# Young, retired, and wanting some advice!



## YougNomad (22 May 2013)

Hey everyone

Brand new to the forum, so thought I would share my story, and see what conversation transpires.

I'm 32 years old, and recently sold a business I started 7 years ago (in the property arena). 

Sale price of the business was $3.2m, with zero borrowings. 

Over the course of the business life, I purchased 9 IP's, 2 of which have been sold due to cash flow issues, leaving us with 7, which have effectively been paid down to generate our passive income goals. 

I'm in the process of starting my next business venture, but also am really, really interested in shares. I'm one of those people who hates waiting, so want to jump straight in (I love risk); but completely understand that this would be the wrong move. 

I've read some topics on here suggesting the Diploma of Financial Services to get a basic understanding; currently I have a financial planner who has sorted out our SMSF + financial plan etc, and I see huge value for money in the work he provides.

However, it is my own money, and am I placing too much trust in someone else? 

I'm hoping there are other people on here in the same position as me, and can shed some insight into how they operate. 

Looking forward to getting involved, and hopefully getting to know some of you!


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## KurwaJegoMac (22 May 2013)

Hello and welcome to the forum. While I am by no means a millionaire like yourself, I have been trading for the last 5 years with good success. 

If you have any specific questions post them here and you'll find most on the forum will happily provide advice. My biggest advice to you right now is this: 

Start off small.

By your own admission you say you love risk and you have a large amount of capital. This is very dangerous in learning to trade as you will make plenty of mistakes as you learn and stand to lose a large chunk of money compared to most people (owing to having more money to risk). It's easy to get sucked into throwing good money after bad so don't go rushing ahead.

For someone in your position, I would start with a capital base of $50,000 risking no more than 2% on any trade (I wouldn't trade with a capital base less than $20,000). Trade live and trade only once you've chosen/designed a system and backtested it and were able to produce positive expectancy with a good risk/reward ratio. You'll have a natural temperament as a person so try and find a system that matches it. 

You will see a lot of bull on here so be careful where you take your advice from but there are a few posters here who really know what they're talking about. 

Oh and be aware that just as in business, 9/10 traders fail and it all comes down to practice, practice, practice and working, working, working.

On a side note, I'd love to hear some advice on starting your own business - perhaps some of the key lessons you've learned along the way and any advice for those starting out.


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## Serpentis (22 May 2013)

I was in the same position as you a couple years ago when I was 23. Thanks to entrepreneurial/business success I had tons of money. Not quite as much as you, but still enough to stop working, retire and live comfortably off the bank interest. Not that I would ever stop working mind you, I love working!

I got into the stock market when I started poking around to see what I could do with all my capital, and it appealed to me immediately. The risk, the numbers, the rapid pace that everything can change, the liquidity, the fact that I can do everything over my computer, it's great. 

I said I would start slow, maybe $40,000 here or there and that would be it. But I kept finding value and cheap stocks, so I soon found myself with the majority of my capital invested! Fortunately this was just at the start of a bull run, so I came out of it pretty well, but you'll hear plenty of stories of people who did a similar thing at the wrong time and came out much poorer, though wiser for the experience. 

People with low capital, high income (most salaried people in the workplace) can rebound fast, but high capital, low income (relatively speaking) people can get hammered and be put behind for decades. It depends on your goals and how you want to trade, but for me capital preservation is a key part (as much as it can be in the most volatile of investment classes). Keeping my portfolio diverse, buying quality companies and never paying too much for them. And keeping plenty of cash on the sidelines, in case there is a big market drop.


I'm still fairly inexperienced, but coming from a similar position as you the one bit of hindsight advice I would give is be prepared for how rapidly your capital will get sucked into the stock market. If you can't stem the tide, then get smart and do as much research and reading as you can to invest your capital in the best way.


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## Iggy_Pop (22 May 2013)

From my experience, I would suggest getting someone to assist with learning. Two I would suggest are Nick Radge - Offers a few different services or you can buy his software packages to use with Ambi-pro to do your own trading

The other one is Colin Nicolson who shows you how he selects shares for his own portfolio and how to manage risk.

