If you have decided that you want to buy some shares as a long term investment, then you are one step away from making a really big decision. You may have a lot of money to invest or just a small amount but either way you will need to make a decision as to which shares to invest in. There are many ways of making this decision and there are some suggestions below.
It is wise to spend a while tracking the stock market for a while. You could look specifically at certain industries or companies that you were considering buying shares from to see what their performance is like. If you are not sure you could look at the market in general. This will give you an idea of what to expect from the stock market and how it is fairing at the moment.
It is worth looking at the past performance as well. It is easy to look online and see how the stock market has performed in the past. You can also look at specific stocks or industries as well. This will allow you to see whether you feel they will perform well in the future considering their past performance.
If you have worked in a particular industry, then you may have more knowledge of business in that area than other people. This could help you when you are choosing shares. Obviously insider dealing is illegal but if you have more information than others about certain areas then it could be worth applying that when you are deciding which stocks or shares to buy.
Look for deals
You will not find special offers and deals in the same way in buying shares as with other goods. However, you need to look carefully at the company that you use to buy shares through. These companies can charge a lot of money, but they may have some cheaper deals to help you with managing your share buying and selling. Some will even charge for you to just hold shares through them and so you need to be careful. If you only have a small investment, the profits could all be eaten up in fees.
It can be worth paying an independent financial advisor to help you. They will be able to give you unbiased advice about where to invest based in your needs. They will be able to explain all of the options to you, point out the costs and make suggestions as to where would be the best place for you to invest your money.