My first stocks :D

[sydboy007]

I have only used 10K to spread around the 6 companies at the moment,when I get comfortable I can add to that.

I don't want to go over that amount at this stage,

I cant personally see any reason for dummy investments,bit like picking numbers in the lotto,not putting them on and finding out your numbers came up and you didn't buy the ticket.

Capital preservation is more important that capital growth.

If you start with 10K and lose 20% you're back to 8K.

To make it back to your original 10K you have to make a 25% return on what you have left.

Trust me when i say you are taking the expensive way to learn the market.

 

[burglar]

... I cant personally see any reason for dummy investments, ...

It stops noobs from losing precious "seed capital" whilst learning the ropes.

The market will always be there tomorrow.

 

[CanOz]

Its doesn't matter whether or not you are a technical trader/investor, or value investor...if you don't have a plan....you are a GAMBLER.

CanOz

 

[McLovin]

I had to look up what a contrarian means

You are right I don't follow the masses,I will always look a little deeper than most others and look at all options and sometimes I go on a gut feeling and I don't know why.I don't like to read financial reports like some people,I have a friend who always says the devil is in the fine print and spends all his time researching but by the time he is ready to buy a property,the bargain or opportunity is gone or he's talked himself out of it.

It hasn't failed me in property yet and hopefully I can use that same instinct and turn it toward the shares?

When I spotted CGH a couple of days ago I got that gut feeling very strong,hopefully I am right.
I am prepared for the journey and at the moment I am just trying to find shares that I can trade long term but in the meantime I am feeling the water.
(I got the same feeling with COH by the way.)

Buying shares is not like buying property. Property is about big macro themes whereas shares are more about company specific things and the price you pay. Most of your return in property is derived through leverage rather than any special insight, while the reverse is true in the sharemarket.

Reading your posts in this thread, I'd say the best thing to do would be to take some time to learn about shares and the market.

 

[Longjaw]

Buying shares is not like buying property. Property is about big macro themes whereas shares are more about company specific things and the price you pay. Most of your return in property is derived through leverage rather than any special insight, while the reverse is true in the sharemarket.

Reading your posts in this thread, I'd say the best thing to do would be to take some time to learn about shares and the market.

I beg to differ,shares are very similar to property and especially in my case where I always buy undervalued properties and hold long term.
I have several properties returning 40%+ consistently,most people could only dream of that and that is only achieved by being able to make a decision on the spot before the situation changes.

I am finding the shares a very similar experience,searching,looking for a bargain,pouncing,
I just bought some ASL shares today (A bargain to some,high risk for others)

I agree with you I do need to take some time to learn about shares, I still work full time and don't have a lot of spare time on my hands,when I am home my wife works and I have three small children to look after,
That's why I am buying a few shares just to give myself an interest,I am reading all the time now and I believe I am slowly learning.

 

[CanOz]

Buying shares is not like buying property. Property is about big macro themes whereas shares are more about company specific things and the price you pay. Most of your return in property is derived through leverage rather than any special insight, while the reverse is true in the sharemarket.

Reading your posts in this thread, I'd say the best thing to do would be to take some time to learn about shares and the market.

What the heck would you know McLovin....cocky, retired ex-investment banker, millionaire!

Shares = Property = I know what I'm doing

 

[Longjaw]

Its doesn't matter whether or not you are a technical trader/investor, or value investor...if you don't have a plan....you are a GAMBLER.

CanOz

I am definitely not a GAMBLER, never have been,never will,don't even bet on the Melbourne cup,maybe bought 2 lotto tickets in my life.

It is a bit hard for me at this time to have a plan as my entire experience with shares is 5 days total,

Ask me in 6-12 months and I might have a plan,

Thanks for caring

 

[burglar]

Capital preservation is more important that capital growth.

If you start with 10K and lose 20% you're back to 8K.

To make it back to your original 10K you have to make a 25% return on what you have left. ...

I don't know why I keep seeing this !!

20% of 10K = 25% of 8K = 2 grand
The amount you lose is them same as the amount you have to get back.
Regardless of how you abuse percentages!!

The most important losses are lost time and lost opportunity.

 

[McLovin]

I am definitely not a GAMBLER, never have been,never will,don't even bet on the Melbourne cup,maybe bought 2 lotto tickets in my life.

I think you need to face reality and understand that what you are currently doing is nothing more than gambling. For instance, can you explain why ASL is undervalued?

 

[prawn_86]

I don't know why I keep seeing this !!

