Bypass $500 'minimum marketable parcel'?

[TiminOz]

Is there ANY way at all to bipass this limit on the ASX when first buying a stock?

I read you MIGHT be able to do it by ordering by phone or something...

Can someone tell me precisely how to do it if it's possible.

(Including even a company that might offer to group people together like the one recently created for the real estate market)

I'm a first-time investor who is looking at a stock that a friend has thoroughly investigated.

But I just can't do $500.

 

[tinhat]

Hi Tim. I have not idea about that one, but welcome to the forums. Maybe ring up a broker like Bell Potter and explain that you want to set up an account and want to invest in a stock but only have $XXX for an initial trade and ask them if they would be willing. You can only try.

 

[Knobby22]

$500 isn't much.
If you are that skint I would not recommend buying shares.

 

[tech/a]

Tell you what.

Post the share up.
If I think its a buy Ill buy $500 worth.
If it makes a profit Ill give it to you.
I will have full control of the trade.
But I will ask you here if you want to sell it if its in Profit.
If it loses $100 Ill close the trade and wear the $100.
That's the stop!

Perhaps you can learn something from the trade.
This is a genuine offer.
We can follow it here and Joe will vouch for me.
Now that's the best brokerage deal in town!

 

[Joules MM1]

Is there ANY way at all to bipass this limit on the ASX when first buying a stock?

I read you MIGHT be able to do it by ordering by phone or something...

Can someone tell me precisely how to do it if it's possible.

(Including even a company that might offer to group people together like the one recently created for the real estate market)

I'm a first-time investor who is looking at a stock that a friend has thoroughly investigated.

But I just can't do $500.

anz shareinvest allows you to buy any amount below standard 500 but you have to own the stock first

 

[$20shoes]

Thats very generous, Tech. IF your interested in learning a little Tim, I'd take up the offer. There's years and years of blood, sweat, tears and joy inside this forum's walls. And lots of posters happy to give great advice.

Your very own Plunge Protection Team

 

[Junior]

Tell you what.

Post the share up.
If I think its a buy Ill buy $500 worth.
If it makes a profit Ill give it to you.
I will have full control of the trade.
But I will ask you here if you want to sell it if its in Profit.
If it loses $100 Ill close the trade and wear the $100.
That's the stop!

Perhaps you can learn something from the trade.
This is a genuine offer.
We can follow it here and Joe will vouch for me.
Now that's the best brokerage deal in town!

Please take this generous offer. If you are happy to disclose which stock you are looking at, we can all keenly observe the price action!

 

[Faramir]

Hi @TiminOz
I understand the feeling of being that poor. I have been hit by lots of expenses last year.

Your friend may have thoroughly researched this stock but have you? Also how much brokerage are you going to pay? The fact that you are talking about phoning someone shows that you have barely started understanding the process of buying, holding or selling shares. (I was the same.)

I am sorry to say but you have to admit how little you understand. Even I can say that I don’t understand much.
You are better off reading this forum, buying books, saving and educating yourself. Most of all, be patient; the time will come for you to buy shares. Just not now if you think $500 is a massive amount.

Your friend might make a fortune or he might lose a bit. You might trust your friend but wouldn’t it better for you to educate yourself first. You could give him/her what little you have but will friendship go down the tube if his/her call is wrong? Good luck - there are many wise people here who wish you all the best.

 

[Faramir]

PS: You are just concerned with only one stock. I am not sure what is the average number of stocks to hold. I am very sure the majority would hold at least 6-8 stocks?? (Only a guess) Not every decision you make will be 100% right. Even for experienced traders/investors. Why do you think Risk Management has plays a critical part???

 

[tinhat]

$500 isn't much.
If you are that skint I would not recommend buying shares.

Are you licensed to make recommendations regarding personal finances?

 

[Value Collector]

Is there ANY way at all to bipass this limit on the ASX when first buying a stock?

I read you MIGHT be able to do it by ordering by phone or something...

Can someone tell me precisely how to do it if it's possible.

(Including even a company that might offer to group people together like the one recently created for the real estate market)

I'm a first-time investor who is looking at a stock that a friend has thoroughly investigated.

