Newbie with a grand

[ronnieling]

A grand would buy at least a years subscription to the Financial Review

$1k is probably too little to make it worthwhile actively trading stocks, brokerage will start to kill you. If you take an optimistic medium/long-term outlook; Australian shares haven't been cheaper for two years. Getting in now and being prepared to see some further downside isn't a bad approach to start seeing some real gains in the next 3-4 years. A-REITS and Financials have taken a real beating.

Lots of the banks and financials are paying dividends that beat cash accounts, capital growth is a bonus. With a high chance of easing monetary policy, there should be some upside potential to listed property trusts too. If I were in your situation I'd look into finding a financial stock you believe in or putting it all into an Index ETF like STW.

 

[noirua]

Come to think of it. It would be better to buy one of Joe Blows' books from the ASF Bookshop than to blow a fortune on these financial courses.

 

[Tysonboss1]

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

Alot of the time the boring investment stratergies are the best long term winners

 

[Greg71]

Books are better IMHO

I agree to a point, depending on your experience and how disciplined you are.

For me, I like DVD courses because if I see a pattern forming, I put the disc in for that pattern and refresh my mind for the trade. Also, it's because I sell them from my website.

On the other hand, I've found that when I take a whipping, a book like Trade Your Way To Financial Freedom is what I need to sit down with and really study properly. Just depends on your budget I guess.

Let your winners run, cut your losers short.

 

[Greg71]

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:

On a stock like Harvey Norman (HVN), closing at 3.63 on Friday, you could buy a 3.75 call option with expiry on the 18th December, for roughly $270.

 

[Glen48]

I have been trading for awhile now or will have been at 5:30pm to day...Trading in a Nutshell seems like a good book. make sure you use your stop loss. the ASX web site allows you to have watch list you can pick yours share no money down and see how you go.
ME I would try 500 buck on LNC????
All the best and if you get any good tips come back.

 

[MrBurns]

HI,

Do this -

Open a Watchlist at the ASX site and choose shares that you like.

https://www.asx.com.au/asx/myasx/premiumService.do?serviceCode=watch

Watch this over the next few weeks and see how you went, see how much you would have made or lost.

I've had several watchlists for almost 3 years now, and boy am I glad I didn't put any real money in, I subscribed to several of the bigger newsletters on shares and every time they advised to buy something I started a watchlist and watched as their advice would have made me much poorer.

Try before you buy, that's my opinion.

 

[mazzatelli1000]

On a stock like Harvey Norman (HVN), closing at 3.63 on Friday, you could buy a 3.75 call option with expiry on the 18th December, for roughly $270.

bluelabel needs to learn more about options before doing something like that.

He/she will have to deal with negative theta and with HVN Dec Calls at $3.75 trading at 44%, make volatility projections whether that will increase or stay where it is etc etc

No definitely follow the advice here, keep your money for the holiday and learn for now.

 

[cordelia]

$1000 is a very small amount to trade with as you have probably already gathered......

Unless you educate yourself to a very basic level before investing that money I am sorry to say you will more than certainly lose it.....

Here are some points that I would have liked to have known before I started:

1. Go to the trading/investing resources thread and learn as much as you can. You don't need to spend huge amounts of money on courses, books, dvd's etc...That's all BS.. There are plenty of good sites that will give you a start...www.incrediblecharts.com...for one....and you will learn heaps here...however......
2. Whilst there are some very helpful people on this forum bear in mind there are others who are out to get your money.....Only buy a stock on a tip from someone after you have researched the company and more importantly...you can see every members post history by clicking on their name. It pays to look at certain members track records.....be very suspicious at all times. On the positive side work out who the smart people are and follow their lead.....Look for those who offer worth while advice without being smart mouths..
3.Don't trade until you no longer have to ask another person how to go about it.....
4. Be prepared to lose money because you will......

good luck

 

[cordelia]

oh and one more thing...remember the story about the hare and the tortoise? In case you are unfamillar with it here is a link:

en.wikipedia.org/wiki/The_Tortoise_and_the_Hare - 32k

Well, focus on being a tortoise......calculating, methodical and triumphant....

You may only have $1000 but if you are clever you can succeed.....