20% of 10K = 25% of 8K = 2 grand
The amount you lose is them same as the amount you have to get back.
Regardless of how you abuse percentages!!

The most important losses are lost time and lost opportunity.

So it is just as easy to make 25% return as it is 20%?

If you lose the initial 20% you then need to make 25% to get it back. Yes its the same dollar amount, but from a lower base

 

[burglar]

So it is just as easy to make 25% return as it is 20%?

If you lose the initial 20% you then need to make 25% to get it back. Yes its the same dollar amount, but from a lower base

Exactly!! You have changed the base!!

 

[prawn_86]

Exactly!! You have changed the base!!

Thats the whole point

 

[Longjaw]

I think you need to face reality and understand that what you are currently doing is nothing more than gambling. For instance, can you explain why ASL is undervalued?

It is the same as in my job,we have had shutdowns over the Christmas periods and it hasn't yet picked up,but will in the near future.

The falling of the coal ,gold prices preventing the starting of new projects,this is short term and will pick up when these projects start back again,these people are involved in the leasing of mining equipment,cant make money when the machines are sitting idle or no ones leasing them.
Coal seam gas also being disrupted,

I have done a little bit of homework otherwise I wouldnt see it as a good buy.

As for gambling "Talk to the hand"

 

[burglar]

... I have done a little bit of homework otherwise I wouldnt see it as a good buy.

As for gambling "Talk to the hand"

Seems you have a plan of sorts,
or at least a narrative,
which will guide you through the minefield of the markets.

If you don't have a go,
you will be working for the man until retirement age.


What a prospect?!

 

[Longjaw]

Seems you have a plan of sorts,
or at least a narrative,
which will guide you through the minefield of the markets.

If you don't have a go,
you will be working for the man until retirement age.


What a prospect?!

I have never been one to work for the man.
Thanks for your support

 

[Lone Wolf]

I am definitely not a GAMBLER, never have been,never will,don't even bet on the Melbourne cup,maybe bought 2 lotto tickets in my life.

It is a bit hard for me at this time to have a plan as my entire experience with shares is 5 days total,

By your own admission you don't know what you're doing and have no plan.

You are risking money on an outcome when you have no clue what that outcome is likely to be. That is the very definition of gambling.

You might be gambling what you can afford to lose, or gambling for the purpose of gaining experience. But you can no longer say that you're not a gambler.

The last person to mention gambling to you was met with a "Talk to the hand" response. So I wouldn't have bothered saying this except that the most dangerous form of gambling is where the person doesn't realise they're gambling.

Don't worry, I'm only saying this once. I won't bother you with it again.

 

[Longjaw]

By your own admission you don't know what you're doing and have no plan.

You are risking money on an outcome when you have no clue what that outcome is likely to be. That is the very definition of gambling.

You might be gambling what you can afford to lose, or gambling for the purpose of gaining experience. But you can no longer say that you're not a gambler.

The last person to mention gambling to you was met with a "Talk to the hand" response. So I wouldn't have bothered saying this except that the most dangerous form of gambling is where the person doesn't realise they're gambling.

Don't worry, I'm only saying this once. I won't bother you with it again.

Hi Lone Wolf,
To gamble is to bet on an uncertain outcome, as of a contest.
To play a game of chance for stakes.
To take a risk in the hope of gaining an advantage or a benefit.
To engage in reckless or hazardous behavior: You are gambling with your health by continuing to smoke.
To put up as a stake in gambling; wager.
To expose to hazard; risk: gambled their lives in a dangerous rescue mission.
A bet, wager, or other gambling venture.
An act or undertaking of uncertain outcome; a risk: I took a gamble that stock prices would rise.


Since stocks are bought in the hope that they will increase in value, it is a form of gambling. Yes you are partly right but there are differences, however, between gambling at a casino or buying lottery tickets, and buying stock. Gamblers risk money, which they know they will probably lose, in the hopes of making money quickly. Wise investors buy partial ownership in a company in the hopes of making money over time, which can be a sound way to "plan" for the future.

The difference really comes down to intent. Some types of investing, such as day-trading, are very much like gambling. Anything that requires "luck" above wise decision-making and long-term planning should be avoided.
But in my case most long-term investments return a profit over time, making them much more like buying bonds or certificates of deposit than rolling dice in a casino. There are many who use investments to secure retirement, education for their children, and inheritance for their families.