Both do teach good habits with managing risk which is the key point with trading. Nick's site has a variety of costs for his service several hundred per year to about $1000 for all information and Colin;s is relatively cheap at $100 then $40 year

Both sites do teach you as well, not just say what to buy and sell but why. 
I found both useful for learning

And the forum has been excellent in sharing information


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## Zedd (22 May 2013)

Jump in! In my experience no better way to learn then to have money invested. I put my lifesavings in at the age of 12 (Mum wouldn't let me spend it on toys). Fairly small investment but kept me interested. Nothing will make you pay more attention to the economic situation locally/nationally/globally then if you've money on the line.

Obviously your lifesavings are a little more significant so I wouldn't recommend quite the same approach but I think everyone would agree that you won't really learn until you have some money in.

Know why you're buying. Know before buying when you'd consider selling. Understand that a large portion of profits will be made not through your own knowledge/skill/ability but instead as a reflection of the risk you take with your capital.


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## ROE (22 May 2013)

With that sort of capital, you can invest in some rock solid business on the ASX and has 6 figures income stream coming in for a long long time.

Stock market is not like properties, you get quoted each minute on how much your portfolio worth.
you got to learn to ignore most of the noises and daily quoting of your stock price and focus on the prize (the business cash flow and earning).

Start small jump in and see how you go but keep majority of the cash until you know how to invest in 
great business.

Once you invest in great business there little you need to do but getting reliable dividend stream and
capital appreciation will comes when the business throw out increasing cash flow and earning...


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## howmanyru (22 May 2013)

KurwaJegoMac said:


> Hello and welcome to the forum. While I am by no means a millionaire like yourself, I have been trading for the last 5 years with good success.
> 
> If you have any specific questions post them here and you'll find most on the forum will happily provide advice. My biggest advice to you right now is this:
> 
> ...




Good advice here. I have traded for 7 years and have not been successful - only manage to break even (so why don't i stop?). But i have majority of assets in real estate and cash, low risk stuff, thankfully. The only place you can lose money faster than the stock market is the casino. So don't get too excited, you have to go through an apprenticeship for many years, unless you are lucky or gifted. Otherwise the market will take it from you; that's what it does and it's very good at it. I can't overcome my psychology, most can't so they lose or break even like me, even if they are technically good.


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## Kalaika (22 May 2013)

Hi there,

Agree with prev posts, with some additions:


"Risking 2%" doesn't necessarily mean placing a $1000 trade out of your hypothetical $50k starting equity. Search ASF forums (or google!) for "position sizing". its not that complex but extremely important as part of your risk managment strategy. The 2% ($1000) is the max you want to *lose* on any trade, but you don't want to lose the whole trade amount!
I wouldn't support Dip Fin. Svcs. as means of understanding markets and trading; better to pick up a couple of great books for starters (Van Tharp, Jack Schwager, John J Murphy), then build on it through dialogue on forums such as ASF.

Good luck on the journey.


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## Kalaika (22 May 2013)

Oh, and might be worth figuring out whether you are looking to be a trader (shorter term, more actively managed, higher overhead for you personally) or investor (longer term, buy&hold) - if the later then the info in my previous post isn't as relevant, and maybe DipFinSvc is something to consider! But then again, if you are more of an investor you've got a Financial Planner to outsource to


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## Julia (22 May 2013)

Young Nomad, congratulations on being so successful.  That's an enviable and great result.
Best wishes for your career in the share market.


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## chops_a_must (22 May 2013)

Read and ask. Ask and read. Rinse and repeat. Always repeat.


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## McLovin (22 May 2013)

Forget about a diploma in financial whatever. It's a waste of money. Waaayyy back when I was 14 I did the Dip of Financial Markets at the old Securities Institute (now called Finsia), while it was interesting for a 14 year old who was literally just starting out and with an internet that was nothing like it is today, it was extremely basic.Those diplomas are industry targeted, ie if you want to go into back/middle office work and need to know some basics then they're great.

Take your time to learn, there is no rush, don't expect to have all your capital deployed in the first three months or even the first year. Be patient. 

