Newbie with a grand

[bluelabel]

Hello all,

I am new to this and want to get into share trading as it really interests me and has done for a number of years, i dont have much money but want to at least get a start, i just dont know where to start. Any tips appreciated.


Cherrs

:bier:

 

[mazzatelli1000]

Hello all,

I am new to this and want to get into share trading as it really interests me and has done for a number of years, i dont have much money but want to at least get a start, i just dont know where to start. Any tips appreciated.


Cherrs

:bier:

A start would be to get an idea of what product you would like to trade.
Shares?
Futures?
Options?
CFD's?
Bonds?

Once you have decided on that --- its time to get better education on each product and how to trade them.
That would be a start.

 

[Sean K]

For a newbie, its probably shares.

Id wait for an uptrend before committing, or be prepared to watch your 1K go down for a bit longer.

Although, you could count that as education.

Depending on your age, education, and lifestyle, putting that 1K towards an around the world air ticket, may reap greater rewards....

If you are teens or early 20s, there is plenty of time to take money off other people on the stockmarket.

But, as I said, we are all in different stages of life.

Alternatively, you could donate 1K to a Vipassana buddhist meditation retreat and be more enriched!

Or, go to the casino and put it all on black!!!!


But, maybe youve thought of all that and you want to put it in the market.

Good luck while itś trending down.

 

[mazzatelli1000]

Depending on your age, education, and lifestyle, putting that 1K towards an around the world air ticket, may reap greater rewards....

Good luck while itś trending down.

Travelling would be a good investment of that $1,000.

Though it is good to start in the share market early

You don't want to be one of these OLD people

 

[tech/a]

One of the biggest mistakes in trading is undercapitalization.

Keep your grand (If you blow it in a few days/weeks/months) it could have a negative impact on how you view Share trading/investment.

Learn all you can (took me 3 yrs to proficiency and 5 to be consistently profitable.) and trade by simulation---there are many platforms that will allow you a trial account with a bogus starting balance.

Everytime you read something on a forum which is in your view of value save it in a special folder for quick reference later (You'll never find it if you leave in on a thread and forget 99% of brilliant snippets).

Work at building your bank.
Its my belief that you shouldnt commit more than 10% of your nett worth to trading.
The reason being that by keeping the initial capital to an amount which is handlable---negates a lot of the psychological errors traders make when under financial stress.

Minumum trading capital in my view $20K.

 

[johenmo]

Everytime you read something on a forum which is in your view of value save it in a special folder for quick reference later (You'll never find it if you leave in on a thread and forget 99% of brilliant snippets).

Minumum trading capital in my view $20K.

I think this says it all for someone new. Especially in this market. A couple of shares went ok, and I have paper-invested for a while and all went well - the bull market gave me a false sense of security. So when I invested a few months ago when it showed a (temp) upturn, I got caught in a couple of stocks.

We are well under 10% and 20 K is what I've started with but not all is invested - came to senses and stopped.

I have to say if I had suffered this earlier (a couple of years back) I would have given it away. I now know that I was poorly prepared and have gained heaps from ASF. I am middle-aged but there is still plenty of time. With this market I have now allowed myself some months to "get to grips with the basics".

I see the market like stepping into the ring with Mike Tyson - if you're not ready in all ways you're going to get battered!

As tech/a infers, you have to be able to weather the storms - financially and psychologically.

Save the snippets - I do and it's great for reference. There's a post from tech/a that is a must read.

"The best I've seen on ANY Forum!"
https://www.aussiestockforums.com/forums/showthread.php?t=864

 

[Sean K]

Keep your grand (If you blow it in a few days/weeks/months) it could have a negative impact on how you view Share trading/investment.

Yes, agree, my first couple of investments in 95/6 went very well, and therefore I had a very positive outlook even after going through the late 90s....

However, we may be getting back to a time when there will be an amazing entry point...

Bloody hope so....

 

[Timmy]

One of the biggest mistakes in trading is undercapitalization.

Just highilight this.

$1,000 is not much capital. If you really want to get started with this amount you MUST have a method which minimises drawdowns; you cannot afford much of a drawdown with $1,000. I would go so far as to say that proper position sizing/money management is not possible with this amount, but I wont because nothing is impossible - but you will have to be very good to be able to trade with just $1,000 capital.

Lots of great advice on this thread so far, take advantage of it.

 

[CAB SAV]

Forget paper trades etc, have a go, buy $1,000 worth of bank shares, collect the divs.
Or you can back Geelong for the flag and have $2,000 to invest.

 

[Tysonboss1]

If you only have a $1K I would probally put it into somthing that is paying a dividend with a dividend reinvestment plan and also has a good chance of steady capital growth.

