First time investor - help please

[DJG]

Alright, where do i start:

I have taught my self everything i know so far about the sharemaket.

I have $1,000 i am looking to invest, i will add more every week/month if i see myself succeeding.

Should i concentrate on sold company's or low share cost companies?

I am looking at a few IPO's and company's set to float:
A friend of mine has brought $1,000 of Bounty Oil - It look's like a good investment, IF all works out, he could turn his money into 20+ grand.

I just need some general advice for a beginner, i know most terms and can read a graph pretty basic.

Also:
I don't know which Online Broker to use, i currently own a ANZ bank account, was looking at Bell Direct and First Trade because of the low fee's.
I would rather find a broker that doesn't charge you for inactivity, if it does at least like 2 or 3+ months.

Thanks

Daniel

P.S Sorry if it looks like i am asking for financial advice, but what i mostly need to know is Which broker?

Thanks again

 

[DocK]

I'd suggest you visit the Beginners Lounge forum and start reading. There is plenty of information there if you look for it. Most of your questions will have been asked and answered in that forum before. Good luck.

 

[nomore4s]

Hi Daniel,

While we can't offer specific advice on this site please read the start of this thread here which is based around a similar question to yours.

https://www.aussiestockforums.com/forums/showthread.php?t=19119

The problem with starting with only $1000 is fees will kill you - $20-$30 each way is a fair whack and puts you a fair way behind the eight ball to start with, better of saving while you continue to learn.

Also trying to turn $1000 into $20,000 like your mate betting on one share is a bit of a long shot, bit like winning lotto really. Will require a lot of luck as most of those types of shares never end up turning into truly profitable companies.

Good luck.

 

[newbie trader]

Hey Dang,

I dont think you should have the mindset that the stock market a get rich quick mechanism, rather i'd say it would be easier to lose your money than make it. 1000 into 20k is a 2000% profit and if you can manage that I will take my hat off to you. With your 1k youve got to look at brokerage (in and out). I use commsec which is 40 bucks in and out in total. So with your 1k investment youll need to make +4% to break even.

I use commsec as stated but Etrade, maquarie edge etc may be just as good so you should maybe go to their websites and compare their prices and what they provide.

N.T

 

[Tatts]

You also mentioned IPO's. Any that i have looked at required a min $2,000 investment. This is only from a couple so maybe others allow smaller min amounts?

 

[Joe Blow]

Should i concentrate on sold company's or low share cost companies?

Daniel, please note that it is not permitted for those here at ASF to offer you specific financial advice. Nobody here can advise you what stocks to buy or how to invest your savings. Only a licensed financial adviser can legally provide you with this kind of advice.

P.S Sorry if it looks like i am asking for financial advice, but what i mostly need to know is Which broker?

There is a whole subforum in the Trading/Investing Resources forum devoted to the discussion of brokers, including many threads that ask the very question that you have just asked. I would start working your way through the threads in there, as this is a topic that has been discussed time and time again.

 

[DJG]

Alright, i will probably add money to it each week, 50 dollar's isn't much, maybe more if i like it

Yeah, i don't reckon I'm going to "get rich quick" i know the consequences, but i am just using a example he is in a stock at 8c, the company predicts if all goes well, they will be at $2.20.

Which they probably wont, i'm just looking for some general info

EDIT:

Would i be better off putting my total bank account (bit over 10K) into a long term bank account?
Is there bank's that offer it for 6 months or less?
(I realise its not exactly long term, but it will have better rates)

 

[shiftyphil]

IF you do decide to start trading/investing with such a small amount - CommSec has an introductory free brokerage offer. Other broker's may have similar offers too.

See: http://www.commsec.info/onlineoffer/offer.aspx

At least you won't have brokerage eating your profits for the first twelve trades anyway.

 

[sammy84]

It will be hard to add $50 a week when standard brokerage is around $20. High interest savings account sounds like the better option and a few days spent reading the beginner lounge.

