help i need somebody !

Hello eveyone, sorry for sounding blond! i was wondering if anyone can give me some beginners advise. i'm new to this and shares. I thought i'd join barclays stock brokers and on a whim i brought 3k's worth of HBOS shares not too long ago at 98p and 1500 Barclays shares at £2.28!
It's all going terribly wrong What do i do? Is there any risk of these shares going down to 1p? or even worth, nothing? What happens if this happens...do i loose all my money? And what happens if the banks are nationalised to my shares? Got lots of questions.

Can't really answer your questions, i'm just a spreadbetter. But, if i owned shares outright at this point i'd probably be inclined just to hold on to them. You may have to wait a year or two but i'm sure they will come back eventually. Markets may fall lower yet but i'm sure they won't go down to 0.

soniarai said:

Hello eveyone, sorry for sounding blond! i was wondering if anyone can give me some beginners advise. i'm new to this and shares. I thought i'd join barclays stock brokers and on a whim i brought 3k's worth of HBOS shares not too long ago at 98p and 1500 Barclays shares at £2.28!
It's all going terribly wrong What do i do? Is there any risk of these shares going down to 1p? or even worth, nothing? What happens if this happens...do i loose all my money? And what happens if the banks are nationalised to my shares? Got lots of questions.

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There's always a possibility that the shares could go to zero but it's unlikely. In such a case you would lose the lot if you didn't cut your losses and get out of the position.

Nationalisation is more likely than these stocks going bust in which case the government would either buy a percentage of the equity (which may boost the price a bit) or buy the whole lot as they did for Northern Rock. In which case you would get paid by the government for the stock you hold - until that happens though, nobody has any idea of the price the government would pay.

What should you do now? You need to set a stoploss with Barclays Stockbrokers so if the shares decline past a point you can no longer stand, they will be sold at a loss but at least you won't lose anymore. In such hard times, nobody knows where the bottom of market the is and, therefore, there is always a possibility that you will sell the bottom and the shares bounce back up. If this does happen, you have to lick your wounds and try again.

Best regards

JD

Thanks for your resposne. Yikes are year or two! I was hoping in a short term investment. Anyone know what happens to stocks in the even of nationalisation? Thanks.

soniarai said:

Thanks for your resposne. Yikes are year or two! I was hoping in a short term investment. Anyone know what happens to stocks in the even of nationalisation? Thanks.

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I wouldn't worry. You're in safe hands.....

Thanks JD ...must have missed your advice. Think i'll hold out for a bit longer! Anymore advice. Are you into day trading. Any tips on stocks you think would be a good buy in the the current climate?

Rols! i feel better already looking at Mr. Darling!

soniarai said:

Thanks JD ...must have missed your advice. Think i'll hold out for a bit longer! Anymore advice. Are you into day trading. Any tips on stocks you think would be a good buy in the the current climate?

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Yes, I day trade the Eurostoxx index (my favourite) and DAX index (sometimes) futures.

Personally, I wouldn't use a buy-to-hold strategy on any stocks at the moment in the current climate - there's just too much risk. Stocks are all alluringly cheap at the moment - be careful. I'd want to see some kind of recovery and good news coming out. We seem to be quite far away from that with recession looming.

soniarai said:

Thanks JD ...must have missed your advice. Think i'll hold out for a bit longer! Anymore advice. Are you into day trading. Any tips on stocks you think would be a good buy in the the current climate?

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Sonia,

Welcome to the harsh realities of trading. I don't think any of us really know if you will get your money back on the shares in the short term. All the talk is of the market bottoming out in the next 2 weeks and a Xmas rally to follow. Personally I don't think any rally will be long lived such is the bearish mood at the moment.

It's hard to say whether you should sell up now. Personally I wouldn't, I think it's worth waiting until December. However - if you decide to keep hold you should be prepared to lose more money on them. If you can't do that - sell them now.