I would then focus my efforts on changing my earning / spending habits so that you can start to save more of your weekly pay (over 10% is a good rule of thumb). This is probally the area that will help you increase your portfoilio the most in the begining.

Once you have built up a larger capital base and learned more about how share prices move then you can start to trade with a portion of your portfoilio.

Remember the golden rule to wealth is to "spend less than you earn and invest the difference in income producing growth assets". Take along hard look at how much you are earning and how much you are spending, and figure out ways of decreasing spending.

 

[bluelabel]

Hi All,

Thanks very much for your input on this, I greatly appreciate it. As far as amounts go, I realise that $1000 is not much to start, but that is the challenge I am looking for.

I have just created a new folder called snippets and am about to go cutting and pasting.

Also a big thanks for the clarification on dividends vs. capital growth, I was leaning toward something with good dividend payout, and banks were high on the list, actually the top, so it was good to get that feedback with out actually asking for it.

Now, just another question in regards to dividends, is it the EPS figure that I am looking for that gives me an ideal of future divided payouts, or actually now that I think, that is for capital growth, change that to do I look at budgeted earnings and profit and loss statements to give an idea of what the dividend should be or is there some other way?

Oh, and the holiday is already on the agenda...

Thanks again, everyone’s input is appreciated.

Cheers

:bier:

 

[jeflin]

Buy some investment books and learn about value investments before committing your money.

By the time you finish reading the books, the market will be about ripe for some juicy pickings.

 

[Greg71]

Buy a course.

 

[kam75]

Hello all,

I am new to this and want to get into share trading as it really interests me and has done for a number of years, i dont have much money but want to at least get a start, i just dont know where to start. Any tips appreciated.


Cherrs

:bier:

You need to wrap some good risk and money management rules around the money you'll trade with. That's the secret of successful trading. 1k is not enough to do this. Try to save up at least 8 or 10k and in the meantime develop your rules on how you will control your losses and manage your trading capital.

For example, with a 10k account, you could set up some rules to follow - Diversify into 3 or 4 stocks and risk no more than 2 or 3% of your account on any one trade. This means that you would have to find suitable opportunities where the trade risk is no more than $250-300 per trade as determined by your stoploss.

Regards
kam75
_____________________________
http://www.sharesmadeeasy.com

 

[Shrewd Crude]

I do not condone stealing from grandparents... thats lower than low...

.^sc

 

[Whiskers]

If you only have a $1K I would probally put it into somthing that is paying a dividend with a dividend reinvestment plan and also has a good chance of steady capital growth.

I would then focus my efforts on changing my earning / spending habits so that you can start to save more of your weekly pay (over 10% is a good rule of thumb). This is probally the area that will help you increase your portfoilio the most in the begining.

Once you have built up a larger capital base and learned more about how share prices move then you can start to trade with a portion of your portfoilio.

Remember the golden rule to wealth is to "spend less than you earn and invest the difference in income producing growth assets". Take along hard look at how much you are earning and how much you are spending, and figure out ways of decreasing spending.

Regardless of whatever else you do I would endorse the philosophy of 'spend less than you earn', especially at a younger age.

Too often that's why people fall into poverty and business fails... they just got carried away with the income side of the P&L sheet and forgot about the expenses.

 

[brty]

Hi,

Tech has already stated it, way undercapitalised.

If your brokerage was $20 a side, buying then selling a mistake gives you a 4% loss before you have started. If you are going to trade then 4-5 losses in a row would eat your capital even with a 3-5% stop.

Sorry but you are wasting your time and money with one grand.

I would have 5 times your starting stake in books alone about investment styles/types/methodologies. Spend your money on education (books not courses), and save until you have something reasonable, that won't kill you if you lose it, again Tech's $20k is probably about right.

Then when you have an inkling of what the market is about you may have a chance.

brty

 

[mazzatelli1000]

Buy a course.

Books are better IMHO

 

[noirua]

Hello all,

I am new to this and want to get into share trading as it really interests me and has done for a number of years, i dont have much money but want to at least get a start, i just dont know where to start. Any tips appreciated.
Cherrs
:bier:

I suppose a grand isn't worth investing unless you go in for a bit of high risk investing. It could be very boring if you don't.
Find four bombed out mining stocks and there are loads about now. Do loads of your own research.
Don't forget the uranium minnows.

The above always supposes you wont be a forced seller and don't mind being locked in for a while - good luck noi

 

[Big_Daz]

Have a look at this website (by NO means take itas gospel) but this will get you thinking about some of the options out there that you may not have thought were available to you

http://www.compareshares.com.au/black31.php

My advice would be to invest into a managed fun if you only have $1k and make regular contributions....

Then once you get your head around stocks start investing in blue chips then start to look at being a little clever and invest in higher risk stocks.