Hello one and all

[thirstcrusher]

Greetings,
Hi all. Another newcomer here to shares investing. I have been torturing my eyes the past few days with the amount of reading on shares and the stock market. I had no idea or anything about the stock market or shares a week ago but have gained a little knowledge with helpful sites such as the asx.

I would like to invest $4000 out of my portfolio to start investing in shares. I read a lot about what exactly is it I want to achieve ie: income, growth etc. I am not really sure how to answer that. I just want to grow my portfolio basically and to buy my first home one day so I guess that's what my goal really is.

I have everything set up to start trading online. I have been doing a bit of practice with the asx online trading game and have done ok apart from one stock.

Im still scratching my head as im cautious in putting my feet into deep water. I'd like to spread the $4000 in a few shares but I also would like to invest in an ETF as well since I hear so much about them. The problem im confused about in regards to ETF's is there is quite a few? Which one is worth buying at the moment? S&P 200? S&P 20? S&P 50? Iv'e tried to gather information which is the more recommended but cannot find any information on this.

Also I have a relative who is a low income receiver of a government pension. They would like to invest as well. But how does that work for them? Would they have to pay any capital gains tax on any shares that make a profit? Or is there a threshold before CGT comes into effect? I thank you for reading my post and queries and look forward to your thoughtful replies.

 

[burglar]

... Or is there a threshold before CGT comes into effect? ...

CGT is payable at your marginal Tax Rate.
Add the net capital gain to your taxable income.
If it is below the threshold, no CGT is payable.

... I'd like to spread the $4000 in a few shares ...

If you split $4k your parcel size will be overly small.
The brokerage will kill you!
Some here say $2k is a reasonable minimum.
I like $3k when I can manage.

 

[Longjaw]

Greetings,
Hi all. Another newcomer here to shares investing. I have been torturing my eyes the past few days with the amount of reading on shares and the stock market. I had no idea or anything about the stock market or shares a week ago but have gained a little knowledge with helpful sites such as the asx.

I would like to invest $4000 out of my portfolio to start investing in shares. I read a lot about what exactly is it I want to achieve ie: income, growth etc. I am not really sure how to answer that. I just want to grow my portfolio basically and to buy my first home one day so I guess that's what my goal really is.

I have everything set up to start trading online. I have been doing a bit of practice with the asx online trading game and have done ok apart from one stock.

Im still scratching my head as im cautious in putting my feet into deep water. I'd like to spread the $4000 in a few shares but I also would like to invest in an ETF as well since I hear so much about them. The problem im confused about in regards to ETF's is there is quite a few? Which one is worth buying at the moment? S&P 200? S&P 20? S&P 50? Iv'e tried to gather information which is the more recommended but cannot find any information on this.

Also I have a relative who is a low income receiver of a government pension. They would like to invest as well. But how does that work for them? Would they have to pay any capital gains tax on any shares that make a profit? Or is there a threshold before CGT comes into effect? I thank you for reading my post and queries and look forward to your thoughtful replies.

If you have just opened Nabtrade with NAB (20 trades free)or Commsec with Commonwealth bank you are entitled to $600 free,this allows you to buy and sell quite a few to get the feel of it.

Brokerage does not come into it ,so me being a beginner just like you,I would spread it over 4,giving you 1k per share,you can add to it as you feel confident.

Don't pay to much for your share,(Buy at the bottom if possible)and that gives you room to move.
I have only been in it for one week and I am already up 500 dollars for 10K so don't let the others in this forum intimidate you,

Go have some fun.

 

[thirstcrusher]

If you have just opened Nabtrade with NAB (20 trades free)or Commsec with Commonwealth bank you are entitled to $600 free,this allows you to buy and sell quite a few to get the feel of it.

Yes I have free brokerage upto $600 so no problem there
Brokerage does not come into it ,so me being a beginner just like you,I would spread it over 4,giving you 1k per share,you can add to it as you feel confident.

Don't pay to much for your share,(Buy at the bottom if possible)and that gives you room to move.
I have only been in it for one week and I am already up 500 dollars for 10K so don't let the others in this forum intimidate you,

Go have some fun.

Thanks. Yes I have $600 free brokerage.
I have two stocks in mind but im also interested in maybe having a dabble in one of the blue chips. Not sure which one but iv'e said for years i'd like to buy some woollies shares, only problem is they are on an upward climb and not sure if it is the right time to buy. I'm still researching other blue chips. I'm still interested in investing some on an ETF stock but still uncertain on which is performing well at the moment maybe someone can shed some light?
Congrats on your $500 profit by the way

CGT is payable at your marginal Tax Rate.
Add the net capital gain to your taxable income.
If it is below the threshold, no CGT is payable.

I thought that may have been the case thanks!

If you split $4k your parcel size will be overly small.
The brokerage will kill you!
Some here say $2k is a reasonable minimum.
I like $3k when I can manage.