 

[vida]

I suggest buying a $1k worth of Woolworths shares and sit on it, then add to the holding whenever you have funds able to buy another parcel of shares... and just keep it and see the capital growth over the next few years + divs

 

[romeo]

i'm was/in a similar boat to you. I put a lot of the money i had into shares not long ago and got burnt, which was more than 1k but not that much more. But its ok, i put it to education. At least i learnt my lesson young. To my credit I thought my horizon was a lot longer than it actually was but i got an internship in Canada for a year and went on a holiday beforehand and I needed the money. So I guess keep saving, bank west is like 8.1% or something. I can't talk about courses or dvd courses but a good book i think is Stan Weinstein - Secrets For Profiting in Bull and Bear Markets. He presents things in a simple and concise manner.

 

[Greg71]

i'm was/in a similar boat to you. I put a lot of the money i had into shares not long ago and got burnt, which was more than 1k but not that much more. But its ok, i put it to education. At least i learnt my lesson young. To my credit I thought my horizon was a lot longer than it actually was but i got an internship in Canada for a year and went on a holiday beforehand and I needed the money. So I guess keep saving, bank west is like 8.1% or something. I can't talk about courses or dvd courses but a good book i think is Stan Weinstein - Secrets For Profiting in Bull and Bear Markets. He presents things in a simple and concise manner.

Absolutely, that is an excellent book. I just wish there was an updated version with newer charts. Maybe Louise Bedford could re-write it for him.

 

[Greg71]

bluelabel needs to learn more about options before doing something like that.

He/she will have to deal with negative theta and with HVN Dec Calls at $3.75 trading at 44%, make volatility projections whether that will increase or stay where it is etc etc

No definitely follow the advice here, keep your money for the holiday and learn for now.

I'm not suggesting he/she do it, just showing what is in that price bracket. Jeez, you could straddle that for around $500...I know, I know, gamma, theta, delta etc.

If he/ she is serious, education would have to be the logical choice, rather than gamble it on something they don't understand.

 

[Timmy]

If "Newbie with a grand" wants to go down the education track with his or her capital then the first logical place to start is right here at ASF. There are any number of threads which will provide a very solid grounding; similarly there are many posters providing outstanding information all at NO cost.

Once Newbie has studied these threads then he or she will be in a much better position to decide on which books to buy or not to buy.

 

[ROE]

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:

1K is not a lot of money, you better off putting in a saving account
consider shares when you have 5K or more.

with 1K you pay a nice chunk of your capital in fee so it's not really worth it

with the current market 1K put into a online saving account earn you 7.5%
1K put into the market you could go to $900 - $800 by this time next year

 

[happytrader]

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:

Hi Bluelabel

You could buy shares with option derivative attached to them for example Lgl or Ozl etc. One thousand shares equals one option. That way you can sell call options over them when you are familiar with this strategy and the technical aspects of that particular share. Some call it renting out shares.

Cheers
Happytrader

 

[Verbose Pelican]

Please excuse my ignorance, but why would no one have suggested CFDs? It is acknowledged that 1K is not a great deal of $, but with the leverage ability with CFDs, using appropriate protective stops, it would seem to be a realistic option. Obviously, education/knowledge/practice is important, but a conservative strategy could assist to gradually increase capital. Of course, i am a newbie too (currently learning the ropes), but interested in more experienced campaigners views on this.

 

[brty]

Verbose,

Your own post answers your own questions, just change the order.

Please excuse my ignorance,

Yep got that bit.

a conservative strategy could assist

Yep, thats education and savings in a crushing bear market.

why would no one have suggested CFDs

because it is not a conservative strategy.

1K is not a great deal of $

Yep, right again, so why waste it??

i am a newbie too

Explains why you have fallen for the advertising mantra, acknowledge it and there is hope for you.

brty

 

[Trembling Hand]

Please excuse my ignorance, but why would no one have suggested CFDs? It is acknowledged that 1K is not a great deal of $, but with the leverage ability with CFDs, using appropriate protective stops, it would seem to be a realistic option. Obviously, education/knowledge/practice is important, but a conservative strategy could assist to gradually increase capital. Of course, i am a newbie too (currently learning the ropes), but interested in more experienced campaigners views on this.

Verbose Pelican can you explan to my why CFDs over Shares would make any diff??

You have capital.
You risk a set percentage per trade.
You buy amounts of shares based on expected stop movement.

What diff does it matter if you use CFD or Shares. you should still buy the same amount??