Introducing myself - new trader

[Gunandthewink]

Hi guys. I've started trading on comsec quite alot recently. I'm 20 years old and doing a commerce degree at uni.

In about 3 weeks - Currently i'm sittting with about 37k in the market, with holdings in

Telstra
Iluka
Worleyparsons
Tabcorp
asx
computershare
Fleetwood
CFX

.. I started off with a share pack, then realised I didn't really want stocks with franked dividends (I don't think I'll be much higher than the threshold, so it makes sense to me to get unfranked dividends and pay tax on them through my income threshold?

Anyway I've made a couple positive trades as well, which as been good.

sold arrium at 80c, got around 14% out of it,
sold EPX for a healthy profit of around $300, or like 7%? ish
axxium at around 13% (since gone up like 350%)
and a couple other small profits, no smaller than $100 (I don't want to be chewed up by brokerage, but I have around $400 ish credit left).

Needless to say, im starting to worry about capital gains tax. Ilukai s looking really good and I wouldn't mind realising them if they creep a little higher, and over the course of the year I'd have to pay capital gains on that? Is it llegal to just dividend strip at the end and realise like a $5000 loss or something?

Also, is it wise for me to continue in equities? Or is it better to use your capital in some other way? I've been told to consider CFD's (but i'm wary) or options.
I want to get my brokerage % down, so i've started trading at like $8000 per share... Though I've heard HSBC may be cheaper than commsec?

Also, if anyone could reccomend any readings that would be fantastic. ultimately I'm someone who'd love to dedicate 30-40 hours a week to reading/analysiing - and ultimately buying and selling. However at the moment I'm essentially just throwing darts at a board, striking luck a few times. I try do fundamental analysis on stocks I buy etc, yet only in the most basic sense.

 

[Steve C]

Welcome,

I am sure others will address your other points but in terms of brokerage fees, you can't go past CMC Markets Stockbroking. They only charge $9.90 per trade, which makes them a lot cheaper then Commsec.

Steve

 

[McLovin]

.. I started off with a share pack, then realised I didn't really want stocks with franked dividends (I don't think I'll be much higher than the threshold, so it makes sense to me to get unfranked dividends and pay tax on them through my income threshold?

If you receive less than $5k in franking credits, which is equivalent to $11,666, you will receive all the franking credits back from the ATO. Regardless of your marginal tax rate.

Needless to say, im starting to worry about capital gains tax. Ilukai s looking really good and I wouldn't mind realising them if they creep a little higher, and over the course of the year I'd have to pay capital gains on that? Is it llegal to just dividend strip at the end and realise like a $5000 loss or something?

If you are trading and not investing then any gains/losses you make will be consdered ordinary income and not eligible for the CGT discount (50% of your marginal rate). You'd probably want an accountant to give you some advice on whether or not you are considered a trader or investor. A good rule of thumb is how you derive income, from capital gains (trader) or dividends (investor). It's not illegal to dividend strip but it is illegal to do a wash sale for the purpose of tax minimisation.

IANAL, so do your own research etc.

 

[Kee37]

How do you have near on 40k cash at 20 years old?

Also IB are only $6 for commissions but you forgo the interest earned on the carry account which you keep your cash in, up to you i suppose.

Also if you're at uni ignore all the designated textbooks and go searching in the Finance/Equities section of your library, they have some great Technical/Market Psychology books which you'll never found being taught but are well worth a read.

 

[small dog]

Hi, everyone,

I am planning to return to training after more than a decade of hiatus. I used to trade South African index futures, on a decent level. My friend had a brokerage, and we ran a small hedge fund. My job was the development of mechanical trading systems - I started with Metastockand then moved TradeStation.

So I want to get back to trading and am considering either SPI futures or Forex. I am not dismissing the idea of S&P Mini either.

My main issue is the choice of data vendor (I need tick data) and testing software. What would you recommend?

 

[jjbinks]

What time frame?
I think quite a few people use interactive brokers for data for quite a few markets. (SPI futures and Forex shouldn't be an issue AFAIK). Not sure though about cost side of things.

 

[bfhoon]

Welcome,

I am sure others will address your other points but in terms of brokerage fees, you can't go past CMC Markets Stockbroking. They only charge $9.90 per trade, which makes them a lot cheaper then Commsec.

Steve

Welcome aboard im new myself and may be able to help you out and get a question I have answered at the same time.

