# Young Person



## damien275x (7 January 2009)

Hi all.

I'm new and looking for some advice, or maybe not advice, just need to know how I should start. Basically at the moment I'm doing a trainee ship, and I get a mere $18k a year. I am 19 at the moment, and by the time I am 20 I will be on a salary of about $40k/year. 

I want to start investing, even if it is a small amount. But all this talk on TV about the state of the economy etc is scaring me. To be honest I don't have a lot of expenses, I worked at the supermarket for 2 years while I was at school and I spend about $10,000 all up on my car, and it's pretty decent, and my mum and dad make me pay board but that's at a minimum right now since I only make $300ish a week. I don't really want to get a financial planner advice because that seems costly and not worth it, but are there any resources I can read, I've downloaded a few e-books and i'm reading through them. I can buy stocks online, and it seems pretty easy to do.

I know lots of people have lost their money, but does this mean that a lot of stocks will start to go up? Have they hit rock bottom? Yeah I'm not too sure what I am asking, I just want to try build up a portfolio and start younger, I have time on my side. I have dumb friends who fritter their money away on cars and it's sorta dumb, and pisses me off when they make more than me (working part time) than me on a trainee ship wage full time!! How to get started?


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## Trembling Hand (7 January 2009)

damien275x said:


> Yeah I'm not too sure what I am asking, I just want to try build up a portfolio and start younger, I have time on my side.
> 
> 
> How to get started?




You are very lucky. You do indeed have time on your side so read all you can and learn. And practise with paper trades/demo accounts. There is no hurry to actually start doing better to learn what to do first.


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## damien275x (7 January 2009)

You mean to say, I keep spreadsheets as if I invested and just watch them?
That's a good idea, at least risk free. In the meantime I'll just save it up til I know more


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## Rainmaker2000 (7 January 2009)

Mate, you are a lucky young guy which many on this thread would be envious of.............I bought my first stock round your age......I made 20$, paid 'discount brokerage' of $120.........but gosh I learnt a lot........that pays off with every investment these days.....

You should invest what you have without at all hindering your lifestyle and your personal development.....but your greatest investment will be the knowledge and experience within yourself...you will have 'skin in the game' and feel the 'vibrations' from an early age........that means something

For example, a retiree a year ago with only an average superannuation of $600 thousand and an average financial planner, just by investing 'safely' in the 'market index' has lost about $300 thousand in the last year.......it's pretty valuable knowledge to them, if they knew about the market personally compared to some average financial planner.......to a 60 yr old, the last year is permanent, to a 19 yr old its an opportunity, and to a 40 yr old it is a mere blip in a chart which shows the market as a whole always goes up over time... 

Read, don't trade, invest......then read more and invest......analyse your performance and invest......and keep the cycle going......it's a skill for life and you have a chance to be in the top 1% pretty quickly

To start reading, I recommend: One up on Wall Street, chased with "Common stocks uncommon profits" then maybe the somewhat boring but vital 'Intelligent Investor

Happy tidings for the bear market


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## Stormin_Norman (7 January 2009)

use a demo account to trade whatever takes your interest.

when youre making money on that, throw a small amount into a real account and lose that.

by the time youve blown up 25 demo accounts and 3 live accounts youll get the hang of it.

oh and read. internet sites and books. and dont pay for a course. the same info is available online or in books.

book id recommend after u have a basic understanding : trend following by covel.


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## cutz (7 January 2009)

Hi Damien,

Some suggested reading http://www.moneybags.com.au/default.asp?d=0&t=1&id=3712&c=0&a=74 , not really about trading but covers market fundamentals, and perhaps open up a comsec account so you can check out facts and figures on particular stocks and get your data for paper trading as TH suggested.

Another book I can suggest is The Four Pillars Of Investing – W.Bernstein, its easier reading than the first book but I couldn’t find it in moneybags.


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## Julia (7 January 2009)

Hello Damien,

Well, good for you.   I don't agree with the others that you are 'lucky'.
I think you've thought about how to manage your life, are thinking about your future, and are already making first class decisions.

That's not luck, that's the beginning of wisdom.

My suggestion would be that you go to the Education section of the ASX website and read this through, very, very thoroughly.   Then read all of the Brisconnections thread.  Then think about how important it is to have some level of financial literacy before you even think of putting any real money out there.

