Beginners - Introduce yourselves!

[beaul]

I would say you need to learn what makes your plan profitable and why.(partly by backtesting & sim/paper trading). Then you will know when to trade it and when its broken.

This is a step that probably most of the punters never get too. Yet is probably the most important step.

What is attractive about small cap mining stocks? how do they fit the "plan"?

I have a friend who has been trading small caps in general and has done very very well (he owns a rolls royce and much more which came from trading)
I plan to trade mining small caps to limit myself to similiar stocks and gain knowledge and experience in one area.
I meet with my friend once a week and we discuss strategy etc. I have found that he doesn't always do what he says he does.
However I am learning to create my own style of trading.

I do not believe I am a "punter".
I put a lot of effort into my decision making.

I appreciate the comments and help from swm79, but of course everyone tells you that "paper" trading is not the same as trading with money. Time will tell.
A lot of discussion on share trading brings up the emotional angle, I am not sure how I will handle that part.
I would like to think I can stick with a plan but I see my friend breaking his own rules everyday, but he makes money, lots of it.

 

[Naked shorts]

What is attractive about small cap mining stocks?

He read all your posts about the large liquidity in FX being a negative and so decided to go for the most illiquid instrument he could think of

 

[Trembling Hand]

He read all your posts about the large liquidity in FX being a negative and so decided to go for the most illiquid instrument he could think of

LOL!

I have a friend who has been trading small caps in general and has done very very well (he owns a rolls royce and much more which came from trading)

I have lots of friends who have traded small caps as well. they all went broke.

I plan to trade mining small caps to limit myself to similar stocks and gain knowledge and experience in one area.

Small caps traded through commsuc is the most expensive form of ASX trading. Add that to inexperience and you are already doubled the odds against you. If you start with the ASX200 for example they are cheaper to trade (spread and tick size as a generalisation) and maybe a little slower in movements therefore making it less likely to be frozen in the spotlight when it hits you. And you can work out what makes trading profitable before you start swing for the fence with the specs.

But

However I am learning to create my own style of trading.

This is very important.

I do not believe I am a "punter".
I put a lot of effort into my decision making.

we are all punters mate.

I appreciate the comments and help from swm79, but of course everyone tells you that "paper" trading is not the same as trading with money. Time will tell.

Yes the same that never actually make money or stay profitable.

 

[Mr J]

I appreciate the comments and help from swm79, but of course everyone tells you that "paper" trading is not the same as trading with money. Time will tell.

It's different psychologically, as money comes into play. Most people feel something over winning and losing money, and are subject to desire and fear. There may also be some difference in execution, poor fills, liquidity issues etc, and that may be more important with what you plan to do.

 

[beaul]

my experience, so far

I started in August last year and after reading many books on share trading, I set up a watch list using stocks such as PNA,MGX,DOW,AQA and BLY based on my experience at that time with Charts etc. Over two months EVERY stock made money, I did not have one loss.
I "sold" out after the two months and made a 25% profit. (if i would have held on longer I would have made 50%)

I recently (early January 2010) set up another watchlist (paper) using similiar methods as before but with different but similiar stocks and in 14 days every stock is losing money. Some have reached my "stoploss" and will be sold. The rest I will hold for two months?.
What has changed?

I assume the market was more bullish for the stocks I chose in Aug 2009 than they are now.

Any comments

 

[Naked shorts]

Re: my experience, so far

I started in August last year and after reading many books on share trading, I set up a watch list using stocks such as PNA,MGX,DOW,AQA and BLY based on my experience at that time with Charts etc. Over two months EVERY stock made money, I did not have one loss.
I "sold" out after the two months and made a 25% profit. (if i would have held on longer I would have made 50%)

I recently (early January 2010) set up another watchlist (paper) using similiar methods as before but with different but similiar stocks and in 14 days every stock is losing money. Some have reached my "stoploss" and will be sold. The rest I will hold for two months?.
What has changed?

I assume the market was more bullish for the stocks I chose in Aug 2009 than they are now.

Any comments

Oh my.

Well its pretty simple. your stocks made money because the whole market was going up. At the moment, your stocks are losing money because the whole market is going down.

p.s. hows the boat going? i don't live too far from you Very nice day for a swim

 

[beaul]

indices

I started in August last year and after reading many books on share trading, I set up a watch list using stocks such as PNA,MGX,DOW,AQA and BLY based on my experience at that time with Charts etc. Over two months EVERY stock made money, I did not have one loss.
I "sold" out after the two months and made a 25% profit. (if i would have held on longer I would have made 50%)

I recently (early January 2010) set up another watchlist (paper) using similiar methods as before but with different but similiar stocks and in 14 days every stock is losing money. Some have reached my "stoploss" and will be sold. The rest I will hold for two months?.
What has changed?

I assume the market was more bullish for the stocks I chose in Aug 2009 than they are now.

Any comments

Can I make up my own indices to follow the group of shares I like to trade in or is there something out there similiar that i can use that is already in place.

I prefer to watch/trade mining stocks, valued under $1.00 and capitallized between $100 milion -$500 million.


Any suggestions?

 

[Swimmy]

Hi All,

Yet another beginner starting off down the trading path. So far have been reading, re-reading and dabbling in small positions. The dabbling has shown me this type of venture is definitely worth pursuing. But geez... doesn't it mess with your head? Anyway - next job is writing down how I'm going to go about getting (and hopefully staying ) involved in the markets.

