# Where to start?



## Sparksy (7 May 2007)

Greetings all.
Being a newb to the finance forums i have decided its time to make my first post. Over the last few weeks i have spend a few hours weekly reading a few topics on the site and have realised i know bugger all about the asx and shares. I was hoping to get some decent advice on what i should invest in and also how to go about it, but currently i am struggling to take in much.

A few rules i have learnt so far:

1) Do as much homework on the industry and company your looking to invest in. Why the hell would you throw money into something you know nothing about.

2) Dont expect anything quick - investing is for the long term.

3) Invest what you can afford to lose, majority of people will lose the majority of their money initially.



My problem now is i dont have a clue what to invest in. I really dont know where to start researching a company (apart from annual reports) or what type of company to invest in. Im happy to invest in a company for a few years but i just want to know where i can find all of this information about the company. 

Questions:

1) What books should i read? "Rich dad poor dad", "barefoot invester" and "why we want you to be rich" really didn't do much for me. Most of the content was explained to me in my final years of highschool or first few years of uni. 

2) Where else can i find information other than annual reports and in magazines? 

3) What magazines should i subscribe to? BRW? financial times? and what can i expect from these?

Please forgive my ignorance, but i am a uni student who has a passion for busines. Currently i have only a small amount of funds $2000 to invest, so im not expecting much at all. i just have a hunger to learn as much asap.

Any advice appreciated.


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## constable (7 May 2007)

Hi sparksy, heres a few tips that will help you on your way
             - its not so much what you invest in its how you invest
             - you need a trading plan including stop losses to protect your money, work out your entry and exit prices before you place the trade and then be disciplined enough to stick to them.
             - look up fixed fractional positioning
              - start trading medium term , short term trading is easy to get into, but all too often brutal. Read the gdn thread
               - start by trading long term upward trends
              - under no circumstances leverage your position
              - be prepared to lose but accept a loss as it makes way for an  oppurtunity to get it right
              - research as much as you can but dont get married to a stock because of its fundamentals - always protect your money and trade price action first.
                Have a good look around asf there is just so much info here and so many thoughts and experiances on where and how to start. These are just a few of the things that i found relevant but there are many truly experianced traders who have shared plenty already!
cheers and good luck c


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## doctorj (7 May 2007)

I'd suggest you use the wealth of free information available on the net - here at ASF and news websites etc rather than burning your money on a magazine subscription.  If you're one that prefers reading things on paper than a screen (I'm one of them...) your university library should have a good range of relevant magazines to read.

Your next stop would be the beginner forum (this one).  Try sorting the posts by number of replies by clicking "replies" at the top of the list of threads.

You refer to yourself as a would be 'investor', but I'm curious if you use it to mean trading.  Many people with small capital bases prefer to trade as they believe it minimises opportunity cost relative to their capital base.  For what it's worth, I tend to agree, but be conscious of the pitfalls of trading with a small capital base - that is not managing risk.  If $2,000 is what you've got, that's fine; many have started with that and less (I'm sure many others will suggest you save more and come back and in terms of risk management they have a good argument)  but don't use your small amount of capital as an excuse for poor risk management.  You wouldn't be the first in this regard either and while it has worked for some (see just about any thread about uranium juniors for examples of those that haven't managed risk), many end up donating much of their net worth to Mr Market.

As for what books to read, try https://www.aussiestockforums.com/forums/showthread.php?t=5781 or https://www.aussiestockforums.com/forums/showthread.php?t=6762

Also another good thread is https://www.aussiestockforums.com/forums/showthread.php?t=6191 or https://www.aussiestockforums.com/forums/showthread.php?t=1277 or https://www.aussiestockforums.com/forums/showthread.php?t=4300

As for what to invest in, my first answer would be "yourself" as corny as that sounds.  Having been reading for a few hours the past few weeks you're a long way off a point where you are going to feel comfortable risking your capital and getting your psyche where it needs to be for you to be effective.

Good luck!


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## Sean K (7 May 2007)

Hi Sparksy,

Welcome to ASF! It sounds like you are on the right track already with taking the first steps to investing. 

I think the reseach you have done so far sounds pretty good and you should continue to read widely, including the Fin and Smart Investor Magazine isn't too bad either. (Sorry doctorJ, but I think I learn't a lot from them early.  )

While we can't give specific stock recommendations here, your first foray into the market could probably be something blue chip, paying a dividend, in a sector not at the top of a cycle, or a consumer staple. (I'm sure others will tell you to buy a uranium explorer in Namibia! )

Next step might be to open an account and push the buy button! $2K's a good amount for a first buy.