Yes I know it's a small amount to split but i'd like to start small until I feel the confidence to add more. Brokerage isn't so much of a problem as im getting $600 free trades with commsec.

 

[Longjaw]

Thanks. Yes I have $600 free brokerage.
I have two stocks in mind but im also interested in maybe having a dabble in one of the blue chips. Not sure which one but iv'e said for years i'd like to buy some woollies shares, only problem is they are on an upward climb and not sure if it is the right time to buy. I'm still researching other blue chips. I'm still interested in investing some on an ETF stock but still uncertain on which is performing well at the moment maybe someone can shed some light?
Congrats on your $500 profit by the way



I thought that may have been the case thanks!



Yes I know it's a small amount to split but i'd like to start small until I feel the confidence to add more. Brokerage isn't so much of a problem as im getting $600 free trades with commsec.

Profits come and go,I don't worry about it until its in my pocket but thanks for the compliment.
Woolies in my opinion is pretty safe but could be a boring way to spend your money,
BHP is a pretty good place to put your money but you do your own research,
I chose Rio Tinto but I am now leaning towards BHP with a bit more research,I will probably buy BHP next low,and keep both for a while.

Remember I am a reckless gambler with no regard for research (So they say)

I don't know if you can afford to loose your money so if you follow on what I am buying using paper trading,it will give you an idea if I'm on the right path or the others are?

Please PM me with your trades when you finally chose and I will follow using paper trading on Nabtrade.
Good luck,it is an exciting time buying these first few shares.

 

[burglar]

... Yes I know it's a small amount to split but i'd like to start small until I feel the confidence to add more. Brokerage isn't so much of a problem as im getting $600 free trades with commsec.

It is not a small amount - unless you split it.

While you have free brokerage it is not an issue!
I assume the free brokerage expires.

You will then need to rethink parcel sizing.
I've been continuously rethinking for nigh on 12 years.
I don't regard it lightly!

 

[ROE]

if you dont know what to get ...AFR smart investor magazine, their cash club stocks they publish every so often has
decent stock selection...you can go from there, I believe May issue has some in there....

Investing is a life time journey, you will have plenty of time to discover and learn so take your time

Good luck...

 

[JIMBO1]

Hi mate you should probably look into buying/borrowing some books to gain some base knowledge before you start trading or investing. A few hundred spent on learning could save you a lot more in the markets. You need to think about what sort of risks you're willing to take, and what sort of trades your going to make. Are you looking to buy quality companies at a fair price for a long term investment? or look for momentum in a stock and swing trade with stop loss orders.

Trading and investing requires discipline and a lot of hard work, when I first stated I made the mistake of being to eager and jumping into the market with all of my capital. Luck was on my side, I actually made money but it was a mistake nonetheless.

ETF's can be a good option if you want exposure to the overall performance of the market or individual sectors.

You could try paper trading for a while to develop your skills and strategies, good luck

 

[thirstcrusher]

Please PM me with your trades when you finally chose and I will follow using paper trading on Nabtrade.
Good luck,it is an exciting time buying these first few shares.

Thanks will do.

It is not a small amount - unless you split it.

While you have free brokerage it is not an issue!
I assume the free brokerage expires.

You will then need to rethink parcel sizing.
I've been continuously rethinking for nigh on 12 years.
I don't regard it lightly!

Not sure if the brokerage expires? That's a good question, will have to look into that.

if you dont know what to get ...AFR smart investor magazine, their cash club stocks they publish every so often has
decent stock selection...you can go from there, I believe May issue has some in there....

Investing is a life time journey, you will have plenty of time to discover and learn so take your time

Good luck...

Hi, thanks. Ive been reading AFR online and have gotten some insight and will have to look into the magazine you mentioned..thanks for the info.

Hi mate you should probably look into buying/borrowing some books to gain some base knowledge before you start trading or investing. A few hundred spent on learning could save you a lot more in the markets. You need to think about what sort of risks you're willing to take, and what sort of trades your going to make. Are you looking to buy quality companies at a fair price for a long term investment? or look for momentum in a stock and swing trade with stop loss orders.

Trading and investing requires discipline and a lot of hard work, when I first stated I made the mistake of being to eager and jumping into the market with all of my capital. Luck was on my side, I actually made money but it was a mistake nonetheless.

ETF's can be a good option if you want exposure to the overall performance of the market or individual sectors.

You could try paper trading for a while to develop your skills and strategies, good luck

I have a couple of ebooks I havnt read as yet one is on Warren Buffet. I have been doing quite a bit of reading online ive spent too much time on the computer and lack of sleeping! In regards to ETF's can you recommend in your opinion which is more the way to go, overall sector and if so is the s&p 200 a good option or one of the others like the top 20 or 50? Or is individual sectors better to start off with?

Thank you for the helpful replies.