Investing my first $1500

[tech/a]

Personally Id become an expert in 1 stock.

Overtime youll know all there is you can know on the price action and performance of your pet stock.

With the Resources tax now pretty well sorted I would suggest that you could do far worse than placing all your eggs in a sound emerging miner.

You will be in a position to out perform most.
You'll learn a heap in the process.

Be in a hurry to dump it if it falls 10% below your buy price and be reluctant to sell it if its above your buy price.

The best advice you'll ever get from a DUCK.

 

[nioka]

come up with a plan to save $10 000 and during that time learn about the market read the paper magazines and books from the library then ask everyone for advice again

Why?

It would be better to learn by risking $1,500 than to risk $10,000 learning!

As tech says become as familiar with one stock as you can. With $1,000 I doubt if you should try more than one anyway.

 

[tech/a]

Now I'm intregued by this exercise so thought Id pick a stock and trade an imaginary $1500 and see what we can do with it in 12 mths.

I expect this to trade an inside day so I wont be making out to buy this right now. But will post commntary as we go.
Stop is obviously .42c I'll only risk 10% ($150 based on fixed fractional position sizing) so at 51c I can only buy 1666 shares.(9c risk).

Will wait for a better value setup may even be able to reduce the trade risk.
Should be a bit of fun and maybe some very green newbies may pick up something useful.

The blue Boxes are VOLUME resistance.
The Heavy Blue line is Support at 44c.

CLICK TO EXPAND

 

[Slipperz]

Hello,

Id like to start buying shares but dont have the big bucks to do so. Is it possible to start with $500 - $1500?

Id like to buy a portfolio package where perhaps $1000 is invested in various companies.

Id also like to invest perhaps $500 in a particular company I see listed.
Is Comsec a good place to start?

Thanks

Good luck!

 

[Garpal Gumnut]

Lift up your mattress.
Place the $1500 in your hand.
Push your hand in as far as it will go.
Then push just a bit further.
Release the $1500.
Return after October and retrieve the money.
Read all posts in ASF since this post.
Pick a stock, and away you go.

gg

 

[JimBob]

With the Resources tax now pretty well sorted I would suggest that you could do far worse than placing all your eggs in a sound emerging miner.

There is a good thread on Iron Ore Junior Comparisons

https://www.aussiestockforums.com/forums/showthread.php?t=15921

it might be a good place to start researching if you decide to go down this path.

 

[nioka]

Now I'm intregued by this exercise so thought Id pick a stock and trade an imaginary $1500 and see what we can do with it in 12 mths.

A good challenge. I have one to turn $5,000 into $50,000. using BUL.

I'll take out another with $1,500 by buying EKA next week. I expect EKA to possibly be taken over in a short period of time. If so the proceeds will then be invested in AUT. It will be a real $1,500 and I will not use stops.The reason I will not use stops is that there is a good chance that this volatile market could stop out the stock when I would not want to sell. I retain the right to sell and reinvest in another stock at any time.

Follow me at your own risk as I'm often wrong.

 

[nioka]

A good challenge. I have one to turn $5,000 into $50,000. using BUL.

I'll take out another with $1,500 by buying EKA next week. I expect EKA to possibly be taken over in a short period of time. If so the proceeds will then be invested in AUT. It will be a real $1,500 and I will not use stops.The reason I will not use stops is that there is a good chance that this volatile market could stop out the stock when I would not want to sell. I retain the right to sell and reinvest in another stock at any time.

Follow me at your own risk as I'm often wrong.

Order Type: Buy Code: EKA Description EUREKA ENERGY LTD FPO (ORDINARY FULLY PAID) Executed Price ($): 0.19 Quantity Ordered: 7737
Quantity Outstanding: 0 Quantity Executed: 7737
Status: Complete Order Number: WB52901089

Bought the EKA at open cost with brokerage $1499.98.

 

[Garpal Gumnut]

You could look into managed funds instead of directly buying shares.

lol

Why?

Its like sending someone down to 7eleven to buy some coke.

You have no idea what they paid for the bottles and you have to pay them for the privilege.

yeah, a managed fund where you could make regular additional deposits may be something to look into. Keep in mind that a managed fund or blue chip shares may drop in price so you may end up with less that your initial deposit down the track.

It drops in price the moment you buy it.
Try selling 10 secs after buying.
and you wait forever for your dough.

