Beginners - Introduce yourselves!

ryandonz · 23 July 2008

Hello

My names Ryan, I'm 19 and looking to get heavily involved in my education within stocks. I want trading stocks to become a hobby and something I can enjoy doing, if you love doing something i believe you will be so much more dedicated to being the best you can within its field.

Ive devoured 6 months of books, information, seminars and am looking to put my first 5k in the market. Trading as normal or CFD not too sure as of yet. But hope to experience the ups and learn from the downs.

Ryan

Trembling Hand · 23 July 2008

Welcome Ryan.

I wouldn't recommend jumping in at the start with the extreme leverage of CFDs. Play around with the direct shares first and learn a few lessons. More likely to to damage early in your "trading career" because most people don't use that leverage properly.

ryandonz · 23 July 2008

Trembling Hand said:
I wouldn't recommend jumping in at the start with the extreme leverage of CFDs.

Thanks for your advise it is warmly accepted. Just clocked into work and surfing the net before the 9am rush. I was leaning towards the direct approach, I wont let mans worst temptation of greed take control of my senses.

I'm looking at spreading my initial starting capital within 6-7 strong companies and eventually moving funds into 3-4 top performing.

"Wide diversification is only required when investors do not understand what they are doing." - Buffet.

Cheers to an exciting ride of the stock market up and down roller coaster

Wysiwyg · 23 July 2008

Some profound words from experienced players ....

Only buy something that you'd be perfectly happy to hold if the market shut down for ten years. ~Warren Buffett

The key to making money in stocks is not to get scared out of them. ~Peter Lynch

An investor without investment objectives is like a traveler without a destination. ~Ralph Seger

and one of the best ..

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. ~Warren Buffett

rabbitears · 24 July 2008

Hi every one, I have been trading for about 2 years with only marginal success.
It has been a long learning curve, always picking up a bit of information to peice the jigsaw of trading.
At when I started I read alot of books and paper trading for about 6 months, but when it came to the time to put all of that together and put on real trades, it soon became very clear that i didnt know as much as i thought I did .
When first started, I used to relied on cross over moving averages, thinking that they could indicate change of direction pretty well, but it took a bit of time to understand that they worked well when I was looking at the history of the price movement, but not on the edge of the chart .
Anyway I am slowly learning ( maybe can use a coin for heads or tales), and I really enjoy trading, it has given me hours of fun and games .

Best to every one

mattyhammer · 25 July 2008

Hi all,
This website is massively overwhelming. I am learning heaps but there is so much info to be taken in. I have been trading since late 2007. Held a small profit on some early buys then bang.....downtown!!! I seem to have bought alot of shares in companies when they were high (not realising they would then fall). I have interests in AEX, BHP, COE, CTP, FAS, IMP, JBH, LGL, NAB, OZL and unfortunately VLA (with some profits and losses in other companies). If anyone has any methods on how I can claw my way back into the area of at least having the value I started with I would highly appreciate it. I understand it is only advice that I will receive and will do my own research. Just curious how people go about minimising or correcting losses.
Regards
Mattyhammer

janmaree · 26 July 2008

Hi Everyone, Have just joined the forum Am VERY new to the stock market compared to most other posts I've been reading. Have been reading books and working through the ASX Education section over the last 6 weeks, and the more I read and learn the more I realise there is to learn. But how interesting is it........ I can't wait to feel I'm ready to actually get in there and start trading (it'll be a while yet tho' I think).

A question. How do most people get their initial knowledge? Do they pay lots of $$$$$ and invest in courses, and if so how do you know which ones are genuine and which just want to rip you off. Or is it best just to continue reading and learning on my own as I've been doing, and then just dive in at the deep end (so to speak!).

Thanks for any help anyone can give me.

Trembling Hand · 26 July 2008

janmaree said:
A question. How do most people get their initial knowledge?

Best thing is time spent getting a basic knowledge of the "market" in general. Look throwout this site there is just about every style and time frame covered by someone.

Once you have a general knowledge of whats out there and the various styles of investing/trading you will probably find that somethings interest you more than other. Just follow your nose.

Only thing to keep in mind during your journey is no method is a short cut to expertise. They all take time and work.

Julia · 26 July 2008

The key to making money in stocks is not to get scared out of them. ~Peter Lynch

I'd be less than comfortable about this one, and would prefer to protect my capital in a falling market.

MRC & Co · 26 July 2008

Julia said:
I'd be less than comfortable about this one, and would prefer to protect my capital in a falling market.

Yeh, I agree Julia.

Rememeber beginners, all trading/investing suffers from asymmetrical leverage.

That is, for every 20% lost, you need to make 25% back just to break even.

It is why a low risk method is KEY, so it's probably best to start with equities (shares) and not CFD's/options/futures and trade/invest only a small portion at a time, until you gain some consistency. Once you do, then you can start to look at all the various money management techniques and you will survive long enough to learn the basics.

TH says the rest. Read lots of various methods and you will gravitate towards the area which suits you most.

Wysiwyg · 26 July 2008

MRC & Co said:
Yeh, I agree Julia.

Rememeber beginners, all trading/investing suffers from asymmetrical leverage.

That is, for every 20% lost, you need to make 25% back just to break even.

It would be interesting to see what investors (do any exist on the forums ) thoughts are in relation to your post.If one is looking beyond tomorrow, a week, or months then a loss doesn`t enter the equation because one hasn`t sold.I wonder what an investor would think in the current market.

