Beginners - Introduce yourselves!

[clarrie75]

G'day. Had a quick look around the site and it looks pretty good. I am an extreme novice when it comes to shares. I guess the reason for joining was to try and understand it more and I'm also after some answers.
About 2 years ago I went and saw a financial planner. He raved on about margin loans and the way he spoke about them I couldn't sign on the dotted line quick enough. Since that time I've finally woken up to myself and realised that he was only pushing these loans as he is obviously affiliated with them and I'm sure would earn commissions. Now these might sound like silly questions but I'm the sort of person who just needs things spelt out. What are the ways you can get ou of a margin loan? Who should I know turn to for financial advice? Should I be panicking about the state of the market? I know these might sound like basic questions but I just need to know.
Please don't take the mickey out of me. I'm just hear to learn.

 

[bvbfan]

Have you used the funds in the margin loan to buy shares or managed funds?

If it was 2 years ago you might still be up so maybe why you haven't said you've been margin called.

To get out of the margin loan you basically need to pay back the funds to the lender by either giving them cash or selling shares/managed funds to generate cash to payback the loan.

Do you know what you own, does the planner do a yearly review with you?

 

[clarrie75]

I haven't used the funds to my knowledge to buy anything. I read up the other day on margin calls. To this point in time, nobody has contacted me. I have tried to contact my financial planner but he has not returned my calls. Unfortunately I have recently moved to Sydney and he is in Perth. Do you know of a website where I might be able to find a new and impartial planner? I guess I was a real sucker the first time round and don't want to be caught again. As far as paying the loan out, that isn't an option at this stage.
Appreciate the help so far.

 

[Undertow]

hello

I have bought and sold shares for well over 10 years now. I am still leaning.
There is no simple ingredient to success. It can take a mix of many things or even just a dash or 2 of luck.

Patience is often needed as even if you hold good shares market downturns will often cause even the best stocks to lose in value. If you buy into companies whose outlook remains fairly solid and they have the resources to overcome any short or long tem setbacks then you should do quite well.

There are some things one should try and avoid however. Do not look for quick gains unless it is money you can afford to gamble with. Do not always follow the herd as they are often grazing in well used or trodden ground. Do not hold a share when you lose confidence it the company as it invariably causes you to lose even more money if not all the capital you have in at some stage. These are just a few tips I can give.

 

[multistrada]

Clarrie75,
There are no silly questions, some times just silly answers.

As for good advice I can assure you that good advisers are like good mechanics and good accountants, very hard to find; (my current accountant is an ex budist monk with a crystal ball and a little bronze statue of the three wise monkeys. A funny guy but, a good accountant....?

Note: this is not intended as a swipe at accountants in general, I'm sure you are all very nice people.

So, keep looking and ask lots of questions. Good luck.

 

[Undertow]

hi clarrie

I understand your concern about a financial planner who is pushing products in a way to gain commissions or any kind of financial benefit out of clients. I had a similar experience many years ago when I was just starting out in buying shares. The broker recommended a company to me. I found out latter that they had been involved in some kind of underwriting of shares in this company. I bought some at 11 cents and it was not long before the stock fell all the way down to 6 cents and a few years latter to an all time low of 1.5 cents. Since then the stock has gone all the way up to just over 20 cents, but it is now trading at a bit less than 10 cents. This is a period over well over ten years now and I sold out of the shares I initially bought for 6 cents and then picked up some when they were down in the 3 cents range. All up I made money out the company but if I held the first lot of shares over all this time I would still be behind on my initial investment.

Lesson learned here is not put total trust in any financial planner and ask them specific questions about the products their pushing to see if they may have a hidden agenda for pushing certain products your way. It is also very important to check out company announcements to check its history and the people involved.

 

[bmd]

Hi, just landed here & i am sure that i will benifit from the experence. I have been trading for only six months or so, so I know verry little, but I am trying my best when I have the time to spend looking at the markets. I would like to find a online service that I can use for international trades (eg; USA & canada) with a good reputation & resonable rates. Of course any market reports etc. would be a great help as well. Look foward to here your thoughts, B

 

[MongrelSun]

Heya all,

Just recently found these boards and thought I would sign up. Don't do a lot of posting but read heaps. Bought my first shares back in 1993, just buy, hold for a while and sell (hopefully at a profit ) About 4 years ago I got introduced to options and two years ago decided to kick the main stream job into touch and try making a living from the markets. To date I haven't starved and the bank hasn't come looking for the keys to my home so the head is still above water Looking forward to reading many interesting and informative discussions on the boards.


MongrelSun

 

[bvbfan]

I haven't used the funds to my knowledge to buy anything.

Do you know of a website where I might be able to find a new and impartial planner?

Sorry for late reply, was busy with exam.


As for finding a financial planner, maybe a search of the financial planning association will help.

With regard to the loan - where did the money go if you signed up for the loan. Okay maybe the loan was approved but funds never taken out. You might have got away with only an application/approval fee + maybe some monthly fees.

See if you can find the Financial Services Guide (FSG), you might have reason to lodge a complaint against the planner/company. Follow the guidelines as in the FSG. You could get any fees back out of it you were charged if they obtained the loan for you but gave you no advice on how to use it.
Ask for the paper records from when you signed up with them.