Take some of the initial investment and buy some proper financial advice from a trusted professional (ask your family and/or friends for their recommendations), who with the particular details of your circumstances could recommend a product to suit you and your circumstances. You might end up doing something you hadn't considered, like borrowing to buy a capital guaranteed portfolio which could generate an income stream and has tax effects whilst minimising (but not completely eliminating) risk, or something other than carte-blanche buying a share portfolio.

Without being fully aware of your circumstances, employment, income, expenses, goals etc then, IMHO, you will be hard-pressed to get good information of the internet.





wabbit

This was the method employed by many in Townsville over the past ten years. They decided on Storm Financial. It was trusted. It was recommended by family and friends.

I believe Mr.Cassimatis is planning a return to Financial Planning, so wait until the dust settles on the litigation and give your dough to him.

He is much better at spending it than you.

gg

 

[CapnBirdseye]

Personally Id become an expert in 1 stock.

Overtime youll know all there is you can know on the price action and performance of your pet stock.

With the Resources tax now pretty well sorted I would suggest that you could do far worse than placing all your eggs in a sound emerging miner.

You will be in a position to out perform most.
You'll learn a heap in the process.

Be in a hurry to dump it if it falls 10% below your buy price and be reluctant to sell it if its above your buy price.

The best advice you'll ever get from a DUCK.

Sound advice and this exercise can be pretty interesting too.

Also, bear in mind that there will be plenty of tomorows... what I mean by that is that there is rarely any urgency to buy any particular stock - even off the back of good news. There is always another (and often better) day to buy.

 

[Wysiwyg]

Sound advice and this exercise can be pretty interesting too.

Sound advice if one gets the market timing right. Buying in a descending market is likely to see many stop outs. Stocks ranging + 10% would also see many stop outs.



* No feed back or acknowledgment from original poster so I doubt they were ever serious about it.

 

[tech/a]

Sound advice if one gets the market timing right. Buying in a descending market is likely to see many stop outs. Stocks ranging + 10% would also see many stop outs.

Very true in any long term investment particulaly this market (if your long)
UXC is still in the watchlist for the exercise and having just traded at resistance may present an opportunity later in the week.
It is locked in this consolidation which could well be accumulation.

So for me buying at the low end of the consolidation represents better value than the upper end.---Unless we have a solid breakout (Gap out).

So far our $1500 is still in tact.

CLICK TO EXPAND

 

[Wysiwyg]

Very true in any long term investment particulaly this market (if your long)
UXC is still in the watchlist for the exercise and having just traded at resistance may present an opportunity later in the week.

UXC announced the possible acquisition of another 'significant' party and are performing due diligence. The exuberance will be short lived for mine because this company is all talk and in a terminal downtrend. EPS from last half yearly report were 1.27c so the price is trading (too many ?) multiples of that already at 55c and they have stopped paying a dividend.

DUD.

 

[skinner36]

Tech,

Could you please explaine what you mean by volume resistance? I have searched the internet for an explanation but can't find one that clears it up for me.

Cheers,

John

 

[tech/a]

UXC announced the possible acquisition of another 'significant' party and are performing due diligence. The exuberance will be short lived for mine because this company is all talk and in a terminal downtrend. EPS from last half yearly report were 1.27c so the price is trading (too many ?) multiples of that already at 55c and they have stopped paying a dividend.

DUD.

You could be right. I dont care for fundamentals--like most things they can be manipulated.The exercise (for me at least) is to do better than bank interest/general market performance on $1500 in a year.

UXC was one that came up on that nights scan.

Tech,

Could you please explaine what you mean by volume resistance? I have searched the internet for an explanation but can't find one that clears it up for me.

Cheers,

John

Vloume resistance is a term/observation of mine. I havent seen it in a book either. If you look for EXTREME volume 4* or more the 10 period average
you'll probably make the same observation I have on many many charts.
Extreme volume as depicted on a single bar in timeframes from as high as weekly to hourly (in very liquid stocks or markets) are bars where a proice is seen as a point to liquidate or buy.
These bars tend to become support or resistance zones.The range of the bar.
The higher the volume the stronger the S/or R

** These zones remain in tact until the next high volume bar prints going forward.(Support remains until another support bar is printed and resistance until another is printed.) You remove the zone before it.

*** how do you identify support or resistance bars (Buying --support
Selling---resistance.)
If an up bar is followed by a down bar then that was selling (Resistance) if a down bar is followed by an up bar then that is buying (Support).