I`m mainly a short term investor though as I don`t have the patience and agree with both of you on capital protection.

MRC & Co · 26 July 2008

Well an investor would still be wanting to protect capital. Not to mention, no holding is forever, so in a sense, they are just long-term traders. As I see it impossible to predict long-term trends through most general trading techniques, they will focus more on fundamentals, but should still have a plan. A place where their analysis is prooven incorrect, at which point, they are protecting initial capital. Of course, 'stops', will be much wider.

Julia · 26 July 2008

MRC & Co said:
Well an investor would still be wanting to protect capital. Not to mention, no holding is forever, so in a sense, they are just long-term traders.

Ah, finally, a clear and acceptable definition of people who don't primarily engage in short term trading. I'm really so tired of the supposition that 'investors' buy and hold forever, regardless of market conditions.
I think I'd be typical of many so called investors in that, ideally, (and because I'm not that interested in the market), I'd prefer to buy a stock which would show long term growth, and just let it run. Dividends are a very secondary consideration.

But if that stock stops showing the required growth (even something as basic as WOW), then it's out until an uptrend returns. This protects capital and profit for the relatively small cost of a couple of lots of brokerage.

Shrewd Crude · 27 July 2008

Hey all...
Im new to aussie-stock-forumn...
Im 23, have been investing for 5 years... I only invest in Specs, have not had a divided, my small portfolio is 100% OIL, Ive gone all in on three occasions and almost went Bankrupt on one of them...
PPP, NWE.. and MEO, Sold the lot on 6MCF day after trading halt...1.1->1.2
Two weeks later I would have gone broke.. It was a sure thing discovery, but got cold feet after initial flow test...
over time ive had a dabble in Resource stocks and rarely performed in them...
are there any prizes for the monthly stock picking competition?
thanks...

.^sc

It's Snake Pliskin · 27 July 2008

Julia said:
Ah, finally, a clear and acceptable definition of people who don't primarily engage in short term trading. I'm really so tired of the supposition that 'investors' buy and hold forever, regardless of market conditions.

hmmwahmmmwahmmmwahmmma Time in the market beats timing the market mmhmmmwahmmmwahmmmawahmmmwahmmwa IT will come back because they generally do hmmmwahmmwahmmwahmmwahmmwahmmwahmmmwahmmwahmmwa etc..

An on goes the mantra much like a buddhist.

Set and forgetters forget.

janmaree · 27 July 2008

Trembling Hand said:
Best thing is time spent getting a basic knowledge of the "market" in general. Look throwout this site there is just about every style and time frame covered by someone.

Once you have a general knowledge of whats out there and the various styles of investing/trading you will probably find that somethings interest you more than other. Just follow your nose.

Only thing to keep in mind during your journey is no method is a short cut to expertise. They all take time and work.

Thanks for the reply TH - there is certainly heaps on the forum to read besides all the various other sites - ASX, Comsec etc etc etc. My thoughts at the moment are putting some into long term (what is the general feeling here on managed funds, which is what the bank are talking to me about?), and start the short term trading with a lesser amount until I get the hang of it.

I understand they all take time and work and that I need to understand how it all works and why, and I'm happy to put the time in as I find it fascinating. However, I got a CD from a company called Just Shares which seemed pretty explanatory on the basic stuff, there is then the complete course of about 5 CDs which costs around $950 which takes you further and is supposed to get you to the stage where you feel confident actually starting to trade. Has anyone done this course, or similar, and if so do you feel it's worth the money.

Jan

Trembling Hand · 27 July 2008

janmaree said:
.......some into long term (what is the general feeling here on managed funds, which is what the bank are talking to me about?),

Just be aware that you can buy most manged funds just like a stock on the ASX and pay $20-$30 brokerage. Many "advisers" will charge you trailing commissions based on Capital for the same thing!!!!

janmaree said:
However, I got a CD from a company called Just Shares which seemed pretty explanatory on the basic stuff, there is then the complete course of about 5 CDs which costs around $950 which takes you further and is supposed to get you to the stage where you feel confident actually starting to trade.

"complete course of about 5 CD"s "which costs around $950" .

Where does the confidence come from? Some dude pointing out trading 101 cliches. Are they so confident they will give you a money back guarantee??

PeterJ · 27 July 2008

before you spend/waste your hard earned $

do some reading
2 books i live by..
1/ Exploding the Myths by Frank Watkins
(available from Protrader.com.au)

2/ Secrets for Profiting in Bull and Bear Markets
by Stan Weinstein (available from Moneybags.com.au)

both books are cheap !
and you will learn how to look after your own $

cheers

Peter

janmaree · 27 July 2008

Thanks for the advice guys........I will take it on board and do my own research through reading and sites like this

Julia · 27 July 2008

janmaree said:
(what is the general feeling here on managed funds, which is what the bank are talking to me about?),

Jan

Hello Jan,

I'd be very cautious about going with managed funds recommended by your bank. Almost always these will be handled by the Bank's investment arm and will be recommended to you because of the fees that will flow through to the bank's coffers. And understand that if you invest in managed funds you will be paying a quite high percentage to the Fund Manager regardless of whether you make a profit. e.g. they are all reporting negative returns for this financial year, but will have certainly still extracted the same percentage of capital in fees from members.

I'd really suggest you hold on to your money right now. Maybe wait until some confidence is restored.

Beginners - Introduce yourselves!

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Trembling Hand

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Wysiwyg

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janmaree

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