A lot of investing is temperament, not so much having super-dooper powers. You need to be stubborn enough to know you're right but humble enough to know you're wrong.


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## CanOz (23 May 2013)

Protect your risk capital like its your last...

3.2 m might seem like allot but a nasty little drawdown in a bear market could wipe half of it out.

CanOz


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## Stockman2678 (23 May 2013)

YougNomad said:


> Hey everyone
> 
> Brand new to the forum, so thought I would share my story, and see what conversation transpires.
> 
> ...




I'd love to here more about the business you started 7 years ago...


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## KurwaJegoMac (23 May 2013)

Kalaika said:


> Hi there,
> 
> Agree with prev posts, with some additions:
> 
> ...




Very good point clarifying the 2% risk. It's what I meant when i wrote my post but because position sizing is so ingrained i forgot to spell it out. 

Anyway i'd also second not getting the diploma. You can can find all you need on the net for basics in terms of what instruments and markets exist. Use books and posts on here to get ideas to build a system that works for you. 

Some further advice: 

1. There is no holy grail
2. You do not need to be right all the time to be profitable (nor will you ever be always right anyway)
3. Be the best loser (i.e. learn to cut your losses short - hard to learn for most)
4. You can make money using fundamental analysis, technical analysis, short, medium and long term trading, investing, day trading, etc etc. find what suits your style, temperament and beliefs about the market
5. Risk management is vital but usually overlooked as it's not as glamorous as other aspects of trading
6. You must know your exit conditions BEFORE you enter a trade
7. The market will prey on your weaknesses
8. It's ok to take breaks from trading. Don't trade if you're going through major stressful life events
9. You cannot, ever predict where the market will be. Dont listen to idiots who tell you the market will hit 5,000 in July. You can however, predict the likely direction, but not the magnitude, of a move - but you will be wrong, often. Hence the importance of position sizing and risk management
10. Keep it simple


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## waimate01 (23 May 2013)

My advice is to buy a book called "How Much is Enough" by Arun Abey and Andrew Ford. It's the nearest thing I've found to be a manual on what to do *after* you're wealthy. Most books tell you how to trade stocks or leverage property to make yourself wealthy. Few address how best to arrange your affairs after you've made it.


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## YougNomad (23 May 2013)

Wow - thanks to everyone for their replies!

As a few has asked, I'll post a bit about my previous business.

It was a real estate agency based in Canberra - started it from the garage of our modest 3 bedroom home back in 2006, offering sales at a flat fee.

After 12 months of raising capital from the sales, we hired a small office and opened up our property management arm of the business, again offering services at a reduced fee to our competitors (all were charging 10%+, we offered 5%).

Things blew up, and we were able to gradually increase our fees from 5 - 6, and then to 8%; offering massive innovation and added benefits, which helped us retain almost all of our client base through the fee increases (which was a huge surprise, but a great lesson to have learnt, as I thought we would lose 10 - 20% of our clients, where we only lost a handful).

Last year we were managing over 600 properties, and had a fairly large sales team. We were approached by a nation wide company, and brokered the sale. 

We were very fortunate that we grew the business through cashflow - no loans, no overdrafts, and we invested quite alot of the profit of the business into our own residential property portfolio. 

It was certainly a busy few years, but it's put us in a great position - 32 years old, with fairly rock solid investments. 

I certainly don't want to put all the money into the share market, I think that would be a bit crazy - I'd love to have a kitty of 20-30k which I can trade and *fingers crossed* run a decent profit off, and then sink that surplus profit into longer term portfolios. 

For me, it's about keeping my cash flow safe for now, so we can enjoy our life, but also build on the base so in 20 years time we're in a *better* position than we are now, without having to don the working hat again.

Also for me, it's all about founding and running businesses which are autonomous - I've got one in the pipeline which completely automates the property management business model; it's all systemised and online, with all the documents, procedures, articles, Q&A's, bespoke online system to manage the properties etc. $20 per month as a subscription, instead of the normal 5-10% management fees (so about a $100 per month saving on fees). Once it's set up, it will effectively run itself; no need for staff etc. 

