Australian (ASX) Stock Market Forum

Investing my first $1500

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asfpep

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Hello,

Id like to start buying shares but dont have the big bucks to do so. Is it possible to start with $500 - $1500?

Id like to buy a portfolio package where perhaps $1000 is invested in various companies.

Id also like to invest perhaps $500 in a particular company I see listed.

Is Comsec a good place to start?

Thanks
 
Just before anyone does, nobody is allowed to recommend any shares for you.

Anyhow, well done, you haven't jsut jumped in. I'd take $100 or $200 of that money and buy some good books. Have a look through this forum for reviews.

Read as much as you can, and try to get a handle on "fundamentals" and technicals".... google is your friend... jsut steer clear of (most if not all) people selling you courses... again you'll find about those in this forum.

Lastly, before you dive in, work out what your goals are, timeframes and risk profile...

Good luck!
 
asfpep said:
Hello,

Id like to start buying shares but dont have the big bucks to do so. Is it possible to start with $500 - $1500?

Id like to buy a portfolio package where perhaps $1000 is invested in various companies.

Id also like to invest perhaps $500 in a particular company I see listed.

Is Comsec a good place to start?

Thanks
Click to expand...

for a min of 5k, comsec gives u a basket of 6 companies
 
yeah, a managed fund where you could make regular additional deposits may be something to look into. Keep in mind that a managed fund or blue chip shares may drop in price so you may end up with less that your initial deposit down the track.
 
Take some of the initial investment and buy some proper financial advice from a trusted professional (ask your family and/or friends for their recommendations), who with the particular details of your circumstances could recommend a product to suit you and your circumstances. You might end up doing something you hadn't considered, like borrowing to buy a capital guaranteed portfolio which could generate an income stream and has tax effects whilst minimising (but not completely eliminating) risk, or something other than carte-blanche buying a share portfolio.

Without being fully aware of your circumstances, employment, income, expenses, goals etc then, IMHO, you will be hard-pressed to get good information of the internet.


:2twocents


wabbit :D
 
Tatts said:
You could look into managed funds instead of directly buying shares.
Click to expand...
And you'd be paying out some of your money in fees to a fund manager who may well be less successful in making money for you than you'd be yourself if you learn about how to approach the market.

There are many options. I'd suggest having a good read through the Beginners' Forum where you'll find many before you have asked the same question.
Bear in mind that right now could be a very disappointing time to put any money into the market. I'm staying in cash at present.
 
The hardest thing I ever did was saving my first $1000. The easiest thing I ever did was to lose that $1000. Just make sure that you can afford to lose it if you decide to invest.

One of the worst decisions I ever made was to trust a financial adviser. I have come to the conclusion that most of them make a living by being paid to advise others. They do this because they can't make a living using their own advise and knowledge.
The financial expert that sent me way into negative financial territory is still one of the "respected" contributors of financial advice in one of the leading newspapers.

The best advice I suggest is DYOR.
 
I'm in the camp of spend some of that money on some good books, both technical and fundamental, to see what is out there and get a bit of background. If you want to buy a 'basket' of shares, something like STW, which is a fund that mimics the asx200, to be fairly appropriate.
With such a small amount of money to begin with, you are not likely to do much damage, but will have an interest in learning more.

Beware of 'advice' on the net, even here...

Things like....

proper financial advice from a trusted professional
Click to expand...

The only person to trust with your money is you..

buy a capital guaranteed portfolio
Click to expand...

