Danny Cox is head of financial planning at Hargreaves Lansdown, an award-winning independent financial service provider. As of last year, the company managed over £43.4 billion. Here's his tips for not blowing all of your hardearned dough, Wolf of Wall Street-style and really taking home the bacon...
DON'T OVER THINK IT
“The principles of investment are simple – you want to invest in a company that will make a profit. So your first investments should be in solid companies with a track record of paying dividends to shareholders. A good way to do this is to invest £50 a month in a UK equity income fund. A fund is one of three main ways to play the stock market.
The other two are buying individual company shares and putting money into an account that tracks the performance of a stock index. I recommend funds because your money is invested in 30-60 shares, which spreads your risk, and the skill of the fund manager should mean you make a bigger profit or smaller loss.
DON'T TRUST A GUARANTEE
“Be wary of investments where you can’t get your money back quickly or that ‘guarantee’ a return. Nothing’s guaranteed with stocks, so if it sounds too good to be true, it probably is.”
Check out hl.co.uk for more ways to win the stock market.