^^^ This is where I see the future. Having a handful of businesses like this up and running, all generating a few thousand a month, which is my relatively easy passive income from business, which can then be diverted to slightly higher risk trading or medium risk portfolios.

Exciting times, but I definitely need to learn, learn, learn! I know everything about residential investments, but nothing about shares :/


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## prawn_86 (23 May 2013)

Firstly welcome to ASF and congratulations on getting to where you are in life.

When I started investing my old man told me 2 things (for a beginner):
1. Don't invest what you cant afford to lose the total of
2. The market will always be there

20 - 30k sounds as though, absolute worst case scenario, it wouldn't affect you if you lost it all. Obviously this is unlikely to happen, but as a beginner you need to be aware of the possibility.

Get your feet wet sure, but as others have said, don't dive in fully until you are consistently making profits. This could take anywhere from 1 - 100 years (if ever).


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## Kalaika (23 May 2013)

KurwaJegoMac said:


> Some further advice:
> 
> 1. There is no holy grail
> 2. You do not need to be right all the time to be profitable (nor will you ever be always right anyway)
> ...




YougNomad (please tell me you didnt pump out a typo in your username )

The above quote is as perfect a summary of the best 10 books youll find on trading as there is!

KurwaJegoMac - you could have posted this two months ago, it would have saved me $300 from Amazon and about 500 hours of reading! (but it was still worth it)


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## KurwaJegoMac (23 May 2013)

Kalaika said:


> YougNomad (please tell me you didnt pump out a typo in your username )
> 
> The above quote is as perfect a summary of the best 10 books youll find on trading as there is!
> 
> KurwaJegoMac - you could have posted this two months ago, it would have saved me $300 from Amazon and about 500 hours of reading! (but it was still worth it)




I'm glad you liked it - the problem with that list is that without having read lots of books and traded live, you wouldn't necessarily realise the value of the statements.

I know when I first started trading 5 years ago, I used to get told the same things. I never dismissed the concepts but I never took them to heart either. I'm glad you've come to the realisation after reading those books - now comes the challenging part which is to put it into practice and maintain your discipline.


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## YougNomad (23 May 2013)

I also think I've identified that being a "trader" is definitely not something I'll be doing right now.

The lingo alone will take me a good 12 months to learn!

I think I'll start by doing my research, and maybe investing in some solid stocks (I'm thinking tech, like Google), or the big banks.


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## CanOz (23 May 2013)

YougNomad said:


> I also think I've identified that being a "trader" is definitely not something I'll be doing right now.
> 
> The lingo alone will take me a good 12 months to learn!
> 
> I think I'll start by doing my research, and maybe investing in some solid stocks (I'm thinking tech, like Google), or the big banks.




Research is a good idea, could mean learning some lingo though...like SUB-PRIME LOAN

Remember too, if you start investing soon you will be buying into a market that has gained allot this year. 

Take your time, do your research....you have so much time.

CanOz


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## YougNomad (23 May 2013)

Here's one for you all - if you were investing your first $10,000, where would you go?


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## Ves (23 May 2013)

YougNomad said:


> Here's one for you all - if you were investing your first $10,000, where would you go?



Into a dark room, without any people or other distractions, alone with my mind to think about all the ideas I've come across so far.


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## systematic (23 May 2013)

YougNomad said:


> I think I'll start by doing my research, and maybe investing in some solid stocks (I'm thinking tech, like Google), or the big banks.




Just an idea to throw at you (feel free to throw it right out!).

You're just 'getting into' shares, right?  And it's going to be a side thing for you, at least for now (like it is for most people).

My suggestion (again, do what you think best with it!) is this:
Instead of, "I'll start by doing my research..." make it, "I'll start by doing my research into _how I'm going to do my research_".  Whether or not you do the second bit (buy some stocks for fun) is irrelevant to my idea - just do whatever you think is best (it's obviously worked so far!).

So what I'm suggesting is to think about the fact that lots of successful people invest and trade in lots of different ways.  Different reasons for buying, for selling, for holding period, for risk management etc.  Now make it your educational pursuit to find out _a little_ about those various ways.