And, as the others have said, paper trading/investing is a great idea.

Really sensible point has been made about what to a retiree is a disaster, is to someone your age a great opportunity.  

All the best and keep us up with how you go.

Julia


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## Wysiwyg (8 January 2009)

Stormin_Norman said:


> use a demo account to trade whatever takes your interest.




Experience is many, many, many hours.



> Understand that position sizing is the key to meeting your objectives.
> 
> V. Tharp


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## Stormin_Norman (8 January 2009)

you pay no attention to the warnings about position sizing until you blow a few live accounts. :lol:


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## macca (8 January 2009)

Congratulations,

You are ahead of 99% of your age group already.

You may not quite understand how much, but the world changes all the time. 

In the new world of electronic communication I have strongly suggested to my son that he concentrate on futures. I know that others will scream it is too dangerous but with Computers and reliable internet this is no longer the case.

Once you master futures (commodities, Forex etc ) you are set for a trading medium for life.

You don't have to stand aside while stock markets languish in Bear phases for 5 years.

If you are going to spend time learning and demo/ paper trading why not concentrate on something that is always available ?

Now that we can have demo, mini and micro accounts futures are about to become the new casino. 

Start now and you will be learning a life time skill, who knows, in 5 years you may be teaching your parents new investing skills.

All the best


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## prawn_86 (8 January 2009)

Welcome Damien, i was in your exact situation a couple years ago, although without the income as im a uni student.

I started when i was 18, im now 21. Like most other people i lost money in the 'downturn' but the experience has been invaluable, and if it saves me cash in the future when i really need it (ie close to retirement) then its moeny well 'spent'.

Personally i have found that i have learnt more than any book or course could teach just by having real cash in the markets. Thats not to say you shouldnt read books and demo trade/invest though.

I decided to put 1 years worth of uni fees into the market, instead of paying off my HECS, and im still going with that amount (although its smaller now) and i have learnt more than a year of uni.

If you have any other questions feel free to contact me via PM or post them here. Also i would suggest checking out the ASX share game on the ASX website. Its a good starting point without risking any real cash.

Hope that helps

Prawn


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## Ashsaege (8 January 2009)

I found that having money in the markets made me a lot more motivated to read up on books and do research. I first got in when i just turned 21 back in August 07.... interesting times! It doesn't hurt to experience losing money at an early age - you gotta learn from it.

I've really found Nick Radge's (The Chartist) insight to be valuable, and he has a great book too 'Adaptive Analysis For the Australian Stock Market'. I wish i got onto that book when i first started!


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## roofa (8 January 2009)

Yes Damien, it is a good time to get in, but there is no rush so do some research. If you’re a little impatience you could do a lot worse than looking at a “blue chip” investment.
Check out stocks who are leaders in their segment, see what dividend they pay and go from there.


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## Julia (8 January 2009)

roofa said:


> Yes Damien, it is a good time to get in, but there is no rush so do some research. If you’re a little impatience you could do a lot worse than looking at a “blue chip” investment.
> Check out stocks who are leaders in their segment, see what dividend they pay and go from there.



Re this last comment, bear in mind that as company profits decline, dividends may be reduced or wiped.


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## awg (8 January 2009)

damien275x said:


> Hi all.
> 
> I'm new and looking for some advice, or maybe not advice, just need to know how I should start. Basically at the moment I'm doing a trainee ship, and I get a mere $18k a year. I am 19 at the moment, and by the time I am 20 I will be on a salary of about $40k/year.
> 
> ...






Spend your time at first reading threads on ASF.

That is free.

It should give you some ideas to concentrate on.

then you can use demo accounts.

dollar cost averaging is a good thing for a young person to do.

In my own personal instance, I initially invested 10-15% minimum of my salary into Managed Investments, then direct shares.

I always re-invested dividends and never made withdrawls, even to pay tax.

After 20 yrs of that, that particular account was worth over $300,000.

The power of compound interest!

was something my mother taught me as a young lad.

over the last 10 years, I have become much more serious about my investments, but I could not have been in my current position without disciplined saving and investment.

I also:

never owned a new car

rarely took expensive holidays

dressed like a beach bum

bought most things second hand.