I use Selfwealth they charge $9.90 per trade no matter the volume. I was recommended to use it from a few on this forum

What I dont get though as I went to buy some shares today in EML i had the value set to $2500 which would give me 1068 units. The prices below

Bid $2.21
Offer $2.22
Last Price $2.22
Then they have a little * Estimated value is offer price +$0.111 per unit buffer for market.

Does this seem correct seems like I loose out big time to the value of $118 plus the $9.50 brokerage. ???

Good luck with your investing time is on your side

 

[willoneau]

Welcome aboard im new myself and may be able to help you out and get a question I have answered at the same time.

I use Selfwealth they charge $9.90 per trade no matter the volume. I was recommended to use it from a few on this forum

What I dont get though as I went to buy some shares today in EML i had the value set to $2500 which would give me 1068 units. The prices below

Bid $2.21
Offer $2.22
Last Price $2.22
Then they have a little * Estimated value is offer price +$0.111 per unit buffer for market.

Does this seem correct seems like I loose out big time to the value of $118 plus the $9.50 brokerage. ???

Good luck with your investing time is on your side

Is it a market order or limit order?

 

[willoneau]

From Selfwealth
Can the Trading Cash Account be overdrawn?
Members cannot overdraw their cash accounts when placing a Limit Order. To avoid funds being overdrawn in the Trading Cash Account when placing a Market then Limit Order we have implemented buffers for Market movement. < $0.01 – 20 % buffer for Market movement < $0.11 – 15 % buffer for Market movement < $1.00 – 10 % buffer for Market movement < $50.00 – 5 % buffer for Market movement > $50.00 – 2.5 % buffer for Market movement Failed trades would be at the expense of the Member.

Also Commsec charges $9.90 under @10,000
Also noticed Selfweath don't pay interest on cash in account unless over $100,000 not checked Commsec though.

 

[bfhoon]

Is it a market order or limit order?

It was a market order should I be choosing something else ... I don’t understand the post above either on why they charge it.

 

[willoneau]

Market orders can be filled at any price,
I suspect that the $118 is the buffer allowed that you might pay for the shares above your order.
(need extra $118 in account to cover possible higher cost when market order)
Limit orders get the price you want but might not be filled or only partial.
No idea what they mean by failed trade when market order unless to do with account cash limits, all to do with overdrawn account.

 

[daily_juice]

Hi guys. I've started trading on comsec quite alot recently. I'm 20 years old and doing a commerce degree at uni.

In about 3 weeks - Currently i'm sittting with about 37k in the market, with holdings in

Telstra
Iluka
Worleyparsons
Tabcorp
asx
computershare
Fleetwood
CFX

.. I started off with a share pack, then realised I didn't really want stocks with franked dividends (I don't think I'll be much higher than the threshold, so it makes sense to me to get unfranked dividends and pay tax on them through my income threshold?

Anyway I've made a couple positive trades as well, which as been good.

sold arrium at 80c, got around 14% out of it,
sold EPX for a healthy profit of around $300, or like 7%? ish
axxium at around 13% (since gone up like 350%)
and a couple other small profits, no smaller than $100 (I don't want to be chewed up by brokerage, but I have around $400 ish credit left).

Needless to say, im starting to worry about capital gains tax. Ilukai s looking really good and I wouldn't mind realising them if they creep a little higher, and over the course of the year I'd have to pay capital gains on that? Is it llegal to just dividend strip at the end and realise like a $5000 loss or something?

Also, is it wise for me to continue in equities? Or is it better to use your capital in some other way? I've been told to consider CFD's (but i'm wary) or options.
I want to get my brokerage % down, so i've started trading at like $8000 per share... Though I've heard HSBC may be cheaper than commsec?

Also, if anyone could reccomend any readings that would be fantastic. ultimately I'm someone who'd love to dedicate 30-40 hours a week to reading/analysiing - and ultimately buying and selling. However at the moment I'm essentially just throwing darts at a board, striking luck a few times. I try do fundamental analysis on stocks I buy etc, yet only in the most basic sense.

I signed up to Stake so I could trade on the S&P and save on $$$ on comms. No comms is great however there are only 3800 stocks currently avail on their platform (and no options). Also the charting is pretty limited so I've been using it purely to buy in and out of positions and use Tradingview for my charts. I am now planning to make the switch to Interactive Brokers which was suggested to me by someone on this forum. I'll prob paper trade on this platform to get used to it initially and then apply my bank when ready.