You're already aware of finance and investing generally, and now you're narrowing to the stock market.  Okay, so go and quickly learn the basics (what is a share, why do companies list, what does ex-dividend mean).  I mean go and get a quick intro guide.  Might as well invest a couple hours into the basics.
Even take a short detour into other asset classes.  What about commodities (and futures?)  Forex?  Again, quick intro stuff to get your bearings.

Now the fun stuff.

Realising that lots of people are successful via different means, go and find some educational material (but not too much) on various methods.
Maybe go and research amazon to find out a list of 10 books that are real market classics of various schools of thought (value investing, trend following, technical analysis, fundamental analysis, statistical approaches, psychology of trading, money management etc).
And after a few classics by the well known authors, maybe a few others here and there (Aussie authors, books in a certain area that you find interesting).

Great!  

Maybe something appeals to you.  Say you like trend following and/or system based approaches.  You might then go and get some educational resources from someone in that area.  You might have a desire to learn more about futures and short term trading - go and get some education from a successful person in that field.  You might like a fundamental/technical analysis approach, so dig a bit deeper on that.  Just research your educators a bit to sort the good from the bad and learn a bit more in depth in the area that seems to work for you.  

Then, rather than asking something like, "is BHP a good buy right now?"  you'll ask, "does BHP meet my criteria in my plan?" - whatever those criteria are, and whatever your plan may be.

Obviously one of my biases is towards education.  You might prefer to learn in a different way.


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## CanOz (23 May 2013)

Great post systematic! Agree


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## Zedd (23 May 2013)

systematic said:


> Then, rather than asking something like, "is BHP a good buy right now?"  you'll ask, "does BHP meet my criteria in my plan?" - whatever those criteria are, and whatever your plan may be.




Excellent way to put it.

YN - Why not use your experience in real estate towards building your portfolio. To turn your question around with relative figures, if you had $10M to invest in RE what would you do? Aim for stable rental yields? Good growth prospects? Undiscovered location before the rest of the market? Underperforming suburbs? High-end inner city? Mining Town? etc.


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## YougNomad (31 May 2013)

Hey everyone!

Thanks again for all the advice - I'm happy to say I've taken my first steps!

Purchased 2 parcels of shares - Telstra and NAB.

Very boring, but I think something I can monitor and watch.

Google is my next pick


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## CanOz (31 May 2013)

YougNomad said:


> Hey everyone!
> 
> Thanks again for all the advice - I'm happy to say I've taken my first steps!
> 
> ...




Its has a great run and is pulling back...Currently a grail trade when it breaks the channel.


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## beachlife (31 May 2013)

CanOz said:


> Its has a great run and is pulling back...Currently a grail trade *when *it breaks the channel.




*IF *it breaks the channel.  If not, the RSI divergence just might be a signalling a pullback within the bigger channel to around $800.  Or if the small channel does break, the move, might be stopped by the upper band of the big channel.  The decision to pull the trigger or not will depend on your investment time frame.







Thats a good example of how two people can read the same chart differently.  


I see monthly XJO struggling at 50% retracement, many here will say Gann and Fibonacci are rubbish.  But different views is what makes the markets move, without them there would not be a market.





On TLS monthly I see strong resistance at the psychological $5 which just happens to be near a Fibb level, and an overbought RSI (for the first time in over 13 years). Doesnt mean it would kill the current trend though.  There are so many ways to view the data and as sure as night follows day there will be both buyers and sellers next week, each with their own view.






My 2c advice, learn to read charts, use a time frame that suits your objectives and use them to supplement your fundamental views.


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## CanOz (31 May 2013)

> Thats a good example of how two people can read the same chart differently.




Err no...i wasn't reading a chart. I was presenting what will be a valid signal IF it triggers. I didn't present any analysis other than the obvious "its had a good run".

I realize that the OP likely has no interest in the technicals Beach, so i didn't want to present any analysis, if they want to buy in May after the market is clearly in the middle of a pullback after a liquidity fueled run then whom am i to stop them?