This is the first year for a long time that I have not been able to re-invest at least 10% of my income, and I dont like it


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## roofa (8 January 2009)

Julia said:


> Re this last comment, bear in mind that as company profits decline, dividends may be reduced or wiped.




Julia,

I wouldn’t mind knowing of any blue chip who wipes it dividend; this is a serious request, not having a go.
I’m sure we all agree dividends will be reduced inline with earnings, but my main point is to ensure the investment is made into a stock that will still be around in the future.
Something I did not do in my first foray in the market many moons ago with regret.


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## skyQuake (9 January 2009)

roofa said:


> Julia,
> 
> I wouldn’t mind knowing of any blue chip who wipes it dividend; this is a serious request, not having a go.
> I’m sure we all agree dividends will be reduced inline with earnings, but my main point is to ensure the investment is made into a stock that will still be around in the future.
> Something I did not do in my first foray in the market many moons ago with regret.




divvies don't have to be wiped. Just anticipation of divvie cut will hurt, eg. Rio


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## kam75 (9 January 2009)

damien275x said:


> How to get started?




I'm assuming you do want to learn how to trade?  Then try to put some money aside in a savings account every week or two while you learn how to trade the stockmarket.  Learn all you can about money management - it's very important.  Get yourself a copy of "The Secrets for Profiting in Bull & Bear Markets" - by Stan Weinstein. It's a classic that will teach you a lot of good stuff in very simple to understand terms.
cheers


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## michael_t_f (9 January 2009)

The best thing for you to do is to learn as much as you can while saving even if it is a small amount each week. Don't just learn how to make trades, learn how the world works, get a good idea of business, politics, global events and there effects on different investments. Learn the terminology so you actually understand what you are reading. Read the newspaper every day or online news yes even the business section every part of it.
I was also 19 when I started investing I am now 26 and am well ahead of any of my freinds financially. I have invested in property, shares and private businesses.
I started as an apprentice earning the same as you.

Last tip, if you can get a Mrs. with the same attitude as you and keep a good work ethic all the time even when you have a lot of cash in the bank.


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## Shrewd Crude (11 January 2009)

hey damien,
you will do well...
im 24 and started out just like you with a few k only and kabaam over the last 5 yrs...
last year pretty sad, but made back a heap of losses with 'all in play' on CUE up 65% this year...
Get into stocks over the next 6 months or earlier as the market has crashed...

we are in a recession not a depression, this is why we have seen a rally out of depression status on the markets...

study/watch/and learnstocks before you make a play...

.^sc


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## Wysiwyg (11 January 2009)

Would be good to get some feedback from Damien but if he has flown the coop then the experiences imparted to him have been valuable regardless.


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## MRC & Co (11 January 2009)

Wysiwyg said:


> Would be good to get some feedback from Damien but if he has flown the coop then the experiences imparted to him have been valuable regardless.




lol, exactly why I didn't post.  

If a trader really wants to dig his heels in and do the time it really takes, no age is too late.  Stumbling accross ASF or any golden wealth of information early won't mean a thing if you don't make it work for you.  Seeing threads like this one really make me want to yawwwwwwwnnnnnnnnnnnn.

It's like stumbling accross a Schapelle Corby thread which demolishes as far as interest, plenty of legit trading threads on this forum, where you have internet randoms debating her innocence or guilt.  If you think she got hard done by, make a difference, sign a petition at the very least and if you think she is guilty and deserves her time, then shut the hell up and live your own life, yawwnnnnnnnnnnnnn.

Rant rant.


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## Cartman (11 January 2009)

MRC & Co said:


> lol, exactly why I didn't post.
> 
> really make me want to yawwwwwwwnnnnnnnnnnnn.
> 
> ...






lol --- u hate it when the markets aint open dont ya Mirc ---- u made me grin anyway 

crack open a Carlton and enjoy the arvo --- i bet that what Damien is doing :alcohol:


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## MRC & Co (11 January 2009)

Cartman said:


> lol --- u hate it when the markets aint open dont ya Mirc ---- u made me grin anyway
> 
> crack open a Carlton and enjoy the arvo --- i bet that what Damien is doing :alcohol:




lol, na, I actually enjoy my weekends away from the markets.