If you want something 'capital guaranteed' then put your money in the bank and earn interest.

brty
 
I started out with a similar amount of money (about $2,000) and put most of it into one company, with a view to simply buying something I thought would go up in the short term (weeks) and sell. It was as much about just going through the process of buying and selling something to learn how it works as it was about making a bit of money (I think I sold out a few weeks later for a $200 or so profit, so my learning experience was a pleasant one). I made a few similar trades just to get the hang of it all, and was lucky enough for all of the first few to be profitable, often amazingly so (proportionate to the amount invested - often 20-40% within a week, although with such a small amount of money it wasn't a case of massive profits). It could just as easily have gone the other way, so keep that in mind. If you're a 'hands on' person, doing what I did will teach you more than reading books. Most people feel more comfortable reading books and arming themselves with a lot of theory, but for someone like me that would have been counterproductive as I'd have trouble mixing my theory with my practice.

If you're really keen to get into stock trading, jump in and go for it, knowing you might lose some money, but also knowing you'll quickly learn a lot. I would never have taken the theory as seriously if I didn't have real money on the line.

If you just want to find a nice place to invest some money and leave it sitting there without having to think about it too much, it's probably best to wait until you have more money and a strong reason to think a particular stock is going to go up. From a practical point of view, $1,500 isn't really worth putting into the stock market and these days I wouldn't make a trade of under about $4-5k, but $1,500 is enough to buy something and see how it all works, without it being more than you can afford to lose (well, I'm assuming). If losing $500 is going to be a big problem for you, keep your $1,500 in the bank. Right now is a particularly risky time to be jumping in for your first experience.
 
wabbit said:
Take some of the initial investment and buy some proper financial advice from a trusted professional :2twocents

wabbit :D
Click to expand...

I am at a loss to understand why following the FSR these people are allowed to be called "financial advisers" given most of them are simply managed fund sales people. I guess Managed Fund Sales Person does not look the same on a business card.

cheers
Surly
 
Here is a good start.

Go To video.google.com and search for these videos.

Money As Debt
Zeitgeist: Addendum
Money, Banking and the Federal Reserve

Australia has a central bank that is linked to the FED, so the general rules are the same in Australian banking system.

Money is also under the Maritime Admiralty Law

 
Surly said:
I am at a loss to understand why following the FSR these people are allowed to be called "financial advisers" given most of them are simply managed fund sales people. I guess Managed Fund Sales Person does not look the same on a business card.

cheers
Surly
Click to expand...
Agree entirely. The same frequently applies to 'advisers' from full service stockbrokers.
 
come up with a plan to save $10 000 and during that time learn about the market read the paper magazines and books from the library then ask everyone for advice again
 
I believe a fund is a bad choice due to the fees etc.. Maybe research a few blue chip companies and learn as you go. Maybe ones that don't cost heaps, look for the cheaper ones maybe.

An example would be Telstra at only $3.27ish I think. I think learn as you go is a good idea. Watch the market for a few weeks and pretend you bought some shares and see if you would have faired.

Due to brokerage fees it might be better to wait and acquire more cash to buy more shares in the one hit too.

I use Commsec and believe they are excellent. I think they have a promo if you join up you get $600 in free brokerage.
 
wabbit said:
Take some of the initial investment and buy some proper financial advice from a trusted professional (ask your family and/or friends for their recommendations), who with the particular details of your circumstances could recommend a product to suit you and your circumstances.
:2twocents
Click to expand...

Don't do this.
 
craigj said:
come up with a plan to save $10 000 and during that time learn about the market read the paper magazines and books from the library then ask everyone for advice again
Click to expand...
+1

i was in the same position not too long ago.
stick the $1500 in Ubank. 6.51% if you put in $200 a month.

learn from as many sources as you can for a year or so and you should realise how much BS is out there and how little you know. You will get an idea of the risk profile you are comfortable with and by that time have a capital base to work with.
 
Everyone's covered it. If you're young there's no hurry especially with the market being as it is. And the smaller the amount the more the trade cost affects you. Comsec is roughly $20 each way so $40 of $500 means you have to get 8% before your break even.

Save more, learn a bit more (money management etc) and watch the market during this time. 6 to 12 months won't change much except your amount to start with.

This site has lots on good books to read. And you can find a lot of the good books second hand or as e books.
Good luck.
 

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