CanOz


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## YougNomad (31 May 2013)

CanOz said:


> Err no...i wasn't reading a chart. I was presenting what will be a valid signal IF it triggers. I didn't present any analysis other than the obvious "its had a good run".
> 
> I realize that the OP likely has no interest in the technicals Beach, so i didn't want to present any analysis, if they want to buy in May after the market is clearly in the middle of a pullback after a liquidity fueled run then whom am i to stop them?
> 
> CanOz




Wow. 

^^^ Clearly shows that my ignorance with share could fill my rather large pool ... 

In my infancy of investing, I want to pick companies which I think will hopefully perform and grow over the long term. I have an affinity with Google and they way they operate in the market, so it's a company I like and place personal value in.

End of the day, hopefully Telstra, NAB and the other more robust companies do well by me, and the more speculative ones are on a wing and a prayer. 

For me it's the only way to learn.


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## burglar (31 May 2013)

KurwaJegoMac said:


> ... Start off small ...




+one


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## CanOz (31 May 2013)

YougNomad said:


> Wow.
> 
> ^^^ Clearly shows that my ignorance with share could fill my rather large pool ...
> 
> ...




Hmm, yup agree...I'm a huge fan of google actually...but what does that have to do with making money off the equity?


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## YougNomad (2 June 2013)

CanOz said:


> Hmm, yup agree...I'm a huge fan of google actually...but what does that have to do with making money off the equity?




I've got a small pool of money that I want to invest in shares - the majority of the equity from the sale of the business is tied up in property, which is all performing quite well with cash flow and equity gains. 

If I can get my head around shares, and it works for me, I'll probably end up pulling some of the money out of property (selling), or investing money from one of the new businesses i'm starting (fingers crossed once launched they will be successful as well!)

So for me it's about not putting all my eggs into the property basket. Shares seem like a great idea because of the fluidity - no need to wait 6 weeks to exchange and settle if you need to release the cash.


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## prawn_86 (2 June 2013)

YougNomad said:


> I've got a small pool of money that I want to invest in shares - the majority of the equity from the sale of the business is tied up in property, which is all performing quite well with cash flow and equity gains.
> 
> If I can get my head around shares, and it works for me, I'll probably end up pulling some of the money out of property (selling), or investing money from one of the new businesses i'm starting (fingers crossed once launched they will be successful as well!)
> 
> So for me it's about not putting all my eggs into the property basket. Shares seem like a great idea because of the fluidity - no need to wait 6 weeks to exchange and settle if you need to release the cash.




I think what Canoz was asking is why do you think Google, at current prices, will make you money?

Why did you buy your first 2 parcels of shares? Do you have a plan or forecast? What if that plan doesnt eventuate, do you have a stop loss or contingency plan? How often will you re-assess?

These are all things you need to look at if you are to take it from 'gambling' to a business style investment and/or trade


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## YougNomad (2 June 2013)

prawn_86 said:


> I think what Canoz was asking is why do you think Google, at current prices, will make you money?
> 
> Why did you buy your first 2 parcels of shares? Do you have a plan or forecast? What if that plan doesnt eventuate, do you have a stop loss or contingency plan? How often will you re-assess?
> 
> These are all things you need to look at if you are to take it from 'gambling' to a business style investment and/or trade




My bad - I completely misread Canoz's reply.

I bought 5k worth of NAB as well as 5k worth of Telstra. From my research they seem to be the bread and butter darling of shares for long term holding. It let's me watch and see what goes on while I start learning how everything works.

Google - I love the company, and from what I've researched they have some pretty big and amazing things coming out over the next 12 months, so I'd love to have some shares for the longer term.

With these shares I'm not looking at selling - I'd like to have these shares in years to come, and maybe add to them if things go well. 

I'm not sure if there is a right or a wrong way with blue chip shares like NAB and Telstra - but I hope my assumption and plan is correct!

When I purchase shares in iiNet or some other medium sized, more risky companies, then I'll definitely have a plan to sell.


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## tigerboi (2 June 2013)

what was the name of your real estate business in Canberra, mate of mine

owns a century 21 & does ok...tb


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## McLovin (2 June 2013)

YougNomad said:


> My bad - I completely misread Canoz's reply.
> 
> I bought 5k worth of NAB as well as 5k worth of Telstra. From my research they seem to be the bread and butter darling of shares for long term holding. It let's me watch and see what goes on while I start learning how everything works.




