Hi people from new member

[Rob_ee]

Merry Xmas to all
I have a small modest amount of $10k put aside which I intend to trade with once the market re-opens in January.
Have lurked here a while reading all the different threads and it seems that caution and money management are important in this difficult game.

Have read several books about past traders ... Guppy, Elder etc which were quite fascinating so I have a slight basic knowledge about how the stock market works ... The fund managers with big bucks run the show and the small fry (us) get screwed if not careful.

With this in mind , and wanting to stay around for 1 year at least I am leaning towards the "buy and hold" strategy in reasonably priced stocks which have upside potential.

It seems from my limited understanding that the resource sector is the way to go .. should be bouyant for a few more years.

From reading reports etc.. I thought i would allocate my 10K thus ...

10,000 PNA aroun 32c, already have a Gold mine generating profit in Laos and a big copper project to come on line within a year, so potential there for upside in the next 6 months the closer they get to the Copper part

4000 MAH around 85c... in same sector, was a 5c stock many years ago with upside still with many millions in conntracts ... I am not to sure about that one ???

50,000 RTM a penny dreadful which might do something this year ? only noticed this one becuse it doubled in price last month from 2.4c to 4.9c high before retreating... mining explorer uranium etc ... Is slowly rtreating so might pick up around 3c for small risk only .. one never knows.

So that will leave me around $2000 cash to either top up if one of the above has an upside or posisibly something else ...

I know that $10k is way to low for seriuos trading but its all I am prepared to risk until I gain more knowledge of how this caper works.
From all I have read it seems that a very low percentage make money from the stockmarket.

Any comments , guidence , especially about my picks greatly appreciated

Thank you all , Merry Xmas
Rob

 

[tarnor]

Nick's adaptive analysis (theirs a thread on it here somewhere) is a good place to start if you want to read more books.. first couple of chapters digested probably will save you from getting into to much trouble.. 10k isn't much capital to play with unfortunately .. if you break it up and trade it you will get hit hard with brokerage and stop losses..

RTM is possibly the biggest dog on the asx has a terrible history. Although they migth come up with something.. plenty of better speccies for a punt IMO

 

[coyotte]

Agree with tarnor 110% on Adaptive Analysis --- a must read.

Before U risk a cent of the $10,000.

Join Nick Radge's Chartist Service $55 a month.

Read --- Guppy's "Share Trading" for an easy outline on what you're doing.
Read --- reread- leave on your desk -- Mark Douglas "Trading in the Zone"

With only $10,000 -- Join IG markets -- but keep position size within the bank size --- Brokers are going to be far to expensive for your bank size.
U will have to keep overheads to a absoulute minimum
Join Incredible Charts and Egoli for free charting and delayed data
untill you build the Bank up -- $100,000.


Your position sizes are FAR too large -- max on any one stock around 20% of Bank -- the more speculative the lower the pecentage -- down to around 5%.


After U digest all the above it should be around June -- Better time to enter because U should be coming into a rising market to around the next January.

No need to rush it -- we will all still be here to take your cash .


Best of Luck

 

[Lert]

Yeah Rob.. depends if you are a gambler or investor.. IMO PNA and RTM are a real gamble.. On the other hand MAH is a good solid company with a long term future (I hope so - I've got some myself). Depends on your objectives but be prepared to lose some money if your not quick off the mark..

 

[Rob_ee]

Thank you for your replies ... I will be cautious for a while but have to bite the bullet some time ..

TARNOR .. RTM the biggest dog on the ASX ... risky I agree although someone made lots of money recently 100% gain in very short time so the smart professionals probably cleaned up. You are right, too risky for an undercapitalized amateur so I'll watch for a while.

COYOTTE .. many good points .. re size being too large.. probably right but I am trying to keep the positions very low 2-3 stocks maximum to save on brokerage costs .. PNA trading within a very limited range for several months around the 30c mark. Logic would dictate that with a going Gold mine in production and a copper mine under construction it should go up in the next 6 months, although logic in the stock market doesn't always follow.

LERT .. I also like MAH but have probably missed the boat on this one ??
I was particularly interested in your comments re PNA ?
Why do you think it is high risk ?? based on my comments above.
With a share placement (around 30c I think) they have $243 million in the bank to finance expansion of copper project.. and are wanting to expand into Malaysia .. so there seems to be plenty of upside .. but then what do I know.

In the mean time I'll sit tight for a month or 2 and keep reading all the threads.

Many thanks
Rob

 

[It's Snake Pliskin]

Hi Rob,

You might like to look beyond all the usual regurgitated beginners stuff in a hurry. That is my conjecture. Most importantly decide your objectives - a lot don't know.

 

[Prospector]

Welcome Rob

My advice, read and read.

Funny you should mention RTM - I got caught up with that a few months ago around the time another uranium stock of mine started to soar (PDN) and thought I could replicate some success. Got my hands burnt, because I think there is more happening behind the scenes than is obvious. I would stay away until you had some cash to 'experiment' with.

PNA - alos have some of this but again it is one of my gamblers, so not much money into it and it is money that wont hurt me if it goes bad.

Anyway, hope you enjoy the experience and have success.

 

[Rob_ee]

I would have starated a new thread under "My First Trade" heading in the general disscusion forum but for the life of me I could not see a "Post new thread link anywhere ???? Am I dumb or blind or what ??

Anyway bit the bullet today .. I now have a trading strategy in mind which I will follow no matter what doubts or fear may creep in along the way.

So my 1st trade ... (fanfare etc...)

RTM variously described as a dog etc but fitted perfectly with my devised trading strategy.

Bought today at .048 and firm exit at .038 (at worst) with a trailing stop (upwards only) should this follow in the steps of the other big gainers recently

Next in line for purchase will be YML if it drifts sideways for a (period) of days and goes upwards again ... buy at .335

My other original picks PNA and MAH aren't heading in the right direction at the moment so I may buy other stocks that meet the plan.

Have been sorely tempted to buy into the likes of EXT and MLS which have been much disscussed recently but they are going in the wrong direction to what I am looking for.

Also want an OIL stock ..which will be IPM when it matches my buy signal.

Had to start somewhere , hopefully this BULL market won't come crashing down to soon, I look forward to this trading caper

Cheers guys
Rob

 

[greenfs]

Looking good on YML

 

[tech/a]

Funny you should mention RTM - I got caught up with that a few months ago around the time another uranium stock of mine started to soar (PDN) and thought I could replicate some success. Got my hands burnt,

How on earth did you do that!
RTM has increased in price more than PDN over the same period October till now.

With all due respect---
May have more to do with the management of trade/s than anything behind the scenes.