Newbie Lessons - All your questions answered

[jzell67]

It doesn't relate to the number of shares but to the dollar amount of the total. I don't actually know what average min buy is.
Check with your broker.

Thanks Julia. Im with CMC.

Ive placed three different buy orders and they all been rejected. Maybe thats a sign

One order was rejected for an invalid stock code??? WOW, woolworths???

I may give up...

 

[Trembling Hand]

Thanks Julia. Im with CMC.

Ive placed three different buy orders and they all been rejected. Maybe thats a sign

One order was rejected for an invalid stock code??? WOW, woolworths???

I may give up...

CMC broking or CMC CFDs? With the CFDs there is no minimum the last time I looked. You should check that you have permission to trade that market, ASX in WOW case, if you have a CFD account? And you will probably be slugged data fees to turn on the ASX.

Most brokers have a minimum purchase value of $500 if its CMC broking.

 

[jzell67]

CMC broking or CMC CFDs? With the CFDs there is no minimum the last time I looked. You should check that you have permission to trade that market, ASX in WOW case, if you have a CFD account? And you will probably be slugged data fees to turn on the ASX.

Most brokers have a minimum purchase value of $500 if its CMC broking.

CMC broking.

Signed up last week, got my trading password. I have had problems with it though and have had to get it reset four times already.

Thanks for the heads up re minimum $500. Must of missed that important info somehow.

Not sure whats wrong with the two conditional buys i placed with WOW and TLS. Both came back with invalid filter stock code....

Man im such a newbie.... :

Thanks for you help. Will call CMC on Monday. Im sure it will be something stupid ive done.

 

[boofis]

After completely reading this thread I just had to join in the chorus and say thank you to Sir O and all other more knowledgeable members who have contributed to the past 18 pages of gold.

 

[pixel]

Hi all,

Im not sure if i am suppose to post it here but i have a question regarding buying a share. I have recently bought KGL; and when i looked at the purchase price it was at an average of .205. But it never reached .205. Is this possible? i use comsec. Hopefully some one can help me!

Cheers

If you bought sometime after the 9th, there has been no trade at 20.5c; the only trades above 19c were executed after you posed the question. Assuming a standard brokerage of $33, including the brokerage would mean you could have bought no more than about 2000 shares:
2000 * 0.19 = $380, add $33 = $413 or 0.2065
When I was trading via Commsec (I no longer do) there was a minimum trade size of $500 if I remember correctly. So, something doesn't add up.
I'd like to know -

• How many KGL did you buy?
• Did you place the order "at market" or "at limit"?
• if the latter, what was your limit?

 

[pixel]

I own some KGL, and could swear it has been over 20c, a few weeks ago?

Shows a 12 month high of 22c on Commsec, BUT not on their charts.

Hi awg: That's the crucial point!
On November 15th, they announced a significant capital raising, 3 (new) shares at 13c for every five (old) shares held.
see http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01120574

That diluted the price significantly and led to a re-adjustment of the pre-SPP data to reflect the mix of 5 old and 3 new shares.
Old data are always adjusted in such a case, in order to be able to "compare apples with apples" as it were. The announcement refers to the pre-SPP vwap as 19c; looking at the current chart, that's about 3c above the average price NOW showing between mid October and mid November. So: If our friend had bought those 20.5c shares before the 15th November, it would make complete sense.

 

[wolfie3556]

Hi everyone. happy new year.

Sir O thank you so much for all the efforts you have put in to explain a fraction of your what must be a huge knowledge base.


I would like to thank all the others which have also made their knowledge available.

Hope in time i can be of help to others as well

cheers

wolfie

 

[Tyler Durden]

Hey all, I've just read this thread from beginning to end, and I must say WOW! Just wanted to say thanks to everyone for all the information, and in particular Sir O, for his time in helping everyone.

 

[spongetom]

Hi all, thought I'd post this here and save making a new thread...


