have been paying attention to the market for a while, havent read any books or anything, dont really know a thing about how the stock market works, finally decided to take the plunge today. bought some rio tinto for 80-something. just gonna leave it there for a year or two. hope I have made the right chioce.
First trade ever
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skc
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Minimum block of 7 shares at $78 + $30 brokerage makes $82.3 cost per share?
skc
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Do some google searches on how to find good companies by Roger Montgomery .....right now a few of his favourites include CBA, JBH and WOW
or better still do yourself a huge favour and buy
"a concise guide to Value investing by Brian McNiven" you should find it online for maybe $10 and it will save / make you thousands over the years....
Ive read and have a library of hundreds of financial / broking / investing / trading books and by far this is the best and easiest to read for all beginners....itrs only 210 small pages, with plenty of diagrams and simple well explained language....
If you cannot consistently make money after reading that book and the markets doing Ok, then give up....
or better still do yourself a huge favour and buy
"a concise guide to Value investing by Brian McNiven" you should find it online for maybe $10 and it will save / make you thousands over the years....
Ive read and have a library of hundreds of financial / broking / investing / trading books and by far this is the best and easiest to read for all beginners....itrs only 210 small pages, with plenty of diagrams and simple well explained language....
If you cannot consistently make money after reading that book and the markets doing Ok, then give up....
Seems like nobody is being harsh, so I will be: if this is how you will approach trading/"investing", then you shouldn't do it.
lol, or maybe find something that works. Giving up achieves nothing, anyone can learn to be profitable in the markets - just takes time and hard work.
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Very true. You don't just make random purchases and not even know your buy price after purchasing. Perhaps more research and practice is required before you decide to risk your own money.
Thats what im elluding too...this is a pretty safe and effective strategy with no profit skimming, no smoke and mirros, no nasty surprises....Any beginner should benefit immensley from his knowledge....
ok, now that i am freaking out, today i had a look, i bought rio at $79. it hasnt been going up at all. my original plan is hold the stock for 2+ years and see where it ends up. but by the textbook definition, i should sell when it hits a stop-loss price, which i have not set. but it would have been around 10% mark. so now that i have a conflict in the strategy, I have an optimistic view about the market and i dont really want to sell but all books says sell, so what do I do?
i can see how my blind confidence is effected by the market. but there is no doubt RIO is going to go back to 120+ days, its just question of when. but despite recent good news (high production/ Chinas economical revival), its still not going up. how long is the aussie dollar going to remain high for, thats the question. with the US government issueing cash like never before and high likehood of rate rises in australia. I really see AUD and commodity prices soaring. Yet, the market has defied ALL of my expectations. is that usual? when the market tells you the opposite what you expect, what do you do?
Part of the forum rules is not to give people financial advise. I guess the thing is:
You had a two year plan.
Do you own the shares outright? If not and you had CFDs, then holding would be difficult due to interest costs.
You've got to think about whether you can see the price falling even more and whether you'd be prepared to buy back in. But, do you have the balls / stupidity (depending on how you look at it) to hold?
Do some research on RIO and see what you think.
It's up to you :dunno:
PS. Note for next time: set a break even stop loss as soon as you can.
You had a two year plan.
Do you own the shares outright? If not and you had CFDs, then holding would be difficult due to interest costs.
You've got to think about whether you can see the price falling even more and whether you'd be prepared to buy back in. But, do you have the balls / stupidity (depending on how you look at it) to hold?
Do some research on RIO and see what you think.
It's up to you :dunno:
PS. Note for next time: set a break even stop loss as soon as you can.
thanks for the reply, I have a two year plan, i am just going to stick to it. its either money in term deposit or money in shares. I think i'd have more faith in the return in shares in the next a couple of years.
I guess the real question is how should i handle it when the market goes against your plan? is stop lost price really relavent in a medium/long-term plan ?
That should be part of your plan.
Well, put it this way: take a look at BNB and ABC Learning. You've got to work out for yourself whether you can see RIO going this way.
I guess the lesson learned here is to create a plan, esp. in relation to stop losses. Nobody here can really tell you what to do because, as i suggested before, it is against forum rules to offer financial advise.
Last year, i hear people saying things like "i have made many mistakes in trading this year." I wonder what a mistake is? a deviation from the techniques trades books describes or you can have a perfectly executed trade but its against market's movement. and that makes it a mistake?