All the best!


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## doctorj (7 May 2007)

I'm a big fan of Resource Stocks (www.miningnews.net) as well.  Covers everything from gold to oil to hot rocks.


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## ceasar73 (8 May 2007)

Great post sparksy - I am in the same boat as you. Its hard to know where to start.


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## SteveM (8 May 2007)

Sparksy said:


> 3) Invest what you can afford to lose, majority of people will lose the majority of their money initially.



I would change this to:

Invest what you can afford to.

I gamble with what I can afford to lose, but I expect a return on an investment or, at the vey least, to retain most of my capital, so a different mindset is required.


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## juiceman (8 May 2007)

Sparksey
Try re-reading Rich Dad Pore Dad, or Cash Flow Quadrent, again as i feel most of the answers to your questions are there
I feel you must have skipped a few pages
Invest in your own money skills then the sharemarket
Goodluck


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## Pat (8 May 2007)

Sparksey, what a great thread  
I myself started trading in December 06. I was given NRMA shares (IAG) when they privatised (I think) some years ago when I was 17 or something. I opened a Commsec account, sold good old IAG for $2500 and bought MTN. Then sold MTN at a great time to buy, although made some $$$.

ASF is a great place to start. Most of my learning started here. Do as the above has said. Read fin review etc. search ASF....

And most importantly get a trading account, they are free! Here you can set up watch lists, get ann's (announcements), and watch market depth and price movement. It's interesting to see sellers come in, buyers snatch up stocks when a stock has bottomed, off screen buyers comming out of no where and the list goes on. It gives you an idea of the emotions that flow through the market.
Pat.

P.S.
I suggest you don't throw away the good old short term trade. Jumping on a run early can get some good gains. 1k in a couple of days is pretty good I think. So what, you get taxed on the whole lot but it's still $$$ in the pocket.


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## Sparksy (8 May 2007)

So many people with so many different views on what i should do. Thank you for the quick responses. 
I will most likely start reading up on the internet and i may even purchase a few magazines to get me started. I'm not big on reading online. I get sick of sitting infront of the computer. 
I've just joined a local cash flow club (rich dad poor dad) and will be attending meetings monthly so hopefully I can get some different information from there.

As for blue chip shares I think this will be a while away. So many terms are used on this forum which i dont understand, so I definately need to catch up to speed before I consider investing anything. Also I've got uni exams and then a trip to the uk through july so I wont have the time to put into learning about the market or any companies.


I just found out I've got a few NAB shares which will be given to me for my 21st birthday. I think they're in my name, but I dont have access to them until then? Its only a few months away, but I dont have a clue if ill hold onto them or sell. So much to learn in such a short time....

Once again thanks for the prompt replies. Excellent feedback!


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## bvbfan (10 May 2007)

BRW more managerial I thought, not worth it
FT too broad and more news than analysis and education I think.

AFR is good, (Shares was better) 
Resource Stocks worthwhile too but bit pricey if I recall.

Good book on mining valuation I found is one by Victor Rudenno, Mining Valuation Handbook 2nd edition, which I think is in the ASF  bookshop link, but can be had a little cheaper if you look around


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## happytrader (10 May 2007)

Hi Sparksey

You could start by making co-contributions to your super - definitely a win situation.

Cheers
Happytrader


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## stink (10 May 2007)

Hi Mate,

My advice is once you have a plan and a simple one to start with, get in there and commit your 2k to your trading education. In other words i think the best you can do once you have your plan etc is get into the market, you will most likely lose your 2k, but so what the lessons you learn will be more than worth it.

I am only still an amatuer myself and i think i spent to much time theorising etc once i had a go i started to learn very quickly. I have now moved onto trading currencies and am having much greater success then trading stocks.

Again get you money management sorted, be realistic, when you think you know money management you dont so read, read , read on the topic. MM is what will keep you above water while your learning.

Cheers Stink


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## disarray (10 May 2007)

i'm a noob as well. to get underway and trade with confidence i did the following -

1. decide how much i was willing to risk

2. open a share trading account with my bank

3. sign up for fat prophets for 1 year. i won't be renewing because i'm after a shorter trading cycle, but they were good to show me the ropes and point me in certain directions. lurking in this forum is probably just as good, but look at the poster before you take advice to spend money.

