.
The stock market always made me feel a touch cautious, the fact that money I invested – my hard earned money, could be less or even disappear completely was daunting.
The media didn’t help either, quick to report when the share prices dropped (but not so much when it recovered) and trading websites were overloaded with ‘expert’ analysts using confusing terminology saying why a stock was a poor investment, it all seemed confusing.
I decided after sitting on the fence to make a relatively small investment that would not impact my life if things were to go bad. And with that, I made the jump into the world of investing.
Continue reading “Investing in the stock market for the first time: a retrospective (Part 1)”