New to the stock market: Where do I begin?

[Blakamo]

A New Beginner Arrives

Hey all, my name is Alec. Or as you may call me, Blakamo.

I'm a definitely a newbie to the stock market, and i'll even add something to that. I'm an unripe 16 years of age.

I understand it's rather rare for a person of my age to be interested in this sort of thing, as most kids my age would rather work jobs at Mcdonalds and sorts.

However I'm just far too intrigued by the stock market to just leave it alone.


About a week ago, I had been browsing through the ASX and eventually found a gold company i wanted to invest in (this was my first time ever). I wanted to invest a modest 1000 dollars into the company, however I had to wire the money into my trading account before I could do so (which would take 1 day) . Unfortunately, the next morning i woke up, i was awakened by a huge positively vertical line on the chart, indicating that I had just missed out on a profit. It would have been a 220 dollar profit. Not bad for a 1k investment.

Frustrated, I felt like I had to make up for it. However the more and more I researched, the more I found out just how uneducated I am about the system. (reading through a large array of threads on different stock market forums).


I know this may seem like a very dejavu-ish post, as many beginners post this sort of thing. But where should I start? Should I completely avoid investing real money into the stock market? Please do not tell me to 'drop it' and just study hard for school 'for now'. I can't help it. If i'm not going to invest real money, at least tell me a way to learn how to learn terminology and to get good at this trade. I want to become an expert at this. I know I dont know much, but we all started somewhere.



Excuse me for the long post, thank you.

 

[supermatt]

Re: A New Beginner Arrives

that vertical line couldve been a $220 loss also. It's easy to get caught up on winning only, given a couple of $220 losses would wipe out half your account. Then what if you're at school and you need to close out of the trade but cant and it keeps landsliding down further? This is more of a short term trading perspective. I guess if you're investing so to speak you wouldnt care as much. But sounds like you want to trade

is your interest mainly in stocks? have you thought about forex? The reason I ask is because stocks with $1000 is crazy. You could do forex and just do micro or mini lots and use $1000 with no worries to start with.

Additionally forex could be good for you because you get free charts, data and low commisions plus you can trade when you get home from school. screw study or most kids these days have iphones and you could trade on that.

just a thought

 

[CanOz]

Re: A New Beginner Arrives

Whoa there SuperMatt....first of all being 16 years old i think Blakamo should make sure he consults with his parents before doing anything.

My advice would be to save up for the next couple of years and get your folks to open a demo account for you at a broker, FX is the easiest. That way you can learn and have a cheap platform to use.

Maybe if you stay interested you can get a copy of Amibroker for yourself, or NinjaTrader EOD and start to learn more about TA and systematic trading.

Lots of learning that you can do on ASF, and i wish i was in your shoes!

Feel free to ask anything, check over the threads before starting a new one and enjoy the learnig process.

Resist the emotions, especially the feeling of missing out. The markets will always be here with the chance of gain or loss.

Take your time.

Welcome aboard!

CanOz

 

[supermatt]

Re: A New Beginner Arrives

I was having abit of light hearted fun. He said he didnt want the usual yea stick to studying stuff so I gave it to him. I started his age and I know what its like to have the typical lecture on forums about you dont know what you are doing. At 16 I sure wasnt asking my parents for permission to do alot of things and Alec sounds like a switched on lad, he is on a stock forum at 16 which should say alot
But yeah if you have that sort of relationship with them by all means discuss it. But more so discuss the gambling mentality of the game and how to control yourself so you dont lose a stack of cash

I think the suggestion that canoz made about a forex demo account would be the best move you could do. Play demo for a while and go from there. I think you have to be 18 to open up a live account with most forex brokers (but dont quote me on that)

 

[Blakamo]

Re: A New Beginner Arrives

that vertical line couldve been a $220 loss also. It's easy to get caught up on winning only, given a couple of $220 losses would wipe out half your account. Then what if you're at school and you need to close out of the trade but cant and it keeps landsliding down further? t

EXACTLY what I was thinking. Most people would have thought at my age that - Oh!, i could have made 220 dollars overnight! Im a bloody genius! stocks is easy money!

But even though I could have made a lot of money, I still could very realistically imagine that line going DOWN instead of UP. Then what would I have done? Believing that I would be this successful with every company I choose, would be delusional (not to mention my almost non existent knowledge of shares).

I really had no idea what to do, so I thought i'd ask you guys what's best.

 

[Blakamo]

Re: A New Beginner Arrives

Whoa there SuperMatt....first of all being 16 years old i think Blakamo should make sure he consults with his parents before doing anything.

My advice would be to save up for the next couple of years and get your folks to open a demo account for you at a broker, FX is the easiest. That way you can learn and have a cheap platform to use.

Maybe if you stay interested you can get a copy of Amibroker for yourself, or NinjaTrader EOD and start to learn more about TA and systematic trading.

Lots of learning that you can do on ASF, and i wish i was in your shoes!

Feel free to ask anything, check over the threads before starting a new one and enjoy the learnig process.

Resist the emotions, especially the feeling of missing out. The markets will always be here with the chance of gain or loss.

Take your time.

