Chasing the biggest green number

A big daily gain says what already happened. It does not guarantee another gain. Read the cause of the move and consider whether the price already reflects the good news.

Confusing share price with value

A £2 share is not necessarily cheaper than a £200 share. Compare the whole company, its earnings, debt and number of shares.

Ignoring fees and currency

Dealing charges, fund fees, spreads and foreign-exchange costs reduce returns. UK residents buying US shares are also exposed to changes in the pound against the dollar.

Believing certainty

Nobody can guarantee the next move. Be cautious with claims of guaranteed profits, urgent tips and screenshots that show wins without losses. Check the source and keep a written plan.

Sources and further reading

Provider settings and financial products can change. Check original sources before acting. These guides explain concepts and do not recommend individual investments.