Investing my first $1500

[nioka]

New Years Eve is probably a good time to review how this exercise has ended the year.

The EKA 4000 @ 0.335 = $1340
The TXN 1715 @ 0.675 = $1158
total value = $2698.

Conclusion. Definitely worth starting with only $1500.

However it is not without some risk. Not all the stocks I hold have had a positive result over the same period. Some stocks I hold have done much much better. With a small investment it is not possible to spread the risk so it is better to have a well researched stock that shows probable gains with little risk rather that possible gains with greater risk.

I'll continue during 2011 with the aim still to add other stocks so that we end up with the risk spread over 5 different stocks. When the 5th is chosen the portfolio will be worth $5000 minimum and No 5 will be a speculator.

Happy and prosperous New Year to all.

 

[IB12]

New Years Eve is probably a good time to review how this exercise has ended the year.

The EKA 4000 @ 0.335 = $1340
The TXN 1715 @ 0.675 = $1158
total value = $2698.

My Christmas presents shopping was more than $698.

 

[againsthegrain]

Xmas presents what a waste of money lol they all just get returned on boxing day

 

[nioka]

My Christmas presents shopping was more than $698.

Great.Bully for you. However if you had have $1500 saved up for Xmas earlier in the year and you put it in the bank you would have had about $1550 to spend on presents. Had you invested it then you would have had $2698 to spend.

I doubt that the original request "is it worth while investing only $1500" really had xmas presents in mind but rather along term savings through investing plan and it was probably by someone that wouldn't have had a lot of money to spend on Xmas presents.

 

[burglar]

My Christmas presents shopping was more than $698.

I thought we were talking 'bout "Compounding the gain" not spending it!

 

[nioka]

New Years Eve is probably a good time to review how this exercise has ended the year.

The EKA 4000 @ 0.335 = $1340
The TXN 1715 @ 0.675 = $1158
total value = $2698.

Conclusion. Definitely worth starting with only $1500.

Update and review. 4000 EKA @ 0.385 $1540
1715 TXN @ 0.795 $1363
total value now $2903.

So since July 5th we are coming close to doubling the money in 8 months. Plenty of upside with both of these stocks so I see no reason for any change yet.

From little things big things grow. If you never sow seed you never reap a crop.

I wonder what happened to the originator of this thread!.

 

[nioka]

Update and review. 4000 EKA @ 0.385 $1540
1715 TXN @ 0.795 $1363
total value now $2903.

So since July 5th we are coming close to doubling the money in 8 months. Plenty of upside with both of these stocks so I see no reason for any change yet.

From little things big things grow. If you never sow seed you never reap a crop.

I wonder what happened to the originator of this thread!.

Posted the above a day too early. We have, on todays quotes, passed the 100% landmark.
EKA 4000 @ 41c plus 1715 TXN @ 85c = $3098.

 

[burglar]

... passed the 100% landmark. ...

Well Done!
Keep up the postings!!

 

[mytoniix]

any updates?

 

[nioka]

any updates?

Interesting stage. EKA down 2c today on the previous calculation for value.

TXN. An SPP gives all holders a chance to buy up to $15,000 of new shares at 65c, 10c cheaper than the current price. I have to assume that the investor with the original $1500 can't afford to take up the full offer. It is therefore a case of sell the EKA and the TXN, get as much as possible and buy back TXN at 65c with the proceeds. The record date for the SPP has passed so we qualify even if we sell.

There was the opportunity for more profitable purchases if funds could be obtained. My policy is not to borrow for investing so I will restrict what we can do to the current funds being used.

Watch this space.

 

[Pemburu]

Hello all,

Complete virgin trader here
Have been following this thread for some time now whilst also reading up on share trading related material. Firstly kudos to Nioka for demonstrating to people like me that it can be done. Im sure your experience gave u the foundations for you to make informed decisions, which has contributed to the positive gains.

Im in my mid 20s, i know many people like myself that have small amounts of disposable income with absolutely no idea or knowledge of what to do with it (Personal finance studies in the Australian education system really suck imo).

For nooobies like myself who dont have this experience to draw on, informed
posters on here and other sites have been invaluable, however i also am beginning to believe that whilst informing oneself is good, i will not accelerate my learning by continually reading books.
So today i made the decision its about time i jump in the deep end (or more realistically, dip my toe into the baby pool). Have to get started somewhere!