 

[coffee_snob]

Would i be better off putting my total bank account (bit over 10K) into a long term bank account?
Is there bank's that offer it for 6 months or less?
(I realise its not exactly long term, but it will have better rates)

There are term deposits for 3 and 6 months available if you don't mind locking your money away. There are also those online accounts which offer a lower interest rate (around 4.25% at the moment) if you want to have your money on call.

 

[DJG]

I arn't looking for HUGE profits, i know i am only investing $1,000
I have to start somewhere true?
If i do like it, i can add

I got until December is when ill need my money

Currently its in a ANZ V2 Account

Around 3% +/- interest currently

 

[coffee_snob]

I arn't looking for HUGE profits, i know i am only investing $1,000
I have to start somewhere true?
If i do like it, i can add

I got until December is when ill need my money

Currently its in a ANZ V2 Account

Around 3% +/- interest currently

Did you read the thread posted in the link above? I am in the same situation except I have 2k. I know how utterly tempting it is to want to jump in. And I fully agree that we need to start somewhere. My thoughts were to start small so you don't lose big...

But I decided to hold off for a little while. My plan is to wait til I have 5k or at least 'know' a bit more about the market (by which time my money should have increased a little).

It's a hard decision. I am not standing by my decision 100% because I know temptation can be a b*tch but I am trying to wait til I am a little more prepared.

 

[newbie trader]

IMHO you should maybe consider looking for a decent interest account. If you have a bank offering 5% then you'll need to make 9% on your shares to equal that. But DYOR and if you want to gain some experience then maybe the share market would be a good way to go so as you can hopefully move onto bigger and better things. But at the end of the day its your money.

N.T

 

[nunthewiser]

I arn't looking for HUGE profits, i know i am only investing $1,000
I have to start somewhere true?
If i do like it, i can add

I got until December is when ill need my money

And there lies the problem.

The stock market is NOT a savings account............it actually has been known to make ones capital smaller also .

But i guess you know that.

 

[DJG]

And there lies the problem.

The stock market is NOT a savings account............it actually has been known to make ones capital smaller also .

But i guess you know that.

I'm talking about the Term Deposit

 

[newbie trader]

I'm talking about the Term Deposit

Yes but if you need your money by Dec then nun's comment is still very on point.

NT

 

[nunthewiser]

Alright, where do i start:

I have taught my self everything i know so far about the sharemaket.

I have $1,000 i am looking to invest, i will add more every week/month if i see myself succeeding.

Should i concentrate on sold company's or low share cost companies?

I am looking at a few IPO's and company's set to float:
A friend of mine has brought $1,000 of Bounty Oil - It look's like a good investment, IF all works out, he could turn his money into 20+ grand.

I just need some general advice for a beginner, i know most terms and can read a graph pretty basic.

Also:
I don't know which Online Broker to use, i currently own a ANZ bank account, was looking at Bell Direct and First Trade because of the low fee's.
I would rather find a broker that doesn't charge you for inactivity, if it does at least like 2 or 3+ months.

Thanks

Daniel

P.S Sorry if it looks like i am asking for financial advice, but what i mostly need to know is Which broker?

Thanks again

I arn't looking for HUGE profits, i know i am only investing $1,000
I have to start somewhere true?
If i do like it, i can add

I got until December is when ill need my money

And there lies the problem.

The stock market is NOT a savings account............it actually has been known to make ones capital smaller also .

But i guess you know that.

Hence my post .

haveaniceday

 

[DJG]

I don't want it to be a savings account :s

where was that from?

 

[coffee_snob]

I don't want it to be a savings account :s

where was that from?

?

Invest it then if you aren't interested in a high interest savings account or term deposit. If you feel its the right thing to do then go for it whatever you decide let us know how it goes.

 

[DJG]

Yeah i did the maths, long term really isnt worth it:

a touch over 10K total right now

I need to keep 5K in the V2 account to keep it open

IF i was to put 1K into market, even if i wasn't only leaves me with 4-5 to put into Term Deposit.

Not even worth the hassle.

What would you regard as safe stocks?