Everything you need to get started?

[asf]

Hello all,

I was wondering what exactly would you need to get started in the stock market, or what would you recommend? I mean, what is some good software to use, an online stockbroker, amount of money to get started etc.....

As well any good books or newsletters.

 

[bullmarket]

Hi and welcome asf

Imo, rule #1 is understand the 'mechanics' that drive the asset class you are investing in....ie...stock market, property, bonds, interest rate securities and hybrids etc....and then research for yourself each individual potential investment before committing to it.

Rule #2 is put in the time and effort to put together a written plan (for trading/investing/business or whatever). The trading plan should include your objectives and risk tolerances and how you broadly aim to achieve your objectives within your risk tolerances. The details of the plan should include (assuming the plan is for trading/investing in the stock market) things like the criteria that have to be met before you buy/sell a stock (this could include fundamental and technical analysis/charting), position sizing, stop loss strategies, how you will monitor the performance of your portfolio etc. Imo if one has a written plan then one is more likely to stick to it. Also review the plan periodically. A good read imo re putting together a plan is "Trading With a Plan" by Compton and Kendall. The concepts it discusses are just as applicable for traders and investors imo.

Another good source of info is the Investor Centre at the ASX site . There is a huge amount of info there on how the market works and various types of securities available on the ASX.

Re charting/tech analysis, I like the books by Daryl Guppy, but there are plenty of other reputable authors around as well. Maybe just wonder through a book store or library, flick through the pages of a few books and pick 1 or 2 that meet your needs.

Re software....I used to use Quicken's ShareAnalyser charting software. It doesn't have all the bells and whistles that some of the more expensive packages have, but imo it is a very good charting system with about 25 of the most common indicators which are fully customisable. The line drawing tools are very flexible. ShareAnalyser also has a built in market scanner which is fully customisable to search for stocks that meet virtually any criteria you like. My philosophy is why buy a Rolls Royce if a mini minor will do the job Now that I am essentially a passive investor, I use Commsec's advanced charting which easily meets my basic charting needs nowadays.

I use Microsoft's Excel spreadsheet to monitor my portfolio and to do my fundamental analysis and evaluations.

Re brokers.....I was a client of JB Were for quite a few years until 2001 when I left the work force. With more time on my hands now to allow me to do my own research I changed over to Commsec's online broker. I'm happy with Commsec's features and services. Whether you use a full service or online broker is up to each individual. Each have their pros and cons.

The original size of your investment capital is irrelevant to some extent, but obviously the larger it is the more flexibility and options you will have. If your investment capital is small then maybe consider starting off investing in 1 or 2 managed funds which spread their investments, and hence risk, across Australian shares, overseas shares, property, bonds, cash etc. But this depends on your own objectives and risk tolerances.

Anyway, good luck and I hope this helps.

cheers

bullmarket

 

[asf]

Hi Bullmarket,

Thanks for your advice, all looks very helpful. Also, in getting the text books i will get a good understanding of how the stockmarket works, but, are there any good newsletters etc... that can keep you up to date with market trends and other factors influencing the market?

Any advice from other members as well would be greatly appreciated.

 

[RichKid]

Hi Bullmarket,

Thanks for your advice, all looks very helpful. Also, in getting the text books i will get a good understanding of how the stockmarket works, but, are there any good newsletters etc... that can keep you up to date with market trends and other factors influencing the market?

Any advice from other members as well would be greatly appreciated.

Hi asf,
I really think it's important that you take some time to browse through the Beginners forum and the Trading Strategies forum at least to start with. Should take you some weeks, post questions in those threads if you like after doing a search to see if your questions may have been answered first already. All you need to get started is here on ASF, you just need to look for it! Put the effort in and you could be rewarded.

 

[bullmarket]

No problem asf

I don't subscribe to any newsletters so unfortunately can't help much there

But Huntleys' Your Money Weekly has been around for a very long time now, so it must be a good source of information to have survived for so long I suppose. If interested, maybe have a look at their website http://www.aspecthuntley.com.au/057 Also maybe have a look at the aspecthuntley site without the 057 at the end of the address. There might be other useful information for you there as well.

The only other read I can suggest is the new Smartinvestor mag (combined Personal Investor and Shares mags). I find it a very useful and informative read.

cheers

bullmarket

 

[Julia]

Research available free if you use E-trade includes:

Huntleys, Intelligent Investor, Eureka Report (Alan Kohler, Michael Pascoe), Wise Owl, ecinya, aap, Aegis.

(I don't have shares or any other interest in E-trade other than being a satisfied client.)

Julia

 

[weird]

I would look at developing a trading system, one that incorporates stops and allows profits to run. Also try to remove any descretionary component.

Alan Hull has quite a good book which covers many the requirements of successful trading, and has a sound system, that is trade with the trend.

Minimum amount of money ? Depends. $20,000 is probably a good start as you will be able to position size and employ reasonable money management.

regards

Dave