4. read stan weinsteins "secrets for profiting in bull and bear markets"

5. use yahoo charts with moving averages, rsi and volume. for eg.

http://finance.yahoo.com/charts#cha...ine;crosshair=on;logscale=on;source=undefined

when you know what that chart says, then go ahead and commit money to a trade. if you don't get it, save your money until you do.

6. download incredible charts from http://www.incrediblecharts.com.au/ for more indepth and up to date chart action.

7. detach your emotions

8. ???

9. Profit!!!

p.s. sparksy, your rule #3 is wrong. there is no reason to lose most of your money initially. i agree the money has to come from somewhere, and clueless people usually provide it, but if you go in with a "it's ok i expect to lose heaps of money" then you are primed for failure.

good luck man


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## stink (10 May 2007)

disarray said:


> i'm a noob as well. to get underway and trade with confidence i did the following -
> 
> 
> p.s. sparksy, your rule #3 is wrong. there is no reason to lose most of your money initially. i agree the money has to come from somewhere, and clueless people usually provide it, but if you go in with a "it's ok i expect to lose heaps of money" then you are primed for failure.
> ...




Just to add my comment in regards to this was not saying that its ok to lose money, but be prepared to lose money initially. Again if you have sound MM principles then it will be no big thing and you should now how many losses you can take anyway.

I can stand at the crease and defend for a long time, its not that hard. However eventually i have to take a swing, each time i get out i learn something.

Cheers Stink


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## marklar (10 May 2007)

Pat said:


> I myself started trading in December 06. I was given NRMA shares (IAG) when they privatised (I think) some years ago when I was 17 or something.



Likewise, I started out with a handful of IAG shares.  Back in August I was looking for an investment alternative to cash, so I put some money in a managed fund, with the rest I opened a trading account, got my IAG shares transferred from issuer-sponsored and got going.  

First few buys were very small parcels, not a lot to risk, but not a lot of gain. I learnt a heap from ASX and ASF, started doing better research and started buying larger parcels (4-5 times the size of my first trade.)

I've made some mistakes, exited some trades too soon, left some trades too long, but it's been worth the education.  I found I needed "some skin in the game" to sort out what I wanted to do with my money, but I haven't gone overboard and put all my savings in.

m.


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## ceasar73 (10 May 2007)

As I said earlier, Im in the same boat as sparksy. I have recently registered with ASF and I am loving it. ASF seem a fantastic source of information for a novice such as myself.

I believe that if one has a love and passion for something they will do well. So I say - Sparksy, if we develop a passion for this game, we will do well in the long term.If NOT - we are doomed and should get out ASAP.

good luck!:


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## Bullion (10 May 2007)

I'd also recommend joining the ASX share game.

Although It hasn't started this year, maybe in the next month or so, it is an EXCELLENT eye opener into the share market. I did this before I bought anything for real and found myself buying/selling way too much and wasn't going anywhere. By the end of the game I had made it to the top 200. 

I'm still a noob, but other than reading, this I think is a great way to see how the market works.


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## Julia (10 May 2007)

ceasar73 said:


> As I said earlier, Im in the same boat as sparksy. I have recently registered with ASF and I am loving it. ASF seem a fantastic source of information for a novice such as myself.
> 
> I believe that if one has a love and passion for something they will do well. So I say - Sparksy, if we develop a passion for this game, we will do well in the long term.If NOT - we are doomed and should get out ASAP.
> 
> good luck!:




Sorry, Ceasar73, but I disagree with this.  Passion and inexperience are a dangerous combination.  You will get far further with an unemotional approach.  Passion and emotion preclude objectivity.


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## Julia (10 May 2007)

Bullion said:


> I'd also recommend joining the ASX share game.
> 
> Although It hasn't started this year, maybe in the next month or so, it is an EXCELLENT eye opener into the share market. I did this before I bought anything for real and found myself buying/selling way too much and wasn't going anywhere. By the end of the game I had made it to the top 200.
> 
> I'm still a noob, but other than reading, this I think is a great way to see how the market works.




Agree here.  But before even doing that, conquer your dislike of reading online and work your way through the ASX website.  There is everything there about the basic working of the market, good summaries of fundamental and technical analysis, and generally much of what a beginner needs to know before putting up real money.  Personally I think what is contained here is more useful for a beginner than much of the literature which is around, useful though that is at a later stage.

When you're feeling that you have an understanding of how the market works and a sense of the type of investing/trading you will be suited to, then I like Kennas' suggestion of buying a blue chip company.  Given that you would be buying e.g. Woolworths, one of the big banks, Westfield etc for the medium to long term you'd be very unlikely to lose your money, should see some growth in the value of your investment and enjoy the dividends and franking credits.

