# Where to invest 1000AUD?



## kashtrade (22 January 2020)

Any thoughts on which is the best way to invest 1000AUD? I am looking to invest for long term.
I know 1000AUD is not a big amount but it's my start and it has to be from somewhere


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## willoneau (22 January 2020)

Hi you have been here over three years, were do you think you should invest it?


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## greggles (22 January 2020)

kashtrade said:


> Any thoughts on which is the best way to invest 1000AUD? I am looking to invest for long term.
> I know 1000AUD is not a big amount but it's my start and it has to be from somewhere




If you are unsure then an ETF that tracks the XJO or similar index is probably your best bet.


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## Knobby22 (22 January 2020)

Buy 3 CSL shares.


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## fergee (22 January 2020)

kashtrade said:


> Any thoughts on which is the best way to invest 1000AUD? I am looking to invest for long term.
> I know 1000AUD is not a big amount but it's my start and it has to be from somewhere



Honestly mate I don't think you will like my advice but here it is any way. Don't invest it into the stock market unless you are able to keep adding $1K at regular intervals. Use the $1K to create a sideline business and get that to generate income for you to use as investment capital. Just a couple ideas(I actually do these myself): buy things at flea markets and garage sales and sell them on eBay and gumtree. Teach english online. Make things and sell them online on ebay etsy etc. Pick up odd jobs buy  lawn mower and mow lawns, a water blaster and do house maintenance. Another alternative to starting a side hustle, if you really want to "feel" like you are investing, could be to buy physical silver or gold.


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## jbocker (22 January 2020)

kashtrade said:


> Any thoughts on which is the best way to invest 1000AUD? I am looking to invest for long term.
> I know 1000AUD is not a big amount but it's my start and it has to be from somewhere



Hey a 1000 bucks is not that much but it IS a great start. Well done. The tough bit is getting another $1000, and another to add to that, and so on, on a disciplined and regular manner. Investing is easy and will come to you when you are really ready. Be patient. In the meantime, read, do 'paper' exercises on different investment styles. Learn / review about things like Compound Interest, Risk, Debt, Tax management/minimisation and sheet loads of other info. Well done for asking a question, the answers will come when you research more.
Good Start kashtrade, maintain the desire and the energy. It will pay off.


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## Dona Ferentes (22 January 2020)

I don't know but, depending on age and ability to keep records, something with a DRP.

CommSec will do a $999 trade for $10 brokerage, I note.

And, apropos of nothing, I'm rereading "_The Richest Man in Babylon". _


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## Skate (22 January 2020)

kashtrade said:


> Any thoughts on which is the best way to invest 1000AUD? I am looking to invest for long term.
> I know 1000AUD is not a big amount but it's my start and it has to be from somewhere




*Excellent advice has already been given*
@kashtrade you have been given excellent advice already. My advice mirrors @Dona Ferentes suggesting you grab a copy of book "The Richest Man in Babylon" & read it as suggested. Before you dip your toes in & start your trading journey you would be well served by reading my free eBook, it's been written especially for you. 

*Trading Fundamentals - Skate's Beginners Version* (epub format eBook)
Grab a copy of my eBook put it on your phone & you can read it at your leisure. The 4th edition of the free ebook can be found here: https://www.aussiestockforums.com/posts/1014728/  Also check out the "Dump it here" thread it's designed to answer most questions about the scary world of trading.

*If you are a visual guy *
Most new members start out with similar questions but in this game there is no one solution that fits all. If you are really asking "I want to be wealthy" & I have $1,000 to start with - study the graphic below (it shows how it's done)

@kashtrade there is no shame in being aspirational




Skate.


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## Sharkman (22 January 2020)

Knobby22 said:


> Buy 3 CSL shares.




better get in quick, at the rate things are going, it won't be long before that will only get you 2!

i tend to agree with greggles though. go for a low cost index ETF or index fund, and make that the foundation upon which you'll slowly build your portfolio around. you can always try your hand at stock picking to chase alpha and tack on some satellite positions later on once your experience and capital grows, the market will always be there when you're ready.

don't try to do anything fancy early on, as you will probably fall under the Dunning-Kruger effect (most people do at first), and it is during this time, when you're not yet fully aware of your own limitations, that you'll be vulnerable to wading into things you don't really know about, thinking that it's all going ok, then one day suddenly the market will come along and clean your clock. happened to me thru my early-mid 20s when a few of my holdings went under (Zinifex, AV Jennings, ION off the top of my head, might have been 1 or 2 others) and at about 10K a pop, those were very expensive lessons!