This thread just reminded me of that 'what would you ban' thread.  

As for the Carlton, had too many beers over the last couple weeks, but it's a nice thought!


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## Cartman (11 January 2009)

MRC & Co said:


> As for the Carlton, had too many beers over the last couple weeks, but it's a nice thought!




no probs --- i'll have a couple for ya


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## wonderrman (14 January 2009)

Spend a great deal of time reading and learning first (I spent about 18 months doing this before I made my first investment. The stock market will be here for ever, there is always going to be a time to invest).

Books I thought were good,
*Intelligent Investor
*One up on Wall Street
*Making of an American Capailist 
*Common Stocks Uncommon profits
*Buffett partnership & BK letters
*Ben Graham lectures, you can find them on google. Think their called the undiscovered Benjamin Graham, or something like that.

And you need to decide if you want to be an investor or a trader. I invest and look out with a 3 - 5 yr. view, trading is too much work (for me anyway) and you can make money quite easily if your investing with the medium - long term view. As long as your in great companies of course. That's just my view though. 

I'm 16 now and doing well, I think it's good to get off to a start when your young. Learn your lessons before everyone else with small amount of capital. You might even be able to build up a good track record as well. 

All the best!


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## Julia (16 January 2009)

wonderrman said:


> I'm 16 now and doing well, I think it's good to get off to a start when your young. Learn your lessons before everyone else with small amount of capital. You might even be able to build up a good track record as well.
> 
> All the best!



16 huh!  Fantastic.  Good for you, wonderrman.
Is your interest and foresight shared by your friends/school/workmates?


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## Wysiwyg (16 January 2009)

At 16 years of age I was still comprehending "What`s Happening To Me" .


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## wonderrman (18 January 2009)

Julia said:


> 16 huh!  Fantastic.  Good for you, wonderrman.
> Is your interest and foresight shared by your friends/school/workmates?




My business teacher is really interested in it and invests a lot. I did the share market game in class. Then she pushed me in the right direction and got me some work experience placement with a stock broker. It kicked off my interest I guess and since then I've just kept trying to learn as much as I can.

I don't really talk about it with mates or anything, I keep it separate from social life as obviously its not usually what other 16 year old are interested in. I take it as a hobby, I might spend half an hour to an hour in the evening if I have some spare time after sport commitments, homework and seeing friends  to catch up on the markets and read and educate. 

Family are supportive, but don't really know anything about the market. 5 members of the family put $2K each into a sorta 'fund' I guess at the start of September though which was good of them. I've done all right compared to the market in this short a time frame, up 13%.

cheers.


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## cutz (18 January 2009)

Good on you, 

Some of the books you have chosen will give solid understanding of how the market behaves, especially B. Graham’s teachings, just the right sort of background to take advantage of this once in a generation opportunity that the Mr. Market (sorry, thought I throw that in) has handed to the careful and patient investor.

All the best.


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## Spanning Tree (18 January 2009)

With the way things are at the moment I recommend you simply keep your money in a bank savings account.

Be careful about buying stocks now. Many people say that stocks must go up if they go down, but how do we know the stocks won't just continue to go down?


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## wonderrman (18 January 2009)

Spanning Tree said:


> With the way things are at the moment I recommend you simply keep your money in a bank savings account.
> 
> Be careful about buying stocks now. Many people say that stocks must go up if they go down, but how do we know the stocks won't just continue to go down?




We'll you can't can you? No one can forecast what is going to happen to the market. No one can see into the future. I've taught myself not to listen to people's so called "market forecasts". Half the time, or most the time the market is simply a guessing game. The person who takes the best guess wins. 

What I think I do know is that people will buy again and people will spend again.  Apparently the world was meant to end in the Great Depression, then in the 70's, and again in 2000. We continue to live and markets continue to make some people really rich and some really poor. Things will get better, eventually, it just a matter of time. Could be 1 year, 10 yr's or 20 yr's like Japan. 

But eventually it is all about people spending their hard earned dollar! This turns into company revenues and profits. 

You look at the cash rate as well in Aus and it is surely going to come down a lot. It is at about 5% now, you would think it would go down to 2 - 3% within the next few months because of interest rates (ours are 4%, UK is 1% and the US is 0%. We've still got along way to go if you believe our economy will drop as much as the US&UK) and other government factors. Then you have to factor in inflation (you would say inflation would run at 3% minimum because of all this money creation) and then the hit from the tax man. Cash would probably give you a negative return with in the next few years.

