Beginners - Introduce yourselves!

[wadesansom]

Hi Wade,

Are you confident you can earn more in the stock market than what you would gain by paying off the mortgage? Until you are then thee is a strong argument you should just focus on getting debt free. Having a mortgage means you have an easy to measure required rate of return.

THere is heaps of info here in the beginners lounge so have a search for your questions

Welcome to ASF

Thanks for the quick reply!

Well the investment property is a 30 year loan, where the rent actually covers the loan (principle and interest) as well as agent fees and landlord's insurance. So I can actually practically let it pay itself off. I would be looking to pay off my actual home loan, that is; the house I will live in - when I leave university and begin a career.

As for the stock market - I find it very intriguing as I have so little knowledge about it, which drives me. I also saved just over $2,000 for stocks; which I can easily afford to invest in something I may not succeed in. I would just like to spread my investments in different channels, not put all my eggs in one basket.

My rough plan is to invest in a floating company, where I could purchase around 8,000 shares for the $2,000 and just see what happens as I learn. That being said; I would be open to advice against such a plan. The company I am looking at is Macquarie Gold Ltd. They are floating to get funding to open a gold mine in NSW. The company seems very sound and reputable, they only issue is the falling price of gold. I haven't locked anything in yet, but that is just what I have my eye on at the moment...

As for this forum, it is amazing how many people there are, how helpful they are, and how much information is flying around!

 

[Murd]

Hey guys,
Been doing plenty of reading on how to get into investing, and been lurking on the Bogleheads forum for a while now.
I'm interested in finding some opinions and experiences of those who use simple index portfolios as the mainstays of their investing.
Hoping there are a few Aussie bogleheads here
Cheers,
Murd

 

[Julia]

Hi, My name is Wade.

I am a young investor still working my way through university.

I have saved a deposit and bought an investment property.

Wade, that's a really impressive start at a young age. Good for you.

My rough plan is to invest in a floating company, where I could purchase around 8,000 shares for the $2,000 and just see what happens as I learn. That being said; I would be open to advice against such a plan.

Have a read of this:
http://www.itbdigital.com/opinion/2013/02/14/what-makes-floats-fly/

for the pros and cons of investing in an IPO.

Why are you attracted to the above "8000 shares for $2000"?
If you are looking for growth, it's only % appreciation on your capital that matters. The actual number of shares is irrelevant.
You are not actually getting 'more for your money' as many new investors seem to imagine.

 

[wadesansom]

Wade, that's a really impressive start at a young age. Good for you.




Have a read of this:
http://www.itbdigital.com/opinion/2013/02/14/what-makes-floats-fly/

for the pros and cons of investing in an IPO.

Why are you attracted to the above "8000 shares for $2000"?
If you are looking for growth, it's only % appreciation on your capital that matters. The actual number of shares is irrelevant.
You are not actually getting 'more for your money' as many new investors seem to imagine.

Thanks, I had a read of that article, very interesting.

The reason for 8,000 shares is because that is the minimum amount purchasable by the company, at 25 cents per share.

The company seems quite sound to me, and the float ends in July - so hopefully by then the gold market will stabilise.

 

[aviper4u]

Hey all,

I look forward to getting filthy rich via trading

Seriously though I have alot to learn before trading whilst not losing the small amount of money i do have lol

Cheers

 

[YMI]

Hey all,

I look forward to getting filthy rich via trading

Seriously though I have alot to learn before trading whilst not losing the small amount of money i do have lol

Cheers

Hi viper!
Well, there are a few people every year who actually managed to get rich quickly. And the news always report the stories of those who were successful and not about the ones that failed.
I do not want to discourage anybody but 7bn people on the planet, surely at least 90% would like to get rich – and how many succeed?
Nevertheless, good luck to you

 

[aviper4u]

Hi viper!
Well, there are a few people every year who actually managed to get rich quickly. And the news always report the stories of those who were successful and not about the ones that failed.
I do not want to discourage anybody but 7bn people on the planet, surely at least 90% would like to get rich – and how many succeed?
Nevertheless, good luck to you

well said........
after all its a balance no one can win unless someone loses

 

[Julia]

no one can win unless someone loses

Really? So if a stock sells at $5 to someone who believes it will go to $10, someone has to lose?
What about if they purchased the holding of someone who bought at $1 and whose target sell price was $5?
Who is losing here?

 

[kenardy]

G'day all,

New to the thought of even investing in the market. I'm 25 y.o and I am looking to gain the knowledge base now to make informed decisions about my wealth in the future. A bit nervous about the thought and definitely don't want to be jumping into the deep end.

I have been reading the beginners post and so far there is alot of great info. Like alot of newbs I don't even know where to begin though. I will continue to read the beginners posts and see where I would like to start off and what broker to use etc.

Alot to comprehend but I know it is a wise choice in the long run.

Cheers,

Kenardy

 

[kenardy]

I should have also added, I have started to paper trade with stockwatch just to get a feel of what it is like, especially with brokerage costs and the problems with my own 'gut feel'. I have used different approaches for most stocks, choosing well known companies such as BHP but also companies that have negative profits (a gamble) and others that have a ridiculous P/I Ratio. I know I shouldn't take the information from such a limited source to be gospel, but just my own experiment.

I am in the process of acquiring the book Trade your way to financial freedom so I am looking forward to reading that as my first trading book.