But I just can't do $500.

Hi Tim,

At your early stage of the saving and investment process, your best to give yourself a real boost is increase your savings rate, this is going to have a far bigger positive impact than finding a way to invest less than $500.

If you are struggling to save money regularly, you need to either increase your income, or lower your expenses or a combination of both.

I suggest saving at least 10% of your wage each week, and living off only 90%, even if you have to reduce your lifestyle.

It won’t take long to generate savings and you will be able to build a larger portfolio than you could otherwise.

The key to wealth building is spending less than you earn and investing the difference.

 

[TiminOz]

1 of 2: GENERAL REPLY

I really like the ethos of this forum so far: sincere, serious, thoughtful and apparently trolless...indeed friendly!

I've seen that many traders have an interest in 'thinking about thinking' - as do I - so I will first share a couple of things in service of that:

* [Answering FARAMIR:]
I always intended to research the stock (only a fool wouldn't, right?) but only if I could find a way FIRST to actually invest in it. Otherwise it would be a waste not only of my time but my 'emotional energy'

* [KNOBBY22:]
Intuitively I just can't accept the idea that "if you don't have much money, you shouldn't invest in the stock market". I'm sure if I thought about it longer I could find the logical flaw that's provoking this intuition, but right now I'm content to know that there's something not quite right about it.
.
Anyway, I can afford to lose the amount I was thinking of investing - especially given what I could learn in the process. Already I've found joy in the quality of this forum!

* [FARAMIR:]
Correct me if I'm wrong, but I would have thought that:
- the mechanics of actually buying shares and other instruments
- the evaluation of the value of a company based on product, market, customers and management
are two different things

Brokerage: I've seen rates between $8-10.50. My friend says the aim for the stock is to quadruple in value...

* [TINHAT:] Thanks for the practical info (and the defence of my autonomy! )

* [VALUE COLLECTOR]: Thanks for the excellent advice! I like this idea. Anyone can save 10% !
...Though I don't think you would preclude a one-off investment that will get my toe in the water OR be even my one and only (small, experimental) foray !

___________________________________

My friend is a day trader with a little experience. However this is the only stock he owns long term, based on his reasearch.
So I put enough store by this to want to look into it further - and certainly enough to consider risking the amount I was thinking.

 

[TiminOz]

Tell you what.

Post the share up.
If I think its a buy Ill buy $500 worth.
If it makes a profit Ill give it to you.
I will have full control of the trade.
But I will ask you here if you want to sell it if its in Profit.
If it loses $100 Ill close the trade and wear the $100.
That's the stop!

Perhaps you can learn something from the trade.
This is a genuine offer.
We can follow it here and Joe will vouch for me.
Now that's the best brokerage deal in town!

____________________________________________________________
2 of 2: REPLY TO TECH...WOW !

[NOTE: all of this is being written on little sleep!]

Hey Tech,

this is a very cool offer you've made - generous, exciting and very interesting !

As you intimate, perhaps the coolest aspect is the discussion we could all have in seeing what happens and what we could learn - especially this newbie here!

Let me practice my 'risk management' (to quote Faramir!) though, and beg your forgiveness at any offence by thinking aloud:

Even though on the surface I can't possibly lose anything by taking up your wonderful offer (and it is everything I said above!), there IS actually a risk:

If I take up your offer, the potential opportunity-cost is that I might not seek to solve the "$500 problem" another way. Then if the stock went up and heaven forbid you didn't pay me, I would have lost something...

~~~~~~~~~~~~~~~~~~~~~~~~~

However, it occurs to me that you have alot of posts on here so you would most certainly be 'invested' in maintaining your reputation on the forum !

It also occurs to me that: if you like the stock, you probably have enough money that you'd be able to invest a good chunk of cash in it yourself. So if it went up, you'd earn enough that you'd be fine about paying me anyway! (I expect that the profit would be alot smaller than what you could earn yourself).

~~~~~~~~~~~~~~~~~~~~~~~~~

NEVERTHELESS...would you have anything to lose yourself by offering some kind of firmer guarantee we could create? Even a simple agreement of several lines or something with our real names?