starting with an index ETF/fund takes away all the decision making and much of the emotional rollercoaster - as humans we naturally want to compare ourselves against _something _to get an idea of how well we're doing, and when it comes to investing, that something is often the index. so simply _being _the index yourself cuts out all possibility of emotional reactions such as "oh man i can't even beat the index, geez i suck at this, i might as well sell off all of these stupid stocks and buy a sports car, YOLO!!!". and that is probably the biggest risk to investing success, throwing in the towel and quitting before compounding and long term trends have a chance to kick in.

many index products will offer a choice of 2 ways to invest. thru an ETF or thru a fund. both track the same index but there are important differences. you will have to set up a brokerage account and pay commissions to buy units in the ETF, whereas buying units in the fund is done directly thru the fund manager (eg. Vanguard) which won't incur commissions, so on the surface would seem to be better for small purchases. BUT you need to be aware that the MER will probably be significantly higher on the fund vs the ETF for what is essentially the same product! eg. the Vanguard ETF over the ASX 300 (VAS) has an MER of 0.1%, but the fund over the same index is a whopping 0.75% for holdings under 50K!

as such, most people are better off taking the ETF route (which is what i do as well). so i'd suggest building up to about 10K first and buying units in the ETF of your choice then (most places will charge the same brokerage for 10K as they do for 1K - the best "bang for buck" brokerage rates typically kick in at a transaction size of 10-20K).


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## qldfrog (23 January 2020)

What about a ratesetter account, i can sponsor you, i get from memory 50$, you get $100 for 1000invested then the interest 3.6 per annum minimum
So 13.6pc return on 1k..not bad
But only if you just got 1k
If more coming, listen to previous advice
See link below
Hi Friend, Register as an investor with RateSetter using my unique link and you could get $100 to invest. Check it out: https://mbsy.co/ratesetter/53514517


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## sptrawler (23 January 2020)

Sharkman said:


> better get in quick, at the rate things are going, it won't be long before that will only get you 2!
> 
> i tend to agree with greggles though. go for a low cost index ETF or index fund, and make that the foundation upon which you'll slowly build your portfolio around. you can always try your hand at stock picking to chase alpha and tack on some satellite positions later on once your experience and capital grows, the market will always be there when you're ready.
> 
> ...




Great post Sharkman.


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## Sharkman (23 January 2020)

Sharkman said:


> happened to me thru my early-mid 20s when a few of my holdings went under (Zinifex, AV Jennings, ION off the top of my head, might have been 1 or 2 others) and at about 10K a pop, those were very expensive lessons!




sorry Pasminco was the one i was thinking of, this was all some time ago now and gradually fading from memory. Zinifex was the refloated Pasminco, which eventually merged with Oxiana to form OZ Minerals that is still listed today.


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## frugal.rock (23 January 2020)

Knobby22 said:


> Buy 3 CSL shares.



Uncanny, I had the exact same thought...
Or 250 of Z1P, tyro or X afterpay...
F.Rock


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## MovingAverage (24 January 2020)

Best way to invest $1000...spend a little on sex, drugs and rock 'n roll and then go waste the rest on something frivolous . Sorry if I'm not allowed to say that here, but I'm only joking.


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## InsvestoBoy (25 January 2020)

Spend the $1000 on education and don't listen to people on this thread who should know better than to offer financial advice when they aren't qualified to do so.


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## brisman (25 January 2020)

With the benefit of hindsight, I could have just kept buying CSL shares since 1995 and avoided borrowing for too many houses, Timbercorp, ABC Childcare, a real estate development in the US, buying at the top of a real estate boom, shorting Tesla, long shares in December 2019, iron condors, selling call options in a boom, auto trading the wrong forex traders, Suncorp. I'd be retired now.

But I would need a new hobby and have missed out meeting a lot of interesting people.


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## MovingAverage (25 January 2020)

Timber Corp and ABC Childcare...what disasters they were. Forgotten all about them until you mentioned them. I never held positions in either of those companies but I do remember the significant fallout from ABC Childcare as they had a lot of centres in my area and it left a lot of parents in difficult positions not to mention where it left investors. I wonder what ever became of the high flying CEO? Surprised you didn’t mention Babcock & Brown


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## brisman (25 January 2020)

MovingAverage said:


> Surprised you didn’t mention Babcock & Brown




Yes I was in them too but got out early for a profit.


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## MovingAverage (25 January 2020)

brisman said:


> Yes I was in them too but got out early for a profit.



B&B took the whole meaning of leverage to a completely new level


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## frugal.rock (25 January 2020)

InsvestoBoy said:


> Spend the $1000 on education and don't listen to people on this thread who should know better than to offer financial advice when they aren't qualified to do so.