As for the loan, 2 years ago if it was used could have returned 25% or so (if you go by market returns) before going back to breakeven.
I don't know the whole scenario but if it was used it probably would have made some money over the first 12months.

2 years ago, you would have been required to be given a Statement of Advice which should have contained information on your strategy the planner had in mind. If that wasn't provided then yes planner/company is suspect.

However you should have read the document because thats the strategy they have come up with and you would have had to sign off on that plan for them to do anything - make investments, take out the margin loan etc.

If they gave you that but you didn't sign an authority to proceed then I don't know what's happening.
You may not even have a margin loan.
Ask for those documents from the company.

Maybe check ASIC website also, might have some info on what else you can do.

 

[zolow]

Hi,

been on the forum for about 4 months now, only passively though.

I started buying my first stocks about 8 months ago, just before the credit crunch hit. Needless to say I have learned a lot since then. I feel as though my investments decisions are becoming a lot better .

I would consider myself a long term investor. However, my biggest vices are

1.the temptation of big gains in a short time on speccies, and;
2.my reluctance to take a profit,

both of which I think fall under the category of... greed.

I also have a bad habit of checking my stocks every minute of every day

Love reading the forum, I am interested in both the fundamental and technical side of trading.

learning more everyday

Zolow

 

[Vondelpark]

Just started posting yesterday so better introduce myself.

Originally from Sydney, back in Sydney now after spent 10 years in Europe. Was lucky enough to jag a trading job over there and worked trading options on the LIFFE floor in London before going over to Amsterdam and trading on the AEX/Euronext Options Floor until open outcry was punted in 2003.

So had some decent trading experience and only recently got the bug back to immerse myself in the markets again. Been punting on a few commodities and forex crosses relatively sparingly over the last 12 months but have decided to take things a bit more seriously. It is like learning the markets all over again and it is great.

Seen a lot in my time on the trading floor - Russian Rouble crisis to IT bubble and its popping, standing in the middle of a bustling pit when planes go hammering into the WTC and the subsequent fall out. From the ecstacy of great trading years to the agony of getting flogged and having to claw it all back. I have seen the damage trading has done to people mentally, physically and to companies whom have been blown up (financially) by traders going crazy. Even seen a clearing house collapse.

Trading is an amazing ride, it is a bug you can't get out of the system but you need a certain intestinal fortitude to do it.

Looking forward to rekindling my associations with options and learning as a sort of novice with respect to more dedicated FX and commodity trading.

Good trading all.

VP

 

[prawn_86]

Welcome once again to all the new members. ASF is growing at a rapid rate, and its good to see the "community" feel is still being maintained.

To all the newbies, make sure you learn how to use the search function. It saves both us mods and you guys time if you have a play and learn all its little nuances.

thanks

prawn


PS - Vondelpark, you dont know some finance people looking for a hard working soon to be graduate do you?

 

[Bogs]

Hi Guys, girls
Are there any girls trading? there must be some..just wandering, this is really not a pickup line and i don't want to sound disrespectful, i just thing most of girls are not interested in this stuff.
I am new, yellow, fresh, even though i had traded before, never really seriously, and small trades. Well if I ask a stupid question, don't crucify me. Might be cultural difference. Originally from Poland 20 years ago, people tells me I have still strong accent, ....
Any way HI TO ALL.

 

[Sean K]

Welcome Bogs. You're up late in Melbourne.

There's a few gals here. Prospector, Julia, Grace.

Hope you get some value out of the site. Don't be afraid to ask questions, people are normally very helpful.

Cheers,
kennas.

 

[i.hunter]

hi, this is i.hunter. i have started trading for 2 weeks, haha i bought "WOW" share last week @ price 25.00 and I think i will keep it for long term. and I am hunting for "CBA" now, I am thinking to get some shares @ 38.00. Any comments?

 

[clarrie75]

Hey thanks bvbfan.
The paper has been a great help over the past two weeks also. Had good articles on both margin loans and financial planners which I read with keen interest. I guess the root of my problem would have to be to sort out my planner. From there I can then start a fresh and fingers crossed, start to make some progress.
Thanks again to everybody who has given their input. Really appreciated. Someone told me once that it is only a mistake if you do it twice. I will certainly not be going down the same road again.

 

[Vondelpark]

PS - Vondelpark, you dont know some finance people looking for a hard working soon to be graduate do you?

Depends what you want to do workwise.

I have limited contact here in Australia as I exclusively traded (as a profession) overseas.

 

[Bobcat]

Hey!
I am such a novice at this game. This is highlighted when I read some of the threads. I know the small capital I am dealing with is a joke to most traders but you have to start somewhere.

I was speaking to a financial advisor that I met on a night out. I was saying how much I enjoyed getting involved in shares. He was telling me his company only dealt with folio's of $1m+. He was not interested in giving to much advice to me.

This site is great, learning heaps.

Happy Trading.

 

[prawn_86]

Depends what you want to do workwise.

I have limited contact here in Australia as I exclusively traded (as a profession) overseas.

Check your PMs

 

[ofishl1]

hello, have no idea what I am doing here. Whats a thread/post? New to all of this, can someone show me how to ask a question, do I need to add a post/ thread? Have searched FAQ etc, but cannot seem to find how these forums work, sorry for my ignorance