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Volatile Markets
With current market conditions, investing on the stock market can be quite risky and full of uncertainty. We have listed a few things to bear in mind when investing as well as information on services which Halifax Share Dealing can offer you.
A few things to keep in mind when investing...
1. Diversify your portfolio
By investing in a variety of sectors, indices and other options risk can be reduced. By diversifying your portfolio, it may not be as greatly affected should a certain sector collapse. At Halifax Share Dealing, we have many different investment options which can be used to diversify your portfolio further.
2. Keep a long-term perspective
Remember that investing in the stock market is usually perceived as a long term financial commitment and not as a way of making a quick return.
3. Remember the benefits of Regular Investments
An excellent way of pacing your investments is by smaller regular investments. No-one can predict what the stock market will do in the short term, but by investing a set amount over a longer period of time it can help to protect your portfolio from suffering from any potential drops in the stock market. The Halifax ShareBuilder is a way of investing a certain amount per month into your chosen investment from as little as £20 per month. You are also able to purchase fractions of shares so that you can build up your portfolio little by little.
4. Research your holdings
With a fluctuating market, it makes sense to research and track the performance of any stocks, fund or other investments which you are considering purchasing. Our Market Information Centre provides you with relevant market news, equity & fund information as well as an analysis centre which can provide recent performance results.
5. Use a Stop/Loss Tool
Our Advanced Dealing (TradePlan) enables you to take control of risk and make the most of the rise and fall of the market, without having to keep a constant watch over it. Simply set up your TradePlan instruction online or by telephone then leave the rest to us. When market conditions match your requirements, TradePlan will execute your instruction automatically. You can amend or cancel a Tradeplan order at anytime before it expires.
6. Minimise risk by investing in Funds
Funds (which are made up of Unit Trusts and OEICs) are pooled investments which are managed by a fund manager who invests in a variety of companies with similar characteristics such as 'objectives'. This has the effect of spreading your money between different sectors, which has the same effect of diversifying your portfolio.
7. For the more experienced and confident investor...
Halifax Contracts For Differences (CFDs) are a way of making (or losing) money from share price movements without owning the share itself. You simply own a contract which you buy at one price and sell at another making (or paying out) the difference.
Please remember the value of your investments and the income from them can go down as well as up. You may not get back the full amount you have invested. If you're in any doubt about the suitability of any of our products, or whether to buy or sell shares, you should consult an appropriate Financial Adviser.
Next Steps
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Find out more about investing in Funds here |
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Find out more about trading in CFDs here |
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