Often the tops or bottoms of these bars will become conventional support or resistance pivots.

****Zones are shown on the chart for identification purposes in realtime you would only have those zones now in play highlighted.

CLICK TO EXPAND

 

[nioka]

Order Type: Buy Code: EKA Description EUREKA ENERGY LTD FPO (ORDINARY FULLY PAID) Executed Price ($): 0.19 Quantity Ordered: 7737
Quantity Outstanding: 0 Quantity Executed: 7737
Status: Complete Order Number: WB52901089

Bought the EKA at open cost with brokerage $1499.98.

EKA now has a 1 for 6 SPP. This means the 7737 held entitles me to 1290 more shares @ 17c share, cost $219.30. For the exercise I will assume there are no more funds available so I will have to sell some after the record date to pay for the offer. The record date is 22nd and with T+3 I can sell after 19th and before 7th August. I will have to take up the offer by 5PM on 10th August.

So sometime during that time I will sell the 7737, pay the cost of the new offer and buy as many back as the funds allow. Hopefully by the end of this trading I will end up with more than 7737 shares.

An alternative would be to take todays high price of 21.5c and buy back as the shares become ex the SPP. This could be the way to go normally but with EKA there could be some good news any day that may send the SP up and up and I do not want to be out of holding the stock.

On todays price the holding is worth $1663.45 and showing a profit of 10% and at the rate of around 100% PA

Watch this space.

 

[BELFORT]

Just before anyone does, nobody is allowed to recommend any shares for you.

Anyhow, well done, you haven't jsut jumped in. I'd take $100 or $200 of that money and buy some good books. Have a look through this forum for reviews.

Read as much as you can, and try to get a handle on "fundamentals" and technicals".... google is your friend... jsut steer clear of (most if not all) people selling you courses... again you'll find about those in this forum.

Lastly, before you dive in, work out what your goals are, timeframes and risk profile...

Good luck!

Cannot stress how important the above post is.

I jumped into the market blind and got burnt badly! Read as much as you can, these forums are very useful too! Just remember, doing your own research is important - don't get sucked in my other posters comments re a specific stock and pie in the sky valuations. You can never trust someones intentions on a forum.. Not so much here, but on another 'reputable' forum you will have to scroll through pages of rubbish valuations with no backing whatsoever before you find a decent post!

And never even consider a stock that is in the 'most discussed' section of a forum! Its often too late

 

[nioka]

EKA now has a 1 for 6 SPP. This means the 7737 held entitles me to 1290 more shares @ 17c share, cost $219.30. For the exercise I will assume there are no more funds available so I will have to sell some after the record date to pay for the offer. The record date is 22nd and with T+3 I can sell after 19th and before 7th August. I will have to take up the offer by 5PM on 10th August.

So sometime during that time I will sell the 7737, pay the cost of the new offer and buy as many back as the funds allow. Hopefully by the end of this trading I will end up with more than 7737 shares.

An alternative would be to take todays high price of 21.5c and buy back as the shares become ex the SPP. This could be the way to go normally but with EKA there could be some good news any day that may send the SP up and up and I do not want to be out of holding the stock.

On todays price the holding is worth $1663.45 and showing a profit of 10% and at the rate of around 100% PA

Watch this space.

"Attached is an electronic confirmation confirming that we have SOLD for you 7737 units in EUREKA ENERGY LTD FPO (ORDINARY FULLY PAID) at 0.205 "

Sale yielded $1556.14. Setting aside $219.30 for the SPP. means that I have $1336.84 to rebuy EKA. I have placed an order for 6600 @ 19.5c and am at the head of the queue at that price. These trades are not as good as I had wished nor are they as good as a paper trade would show and my order may not get filled at the 19.5. Brokerage on these small trades is also costly. An SPP usually eats into profit short term but it does offer a chance to increase share numbers which is the name of the game with a fundamentally sound stock. I believe the EKA is fundamentally sound. Other trades I am doing in EKA with larger numbers and not having to sell to fund the SPP are showing much better results so far.

Watch this space, it is early days yet.

 

[Garpal Gumnut]

I still reckon sticking it under the mattress would have saved you a lot of bother and distress mate, and you'd have $1500. and its nearly August, and then September, and then October, when the markets will crash again imho.

gg

 

[nioka]

I had a seniors moment when I placed the order for 6600. The funds allow for the purchase of 6702 so I have altered the order for that amount. The closing date is Aug 10th. Watch this space.