You, or possibly one of the other posters, have said you don't understand some of the terms used in our responses.  OK, we need to be clearer and not take for granted that you know terms which have come to all of us with experience.  Just speak up and ask the question:  there's always someone who will offer you the answer.

Good luck and don't get frightened off because there's a bit to learn at the start.


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## rowes (10 May 2007)

SteveM said:


> I would change this to:
> 
> Invest what you can afford to.
> 
> I gamble with what I can afford to lose, but I expect a return on an investment or, at the vey least, to retain most of my capital, so a different mindset is required.




I agree also



> 3) Invest what you can afford to lose, majority of people will lose the majority of their money initially.




I know this happens a fair bit of the time but you can increase your chances of this not happening by being as best educated as you can and having the correct mindset for investing/trading. There are some great books mentioned all over the ASF website that can help you out.
Just cause most lose there money in the first year doesnt mean you have to take that path too. Happy reading to you


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## ceasar73 (10 May 2007)

Julia said:


> Sorry, Ceasar73, but I disagree with this.  Passion and inexperience are a dangerous combination.  You will get far further with an unemotional approach.  Passion and emotion preclude objectivity.




Hi Julia, this comes as a suprise to me? I would have thought that the greatest traders had a real passion for it. You telling buffet/lynch etc dont love what they do?


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## professor_frink (10 May 2007)

ceasar73 said:


> Hi Julia , this comes as a suprise to me? I would have thought that the greatest traders had a real passion for it. You telling buffet/lynch etc dont love what they do?




There's a balance that needs to be found ceasar. Obviously, everyone that posts on this forum and invests there money actively must have some kind of passion for it, otherwise they'd have their money in managed funds! I think Julia is trying to ensure you don't get too emotionally involved in what you are doing. There is nothing more dangerous than having a lot of money riding on a particular decision, and also being emotionally attached to the outcome. Being passionate about it is great, being too emotionally involved in any one position can be financial suicide.


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## ceasar73 (10 May 2007)

professor_frink said:


> There's a balance that needs to be found ceasar. Obviously, everyone that posts on this forum and invests there money actively must have some kind of passion for it, otherwise they'd have their money in managed funds! I think Julia is trying to ensure you don't get too emotionally involved in what you are doing. There is nothing more dangerous than having a lot of money riding on a particular decision, and also being emotionally attached to the outcome. Being passionate about it is great, being too emotionally involved in any one position can be financial suicide.




aha..you guys are saying I need to have control of my emotions in this game.

Im loving this info!

thanks guys.


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## Julia (10 May 2007)

ceasar73 said:


> Hi Julia, this comes as a suprise to me? I would have thought that the greatest traders had a real passion for it. You telling buffet/lynch etc dont love what they do?




Hi Ceasar,

Note that I referred to the combination of passion and inexperience.
Buffet and Lynch could not be described as inexperienced obviously.

Professor Frink has accurately summed up what I was trying to say.

I remember a post from an ASF member recently (sorry I can't recall who it was) who said he felt bad when taking profits as this meant someone else was losing.  That's looking at the business of the market in an emotional sense and will screw up your capacity to make objective decisions.
Instead, if I needed to find a reason for taking profits (which I absolutely don't) I'd suggest my selling those shares gave someone else an opportunity to buy something they wanted.

And I'm not at all sure that passion is a characteristic required to be successful as an investor or a trader.  I find investing interesting and financially rewarding, but I would not say I'm passionate about it.  

Hope that clarifies what I was suggesting.


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## ceasar73 (10 May 2007)

Julia said:


> Hi Ceasar,
> 
> Note that I referred to the combination of passion and inexperience.
> Buffet and Lynch could not be described as inexperienced obviously.
> ...




Point taken julia, thanks.

Im a super emotional person, I could be in trouble.

One things for sure, I would not feel bad taking profits at anothers expense.


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## professor_frink (10 May 2007)

ceasar73 said:


> Im a super emotional person, I could be in trouble.




maybe, maybe not. All depends on how self aware you are. If you can recognise that you can get pretty emotional about certain things, you'll need a pretty rigid plan to ensure you can keep it all in check. If you can keep the enthusiasm out of the actual buying and selling decisions and channel it into your research, then you should be fine


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## sdfsdfe (5 August 2007)

*Where to start*

Alright. I am an utter beginner, so I'm out for any information I can get at the moment. 