I have a very rough trading plan in mind, im sure it will evolve with time and experience. I will attempt to use a hybrid blend of F/A and T/A mixed with alot of instinct to select one stock that has potential to grow. Limited criteria for selection include
-a share price >20c (to maximise exposure to price movement and potential returns)
-a company that has impending announcements with the assumption (hope!) that these announcements will result in positive movement.

Will be purchasing when i find the right company to back.

I like the idea of closing for profit and reinvesting that profit into another company to spread risk so i will do that should my initial choice be profitable.

Just thought id share this with the forum as my mindset has now changed from researcher to wannabe active participant so im now looking at information with a different eye.

Exciting times ahead!

Cheers

 

[nioka]

Pemburu,

Welcome to the real world. Be carefull, be patient and hopefully successful.

 

[LiL_JaSoN]

Pemburu,

I was in the same situation as you, im now 21 and have a portfolio of shares.

give the simulator games ago such as the ASX game or the stockwatch game.

 

[isplicer]

In pretty much the same boat as you Pemburu =). All the very best of luck, and keep on soaking up the huge amount of knowledge/literature that's available to us on this forum (and on the internet, and the library).

 

[Julia]

Hello all,

Complete virgin trader here
Have been following this thread for some time now whilst also reading up on share trading related material. Firstly kudos to Nioka for demonstrating to people like me that it can be done. Im sure your experience gave u the foundations for you to make informed decisions, which has contributed to the positive gains.

Bear in mind that Nioka is a very experienced investor and that you may not necessarily find it so simple to replicate his profitability.

I have a very rough trading plan in mind, im sure it will evolve with time and experience. I will attempt to use a hybrid blend of F/A and T/A mixed with alot of instinct to select one stock that has potential to grow. Limited criteria for selection include
-a share price >20c (to maximise exposure to price movement and potential returns)
-a company that has impending announcements with the assumption (hope!) that these announcements will result in positive movement.

And what is your plan if the company brings out instead a negative announcement?
Say this happens and the SP suddenly falls below your buy in price?
What are you going to do?
Do you still believe in this supa dupa company so strongly that you will, like many before you, hold because you think its fundamentals are excellent?
Or will you be disciplined enough to get out with a minimal level of loss?

Imo, until you have answers to these questions you shouldn't be risking your money.

Will be purchasing when i find the right company to back.

Will you share this excellent company with us when you find it?

 

[Assasin]

Pemburu,
without giving advice, I'd start your research with the 2 stocks Noika is working with here.
Good Luck.

 

[nioka]

Update.
Sold the existing TXN @ 80c today, net yield $1343.05. Add to the EKA return of $1550.05 last week. This will purchase 4441 TXN which are now @80c (as compared to the SPP price of 65c). Value will be $3552.80. When the TXN are available to trade I will sell off TXN to the value of $2000 and invest in two other stocks for $1000 each.

 

[stacks]

Update.
Sold the existing TXN @ 80c today, net yield $1343.05. Add to the EKA return of $1550.05 last week. This will purchase 4441 TXN which are now @80c (as compared to the SPP price of 65c). Value will be $3552.80. When the TXN are available to trade I will sell off TXN to the value of $2000 and invest in two other stocks for $1000 each.

Really enjoyed this thread, as I'm also in the beginners boat. Been vry interesting following your trades nioka.

One question though, prob a silly one, but why would you sell TXN @ 80c today, then buy back @80c once you have combined with EKA profits?

Why wouldnt you just keep the TXN shares then buy extra with EKA profits?

 

[nioka]

One question though, prob a silly one, but why would you sell TXN @ 80c today, then buy back @80c once you have combined with EKA profits? QUOTE]

The buy back is at 65c, the company offered existing shareholders the opportunity to subscribe to a Share issue at 65c up to a value of $15,000. As I stated earlier I have to assume that this investment does have no extra capital to invest so will sell/have sold the current holding to fund a partial buy of the issue. SPP's regularly come up for developing companies as they require more capital and are often issued to current shareholders at a discount. In this case the new capital doesnt dilute the existing value because the funds are being used to expand the companies leases and activity.

 

[stacks]

Right, gotcha, thanks