Buying shares

[unionjack0]

Hi guys
Rather than sell my shares, I'm actually thinking of buying a few more maybe a couple of thousand pounds worth.couple of questions though, 1 not sure how I'd go about this so any advice would be welcome and 2 would anybody with some knowledge of the stock market and such matters seriously advise against this
Thanx in advance

[Spedley]

If they went down to 440p I would consider it myself. ATM I would hold off unless I planned on keeping them for several years.

[RobertT]

Hi guys
Rather than sell my shares, I'm actually thinking of buying a few more maybe a couple of thousand pounds worth.couple of questions though, 1 not sure how I'd go about this so any advice would be welcome and 2 would anybody with some knowledge of the stock market and such matters seriously advise against this
Thanx in advance

If you want to keep all your RM shares in one place then you can buy them through Equiniti via your online account with them. Otherwise there are plenty of other stock brokers available.

When buying shares you have to consider three main things:
a) Do you think the price will increase?
b) How much dividend will you get in percentage terms?
c) Is your aim investment growth, dividend income or both?

In practice future share prices and dividends are unknown factors to a large degree, but many brokers publish research on how they think companies will perform, so it’s case of doing your homework and coming to your own conclusions.

It’s easy to find out the level of previous years’ dividends, so working out the potential percentage yield on your money isn’t too difficult.

To do things properly you will also need to factor in the costs of buying and selling the shares.

There is always the possibility of a stock market crash which happens on average about every 9-10 years I think, and having experienced 2 myself I know it can be quite scary to see your money drastically go down in value.
But after a crash is also a good time to buy because prices are a lot lower and as long as you take a long term view and aren’t using money you can’t afford to lose, it shouldn’t be a problem.

[yellowbelly]

Hi guys
Rather than sell my shares, I'm actually thinking of buying a few more maybe a couple of thousand pounds worth.couple of questions though, 1 not sure how I'd go about this so any advice would be welcome and 2 would anybody with some knowledge of the stock market and such matters seriously advise against this
Thanx in advance

UJ,

from your comment it appears you're new to the stock market, I would advise against buying more shares in RM, but
not necessarily because they're a bad investment...

You've already got a few eggs in one basket i.e. the freebie shares you already own and dividends from them, pension
(whatever version it is) and obviously you're employed by RM as well. If RM was to start having difficulties then all
three of these things could be at risk. (A good example of this is Rolls Royce whose shares dropped from 1200p
to about 550p from Jan 14 to Jan 16 and have had to make redundancies).

If you've got your emegency cash reserve, paid off debts (apart from mortgage if you have one) then if you want to dip your toe into the stock
market why not try one of the well known general investment trusts that have
been around for years and pay dividends year after year - you can do this for small amounts per month - that way
it smooths out the peaks and troughs of the stock market and you're not relying on the fortunes of one company.


Once you've built up a solid foundation and learnt about shares/stock market in this way, then you could start thinking about buying individual shares.

All the above is my personal opinion and not professional financial advice!!

YB

[Postie45]

Why would you want to invest in RM ? because you work for them ? Do you not see all the potential future problems in this company ? Just remember every major change RM wants to make has to pass one of the strongest unions in any industry.

[rambo1]

The one piece of major advice is if you do get into dabbling with the stock market, do not invest in AIM shares, stick to ftse companies with strong good management, cash flow and sustainable dividend. Wait for an event to slash the share price, say it was easy jet and there was a terrorist attack somewhere. It will temporary drop the sp but that's when you take advantage and take the long term view. Also don't use money you need as it may be tied up a while. Sometimes you may get lucky and make 10% in a few weeks or even days. Most of all don't get greedy! Atb.