Needle in the haystack

[today53]

Hi all,

just like to get some tips from you all on how did you pick out your first share(s) to research?

Well, with so many stock listed, it is impossible to research all of them before put the money in, so how did you choose which ones to research?

cheers

 

[Jesse Livermore]

With so many stock listed, it is impossible to research all of them before put the money in, so how did you choose which ones to research?

Why not start comparing companies within their respective industries?

Jesse Livermore

 

[michael_selway]

Hi all,

just like to get some tips from you all on how did you pick out your first share(s) to research?

Well, with so many stock listed, it is impossible to research all of them before put the money in, so how did you choose which ones to research?

cheers

i guess u can look at ASX200, and see how each has doen in the past few yrs, then choose the ones u think are likely to imrpove in the future etc. yeah does take time and some luck iniatally

 

[Jesse Livermore]

Why not start comparing companies within their respective industries?

This graphic outlines 2 basic approaches to investment. the top-down approach might solve your predicament.

 

[nizar]

nice one jesse, i was just looking for sumthing like that to post...

 

[today53]

thanks for all the reply so far.

To be honest, I am still pretty confused.

I still don't understand how to choose the very first investment. With so many in the market, how is it possible for someone without any experience to point the finger on any. Unlike many people here, except some blue chips stock, all the others seem pretty mcuh the same to me.

I probably need to spend more time doing research on the market in general ,than paying too much attention to any particular stock at the moment.

 

[Julia]

If you are confused about the market in general, have you worked your way through all the material on the ASX website, www.asx.com.au.

There is a good deal of helpful info there for anyone unfamiliar with the ASX and general principles of investing..

I'd be the last to suggest using a full service broker, but it can be useful to pay a few of them a visit, on the basis that you are a prospective new client, and see if there is any common thread amongst what they suggest.
You do not need to make any commitment to actually becoming a client and most of us here would suggest you don't.

What you do also depends on how much capital you have to invest. You haven't given any indication of that.

Julia

 

[It's Snake Pliskin]

....I probably need to spend more time doing research on the market in general ,than paying too much attention to any particular stock at the moment.

True. But, your investment objectives ought to be thought out and then methods for achieving your goals sought out first.

The stock market was never devised for investors in mind. Its role is to provide capital for companies to expand with - thus it doesn`t owe you anything.

 

[tech/a]

Today.

I think your concern is more about the fear of loss when it comes to "Which Company do I select for my first trade"

Traders (as opposed to longer term investors) in particular have to deal with loss on a regular basis.
Being right is a common human response and you'll see it displayed by many in the markets (That they just have to be right).Its what you do when your wrong more so than the company you select as an investment or trade that will develope your future mindset.
Whether you select that Company Fundamentally,Technically or as a tip from a Broker or your local Taxi Driver.

 

[etrader1]

thanks for all the reply so far.

To be honest, I am still pretty confused.

I still don't understand how to choose the very first investment.

today,

I'm a newbie myself and just starting to learn the ropes of share investments. I have read quite a few books and if you want to start with the basics of selecting shares using fundamental analysis, including the top-down/bottom-up approach mentioned by Jesse below, and some basic tech analysis (graphs), I can suggest "Bullseye Investment System". It is in audio tape form (6 audio casettes) with an illustrated workbook included. Although the author is American, the principles apply to any sharemarket. I think it's a good starting point. These tapes are very cheap (bought mine for $15 on ebay and they are original). I would be happy to lend them to you including some investment books if you happen to live in the Melbourne suburbs.

This forum is a very good place to learn as well. Compared to the other forums that I've seen, the ASF is the best, most informative, and sometimes, the most hilarious too.

Goodluck.

Cheers!