I don't plan to day trade and the only plans I have is for long term,

Every person in the world takes some kind of risk when they open their eyes in the morning,makes their breakfast,travels to work,buys a car,buys a phone,buys a fridge,buys a pair of shoes,jewelery,with no clue what that outcome of the purchase is likely to be and the list goes on forever.
No amount of reading or study will ensure the outcome you would like or hope for.

Does it make 100% of the human race Gamblers,including yourself?

I know what you are trying to say and I am sorry you feel you have to try and belittle me on my first week here,and I hold no grudges as I know the long term people in a forum (As in my current property forum I am a long time member)get their kicks by baiting the new people,but please remember I am probably just as old as yourself,have children and grandchildren,already made my fortune and now is the time for some fun.
So please play nice

 

[galumay]

Giving that others have tried, and failed, I shall not try to help you understand the difference between investing and gambling. Given that others with much, much more knowledge than me have tried to help you understand some of the requirements to invest wisely - and you chose to brush off their advice, I shall not bother with that either.

If you already knew everything you need to make your second fortune in the sharemarket I am wondering why you bothered coming here in the first place?

 

[Longjaw]

Giving that others have tried, and failed, I shall not try to help you understand the difference between investing and gambling. Given that others with much, much more knowledge than me have tried to help you understand some of the requirements to invest wisely - and you chose to brush off their advice, I shall not bother with that either.

If you already knew everything you need to make your second fortune in the sharemarket I am wondering why you bothered coming here in the first place?

I didn't say I knew everything if anything about shares,if you read through all my posts I am willing to learn in good time,probably just a bit stubborn in my old age .My apologies for coming across like I have.

I understand it might have come across as I was being reckless but be assured the reason I chose the shares I did was because I actually did study them and believe I have chosen the right ones.

I have had a lot of success from Gas / coal in the past and there is probably no reason why it should stop now, it is not the path for the faint hearted and especially when you don't know anything about it,there is no doubt there is a slump but very good reasons for it.

I try not to clutter up my thinking with other peoples opinion,in the end if I fail it is all my fault.

I understand this forum is filled with some people with a vast knowledge of the sharemarket however I do not want to follow the path of a day trader using amibroker or metastock, I just want to buy a few shares in a few companies and see where it leads me.

Bit like playing golf,some do it for fun others take it too seriously,

At the end of the day if I feel that the company is not as good as I thought I can just sell,a lot easier than reliezing that after spending 4 million to subdivide some land no one wants.If you think its tough doing shares you should try property investing.

 

[Lone Wolf]

I know what you are trying to say and I am sorry you feel you have to try and belittle me on my first week here,and I hold no grudges as I know the long term people in a forum (As in my current property forum I am a long time member)get their kicks by baiting the new people,but please remember I am probably just as old as yourself,have children and grandchildren,already made my fortune and now is the time for some fun.
So please play nice

You feel I was belittling you. It may have come across that way but it certainly wasn't my intention. I'm not very good at this communication thing. Please accept my apologies.

Life is all about calculated risks. I was concerned that you were underestimating the risk involved in share trading. If I sounded blunt it was only because I wanted to make it clear that you are taking a risk by starting with real money but no plan.

You say you've already made your fortune. You also say you've only put in 10K so far. So your personal wealth is at very low risk due to only allocating a small percentage to this experiment. So in your case it doesn't really matter if you lose. My only further comment on risk to you is to be wary of the false sense of security that comes from being lucky. Fortunes have been lost by people who have a good run, think they have it all figured out, invest everything they have and lose the lot.

Some people come here doing what you're doing with only 10K to their name. It's important to make them aware of the risk because if they get off to a bad start it can be a major setback. It's for them who may follow your lead that we try to make the risk clear.

But in my case most long-term investments return a profit over time, making them much more like buying bonds or certificates of deposit than rolling dice in a casino.

What percentage make a profit over time? What hold time are we looking at? What criteria do you use to pick the ones that are likely to perform well over time? There are many people out there holding shares that are now worth substantially less then what they bought them for. They will be waiting quite a long time to see a profit, if they ever see one at all. That's why I consider trading without a plan to be a gamble, regardless of the timeframe.

You probably think I'm belittling you again. That's honestly not my intent. I get no kicks from picking on people. I have better things to do with my time than post on forums. I'm no expert and don't claim to be. But I know how to protect my capital. Just trying give back to the forum a bit by helping others protect their capital also. I don't trade the way you're looking to so I have nothing left to offer. Best of luck.