I'd be real glad to hear from anyone out in the Orange, NSW area. Regards,

DF

 

[Prickly]

Just joined your forum and hope to learn something useful. Saw some penny stocks two weeks ago that look attractive so bought a couple thousand dollars worth, saw the stock suddenly go up. Got greedy and missed the top but still managed to make $600 dollars before the stock plunged. Very lucky. Then saw terrific report on another stock, bought $2000 worth. Then it went down, so looked like I would lose about $600 then suddenly surged up. I sold immediately and made $500.00. If I had held on I would have made about $3000.
I thought "How easy is this? Maybe this is my true calling and I will get rich because I am so clever".
Needless, to say the next lot of stocks I bought I bought at their peak just before they plummetted and I had to get out before I lost even more. So I am thinking that maybe I am not so blessed or clever after all.
Anyway, what a buzz!!! Especially the making money not losing money part. I still think that if I am a little more conservative and careful and not too greedy I could make some money. I am not really in a position to lose money as I am retired and on a very tight budget. So I will learn as much as I can over the internet, try not to get too greedy, try to get in on the start of a rise instead of the end and see how I go. If I do start losing again I will get out. I know this is a form of gambling so I want to be very very careful.
Look forward to reading and chatting.

 

[bajabus]

hey all, I've been trading for over 10yrs but am new to the forum. Am currently looking into CFDs and would appreciate any links to useful forum posts.
talk soon

 

[factory87]

Hi people, new to trading, reading and learning and paper-trading only atm until I feel confident enough to put the real stuff in the mincer.

Hoping it will give me, at least, a fun and engrossing hobby as I gain experience.

 

[syang12]

g'day all, I've entered the market only 10 months and just noticed this forum on the web. Wish I can learn sth and share my experiences with others here.

 

[rtjoa]

Hi all,

I'm not a beginner but more like a super beginner in the area of share trading :

Just started trading a week ago and I'm interested in expanding my very limited knowledge of stocks by joining this forum.

A little bit about me, I have a passion for sports investing (betting) and has been actively doing it for the last 2 years or so. I know, i know... my friend reckon its a bs term to label sports betting as an investing activities. But then sports betting is definetely not gambling, as you don't leave things to chance like in the Casino.

Anyway, enough about the introduction. Looking forward to seeing you all in this forum !

 

[J&M]

I have just started trading
with some success. its a strong learning curve for me
I have a few properties now spreading my investments
I am reading the Newbie Lessons on this site

The key words here seems to be do your own research
I look here on this site and read a lot
thanks for all the interesting posts on share trading

J

 

[prazstar]

Hi all, I'm new to share trading, i do not know much, but I'm very keen to learn lots. Hopefully i can gain enough knowledge and confidence to start trading on a small scale this year.

Thanks

Praz

 

[woodford]

Hello all fellow forum users,

I've been trading CFD's for a while now and going ok but not great. Very new to the forum and love reading the postings and opinions from other traders/investors. Hope to learn more through this forum. Good trading to everyone this year

 

[Liar's Poker]

Hello all,

I'm a new member to ASF (made a few posts already), but have been a guest browser for a while now. I've spent a bit of time browsing through different forums looking for one that suits me. After taking a liking to the simple, yet commonsense layout of the site and the large population of opinionated intellects - I thought it was time to join and contribute.

I have been interested in stocks since I was young (made my first broker call when I was 11 - asked what the trade minimum was for Southcorp) and have traded regularly over the past 5 years, gradually increasing my trades and portfolio size.

I'm by no means an expert and although I understand many technical analyses, I often find myself trading on company fundamentals and trends I see developing in populations rather than the stocks themselves.

Hopefully I'll find enough time to become a regular poster.

-LP-

 

[mingapex]

Hi everyone,

I am a freshman of Australian Stock market. But I am very familar with Chinese stock market, especially China mainland stockmaket. Cause i used to work as a broker there.

In my view, Aussie stock market and China stock market are totally different. However, the relation between these two markets are more and more closely. So, paying more attention on Chinese economy is absolutely a good idea if you wanna play well in Aussis market.

So that's me. Hopfully, we can talk about the investment freely and happily here.

 

[Qjumpa]

Howdy folks, Long time lurk first time poster.

Great stuff Sir O – please keep it coming!

Question: how does one value a stock price based on increased profit and expansions

If a company were already doing $25 mil profit with a current share price of .25c and had an increase of profit earnings to 50 million the next year, double the year after that and so on and so on – surely the share price would double respectively wouldn’t it?

I understand the market would have already priced that into the current price based on forecasts of expected earnings and orders ect, BUT what if those future earnings are based on a long shot (or not in forecasts because too pie in the sky) and it pays off??
Share price .25c with earnings of 25 million
Share price .50c with earnings of 50 million
Share price .75c with earnings of 75 million
Share price $5.00 with earnings of 500 million
Company has met sales targets with no talk of large increases in profit to come - good time to sell while on top and maximum profit achieved:
I realise there are other fundamentals involved, just when building a plan with an exit time based on major changes.

Sorry my silly questions, only 2nd glass of red and it's starting to flow.:freak3:

 

[globaltr]

Hey came across Aussie Stock Forums on the internet some time ago. Looking forward to catching up with other options trading guys. I am always learning and look forward to sharing ideas, strategies and techniques

thanks

Anthony