This presents an interesting case IB,
Firstly, "spend the $1000"~ financial advice,
Secondly, "spend the $1000 on education", presumably as education would be an investment, also tax deductible  possibly, more financial advice?
I thought everything on this forum is NOT financial advice as per the site disclaimer, and not to be taken otherwise. 
F.Rock


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## Trav. (26 January 2020)

kashtrade said:


> Any thoughts on which is the best way to invest 1000AUD? I am looking to invest for long term.
> I know 1000AUD is not a big amount but it's my start and it has to be from somewhere



another option for you to consider is products like the following that can help you save while going about your day to day life.

I do not use but my young bloke uses a similar product and he is happy with it as it collects money which he doesn't miss.

Fees are below but like anything you don't get something for nothing.

https://www.raizinvest.com.au/

https://www.raizinvest.com.au/product-disclosure-statement/#Benefits_of6




https://www.aussiestockforums.com/threads/rzi-raiz-invest.33976/

https://www.marketindex.com.au/asx/rzi


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## tinhat (28 January 2020)

You say you are looking to invest $1,000 long term. I note that Commsec now do trades of between $500 to $1000 for $10 brokerage.

I'm going to list some stocks that I think you could buy today and not come back to for five to ten years.

Someone already mentioned CSL. I would add Nanosonics (NAN), Polynovo (PNV) and Xero (XRO). Take into mind that we can't be sure which way the stock market will turn this week, next month, this year or next year or where it will be in another five years time. The stocks I have listed are all "expensive" trading on very high PEs even taking into account forward earnings forecasts but I think they have great outlooks over the long run.


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## Knobby22 (28 January 2020)

I just think you have to get your feet wet so invest in a couple of companies, read their annual reports and develop your knowledge.


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## qldfrog (29 January 2020)

And before getting ahead, something no one has mentioned
You want the best ROI:
So shares,ratesetters etc
But 1000 is not such a great amount that it can not be easily spent...
Have you thought about using it to avoid spending, reducing day to day expenses:
A new fridge saving you a dollar a day , installing PV system to reduce bills, a new energy saver pump for a poil..i know..but you get the idea
Even a car, maybe going from old 4wd using 12l per 100km to a smaller car using half that
Anyway, all is is based on your life/lifestyle but before investing 1kbon the market to see it go in smoke in 12 months, i would make this babies work to save you a few bucks each day
When this is done, start investing


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## kashtrade (7 February 2020)

qldfrog said:


> And before getting ahead, something no one has mentioned
> You want the best ROI:
> So shares,ratesetters etc
> But 1000 is not such a great amount that it can not be easily spent...
> ...




YOu explained it so well


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## dyna (7 February 2020)

If you belong to a not for profit superannuation fund or an industry super fund with low fees and good performance over this cycle,and your annual income is less than $38,500(?) whack the $1,000 into super,  right away because the fed government will co-contribute free money to you, of $500.Do the maths.You won't get a better return on your humble one grand,anywhere. The co-contribution tapers off to zero when your income reaches $53,500(?)p.a.


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## qldfrog (8 February 2020)

dyna said:


> If you belong to a not for profit superannuation fund or an industry super fund with low fees and good performance over this cycle,and your annual income is less than $38,500(?) whack the $1,000 into super,  right away because the fed government will co-contribute free money to you, of $500.Do the maths.You won't get a better return on your humble one grand,anywhere. The co-contribution tapers off to zero when your income reaches $53,500(?)p.a.



Yes and no for that advice
Based on your age...
150pc return in first year in super coins which might be either worthless when you cash them, or even stolen from you in exchange of a government IOU if lucky in the next recession.
You can buy gold or bread with your $1000 now, what can you buy with the $1500 super?
Just want people to think about that especially if young and in light of the super shifting environment in Australia


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## tech/a (8 February 2020)

For a grand I’d buy one stock which 
Is low risk but high probability of quick 
Increase.
They are there every month just look at 
The monthly comp.
Start with a stop to position size and be 
Aggressive on risk mitigation.

it’s a grand so it won’t change your life if it goes 
Pear shaped
But it WILL teach you a whole heap about Risk 
And opportunity.

This is not a time to be conservative.


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## tech/a (9 February 2020)

As Its 1 trade at a time thought Id post some examples---see how we go.


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## tech/a (10 February 2020)

Been watching OEC

Fell near the low of the V/C area 51c
This fall back is now very deep
indicating a longer period of Consolidation

While Ill keep on a watch list Ill be looking for
better prospects. 