One question I have for the moment: I've just joined Etrade and the "Online Account Application Form" I've printed requests submission my "Nominated Financial Institution statement". I'm guessing this will be my bank statement. Now... Do they need the full statement with my transactions or can I just send them the header of the statement with my bank details?

Once this is out of the way, can anyone suggest how I learn a bit more using Etrade? When should I begin investing - is there a training ground?


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## surfingman (5 August 2007)

*Re: Where to start*

I can suggest my 2 favourite free spots for learning:

http://www.aussiestockforums.com
http://www.asx.com.au/investor/education/index.htm

Etrade:
Theres a Tools & Education tab once you login, that should tell you most things you need to know about the software.


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## Sean K (5 August 2007)

*Re: Where to start*

Always helps to call the company for help too.


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## marklar (5 August 2007)

*Re: Where to start*

Start reading! Seriously, there are plenty of resources around from websites like ASX and ASF, books, newspapers like the Fin Review.  Pick some stocks to watch and research, read prospectus documents, financial reports, industry sector publications, etc. 

m.


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## tayser (5 August 2007)

*Re: Where to start*

You did what I did - signed up with a broker before buying/reading a single book 

One of your tasks will be this: to see how well you can restrain yourself from committing money to things as you learn them...  I'm roughly 6 months into my journey and am yet to commit ca$h (read below) - not far from doing so - but showing restraint has been one of the hardest things to do.

I suppose it's a key lesson in Money Management - don't do what I did, that being doing two trades so I didn't have to pay the $19 to keep the live info running (I did two, made a nice little $50 profit, then I immediately thought: "Oh this is easy, I'll just keep going, buggar the education process! (the next trade resulted in a $150 loss  - very valuable lesson learned there but my money's been paying of the last of my residual CC debt and now getting directed into an ING until I deem myself ready to make my first 'real' trade)) - just leave $20-30 in the E*Trade Cash management account as you learn and so as you don't do anything foolish whilst doing so.

$0.02


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## sdfsdfe (6 August 2007)

*Re: Where to start*

Tayser:

Glad to hear! I'm not yet going to put anything down, but I thought I may as well try to get used to the system if at all possible. 

Basically I've got $20K sitting in a St George account getting 4.1% interest. Now I've not been very attentive up until now, but I think it's about time. Does anyone have any suggestions as to where I should invest the money and in what sort of ratio? How much should I leave aside for trading later on and where else can I get a nice interest rate to store the rest?

Also, does anyone have an answer for the bank statement question? Do I need to send them a full bank statement or will the heading suffice?


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## Pat (6 August 2007)

*Re: Where to start*



sdfsdfe said:


> Alright. I am an utter beginner, so I'm out for any information I can get at the moment.
> 
> One question I have for the moment: I've just joined Etrade and the "Online Account Application Form" I've printed requests submission my "Nominated Financial Institution statement". I'm guessing this will be my bank statement. Now... Do they need the full statement with my transactions or can I just send them the header of the statement with my bank details?
> 
> Once this is out of the way, can anyone suggest how I learn a bit more using Etrade? When should I begin investing - is there a training ground?






tayser said:


> You did what I did - signed up with a broker before buying/reading a single book



Same here LOL! But didn't trade anthing for 2 months, while I watched, read... learned. 
ASF is the best place to start learning how to learn about the market thats for sure.
I still don't understand the market... I swear it's female.


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## questionall_42 (7 August 2007)

*Re: Where to start*

Missinglink,

Dedicate some quality time to trawling through ASF.  Some gold on this site.  Best approach is to have a nice bottle of wine or an icy ale and kick-back and enjoy.  Just soak it up.  Shame it wasn't around when I started playing this game.

I have found the Saturday Age/SMH useful; particularly the commentaries from the likes Ross Gittins, Marcus Padley, Bartho, Alan Kohler (who has now left) and Malcom Maiden - not that what they say is gospel, but it is important to see how intelligent people view investment from different perspectives.

But most importantly, if you are lucky enough to know people who are happy to talk (in the flesh, in person) with you about investments, in an honest way, that is the ultimate.  I have probably learnt most from these interactions and have great relationships for learning and discussing investment ideas.

Best of luck, and don't be shy to ask.


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## Pat (7 August 2007)

*Re: Where to start*



sdfsdfe said:


> Tayser:
> 
> Glad to hear! I'm not yet going to put anything down, but I thought I may as well try to get used to the system if at all possible.
> 
> ...



Not too sure bout the statement, However you should be able to "blank out" the transactions on the statement and send it through like that. I guess E-trade want conformation of your account.


