Australian (ASX) Stock Market Forum

Questions from a stock market beginner

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ladyaimee said:
Hi, I am not looking at doing anything fancy whatsoever. I used to work at NAB and have a good amount of NAB shares that were given to me during my time there. Now I want to continue purchasing blue chip shares. I only want to buy, only blue chip, the onyl advice I need is the best way to do this - thinking the cheapest online stock trader possible as I will only be purchasing a couple of blue chip shares every few weeks, thats it. Thanks :)
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CMC is the cheapest at about $10 a trade http://www.cmcmarkets.com.au/stockbroking

Bell direct is next at around $15 https://www.belldirect.com.au/

Then Comsec and Westpac at around $20 https://www.comsec.com.au/
https://onlineinvesting.westpac.com.au/Public/Trading/AustralianShares.aspx

I use comsec because of the linked (free) cash and high interest accounts and ATM card.
 
Sergio said:
errrmmm...i thought interactive broker 6 bucks per trade?
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Apples and Oranges.

$6 a trade at IB and the shares are owned/held by IB on your behalf/in trust for you. So your name is not on any company share registries etc...then there's the opening balance of 10K US and the minimum balance of 2.5K

With BELL, CMC and Comsec etc you own the shares...and there's no minimum balance etc...Have you heard of a mob called MF Global?
 
So_Cynical said:
$6 a trade at IB and the shares are owned/held by IB on your behalf/in trust for you. So your name is not on any company share registries etc...then there's the opening balance of 10K US and the minimum balance of 2.5K

With BELL, CMC and Comsec etc you own the shares...and there's no minimum balance etc...Have you heard of a mob called MF Global?
Click to expand...

Thats been sorted they are now chess sponsored. But IB are for frequent traders so hardly matters for "a stock market beginner".
 
Tysonboss1 said:
Just because it is blue chip does not mean it's a quality company, it just means it's a big company thats been pretty stable and is a house hold name.
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Sorry I didn't see this until now, I thought id get notifications of replies so hadn't checked back. Thanks for letting me know. I just meant putting money into companies like NAB, where shares are stable and pay dividends and for me it would be like a way of forced savings with money I wont miss.. to gradually build up an amount of shares so that I am reaping the benefits in dividends years down the track..

Tysonboss1 said:
Any of the online brokers should be fine, Commsec or etrade etc,
Click to expand...

Thanks for naming a few for me to look into!

Tysonboss1 said:
I think if you are planning to put in regular amounts each month or so, You might do better by buying into a lowcost index fund for the asx200.
If you haven't spent alot of time learning to value businesses or have alot of knowledge in trading you might get a poor result from trying to pick winners.
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Again thanks for another good idea, and something I can look into. I wasn't really trying to pick winners, more shares I know will pay dividends and grow but it's good to think there are other safe options, thank you :)
 
Hi ASF!

I have been rummaging through the forum for about a month or so and learning where I can about everything from shorting to the carbon tax! Its been a ride at times, and I look forward to hopefully contributing some useful (if not simple) posts myself from here on in.

But right now since the offer in the first post of this thread was to ask that one question you don’t seem to be able to get to the bottom of yourself, I’m going to take the opportunity here.

So here goes.

On a LOC against a PPOR that is in both my wife's name and mine own. Can I buy shares in my name only and claim 100% of the interest on my tax return?? Even though my wife’s name is on the LOC, it is not on our share portfolio.

Thanks in advance.
Mr McGee.
 
Hey ASF, i just have a question regarding options!

Now i'm not actually trading options yet, but rather doing an assignment for my options course in university. The question asked us to identify any mispriced option in any market in the world and then the steps we'd take to make an arbitrage profit using delta hedging over a 3 week period and rebalancing our portfolio's.

So the issue i have is which methods do i have available in detecting mispricing ? The method that i can come up with on the top of my head was just to use black scholes on random options i pick and try to calculate historic volatilty using methods also taught in this course and then comparing it with implied volatilty. Was there any other ways i could do this ? i was also told not to use Put call parity. Also, if i do come up with a price, does it need to fall within the bid-ask spread ? or is it okay to say that i calculated the option price to be $5 and the bid:5.5 Ask:6 so the option is underpriced by 50c so long that option and short a stock ?

As its only an assignment, im sure that if the method doesnt really work if i really trade, it shouldnt be much of a problem if i can explain why.

thank you!
 
Trembling Hand said:
If he could find mis-priced assets do you think he would be teaching?


Johnnyhuynh21 maybe ask one of the option gurus around here in the derivatives threads.
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You are right to rebuke me TH.
It was a fair question and I gave a $martar$e answer!

(It does make me wander though, that it is Ok to get it wrong, after all I'm only going to become a much hated Financial Adviser anyways!! :D:D:D:
 
hey i was just wondering, now that ive started trading what drives movements in the asx 200?

As in, what kind of news over night, or in general would make the asx 200 move up or down during the day ? i notice a lot of people say things like "today is just a dead bounce and the market will continue to trend down as there is no good news in the world what so ever" i would like to be able to at least have an idea of what drives movements in our market and was wondering if someone could perhaps give a small list of the main things that influence movement!

thank you!
 
I hope you are not trading live.

To get you started have a look at:

Bureau of Statistics
RBA
Bloomberg

Do your own due diligence next time. Other wise you are not going to survive very long.
 
johnnyhuynh21 said:
hey i was just wondering, now that ive started trading what drives movements in the asx 200?

As in, what kind of news over night, or in general would make the asx 200 move up or down during the day ? i notice a lot of people say things like "today is just a dead bounce and the market will continue to trend down as there is no good news in the world what so ever" i would like to be able to at least have an idea of what drives movements in our market and was wondering if someone could perhaps give a small list of the main things that influence movement!

thank you!
Click to expand...

Our ASX200 is mainly banks and mining so any news that affect these two sectors should drive the index in either directions.

you are like any other traders trying to predict the movements of index based
on all available information at hand.

There is no wrong or right answer, it just your interpretation vs other traders.
if the market move against you, you are wrong and the other guy is right.

If anyone know what drive the market with 100% accuracy they can be VERY VERY rich :D
 
Do you keep abreast of general news bulletins and current affairs programs via print or electronic media?
 
yeah i keep track of most things, i do have bloomberg and check that pretty consistently, also i do study accounting and corporate finance so my professors are always going on about whats happening and i do read the news. It wasnt suppose to be a specific question where i ask how to predict the market or anything, just a general kind of question on what kind of information influences movements in the asx.

Thank you for the responses and especially the one about banks and mining, appreciated!
 
johnnyhuynh21 said:
... what kind of information influences movements in the asx. ...!
Click to expand...
A long, long time ago ...


I once owned shares in Lennard Oil.
They struck gas off N.T. and W.A.
Biggest field in the world or so they said.
The share price went down.
U.S. Politics were in the headlines!
 
hey guys sorry for having so many questions, just rapidly trying to learn more and more, thank you for the previous responses they were quite helpful.

I am looking into designing a mechanical trading system for entry and exit points, but rather than all my trades being done on a system, i just want to test whether some of the strategies i have in planned are at least somewhat decent.

I was looking for a program that would allow me to enter my own entry and exit conditions and then back test my results based on historic data, i dont plan on using this with real money yet so even just paper money programs would be great!

thank!
 

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