Now look at the stock market. Current yield is 8.7%, I'm going to be really conservative and say that yields are going to be halved to 4% which includes inflation. That is saying that basically company profits are going to half by 50%. You all ready have a positive return without any change to the company's stock price. Stocks will win unless you believe the market is going to go even more spastic. It is common sense. Cash is not king anymore and the argument against equity investment is not logical, unless you believe in a complete melt down. 

Now the last thing you would have to discuss is timing, which I have no idea about. In the end history will tell you that market's run in cycles, and I guess this is no different. 

You could talk about this for ages but I have to head to work so I'll leave with that and might write more latter.


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## Wysiwyg (18 January 2009)

wonderrman said:


> We'll you can't can you? No one can forecast what is going to happen to the market. No one can see into the future.





Surely the steep rise in the All Ordinaries in combination with American sub-prime mortgage defaults and the ensuing credit restriction were all `signs` of what will happen next.

Most of us suffer due to the self denial that it`s actually happening.


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## wonderrman (18 January 2009)

Wysiwyg said:


> Surely the steep rise in the All Ordinaries in combination with American sub-prime mortgage defaults and the ensuing credit restriction were all `signs` of what will happen next.
> 
> Most of us suffer due to the self denial that it`s actually happening.




Yes they were signs, not forecasts. What you wrote were facts backed up by stats and evidence. A forecast is someone coming out and giving a prediction with no meaningful explanation that is supported by evidence or statistics or fact. Like when stockbrokers come up and say in 2009 the market will rise by 25%, or Woolworths profit will rise 11% in 2009 and 14% in 2010. How can they know what is going to happen in 2010? How can the stockbroker know that the All Ords is going to rise 25%. They can't get there head around the 500 or so companies that make up the index. It is a prediction thats worth less. Most forecasts are don't you think?


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## beerwm (18 January 2009)

Hi wonderman,

do i take it you're putting your money into long term stocks then?
instead of cash in the bank.


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## MRC & Co (18 January 2009)

wonderrman said:


> or 20 yr's like Japan.




20 years on and the Nikkei is down 500% from it's highs?  

Be careful about long-term holdiings, that is all I can say.  The cliche that the market always goes up, is just not true.


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## akamitso (18 January 2009)

wonderrman said:


> Cash is not king anymore and the argument against equity investment is not logical, unless you believe in a complete melt down.




Wonderman, Spanning Tree was talking about the moment not the next few years. In times like these it's about small gains and minimising losses. I'm sensing you claim we've seen the bottom. Each to their own


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## wonderrman (18 January 2009)

> Wonderman, Spanning Tree was talking about the moment not the next few years. In times like these it's about small gains and minimising losses. I'm sensing you claim we've seen the bottom. Each to their own




No I have no idea if we have seen the bottom or not. I don't have much money to play with but I have 35% stocks and 65% in cash. I put the 35% in the market back in Nov when the index was 3300 or there abouts. Obviously portfolio is very concentrated. It is important to also say that I'm judging companies on their individual merits. There is one company out there with no debt, a **** load of cash and is absolutely dominant in their market place but has been priced down like crazy. My estimate at value puts it anywhere from $18 to $22. These are the things I want to invest in. Discipline is very important I think and I have strict criteria that I like to follow.



> do i take it you're putting your money into long term stocks then?
> instead of cash in the bank.




Yes and no. I have mostly cash and hold two stocks.


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## Cartman (18 January 2009)

wonderrman said:


> I'm 16 now and doing well,




this is not meant to be derogatory or smart ar#e or anything really ---- but if u r 16 --- i am 65 !!!!  ----

u r way to smart to be 16 !!!! ----- and if u happen to be 16 --- good luck to ya  ---- (but I doubt that


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## Wysiwyg (18 January 2009)

Cartman said:


> this is not meant to be derogatory or smart ar#e or anything really ---- but if u r 16 --- i am 65 !!!!  ----
> 
> u r way to smart to be 16 !!!! ----- and if u happen to be 16 --- good luck to ya  ---- (but I doubt that





Prolly saw the `young person` thread and thought to stretch it a bit.