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## nioka (7 August 2007)

*Re: Where to start*



sdfsdfe said:


> Tayser:
> 
> Glad to hear! I'm not yet going to put anything down, but I thought I may as well try to get used to the system if at all possible.
> 
> ...




Why not trade through St George bank or any of the other bank for that matter until you get to understand the system. The bank online trading can give help if you need it. St George, I have heard, require funds to be in the account before trading, .I trade with westpac and only have to have funds available at settlement time.


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## Chef (8 August 2007)

*Re: Where to start*


```
Does anyone have any suggestions as to where I should invest the money
```

Hi sdfsdfe.

What do you do for a living? What is your industry?

What are you interests?

The reason I ask is, I personally feel that when it comes to investing (at least initially), you should put your money in something you know and are familiar with.

If you are a complete beginner, I wouldn't recommend worrying about trading just yet. You should research companies that you understand and invest your money in something you feel comfortable with. 

I work in the hospitality industry. When I first started out, I focused on companies that were mainly concerned with food and beverage. The first shares I ever bought were Fosters shares. I know Fosters, I deal with them all the time. I understand the market that they are involved in.

Anyway, I guess what I am trying to say is, if you are stuck and aren't too sure where to start, search for what you know. There are hundreds of publicly listed companies in dozens of sectors. It easier to find companies to invest in when you know and understand their business.

Dave


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## Chef (8 August 2007)

*Re: Where to start*

PS

Hi all!


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## sdfsdfe (16 August 2007)

*Re: Where to start*



Chef said:


> ```
> Does anyone have any suggestions as to where I should invest the money
> ```
> 
> ...




Sorry for the late response!! My professional background is mostly in the web field. Interests are health, food & environment - not too much money there I'd imagine!


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## greengoat (16 October 2007)

I'm new to stock trading, only being 20 years old, and im looking at investing about 5,000 for now.  So I want to learn as much as possible about trading and investing. Can anybody recommend any books that would be good reading for a beginner? Also any tips about where to start would be helpful, im going to use commsec. 

cheers for the help


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## prawn_86 (16 October 2007)

Goat,

this kind of msg comes up often, so perhaps try searching through previous threads in the beginners lounge. Also check your msgs as i will PM you.

enjoy!


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## brilliantmichael (16 October 2007)

Check out _'advice for young people with some cash interested in the market'_ (beginners lounge)...

Good luck!


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## ubergeek (30 April 2008)

*No Idea where to start*

Hi
I was talking to some mates the otherday about shares and long term investments. But i have absolutely no idea where to start. I have been looking around the forum but it all makes no sence, things like divid ends, blue chips, fully franked shares, it all means nothing to me. 
So i was wondering where i can learn about all the meanings and how to get started in the stock market (for investments)


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## Whiskers (30 April 2008)

*Re: No Idea where to start*

Probably look in the forum bookshop for some beginners material and the Australian Stock Exchange (ASX) site has a lot of explanatory material.

http://www.asx.com.au/


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## Markcoinoz (2 May 2008)

*Re: No Idea where to start*



ubergeek said:


> Hi
> I was talking to some mates the otherday about shares and long term investments. But i have absolutely no idea where to start. I have been looking around the forum but it all makes no sence, things like divid ends, blue chips, fully franked shares, it all means nothing to me.
> So i was wondering where i can learn about all the meanings and how to get started in the stock market (for investments)




Before you start, make sure you read a couple of good books about trading and money management.  Practice some paper trading as well.

The Art of Trading by Chris Tate is well worth buying.
He offers a lot of wisdom and practical advice before you enter the Sharks Arena. 

Cheers markcoinoz


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## dutchie (2 May 2008)

*Re: No Idea where to start*

Go to your local library and borrow a few books to get you started.

Cheers

dutchie


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## stewysurf (11 August 2014)

Hi,

im not a trader yet but i am keen to learn, i have been looking at lots of threads on this site and it’s clear there are lots of people who really know their stuff but it’s also clear that i have a lot to learn. Does anyway know a good place to start learning the basics or a course where i could start trading small and learn as i go. I learn better when i’m doing practical stuff rather than just reading  

Is this a stupid idea, can you learn this sort of thing as you go or do you need to be completely up to speed before i start?


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## burglar (11 August 2014)

stewysurf said:


> ... Is this a stupid idea, can you learn this sort of thing as you go or do you need to be completely up to speed before i start?




Hi stewysurf, 
Welcome to ASF

First of all, without being rude, its your money!
No-one here would hazard an answer! (well, nearly no-one)

Most will advise paper trading. 
Some-one will be along presently, who knows about such things.

