Newbie Lessons - All your questions answered

white_crane said:

Save, save, save! And have a budget, so you know exactly where every cent is going. Then work out ways to cut down on your spending. The basic equation is spend less than you earn. Set up a direct debit so that part of your earnings are automatically banked into a savings account. You won't miss it!

High interest savings account etc - things with less risk, until you start to get your confidence back. Then maybe move on to investments with a bit more risk later on.

Also, how did you get to where you were before you lost everything? There might be a lesson in that.

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I'll second this.

sounds like pretty solid advice for the newbies...
as I am a newbie here,
what sectors should I be looking at?

The ones you'd most like to invest in.

Don't think we're allowed to give advice like that, sorry.

Zaij said:

The ones you'd most like to invest in.

Don't think we're allowed to give advice like that, sorry.

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Great one Zaij !!!

Hi all, great thread. Thanks Sir O and everyone else for sharing all of this, it's great for dabblers like me ...
I have a question that someone might be able to answer ... I have just recently discovered conditional trailing sell orders to manage losses (through my online broker), having made my way through the last couple of years more by luck than judgment. I am not a trader, but I don't like to lose too much, even on paper. These trailing orders seem like a no brainer, so I'm just wondering what I am missing?
Are there disadvantages that aren't obvious?
If not, how did my super fund manage to lose 20% of my capital last year? (trusting they'll make it up this year of course)
Grateful for any assistance and greetings to all.
cheers

This is my first time using Aussie Stock Forums and I am trying to find information on Karoon Gas (KAR) and I cannot fnd anything. Am I doing something wrong?

GAS HUNTER said:

This is my first time using Aussie Stock Forums and I am trying to find information on Karoon Gas (KAR) and I cannot fnd anything. Am I doing something wrong?

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Click the link in the navigation bar above that says "Search" and enter KAR in the search box being sure to also check the box that says "Search Titles Only". (see attachment) Then click "Go" and you'll find the thread you're after.

hi all,

just want to add my thanks to sir O and others for their invaluable advice, and look forward to the rest when it comes! if i ever meet you i'll buy you one of those martinis in your avatar!

I must say though I didn't realise what a cliche I was until reading the opening post of this thread!

Very interesting to read the discussions on EMH as I learned all this at uni and was quite sold on the concept. i still wonder whether for every person who beats the market there is someone who does not... so on average it would hold true. but then i suppose thats too hard to figure out, esp with inflation to factor in. certainly i would think that a managed fund on average wont beat an index tracker by enough to justify the fees, but maybe i am wrong on that as well, based as it is on a 10 year old academic learning with no real life experience to back it up!

i've been saving for a couple of years and have a bit of cash, but probably only enough to do one thing well. i'm more naturally inclined towards long term investing, either in stocks or property, due to risk aversion I suppose, but at the same time would like to try my hand at trading to increase my short term cash flow and give me more options.

from the sounds of it though i need to do a hell of a lot of learning about fundamental and mechanical techniques, as well as investing in various data streams... it all seems quite a barrier to entry. do you think its possible to start in a small way and learn as i go, or better to do all the learning first and then jump in? i wonder if there is a specific share type or market sector that lends itself to a certain kind of techniques, for example? (if that doesnt stray into "advice" territory)

i'm also struggling to decide whether borrowing to invest is a good idea, although strangely i wouldn't feel the same with a mortgage on an investment property (which i have) - i guess its a tangible asset and i can see where the interest payments are coming from (ie rent) - i don't understand enough about dividends i suppose to rely on them to repay interest.

anyway, that was a bit of a long and rambling collection of thoughts, just wanted to say hello really, and great forum/thread!

cheers
EB

staghorn said:

I have a question that someone might be able to answer ... I have just recently discovered conditional trailing sell orders to manage losses (through my online broker), having made my way through the last couple of years more by luck than judgment. I am not a trader, but I don't like to lose too much, even on paper. These trailing orders seem like a no brainer, so I'm just wondering what I am missing?
Are there disadvantages that aren't obvious?

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If you're not already using them as a stop loss/protect profit order, then you probably should be! Great for people who trade end of day. The downside? They usually cost extra if the order is met. The other downside is that there is potential for the stock to climb/tank after your sell/buy order is triggered and met. However, what's an extra $10 when it could potentially save you from losing substantially more?

