First Time Buyer

[ASXNoob]

Hi everyone. I've NEVER purchased any shares before and i'm looking to make my first transaction very soon. I feel it is a good time to get into the market and at this stage i am contemplating purchasing $5000 worth of STW and if everything goes well possibly another $5000 in at a later time.

I have set up a commsec account and was hoping someone more experienced could give me some tips/advice in regards to what NOT to do and what to do. For example some simple questions including, does buying in two lots of $5000 sound like a good idea?....should i buy at market or put in a limit order? Basically i have very little knowledge in regards to shares and dont want to make any big mistakes when making my first transaction, so even some very obvious pointers would be much appreciated.

Is it as simple as transferring funds into my cash account and then placing a buy order?

Many thanks,

Noob

 

[So_Cynical]

Is it as simple as transferring funds into my cash account and then placing a buy order?

Yes its that easy.

Getting a great entry price is however a little more difficult....good luck.

 

[wtang89]

Hi everyone. I've NEVER purchased any shares before and i'm looking to make my first transaction very soon. I feel it is a good time to get into the market and at this stage i am contemplating purchasing $5000 worth of STW and if everything goes well possibly another $5000 in at a later time.

I have set up a commsec account and was hoping someone more experienced could give me some tips/advice in regards to what NOT to do and what to do. For example some simple questions including, does buying in two lots of $5000 sound like a good idea?....should i buy at market or put in a limit order? Basically i have very little knowledge in regards to shares and dont want to make any big mistakes when making my first transaction, so even some very obvious pointers would be much appreciated.

Is it as simple as transferring funds into my cash account and then placing a buy order?

Many thanks,

Noob

Hi there noob, im no expert myself, simply started a year ago but would like to share with you what i know. Now i also use comsec, it is relatively user friendly, decent brokerage and since you are new (i assume you got the 600 free brokerage). In regards to your inquiry regarding buying in lots, that depends very much on your perception of the market and of the stock/s if you are unsure you can buy some now and more at a later date or if you perceive it to be a good entry point now, you can buy all of it now. One reason why people do this is that if you buy some now, and the price of the stock falls, you can buy some more at a lower price thus bringing down the avg. cost. Since you are new, i would suggest you research and observe the company for a while first, get a feel of the daily fluctuations, new announcements, etc There should also be a thread dedicated to STW so i suggest you start there, read up on what others think before making your own decisions. Yes with comsec once you have opened your cash account, simply log on to comsec.com.au, type in your acct no etc and you can submit buy orders (assuming you are going long), i suggest you give it some time before looking at shorting/margin call etc.

In terms of tips, set stop loss limits, keep an eye out for new information, and try not to get too emotional and remain objective. DISCIPLINE is KEY.