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## wonderrman (18 January 2009)

Wysiwyg said:


> Prolly saw the `young person` thread and thought to stretch it a bit.





That's exactly why I don't like telling people my age. No one ever takes you seriously. 

What do I need to do to prove my age?


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## Wysiwyg (18 January 2009)

wonderrman said:


> That's exactly why I don't like telling people my age. No one ever takes you seriously.
> 
> What do I need to do to prove my age?




No worries matey, I will imagine you have been around the financial markets for awhile and are over 25.


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## Cartman (18 January 2009)

wonderrman said:


> That's exactly why I don't like telling people my age. No one ever takes you seriously.
> 
> What do I need to do to prove my age?




u dont have to prove anything  ----- but i reckon yr closer to 30 than 16  ---- does that concern me?? --- not in the slightest --- u talk too much sense for a 16 y.o. --------- if u talk sense i dont care whether yr 16 or 60 !!


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## Julia (18 January 2009)

Well, we're all guessing aren't we.  But I'd lay odds on this individual actually being a bright 16 year old.  I know a couple who are quite as smart as this, so it's not impossible.


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## wonderrman (18 January 2009)

> No worries matey, I will imagine you have been around the financial markets for awhile and are over 25.
> 
> u dont have to prove anything  ----- but i reckon yr closer to 30 than 16 ---- does that concern me?? --- not in the slightest --- u talk too much sense for a 16 y.o. --------- if u talk sense i dont care whether yr 16 or 60 !!




What ever keeps you guys sleeping at night I guess 



> Well, we're all guessing aren't we.




So instead of being honest about my age I should lie about it in future? So people will take me seriously.


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## Julia (18 January 2009)

wonderrman said:


> So instead of being honest about my age I should lie about it in future? So people will take me seriously.




Make the most of it.  In ten years, I can assure you it won't be an issue.
Then in another ten years, you will be thinking fondly of the time you were 16.


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## wonderrman (18 January 2009)

Julia said:


> Make the most of it.  In ten years, I can assure you it won't be an issue.
> Then in another ten years, you will be thinking fondly of the time you were 16.




Will do!


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## prawn_86 (19 January 2009)

Wondermann,

Firstly good on you for starting young.

Secondly, remember that you are young. Im assuming your still in high school, so you should be making the most of it. Chasing girls, playing sports while your body is reaching its physical prime, drinking copious amount while you dont get hangovers etc etc 

Make sure you enjoy your youth/the moment also, rather than constantly looking forward


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## Nyden (19 January 2009)

prawn_86 said:


> Wondermann,
> 
> Firstly good on you for starting young.
> 
> ...




You certainly should not be encouraging the lad to drink, Prawn; at 16 - this is illegal :

Wonder, may I ask as to how you even trade? Correct me if I'm wrong (anyone), but do you not need to be 18 in order to execute an order? Furthermore, if your parents have setup an account in their name for you ... well, what are the legal complications here if something were to go horribly wrong? Such as buying $100 bucks worth of Brisconnections stock?


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## Trembling Hand (19 January 2009)

Wonderrman Forget the "enjoy your youth" approach. Go in balls and all for what ever you have an interest in. The world is full of people enjoying their moment. We don't need more of them.

The world is made better/interesting by the ones that go their own way. And mostly doing it before the rest of the world thinks they should.


I say blow the world, go get what you want now.


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## prawn_86 (19 January 2009)

Trembling Hand said:


> I say blow the world, go get what you want now.




I agree TH, hence why i still encouraged him and said its great to see him starting early. By all means keep trading/investing and learning, he's already way in front of the pack, but remember he is still young and has a lot of time on his side.

It would just be a shame that if at some stage in his life he woke up and thought "man i missed out" (on something or other), so he should still enjoy himself now, as we are only young once after all


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## theasxgorilla (19 January 2009)

Trembling Hand said:


> I say blow the world, go get what you want now.




Exactly.  Leverage starts working from the time you apply it...not just with money but with effort and focus.

It's almost impossible not to enjoy your youth (even if you don't yet realise you're enjoying it) so might as well make it productive.


