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Hi, I have no idea what I'm doing...

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Jikx

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Hello, I've recently plunged into the sharemarket because of the huge amount of cash just sitting around.

So far I have:

[Very old purchases]
Commonwealth Bank
BHP/Billiton
Telstra
Man investments "OP-220?" <- they manage to lose 5% this past year!! selling.

[Recent purchases]
Geodynamics (@ 1.67)
Multiplex (@ 2.26)
Sims Metals (@ 14.20)


I'm thinking of adding in some more energy stocks (OSH) or bank (BEN) or perhaps biotech (CSL), but I'm really unsure.. but I'm in for long term investements (5-10years). Currently, I have my assets is split around 40/60, in favour of cash.

Any general comments or suggestions would be helpful! Anyway, love the forum here!
 
Welcome to Aussie Stock Forums Jikx!

Although nobody here can give you financial advice (only a licensed financial advisor can do that), there is a wealth of information and knowledge waiting to be found in the hundreds of threads here at ASF.

You can use the search function to track down threads on a particular topic, company or threads started by a particular poster. In some cases - very specific searches for example - you may need to use the advanced search.

If there is something you don't understand, just ask. The members here are a pretty friendly mob and will generally help you out if they can! :)
 
:fish: One thing I suggest is not to jump in too quickly. Keep your cash safe until you do know what you are doing. I am in a similar position - I have a reasonable amount of disposable cash. I thought I had a pretty good idea about investing in shares but this forum has shown me otherwise. I've only been on it about a week and have learnt a lot - even basic things that never occurred to me. But I have only just begun - there is a wealth of information and knowledge here to soak up.

The more I learn, the more I realise that I have a lot more to learn... :bricks1:
_
 
Thanks for the replies!

I think I am indeed jumping in too quickly, trying to buy too many shares in such a short period of time is not such a good thing on second thought!

There is indeed much to learn, for example how on earth Simsmetal has a P.E only 8 ! I purchased some.. but seems like something is wrong with it even though I can't seem to find out what :cautious:

Sitting tight (with ING), and to see what everyone is doing here seems to be a good idea indeed!
 
malh786 said:
:fish: One thing I suggest is not to jump in too quickly. Keep your cash safe until you do know what you are doing. I am in a similar position - I have a reasonable amount of disposable cash. I thought I had a pretty good idea about investing in shares but this forum has shown me otherwise. I've only been on it about a week and have learnt a lot - even basic things that never occurred to me. But I have only just begun - there is a wealth of information and knowledge here to soak up.

The more I learn, the more I realise that I have a lot more to learn... :bricks1:
_
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Malh786 and Jikx,

How true!

However you may never know what you can achieve because that is in the hands of the market. You can only mitigate the downsides of investing by having clear goals and plans to help you.

Do the research and READ, READ, READ! Be careful of what you hear and why you are hearing it.

A good book is Trading Secrets by Louise Bedford. I like it because it is clear, unambiguous and ideal for beginners or anyone for that matter. If you really want to get wise read robert Kiyosaki's books on making money.

This certainly doesn't constitute financial advice. For advice don't come to me, because I'm not qualified and I don't know what I'm talking about. These are just some thoughts I'm sharing.

Enjoy the market! It really is challenging, but satisfying. :D :p:
 
It's a tired old message, but many of Daryl Guppy's books are great for people new to trading or investing.

One of the issues he discusses is how people tend to trade with their wallet or trade because they feel they need to. Just because you have money or you haven't made a trade for awhile you shouldn't be looking to make an entry. Make sure you understand what you are getting yourself into (trading in general and the specific company) and then let the trade come to you. This is especially true given the current market condition. Set your plan, stick to it and don't chase things for the sake of feeling like you are doing something productive.
 
Malh786 and Jikx,

Welcome to our forum and to the wonderful world of trading. This is a great place to exchange ideas and learn but don't expect advice, that can only be given by a licenced professional. Having said that, both Doc and Tina are right, don't rush into it, mitigate your losses and trade to a plan. You should control the market, don't let the market control you. Ultimately (as James Beresford once said) "design a life that is not an accident". The other point he made at the investor's expo in Sydney was "if you can't argue the assumptions, you can't deny the conclusion." He is right on both counts. Research every trade. Check out the fundamentals, even if you do some very basic ratio analysis, it will probably start to lead you to ask the questions. Then analyse the charts and work out an appropriate strategy that works for you. Tech/A has several threads going here on technical analysis, they're well worth a read. Always see the stock your buying as connected to a market that is connected intimately to our economy which ultimately connects to the global economy. A fall in commodity prices such as metals will have an impact in many places across the market. Research is the name of the game. To succeed you need to apply yourself to each trade with diligence. Keep a record of your research also, it is useful for a variety of reasons later on.

Enjoy trading and investing and again welcome!
 
Sims metal had a bumper last couple of years, I bought at $8.50 in mid 2003 and sold for $14 in mid 2004, it then went on to $18 before its recent correction. You have to be careful with P/E ratios because it is a measure based upon its most recent earnings year (2004), which was a great year for Sims and is probably not maintanable due to the fact that everything in the market was going their way (i.e. metal prices, scrap prices) and the tide has turned a little against them. Try having a look at their prospective P/E ratios as predicted by analysts to get a better feel for where a company is going.

I have often made the mistake of investing in low p/e companies thinking they are undervalued when what has really happened is that their earnings are falling. Remember the trend is your friend, and with SMS down $4 this year, the trend is not going the right way for you at the moment...mind you trends can change and I have 50% chance of being wrong.
 
Fleeta said:
...mind you trends can change and I have 50% chance of being wrong.
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The 50/50/90 rule.

If you have a 50% chance of being right or wrong there is a 90% chance you'll make the wrong choice.
 
Yeah, i've seen the 50/50/90 rule in action before, it happens every time I play roulette!!!
 
Thanks for the replies everyone..

It would be interesting to know, for those who do fundamental analysis, how you would go about assessing a company that has yet to make any money? I see many exploration companies (HAV in particular) that seem interesting (emotion = bad, i know) have a bit of exposure to uranium, gold/silver, and geothermal licences.. but how would I go about checking these?

Do you guys, for example, research all the terminologies (such as the rock types, the relative concentration of minerals etc), stare into predicted prices 5-10 years into the future?

Or perhaps would you forget all that and use technical analysis?

Anyway, no need to answer those.. kind of rhetorical questoins! You guys should consider putting up a "story" section, where people can post about their own share trades, opinionis about the economy and trades in general!
 
Jikx said:
Thanks for the replies everyone..

It would be interesting to know, for those who do fundamental analysis, how you would go about assessing a company that has yet to make any money? I see many exploration companies (HAV in particular) that seem interesting (emotion = bad, i know) have a bit of exposure to uranium, gold/silver, and geothermal licences.. but how would I go about checking these?
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Exploration companies may not have any production. Why buy if they don't have any income? Go to their websites, and some information should be found.
 
I agree. Why would you invest in a company that isn't making money? If you are interested in an exploration company, go for one with a solid reputation and sound financials. Compare its performance to industry or market norms (eg. ASX 200 Resources), do a Google search to see what others say about it. Have any of the major brokers written an opinion about it. What are the prices for those resources doing and likely to do? Have they discovered substantial quantities that would allow them to go commercial? If they have, do they have any contracts to supply? Do your research, do both fundamental and technical analysis and only invest if you are convinved that it is worth doing. It is after all your money. Remember "buyer beware!"
 
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