Ive reached a point where Im in a good IT job and want to hit the books again and look into doing another degree. I'm tempted by a degree as opposed to self learning as I like the structured approach.

Ive been searching the main uni sites here in Melb, as well as Open Uni (which had limited choices) for a degree that would help me learn about personal investing such as shares, property, etc. and some general business sense to help in my new job where I am more customer facing than I used to.

Im thinking a coursework masters would be a good bet as it is shorter than doing a Bach degree. But Im getting lost as to whether I should read up on the Business, Commerce, Finance, Economics degrees or other.

Does anyone have any advice as to any standout courses that could be for me?

Cheers!

 

[sweetclassics]

Hi, I currently have 500k in cash and was planning to invest all of it on one bluechip company, either rio or cba..however when I was trying to get hold of the basic infos regarding the sharemarket, I found one site saying that you cannot spend more than 25% of your total portfolio on one company. So instead of spending 500k on a companies shares, I would have to settle with spending 125k instead.

Is this part of the ASX protocol, or just another rule of thumb suggested by brokers? Personally I think spending all my cash on one company would be much easier to manage as well as to make a profit from, instead of following 4 companies at the same time.

Any help would be appreciated, thanks guys.

 

[prawn_86]

Hi all, thought I'd post this here and save making a new thread...


Ive reached a point where Im in a good IT job and want to hit the books again and look into doing another degree. I'm tempted by a degree as opposed to self learning as I like the structured approach.

Ive been searching the main uni sites here in Melb, as well as Open Uni (which had limited choices) for a degree that would help me learn about personal investing such as shares, property, etc. and some general business sense to help in my new job where I am more customer facing than I used to.

Im thinking a coursework masters would be a good bet as it is shorter than doing a Bach degree. But Im getting lost as to whether I should read up on the Business, Commerce, Finance, Economics degrees or other.

Does anyone have any advice as to any standout courses that could be for me?

Cheers!

A degree will only give you the theory, which with regards to financial markets, never works in practice. I spent uni telling lecturers why the theories we were being taught did not work, and most of the time they agreed.

Hi, I currently have 500k in cash and was planning to invest all of it on one bluechip company, either rio or cba..however when I was trying to get hold of the basic infos regarding the sharemarket, I found one site saying that you cannot spend more than 25% of your total portfolio on one company. So instead of spending 500k on a companies shares, I would have to settle with spending 125k instead.

Is this part of the ASX protocol, or just another rule of thumb suggested by brokers? Personally I think spending all my cash on one company would be much easier to manage as well as to make a profit from, instead of following 4 companies at the same time.

Any help would be appreciated, thanks guys.

You can invest 100% into one co if you want, so its probably just a rule of thumb. Bear in mind that you will have a lot of risk if you are only invested in one stock. Why do you want to buy these 2 stocks? What doyou think their price will be in the future? Why? Have you consulted financial advisors? Is 500k a large amount for you?

Most importantly: Can you afford to lose the entire amount in a worst case scenario?

 

[sweetclassics]

A degree will only give you the theory, which with regards to financial markets, never works in practice. I spent uni telling lecturers why the theories we were being taught did not work, and most of the time they agreed.



You can invest 100% into one co if you want, so its probably just a rule of thumb. Bear in mind that you will have a lot of risk if you are only invested in one stock. Why do you want to buy these 2 stocks? What doyou think their price will be in the future? Why? Have you consulted financial advisors? Is 500k a large amount for you?

Most importantly: Can you afford to lose the entire amount in a worst case scenario?

well its cause I'm planning for a short term investment, maybe for a year or two. From my observation, every couple of months these companies gain or lose around 2% on their share price, which if I manage to capitalize on would easily gain me atleast 10% of my investment in a year.

I honestly can't see how i can lose all of my money in these companies, esp rio when the demand for its products show no signs of slowing down. But that being said, I am strongly considering to hire a full service broker just to minimize the risks.