GL


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## ROE (11 August 2014)

decide what you want to do then work out what you want to learn from that field 
else you be over whelm with a lot of information and strategies.
stock market is huge with many participants and countless strategies and many ways to put your money to work.

you want to be

1. an investor?
2. trader?
3. investor and trade on the side?
4. trade and invest on the side? 
5. you want to go down FA or TA path?

narrow your starting line then expand as you acquire more knowledge


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## Julia (11 August 2014)

Go to the ASX website, www.asx.com.au and look for the link to "Education".  It will give you individual modules, which you can self test at the end of each one, that you can work through to acquire a basic understanding of how the market works, the different approaches to investing or trading, and more.

When you don't know what you don't know (with apologies to Donald Rumsfeld) you need to understand the absolute basics before deciding what direction you want to go from there.

PS   Understand that for most of us, it has been a protracted learning period before knowing enough even to start.
If you go a step at a time, it's achievable.  Good luck.


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## saroq (11 August 2014)

I posted some info and site links in this thread:  
https://www.aussiestockforums.com/forums/showthread.php?t=28270&p=821573#post821573
and in this one:  
https://www.aussiestockforums.com/forums/showthread.php?t=28759&p=835027#post835027
but the www.asx.com.au site listed above is a good place to start.


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## Tradelikespock (12 August 2014)

Someone said most will advice paper trading--I don't.  I started trading real time and I'm glad I did and many big time pro traders advice that learning to trade with real (albeit small) money is better because it prepares you for that big brick wall that is emotion and psychology.  You will be the biggest enemy to your success.  The sooner someone tells you that the better.

So trade small and learn to be consistent first.  Prove you can grow a small amount of money with several wins and not just one win before you go all out.  Oh and journal all your activities--trust me on this one.  

I wish my trading bootcamp video series was complete so I could say "come to my website, I'll take care of you" but it's not (I only have one video so far) so I'll have to point you to Grok trading because they have free basic lessons on trading.  Actually lots of free lessons everywhere on the net and it's funny that some trading courses/seminars will charge you $5,000-$10,000 for that same free info, hah!

Anywho, one last recommendation:  Investopedia will give you definitions/explanations of whatever terms you are not familiar with.  

Anymore questions? Just ask.

P.S.  Learn to look at candlestick stock charts, even if you decide on "investing."


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## burglar (12 August 2014)

Tradelikespock said:


> Someone said most will advice paper trading--I don't."




Hi Tradelikespock, 
Welcome to ASF.

Yes! That someone would be me. I also said:


> Some-one will be along presently, who knows about such things.




That someone might be you! :


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## pinkboy (12 August 2014)

All great posts so far, so Ill keep up the trend and wont post rubbish like usual:


Working the same angle as ROE here, what do you want your trading to do for you?

Work out your end goal and work back from it.  For example, say you want $X0,000 income in Y years.  How much $$$ returning Z% per annum spread over your time period?  Work backwards from there to work out what you can afford to do at the moment, or work it so you know it will take Y years to get the level income you require.

This way, you have something you're working towards.  No good throwing cash all over the place and BHP.  Remember no strategies are the same, and all will require at least some knowledge.  That knowledge can be sought from many different places, including here, books, online, seminars.  Personally, most of the free or low cost advice is best bang for buck.

Stick around.


pinkboy


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## stewysurf (13 August 2014)

Thank you to everyone for your replies. They were great and even more detailed than i expected.

I can see both points of view. I think ideally you need to learn your stuff before you start, but if i do start with real money i think i'll definitely learn a lot faster.

I'm thinking rather than losing money i should spend it on getting proper training. I have been approached by Wealth Within who have said they can teach me how to trade and after i complete the course i'll be able to get a job with a trading firm. It sounds amazing, they have said I should be able to get at least 20% per year returns. The cost of the Wealth Within course is nearly $6,000, it's a lot of money but if I can start trading like a professional it will be worth it. Does anyone know about Wealth Within? Would this be a good way to go?


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## tech/a (13 August 2014)

Look there are good educators around.

The problem is you need to know what it is you need to know.
Anyone can show you a zillion indicators and put them on a chart
You can learn how to value a company.

But how to *PRACTICALLY APPLY *this knowledge into a way of trading* PROFITABLY *is very very rarely shown.

They sell you the chapters many you don't need to know but fail to cook the recipe's in the book.


