Help a newbie

[r_dream]

is it worth buyin and selling with only about 2 to 3 thousand dollars and making only about 200 to 500 when u sell or is it better to save and play the market with more money to increase returns

 

[mime]

Depends on how much money you want to make. Are you planing to live off trading shares?

 

[r_dream]

no not really well not in the short term i just want sum extra cash to buy a car in the short term about 6 months to a year then i'll reassess after that.

 

[beagle666]

Beware... you talk as though these gains will be easy. I would suggest that if you have little experience with the market you paper trade for a while and experience the ups and down. With such a small ammount of capital it will be difficult for the inexperienced to make large gains without risk since brokerage will decrease profit dramatically ( and we have not even spoken about tax yet!!)

If you can afford the risk a highly speculative mining stock may be the way to go. It will be the quickest way to make some good money but it will also be the quickest way to lose a lot.

That is my opinion only. I am an investor predominantly and not a trader, though i do 'play ' a little with a small portion of my potfolio. To be honest I would invest that 2-3000 bucks in a mid cap share before attempting regular trading as the pitfalls are many for the inexperienced.

good luck
Beagle

 

[r_dream]

yeah i no its not goin to be easy but tax is sumfin i would like more info on for example if i made about $500 on a sell how much will go to tax.

thanx for the advice guys any more advice will be greatly appreciated

 

[RichKid]

is it worth buyin and selling with only about 2 to 3 thousand dollars and making only about 200 to 500 when u sell or is it better to save and play the market with more money to increase returns

Hi r_dream,
Have a browse through the beginners forum and you'll see similar questions come up, do some research yourself and be aware that no one here is qualified to give financial advice, best to take a look at your overall finances with an financial adviser and then see how it all fits together. Making money in the stockmarket is not easy for the majority of people so contemplate losing every cent you put into the market and see if you can cope with that- it can happen very quickly too.

Good luck!

 

[sam76]

r dream, have a look at ION's history.

That went from hero to zero very quickly.

an example of when good stocks go bad. (should that be a reality TV show??)

 

[It's Snake Pliskin]

no not really well not in the short term i just want sum extra cash to buy a car in the short term about 6 months to a year then i'll reassess after that.

I see some irony in your objectives and your user name Just joking.

An averaged 20% per year is a good return for a first timer in the market. So you want to buy a car and if you get 20% on your $3000, you could buy some tires in a years time. $600 - not taking into account commisions - will be a good return on that $3000 for your first year. To buy that car it's going to take longer. Reassess your objectives.

Snake

 

[r_dream]

just getting back to tax can someone tell me how much tax you would pay if you made around $500 on one sell

 

[markrmau]

If I were a licensed financial advisor, I would say that the $500 (assuming buy/sell in < 1 year) is simply added to your income. So if you are earning $20k p.a. and are paying 22c in dolar for amounts greater than $6k, you would pay .22*500. If you hang onto the shares for >1year, the tax (capital gains tax CGT actually) is halved. So in effect you would pay .11*500.

However, I am simply not allowed to say this (as I am not a licensed advisor, or even an accountant), so I will say nothing.

 

[macca]

If you hold the shares more than one year then 50% of your nett profit will be added on to your taxable income.

If you hold the shares for less than 12 months then all the profit is added to your taxable income.

You should also be aware that share trading is an international event.

If you are a sport player are you good enough to play an international, or do you think you might need more training?

 

[mime]

I tried short term trading, made gains then lost them. I'm trying long term trading now and it's going alot better. Try both and see which one you like.