Anyway, I'm openminded about the whole thing!
In realiity there is very little I could lose!

____________________________

RE: revealing the stock...

My first thought is that perhaps it's prudent to reveal it first only to you by private message...

It seems highly unlikely that it would go viral and shoot to a higher price before we can buy, but discretion is the better part of valour right?!

So AT THIS POINT I'm happy to reveal it to everyone, but only after we have the opportunity to buy...

Unless someone can provide a better argument?!

 

[Joe Blow]

Even though on the surface I can't possibly lose anything by taking up your wonderful offer (and it is everything I said above!), there IS actually a risk:

If I take up your offer, the potential opportunity-cost is that I might not seek to solve the "$500 problem" another way. Then if the stock went up and heaven forbid you didn't pay me, I would have lost something...

tech/a has been a member of this community since 2004. I can assure you from experience that if he says he'll do something then he will follow through.

However, he did say that he would have to think that the stock was a "buy". You've got nothing to lose by letting him know what the stock is. If he doesn't think it's worth buying he will be sure to tell you why. He isn't known for being shy or mincing words. You will learn something at least, guaranteed.

 

[TiminOz]

tech/a has been a member of this community since 2004. I can assure you from experience that if he says he'll do something then he will follow through.

However, he did say that he would have to think that the stock was a "buy". You've got nothing to lose by letting him know what the stock is. If he doesn't think it's worth buying he will be sure to tell you why. He isn't known for being shy or mincing words. You will learn something at least, guaranteed.

Thanks Joe ! I always appreciate someone who's willing to have the guts to honestly vouch for a good person, in this overly risk-averse self-obsessed world !

FTR, yes, of course I am aware he would wisely evaluate the stock first, and yes I'm very happy to let him know what it is.

If anyone can provide a great counter-argument to my thoughts about keeping it private from the forum until we buy, I'm happy to reveal it to everyone !

Frankly I'd be fascinated to hear how people respond - I know that alone should be a great learning experience.

 

[TiminOz]

To let you all know something about me, I reckon if I got serious about the markets I would tend to lean towards the value investing side more than day-trading...

It seems less risky and more solid, and suits my skill-set more

(I am also a great admirer of The Buff' ! Both as a businessman and a human being.)

But, at this point I have no firm intentions beyond this stock and I claim to know exactly sweet FA !

 

[TiminOz]

UPDATE: 'TARGET SHARE VALUE'

My friend just told me that the 'target' of 4x current value for the stock is the SHORT TERM target.
The target over 3-5 yrs is 20x.

 

[TiminOz]

AN INTERESTING ANALYSIS you guys might find interesting to 'grok'...

...and both me and my friend might learn something from your response...

____________________

Here's ONE reason my friend considers this stock good:

(PARAPHRASING and changing minor identifying details)

"One thing I will explain to you is the shares on offer...

This stock only has 30 million shares...many companies have 500 M to 2 billion shares...

Which means when this stock's price per share is $4... the company total value is $120 Million...

... But in a company that has 1 billion shares... which is most companies... 14c per share = a Market Cap total of $140 million...

It also means that because there are so few shares, as investors get hold of them they are off market so there is a limited amount avab to buy...

When there are billions of shares avab big institutions buy a lot, and they can manipulate the price much more...

This company is 80% owned by a private company, then a billionaire owns 5%.. then management own 7%... so there are not many shares avab... this is why it can go very high the price, and not be manipulated so easily"

To be completely honest, I haven't had the brain power to fully parse this yet. My brain is far better at understanding products...people...markets...media...
But what do you guys think about it?

 

[greggles]

But what do you guys think about it?

I think you should just tell us what stock you're talking about so we can have a look at it.

 

[TiminOz]

UPDATE: 'TARGET SHARE VALUE'

My friend just told me that the 'target' of 4x current value for the stock is the SHORT TERM target.
The target over 3-5 yrs is 20x.

CORRECTION: This is what my friend expects the stock to do.

OH AND ALSO an 'independent valuation' valued it at a price that is 4x currrent.