Balance $1000


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## Saqeeb (10 February 2020)

@tech/a, with these type of trades, how do you manage your stop loss orders? Do you leave them with the brokers or manage them after EOD to sell next open. 
If leaving them with the brokers, are you not concerned about SP triggering your SL only to go back up the same day?


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## tech/a (10 February 2020)

No Im not worried.
IB do around $2 billion a day in Revenue.
I dont think they are interested in my Stops.

Managing the stops isn't something I need to do until Im filled
Then I'm pretty aggressive until I'm at B/E. 
Once We get on one Ill update how I trade it and why.


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## Saqeeb (10 February 2020)

tech/a said:


> No Im not worried.
> IB do around $2 billion a day in Revenue.
> I dont think they are interested in my Stops.
> 
> ...



Thanks @tech/a, very much interested to see how you trade one of these.


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## tech/a (10 February 2020)

Could have traded OEC at 53.5c (When I posted at 10.54) with a stop at 50c
But in my view this is likely to range.
Even so the Risk is 3.5c on 1700 shares or $59.50.

Will keep an eye on it based upon the above.


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## barney (10 February 2020)

fergee said:


> Honestly mate I don't think you will like my advice but here it is any way.




Best advice (sorry, lets call it an observation as advice is not allowed) I've seen so far @fergee.

Trying to make a few bucks on the stock market with $1000 bucks is very doable over time, but a bit like watching paint dry, unless you put it on a higher risk stock (as per tech's example above etc)

Seriously, if I only had 1 thousand bucks to invest … i'd buy 2 lawn mowers, 2 whipper snippers and rustle up 2-3 lawns to mow in my spare time each weekend ($100 clear profit after expenses) and smile at the bank balance of $5K at the end of the year  ..... 

Agreed, a bit more work than simply watching your "Commsec" account every day … but likely a lot more rewarding .. and after 3 years you will have $15K to "dabble" with (which in all honesty, is probably a heck of a lot more than you will have left of your $1K stock investment over the same period)

Honestly (in my opinion) … trading the stock market with anything less than 'a lot of money' is generally a waste of time (and money!) … unless you get lucky


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## tech/a (10 February 2020)

Barney

I was a lawny many years ago.
My very first business!!
There is opportunity there for sure.
Build em up and sell them off!
Bought my very first Industrial Property doing just that!

But still lets persevere with the grand!


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## tech/a (10 February 2020)

CT1
In a very good field.


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## barney (10 February 2020)

tech/a said:


> Barney
> I was a lawny many years ago.
> My very first business!!
> There is opportunity there for sure.
> ...




LOL … Indeed tech  ….  finding a spec/semi spec stock that has the potential to increase the initial stake exponentially is actually "where I live" trading wise, so I understand your suggestion, often to my own detriment unfortunately 

In reality ….. to the unwary/unknowing however ….. mowing a few lawns would likely return far more than trading ever will … without the associated stress etc when things don't go as planned Sad but true (as I imagine you may agree?)


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## tech/a (11 February 2020)

So Been tied up in morning meetings.

But If I *WAS* trading OEC I would have my stop *RAISED* to 52c
Wont be giving these any breathing space.
Want my average loss well below 10% in the longer term.

CT1 Close to buy trigger.
SMP Stagnant I didn't mark the chart above.
First to trigger *if* they do will the one to trade.
Orders are today only.


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## tech/a (11 February 2020)

Saqeeb Ill put it as you suggest in my thread in the members section.


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## frugal.rock (18 February 2020)

barney said:


> Seriously, if I only had 1 thousand bucks to invest … i'd buy 2 lawn mowers, 2 whipper snippers and rustle up 2-3 lawns to mow in my spare time each weekend ($100 clear profit after expenses) and smile at the bank balance of $5K at the end of the year  .....



I've only had to mow my lawn about twice this summer...
So, also having been a lawny in between jobs, need to look at value adding...
Weed treatments, pruning, hedging, general clean ups, rubbish removal etc.
Forget the gym, be a lawny!
The ideal lawny situation is multiple clients all next door as with only a $1000, you are going to be pushing the mower to the next job.
I'd buy 1 mower... (Honda), Stihl Wipsnip, Blower... unless you have the many arms of ganesh... don't forget ear muffs and glasses...
and remember, only white dog turds are fun... but not the first time... the 2nd time you will be ready not to breathe in powdered dog turd from the powdered dog turd cloud!
F.Rock


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## Dona Ferentes (19 February 2020)

can't get the 3 CSL shares for a grand anymore (ignoring brokerage). now $337 each


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## tech/a (20 February 2020)

Trading with IB 
You can now buy a Dollar amount 
So you could buy $1000 worth of CSL.
OR $1000 of Tesla.


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