Welcome aboard!

CanOz

That's odd I read somewhere that FX was the riskiest...

 

[TMC93]

Re: A New Beginner Arrives

Try signing up with the next ASX sharemarket game. Its virtual money and only allows players to invest in the top 200 or so shares but it will give you an idea on handling a portfolio. If you're any good you may even win some actual cash prizes!

The younger you start investing the better edge you have over everyone else your age. Most people will laugh at you or look down on you once you tell them your age but if you have an interest in the stock market and enjoy trading, you already have an edge over everyone else that does it purely for the money. Its not about how much you earn, its more about how much you save and whether or not you can keep it or even better make it grow.

Browse the forums as it's a wealth of information, in addition, draw your own conclusions from what you read on the internet

 

[supermatt]

Re: A New Beginner Arrives

That's odd I read somewhere that FX was the riskiest...

its less risky than stocks for a beginner ASX punter because you can control your risk better with low commissions plus order structures. You hear its risky because countless newbie types enter the market with absolutely no knowledge and put half their life savings in there and start placing standard lot size orders and blow their account in a week.

im not endorsing fx but its no riskier than any type of trading on any market.

 

[burglar]

Re: A New Beginner Arrives

... I had just missed out on a profit. It would have been a 220 dollar profit. Not bad for a 1k investment. ...

So you sell and make $220 profit.
You pay the broker, the tax man, the phone co., the ISP and the newsagent.
I am assuming you are still in front!


What do you do with the rest of the day?

 

[CanOz]

Re: A New Beginner Arrives

That's odd I read somewhere that FX was the riskiest...

How do you define risk? Leverage? Size? Margin?

Risk is the amount you are prepared to lose in order to realize a profit.

On a paper trading account it's all the same and that's exactly where you should spend your time until you can double that account in thirty days.

That's just a start...

CanOz

 

[burglar]

Re: A New Beginner Arrives

It looks like we are are hard on young starters.
But the opposite is true.
We like to see you start, survive and eventually flourish!

 

[Blakamo]

Re: A New Beginner Arrives

Ok guys. Since I have read your posts sometime ago, I have started to research Forex!


So far I have learnt about Sentimental, Technical and Fundemental analysis (which I have an urging feeling is extremely basic information). Although I'll have to admit, a lot of it was kind of common sense.

I've also been learning about the Fibonacci Theory and whatnot, not sure if that's something everybody knows but I think its common knowledge also. I have to say it's rather confusing.

I sort of also learnt about pips and pipettes... but that confused the hell outta me haha


that's all for now!

 

[0808088888]

Newbie needs some serious help T_T

Hello guys, I just turned 18 and want to start investing on stock market but......
I dono anything about it
I need to know where I can buy stock online and offline(I live in Melbourne)
What phases are used in stock market that I might need to know as a begginer
and what basic strategy may I try as starter

Please help me thanks!

 

[tech/a]

Re: Newbie needs some serious help T_T

You'll find everything in ARCHIVES spend the hrs looking.
Use the search function.

 

[burglar]

Re: Newbie needs some serious help T_T

You could start here:

https://www.aussiestockforums.com/forums/showthread.php?t=18775

 

[gcampton]

Re: Newbie needs some serious help T_T

Hello guys, I just turned 18 and want to start investing on stock market but......
I dono anything about it
I need to know where I can buy stock online and offline(I live in Melbourne)
What phases are used in stock market that I might need to know as a begginer
and what basic strategy may I try as starter

Please help me thanks!

Firstly I'd say start with the ASX website they have good tutorials covering all learning styles (visual, audio, active) and cover every type of stock/bonds etc. questionares at the bottom of every learning patch. Then after you've spent a few hours readin that, then come back here and read up.

 

[prawn_86]

Re: Newbie needs some serious help T_T

Thread closed. Use the search function and links provided in this thread.

 

[moorey2332]

Advice would be great

I am very new to all this. Im 24 and a surveyor, working in mining construction and about to take 2 years off to travel before becoming an adult.
I have decided that I'd like to have the money that I have earnt doing more for me than just sitting there in the bank. I currently have some money invested through a SMA (I have had it invested for just under 2 months and its grown by about 5.5% which is much better than I expected but I realise its not always going to be like that).

I have no experience and very limited knowledge when it comes to companies and investing, these being the reason I went with an SMA over directly investing. I am trying to read everything I can online and in the papers to try to get some understanding. My plan is to be able to actively invest some day in the next few years. Does any have any info they could pass on for any of the following?

1. Best ways to learn about investing styles and approaches.
2. What computer programs/advice are worth paying for, for someone who is doing their investing on a reasonably small scale?
3. Anything else you would feel is important.

Thanks in advance.
moorey

 

[burglar]

Re: Advice would be great

.... 3. Anything else you would feel is important.

Thanks in advance.
moorey

Advice is not allowed, but we may express an opinion.
Here is a great thread to start with.

https://www.aussiestockforums.com/forums/showthread.php?t=14370

 

[moorey2332]

Re: Advice would be great

Thanks for that. By advice I was meaning information and places I can learn etc. Not actual stock advice.