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## wonderrman (19 January 2009)

> Im assuming your still in high school, so you should be making the most of it. Chasing girls, playing sports while your body is reaching its physical prime, drinking copious amount while you dont get hangovers etc etc




Haha that's exactly what happens on the weekend. We're on holidays at the moment as well so a lot of money has been wasted on drinks, the alcho pop tax is a killer.

Don't worry investing isn't my whole life, still love my footy and cricket and the laddies. I keep the investing hobby separate and secret really. My family members and people in the 'fund' are the only ones who really know I do it. Life is about having fun I reckon, you would have the most boring life just sitting around reading about different stocks all day. Socially I love be young don't worry bout that.



> Correct me if I'm wrong (anyone), but do you not need to be 18 in order to execute an order? Furthermore, if your parents have setup an account in their name for you ... well, what are the legal complications here if something were to go horribly wrong? Such as buying $100 bucks worth of Brisconnections stock?




Yep no worries we thought it would be easiest to set up a company because of tax. My mum acts as the director, as you said I'm not 18 so I can't legally trade. The partnership structure was also alternative but it costs $600 to set up. My uncle will do all the tax work at the end of the year as he is an accountant. 

Something going horribly wrong ... we'll we don't really have that much in place because I'm really not that stupid to be frank. I conduct thorough research into companies before I invest and have a set criteria before I invest in a company. A lot of things simply go into the to hard basket because if I can't get my head around the business and numbers I don't want to own it. I don't invest in banks/most fin services as well as they're to hard to analysis. There are a lot of other better opportunities out there anyway so I don't know why anyone would own a bank.

So yeah basically it comes down to me not being an idiot I guess. hope that explains it


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## MRC & Co (19 January 2009)

I traded many times as a teenager and used to do it myself, just go visit one of Mr Morgans brokers.......

So not sure about the 18 age restriction..........don't remember having any problems.  Maybe a parent signed something the first time, but was 12 back then, too early to remember.


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## wonderrman (19 January 2009)

MRC & Co said:


> I traded many times as a teenager and used to do it myself, just go visit one of Mr Morgans brokers.......
> 
> So not sure about the 18 age restriction..........don't remember having any problems.  Maybe a parent signed something the first time, but was 12 back then, too early to remember.




12! Started real young. The 18 age restriction doesn't really matter to much. We go through a company structure and everything is basically done online. I'm a power of attorney so I can basically sign for and have all the powers of the director anyway. 

cheers.


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## mayk (19 January 2009)

prawn_86 said:


> I agree TH, hence why i still encouraged him and said its great to see him starting early. By all means keep trading/investing and learning, he's already way in front of the pack, but remember he is still young and has a lot of time on his side.
> 
> It would just be a shame that if at some stage in his life he woke up and thought "man i missed out" (on something or other), so he should still enjoy himself now, as we are only *young once *after all



\

I was under the impression that a MAN is always young.:

IMHO university life is much better to enjoy/learn than HS.


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## EverydayTrader (22 January 2009)

Good on you for having a go. I too started trading the stock when i was about your age, i must admit i did not set the trading world on fire to start with and caught the end of the internet bubble, but i learned a heap. 
Keeping at it, the markets can be a get rich quick road...but generally are not. Be prepared for ups and down. Continue to learn from your mistakes. And always use a stop loss!

Good luck


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## michael_t_f (24 January 2009)

Due to my business I deal with people aged around 16 pretty much every day. These young people don't have a clue about anything outside of MTV and Myspace and I would not even bother trying to discuss the stock market or current world events with them. I just can't imagine one of these young people even being able to grasp the concept of a small business. Anyway if you are 16, you must be some kind of freak, or one of those asian kids that are super smart that get beaten if they don't get straight A's.


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## wonderrman (24 January 2009)

michael_t_f said:


> I just can't imagine one of these young people even being able to grasp the concept of a small business. Anyway if you are 16, you must be some kind of freak, or one of those asian kids that are super smart that get beaten if they don't get straight A's.




All right mate bit harsh there. No I'm not Asian and not a freak. I think you need to remember that not everyone is exactly the same. We're all different arn't we? Don't think I'll be writing on this topic anymore, it is to annoying having to continuing try and prove that I'm young. You can believe it or not, as I said, don't really care.


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