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## stewysurf (14 August 2014)

Thanks tech/a...i rang them and asked for audited statements like you said and it was a bit weird. The fella I was speaking to started getting defensive and just kept saying they were the best course available. He put me onto his manager who seemed to know what he was talking about and apparently it is not possible to do. So i need to work out whether they will be worth the $6,000. It's also another $1500 for trading software to go with it. Starting to get pricey, has anyone on here ever actually used Wealth Within?


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## burglar (14 August 2014)

stewysurf said:


> ... has anyone on here ever actually used Wealth Within?





I was rude!! :
If, and only if, you are not spruiking for them, I am truly sorry!

There is a thread or three.
Happy reading!!

https://www.aussiestockforums.com/forums/showthread.php?t=9899

https://www.aussiestockforums.com/forums/showthread.php?t=19871

https://www.aussiestockforums.com/forums/showthread.php?t=27834


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## Young Simmo (21 October 2014)

*Where do I start?*

OK, I am brand new in here and hope I don't ask too many dumb questions. I am only here because of GOOGLE, so at least it is not my fault.
I am 74 and retired, and not had any shares since the mid 1980s up in Kalgoorlie. My wife and I would like to have a dabble in the Medibank thing, but need some guidance.
So, can somebody tell me what I have to do with regards to registering with a share trader, and how to get shares online, as being in Carnarvon I am 1000 Kms from the city. You will not offend me if you use kindergarten language as, I want to get it right. I am thinking of buying $1,000 worth to start with, and when they increase by 50% sell 50%. If that is a dumb plan please tell me as I am open to suggestions. I have Netbank and am fully familiar with all that money transfer stuff.
GO.


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## burglar (21 October 2014)

*Re: Where do I start?*



Young Simmo said:


> OK, I am brand new in here ...



Hi Young Simmo, 

Welcome to ASF!

Forums are better than books because they can answer your questions!
Having said that, it is late in eastern states, many of us are tucked up in bed.

Unless I had good reason, I would not touch an Initial Public Offering (IPO)
Just my opinion.

I would devote some time to self education.
Books, magazines, newspapers and Internet!

Best thread here for newbies by SirO:
https://www.aussiestockforums.com/forums/showthread.php?t=14370


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## pixel (21 October 2014)

*Re: Where do I start?*



Young Simmo said:


> OK, I am brand new in here and hope I don't ask too many dumb questions. I am only here because of GOOGLE, so at least it is not my fault.
> I am 74 and retired, and not had any shares since the mid 1980s up in Kalgoorlie. My wife and I would like to have a dabble in the Medibank thing, but need some guidance.
> So, can somebody tell me what I have to do with regards to registering with a share trader, and how to get shares online, as being in Carnarvon I am 1000 Kms from the city. You will not offend me if you use kindergarten language as, I want to get it right. I am thinking of buying $1,000 worth to start with, and when they increase by 50% sell 50%. If that is a dumb plan please tell me as I am open to suggestions. I have Netbank and am fully familiar with all that money transfer stuff.
> GO.




G'Day Simmo;

I live in Perth, so I'm on your time line - and bl***y early it is over here 

Anyway: If you're with CBA's Netbank, the easiest would be to open a trading account with Commsec. 
There are better brokers with lower brokerage fees and/or better decision support; but if you're only interested in buying one or two stocks for a Grand or two, neither will have a big impact on your decision.
Make sure you're not signing up to any live data - that would cost you monthly fees in the order of $50 or more. And stay clear of derivatives or anything else that the bank will try to sell you. 
If in doubt, PM me. I'm happy to chat even on the phone if you have any specific questions.


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## blaz0430 (5 November 2014)

*Where to start*

Considering i don't have much knowledge on share trading, Is there anything in particular that would be the best thing to start learning first?


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## Joe Blow (5 November 2014)

Your new "Where to start?" thread motivated me to merge all the "Where to start?" threads that people have started over the years, so I suggest you start by reading through this newly merged "Where to start?" thread.

I will merge other similar threads I find into this one and any new ones people start in the future. That way those good enough to respond to "Where to start?" threads don't have to repeat themselves.


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## alexpuigd (3 January 2015)

*Where to start*

Hello all,

I m fully new in the stock market, and would like to know from you who have a bit more experience :
1) Do you use specific software for charts or are there any free websites providing the chart tool you need to make your decisions?
2) Any websites/online resources you would recommend?
3) I would like to start buying index funds but I don't know where to start (where I can find listing of index funds traded in the ASX for example with their codes)

Thank you in advance
Alex


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