Basics you need to know about investing (a very easy read)

As it has been suggested in the past, investing may seem tricky for those who have never been exposed to the stock market themselves and do not work in areas related to finance. Does it sound like you? Then you might finds this topic useful.

Quick answer can always be to read a book or browse things on Internet but there is no way everything you will find will be genuine or useful. And even if it was, quite often it would too technical to understand.

But that is not to be concerned about anymore! Freetrade Team has written a few articles demystifying the notion of “too hard” and “not for me” ©Viktor

Whilst this is not an encyclopaedia yet, new ones will most certainly be added from time to time so you could always refer to this topic if need to. As soon as new relevant articles will be appearing in the blog, I will be updating the list to keep all of this information in one place for your convenience.

These are also in “logical” order rather than chronological - simply for the convenient flow when reading all of them together.

https://freetrade.io/blog/welcome-to-asset-class/
https://freetrade.io/blog/diversifying-your-investments/
https://freetrade.io/blog/how-much-should-i-invest/
https://freetrade.io/blog/what-even-is-a-stock/
https://freetrade.io/blog/whats-an-etf/
https://freetrade.io/blog/whats-an-etf-deep-dive/
https://freetrade.io/blog/bond-knowledge/
https://freetrade.io/blog/inflation-risk-the-high-price-of-doing-nothing-with-your-cash/
https://freetrade.io/blog/the-psychology-of-investing/
https://freetrade.io/blog/dividend-and-conquer/
https://freetrade.io/blog/what-happens-when-you-tap-buy/
https://freetrade.io/blog/the-totally-not-complicated-investment-tax-post/
https://freetrade.io/blog/do-your-own-research/

I considered “Hide Details” feature but it disables the article preview, which I thought is quite nice to have and did not want it to disappear.

12 Likes

Great idea to organise these articles!

We’re preparing a LOT of pieces right now, but are there any topics we should prioritise?

  • Market averaging
  • Taxation
  • What should be your first investment
  • How shorting works
  • Dividends
  • Something else, see my comment!

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I’m interested in how shorting works, not because I want to do it but simply so I can understand it and the impact shorting can have on a company.

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I’m more into dividend and dividend re-investing (DRIP)

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Taxation is popular. I’m not surprised though - I’ve never seen a simple, actionable article that explained this topic. We’ll prioritise it!

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Please make sure EIS is captured, if possible, please :wink:

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Good shout!

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Speaking of EIS, I did my self assessment for 2017/2018 and need to pay a little tax money. Would my EIS (if high enough) wipe this out? or would I get the EIS in my paye and so still need to pay my tax myself?

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Check this thread for a more extensive discussion.

But generally, if you subscribed to Freetrade’s 3rd round in 2018/2019, you can claim the relief from 2017/2018.

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Can you also explain UK stamp duty on stocks too? Just read this in another thread and it’s new to me, so would appreciate if is this to be included. The taxman is everywhere :thinking:

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@Freetrade_Team is posting about tax, very soon. :wink:

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Hey everyone: so turns out simple is a relative term when you’re talking about tax. But here’s all the basics you need to know on capital gains, dividends and more. Go forth and be tax efficient awesome Freetraders!

https://freetrade.io/blog/the-totally-not-complicated-investment-tax-post/

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The closing simile is quite something :smile: Excellent blog, when you think they can’t get any better and then they do.

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Aw shucks!

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18 posts were split to a new topic: What is an ETF?

A post was merged into an existing topic: What is an ETF?

Very interested in what my first investment should be. Also a big believer in tax tips! :grinning:

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Perhaps it’s worth clarifying the difference between Stamp Duty, and SDRT, as this I found quite confusing at first till I realised what Free Trade refer to as Stamp Duty HMRC refer to as Stamp Duty Reserve Tax. The reason I mention this is I got really confused when reading on the HMRC website about stamp duty - if you search for stamp duty on shares you end up on this page (which is about paper certificates I think, I missed that line).

Paper shares:

Electronic shares (freetrade?):

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Good shout! Sometimes difficult to remember shares can be traded on paper :joy:

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