And thanks for your clarification on the 25% thing, really helped me decide whether to get into the share market or not. Cheers

 

[burglar]

...I honestly can't see how i can lose all of my money in these companies, esp rio when the demand for its products show no signs of slowing down. ...

What if I bought RIO in November 2007 at $110.00?
Do you think I would be happy?

 

[sweetclassics]

What if I bought RIO in November 2007 at $110.00?
Do you think I would be happy?

well too spend 500k on a share that is at its peak in value, with the intention of selling it back not long after is kinda ignorant i think. What I mean currently, Rio's prospect is of a growing company after the economic slump and renewed contracts with the Chinese government etc, I'm fairly confident if I buy it now and sell it again in a couple of months I'll be able to pocket atleast 2% percent profit.

 

[burglar]

well too spend 500k on a share that is at its peak in value, with the intention of selling it back not long after is kinda ignorant i think. What I mean currently, Rio's prospect is of a growing company after the economic slump and renewed contracts with the Chinese government etc, I'm fairly confident if I buy it now and sell it again in a couple of months I'll be able to pocket atleast 2% percent profit.

See you're optimism

My son told me to buy RIO at $30
I said "What do you know, I bin doin' this for more than a decade."

 

[prawn_86]

well too spend 500k on a share that is at its peak in value, with the intention of selling it back not long after is kinda ignorant i think. What I mean currently, Rio's prospect is of a growing company after the economic slump and renewed contracts with the Chinese government etc, I'm fairly confident if I buy it now and sell it again in a couple of months I'll be able to pocket atleast 2% percent profit.

And what if you dont? Can you afford to lose a few %?

You dont know it is at a peak until you have the power of hindsight. What analysis are you relying on? What if one of thier mines is shut down due to an accident? What if Chinese raise interest rates and demand drops? What if IRan and the US, or the 2 Koreas go to war?

Point is, 500k is a massive investment for a first timer who by the sounds of it is just betting on a hunch rather than actually investing or trading with a defined plan.

You probably wont listen and if you 'win' this time you will do it all again but eventually it will come unsuck with no plan

 

[burglar]

And what if you dont? Can you afford to lose a few %?

You probably wont listen and if you 'win' this time you will do it all again but eventually it will come unsuck with no plan

All my life I had heard, "You can't lose money on BHP"
I was the first person in Australia to lose money on
the "Big Australian" as BHP was known in 1980.

Not big on Blue Chips ever since!

 

[863]

Seeing the vast knowledge base available here and also being a new trader, can I get some opinions on the shares EXR and FAR?, both of which I bought into early on.

I believe I made two good choices at this point and spent quite some time researching both, however I would like to know:

a) how to better predict the movements/peak of a price surge
b) where are some good places to try gain more knowledge and information on companies that some might not think to look
c) where can I find information about a company owning a stake in another ie one company performs well and it means great things for another
d) Does anyone have opinions and outlooks on these shares that could help me further

I hope these questions make sense and are not to ignorant, as I will probably have more at various stages

Thank you again for all the knowledge shared here and I hope you can help

 

[burglar]

... can I get some opinions on the shares EXR and FAR?, both of which I bought into early on. I believe I made two good choices at this point and spent quite some time researching both ...

... I hope these questions make sense and are not to ignorant ...

Hi 863,
If you haven't already found them, there are threads for almost all shares.

Put EXR in search box
https://www.aussiestockforums.com/forums/showthread.php?t=865

Put FAR in search box
Sorry - no matches. Please try some different terms.

You can ask Joe Blow to start a thread for FAR if it is a valid, current and correctly spelt

 

[863]

Ah right cheers, the exr thread is abit out of date and I will have to try see what I can turn up with the other stock.
My next question however is "what is out there to trade" ie shares, futures,options,forex and so on. I was hoping someone could list these and give me a brief rundown on each one, how it works and any other info you can give

Thanks