Early Bird said:

i've been saving for a couple of years and have a bit of cash, but probably only enough to do one thing well. i'm more naturally inclined towards long term investing, either in stocks or property, due to risk aversion I suppose, but at the same time would like to try my hand at trading to increase my short term cash flow and give me more options.

from the sounds of it though i need to do a hell of a lot of learning about fundamental and mechanical techniques, as well as investing in various data streams... it all seems quite a barrier to entry. do you think its possible to start in a small way and learn as i go, or better to do all the learning first and then jump in? i wonder if there is a specific share type or market sector that lends itself to a certain kind of techniques, for example? (if that doesnt stray into "advice" territory)

i'm also struggling to decide whether borrowing to invest is a good idea, although strangely i wouldn't feel the same with a mortgage on an investment property (which i have) - i guess its a tangible asset and i can see where the interest payments are coming from (ie rent) - i don't understand enough about dividends i suppose to rely on them to repay interest.

anyway, that was a bit of a long and rambling collection of thoughts, just wanted to say hello really, and great forum/thread!

cheers
EB

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My (general) advice. Read everything you can on this forum - there is so much help out there it's not funny. When you've done that, read it again. Then read it again. Then work out:
What you are doing,
Why you are doing it and
What you hope to achieve by doing it.

Then set some realistic goals that are appropriate to your situation. Always keep in mind that money management is one of, if not the most important part of trading/investing.

You need to develop a plan/system that you can utilise - after all you are doing the investing and it's your money.


Hope this helps.

From someone slightly higher up on the learning curve,
white_crane

Thank you for the wise words, white crane... i do indeed have soem thinking to do.

Why do people put extremely high bid price and low offer at the closing of the market?

Australia said:

Why do people put extremely high bid price and low offer at the closing of the market?

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To be part closing Auction,

See this thread. Open/Close same process,

https://www.aussiestockforums.com/forums/showthread.php?t=11619

Hi All,

Holy cr@p I've had a busy last couple of months (and unfortunately the light at the end of the tunnel appears to be a train). The pressure has eased a little though so I thought I'd drop in an say G'day and maybe answer a few questions.....

awg said:

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The latest you can buy to be entitled to the dividend is in the closing matchout the business day before exdiv date.

Then the earliest you can sell to be still entitled to the dividend (provided that it was bought before exdiv date) is on the open matchout on exdiv day.

The important buy/sell dates for the dividend entitlement, is your buy/sell contract dates.....T3 settlement is irrelevant.
__________________
rozella

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Hi Sir O.

yr answer and this answer from a previous thread seem to be in conflict.

Can you please clarify

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Rozella is correct. I've trained myself for the T+3 rule because of entitlements and corporate actions which work on the T3 principle. Any corporate action like an SPP, rights issue etc you need to allow for T3...so it's in my best interest (and the best interests of my clients) for me to think like that.

Cheers
Sir O

Re: Listed Investments Companies

outbackjack said:

Hi there,

I have two holdings in my big share portfolio.

I have NAB and AFI(Australian Foundation Investment Company Limited).

About 8k in total and just been approved for new marginal loan for 40K. So about to get more shares.

I am not asking your advice only your opinion on LIC`s? For a complete green skin like me are they a good thing? Or should a newbie buying the shares direct?

Cheers

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Personally I generally don't like LIC's. The moment you allow someone to get between yourself and the direct asset, someone is making an income. the only way this doesn't work against you is if the managers are of such high quality that they make more transacting on the shares within their portfolio than they cost in managing the assets.

It's also an issue of control, you cannot ring the LIC and say "I think it's time you exited BHP because I expect Iron ore prices to fall". I'm a control freak so it goes against the grain.

Cheers

Sir O

nice to have u back sir o

nunthewiser said:

nice to have u back sir o

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Hear, hear.

Aww shucks guys

Cheers

Sir O

Timmy said:

Hear, hear.

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hear hear... agreed

great thread loving your work Sir O. I've previously worked at a FP & Accounting firm and think you're doing a great job here. Not all FP's are bad... its just a few rotten apples that spoil it for the rest of us! (a previous collegue of mine being one of them!)

i think the biggest question is - when's the next chapter coming?????

Harleyquin said:

We were with storm financial and have lost most assets and all cash. How and where do we start again. Can't trust a financial planner or accountant. Any tips for starting small and starting again.

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In addition to Krusty's great comments

1) My condolances

2) What you do not know is what hurt you. Unfortunately those that know what you do not know are those you now cannot trust. If you cannot trust (ad I don't blame you if you don't) you therefore need to LEARN for yourself what it is that you don't know. The best person to look after your money IS YOU. You will not rip yourself off. (You owe it to yourself therefore to be educated enough to make the right decisions.

I will say that there was nothing intrinsically wrong with Storms basic principle of borrowing against your assets and margining in a double debt scenario. It's a strategy I've used myself and for clients. Where they fell down was a matter of timing and minimal risk management. If they had done something as simple as written a put option in March 08 to cover the portfolio, you'd never have been in your current predicament. What they didn't know HURT YOU.

Tips for the future.

• Budget well
• understand risk management
• do not become so scared of borrowing that you ignore it as an investment option

Cheers

Sir O