Over the last decade TLS and NAB were probably two of the worst large cap stocks to have invested in. TLS was at $8.50 in 1999 and NAB hit $30 that year. By way of comparison, in 1999 NAB was the largest bank in Australia it's now the third largest and the All Ords has gone from ~3,000 to 5,000 over that period.

I'm not sure who told you they were the darling of shares but they were lying!


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## jjbinks (2 June 2013)

it may be desirable to have stocks in google from point of view you own part of a great powerful tech company.

I guess its similar to how some peoplei i know buy qantas because they want to own an airline.

But if you are buying purely too grow your wealth then you research to suggest that the shares you are buying will increase in price or are currently undervalued imo.


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## Fangblade1 (3 June 2013)

beachlife said:


> *IF *it breaks the channel.  If not, the RSI divergence just might be a signalling a pullback within the bigger channel to around $800.  Or if the small channel does break, the move, might be stopped by the upper band of the big channel.  The decision to pull the trigger or not will depend on your investment time frame.
> 
> 
> View attachment 52531
> ...





Jesus christ!!! my eyes!! its burning!!.. dude I have no idea what is going on in those charts ( I am a noob) I wish I could read charts like a book....


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## baby_swallow (3 June 2013)

beachlife said:


> *IF *it breaks the channel.  .....
> ...
> 
> "I see monthly XJO struggling at 50% retracement, many here will say Gann and Fibonacci are rubbish.  But different views is what makes the markets move, without them there would not be a market."
> .....




Agreed.
Without them, there wouldn't be a fodder for daytraders.......the institutional daytraders (The "Big Boyz").


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## MARKETWINNER (3 June 2013)

Best advice that I can give here is: We should invest in business that we know very well. Learn as much as _possible.

You have done very well in you real state investments where others have failed. My congratulations. I can remember how financial institutions either became bankrupt or went into receiverships globally including New Zealand due to exposure to property investment. Many lost their hard earn money form 2008 onwards. Some lost their houses; some lost their retirement earnings due to over exposure to property. 

When compare with other western countries such as USA and UK,housing market in New Zealand and Australia didn’t collapse this time. 

Any investment there will be risk and return. At different times different stocks, commodities and assets can go up and down. Even during great depression there were demands for some products.When we see bull market in some countries we will see bear markets in some countries. When bull markets become bearish markets some bear markets will become bullish market. If I am correct In Iceland when they had financial crisis their fish sector did very well.

Sector hunting is a must in an ever changing investment world. Some sectors can benefit lot in the coming years and some sectors will underperform. 

Always there will be opportunities for intelligent  market players somewhere.

Best of luck

My ideas are not a recommendation to either buy or sell any security or currency. Please do your own research prior to making any investment decisions_


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## tigerboi (7 June 2013)

tigerboi said:


> what was the name of your real estate business in Canberra, mate of mine
> 
> owns a century 21 & does ok...tb




thx in advance...tb


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## Sir Osisofliver (7 June 2013)

OK YougNomad,

Here's my two cents.

1) Read the thread that's in my signature. Have fun. Ask questions.
2) You obviously had a plan for your residential property to become successful.  Do you have a plan for your share investing?  Without a plan, you plan to fail, so this is your first and most important step. (and not an easy one)
3) A large percentage of people only learn by doing. If this is you, you definitely need to start small.
4) You'll hopefully come to realize that there is a time to buy each asset class....and a bloody great time to buy each asset class and that these generally do not occur at the same time.
5) Most financial planners are salespeople first. Here's a simple general rule - the more people between you and the asset that earns the money and grows in value - the less you receive. This is true regardless of the asset. I personally do not like managed funds because of this reason - and know that it is the go to place for almost every financial planner you meet. I'm also aware that most do not have my level of skill to manage things themselves, so be aware to take advice - and not give away control.
6) Know you are on a journey, and only at the start. You will  learn, grow, fail and become frustrated. It takes 10,000 hours to become an expert at anything and you will get out of this what you put in.


Cheers

Sir O


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