I am in no rush whatsoever to buy into the market. It would be like me walking up to a high stakes poker table and not knowing the rules.

Is there a mentor system on this forum? I would love to see something like that.
i.e. A monthly mentor task of getting the newby to find some of the best shares to buy, when and why. I know alot of the more senior members here even have differing opinions themselves but just for a newb to get a lesson on the fundamentals, that would be awesome. Especially for newbies that want to get into a certain type of trading (long or short term etc) and be matched with an appropriate mentor.

Just a thought.

I have been really enjoying reading alot of posts on this forum and hopefully I can contribute more in the future.

Cheers,

Kenardy

 

[aviper4u]

Really? So if a stock sells at $5 to someone who believes it will go to $10, someone has to lose?
What about if they purchased the holding of someone who bought at $1 and whose target sell price was $5?
Who is losing here?

correct, I should have mentioned i was referring to forex

 

[mellyaustria]

hi all!!

Hi there im melly austria 36 years old, living in Melbourne. Hoping to hear more from all of you..

 

[Marko62]

Hi everyone i'm Mark, I bought my first shares in 04 and got out in 08 due to other commitments. A couple of years ago i come into a bit of cash and put it in the hands of a financial adviser up until a couple of weeks ago. I sold down enough shares to clear a debt and decided to manage what was left myself.

I am sure i can learn a lot from the wealth of knowledge in these forums

 

[Bellringer]

hi Kennardy...
I'm new to the site and having been investing in shares for 2 years now....It can seem daunting, but honestly I think the best way to learn is to start buying. You can buy very small parcels ($500) at a time if you wish and Online trading is easy with brokers like Etrade or Commsec. Do some reading, pick some shares you like the look of and go for it...

There is nothing like watching your own money go up and down to learn about your attitude to risk! I would also advise not actively trading for a year or so...try the buy and hold strategy whilst you are learning. I have yet to sell any of my shares...but I look at them every day. This way i'm learning heaps about the psychology of investing... meaning my own approach (I get excited when the market dips...more opportunities for value investing!) and how the market responds to news such as interest rate changes, trouble in greece, US unemployment figures etc. It's fascinating to watch the news then see what happens the next day to your shares...

I figure that this way, as I have more money to invest over the years, I'll have the experience to make decisions with larger amounts of $$.

I can't tell how much more I know know than when I bought my first lot of shares 2 years ago for $1000 (now worth about only $650 btw...first lesson...NEVER listen to family member's tock tips!) Now I'm up to investing about $10,000 a year with a 25 year investing time frame. Lots of time to learn and you have mech longer than that!

Good luck!

 

[MARKETWINNER]

Dear All

Happy day to you!

Sorry I couldn't contribute much to this forum.

Now onwards I would like to contribute my skills and knowledge in the investment world while learning from experienced and intelligent members here.

I am from New Zealand.

Best regards

 

[Pollywaffle]

Hi everyone, my name is Ben and The past month of so I've had a random urge to trade stocks on my own. I turn 28 in a couple of weeks time and currently studying primary school teaching at uni.
I already own shares in Telstra and IAG when they floated, and I have shares in Westpac as of about a year ago. They were purchased on my behalf (with my money) and I don't even think about them. I also own some property in Sydney which isn't giving me much of a return because I'm too nice of a landlord and won't increase the rent
Anyway, I'm looking to invest a little and have a bit of fun. If I do OK, I'll continue. But I'm not expecting to really make any money to be honest.
Currently, I'm keeping an eye on: AZJ, WHC and FKP.

I'll be making some trades soonish when I have more time away from uni and when I decide which online broker to choose. So far, I think it'll be CMC Markets Stockbroking.

That being said, I have ZERO experience trading stock on my own. So I'm taking it very slow.

I also traded and mined some litecoin not too long ago aswell, which was the reason for sparking my interest in stocks.

Cheers!

 

[Julia]

Hello Ben, welcome to ASF.
Could you say a little about why on each of AZJ, WHC and FKP?

 

[Pollywaffle]

Hello Ben, welcome to ASF.
Could you say a little about why on each of AZJ, WHC and FKP?

Thanks for the welcome!

Sure thing, I felt I was waffling on a little too much so I didn't say anything about why I was watching those.
To be honest, they're all a bit of a gut feeling. AZJ was on the front page of the ASX and said to be on the rise a little. Judging by its past performance, it seems to be steadily rising. It's also quite cheap for me, so I could purchase a good volume of them.
However, with WHC and FKP, they seem to be very risky. I remember reading about them elsewhere and again, judging by their past performance I figured I'd watch them too. I doubt I'd actually invest in them in their current state though. Basically, at the moment I'm just doing hypothetical trades to see if they'd be lucrative at all.

With that being said, I am a complete novice when it comes to stocks. So, feel free to laugh

 

[burglar]

... So, feel free to laugh

We are in the beginner's lounge ... no jocularity allowed, deadly serious!

 

[Julia]

Sure thing, I felt I was waffling on a little too much so I didn't say anything about why I was watching those.
To be honest, they're all a bit of a gut feeling. AZJ was on the front page of the ASX and said to be on the rise a little. Judging by its past performance, it seems to be steadily rising. It's also quite cheap for me, so I could purchase a good volume of them.

Thanks for explaining. Looking at the charts of each I can see the attraction in the first two but don't know anything about their fundamentals.