Questions from a stock market beginner

[Sergio]

Hi everyone,

i am another beginner to ASF..

i was join almost a year ago and now try to give more effort on the market...

however, i got 2 questions..

1. i just realise i got dividend from GMG few days ago and i notice i pay tax of $165 out of $355worth of divident! then i realise there is NO tfn attach on computershare for my account. i just add TFN details today.
can i get back some of those $165 on july (tax return)? i am obviously not on the highest bracket of tax..

2. i notice on some stage, buyer and seller place a same amount of money on different price level, this also happen on closing auction. any thought of why they do so?(pics attached)

thanks heaps

regards
sergio

 

[burglar]

...
1. ... can i get back some of those $165 on july (tax return)?
2. i notice on some stage, buyer and seller place a same amount of money on different price level, this also happen on closing auction. any thought of why they do so? ...

1. The Tax man will not rob you!

2. Anyone can be any of those buyers or anyone can be any of those sellers.
Chances are that the bids are from one buyer who may also be that one seller.
Also, chances are that the buyer/seller is using robot trading!

Ask yourself the important question ... how does it affect you?

 

[Trembling Hand]

Chances are that the bids are from one buyer who may also be that one seller.

You cannot cross trades with yourself.

 

[burglar]

You cannot cross trades with yourself.

Have I missed something? (The buys and sells don't overlap in the example given)

 

[Trembling Hand]

Have I missed something? (The buys and sells don't overlap in the example given)

Oh sorry I should of look properly. I thought it was a Time & Sales screen. Carry on....

 

[Sergio]

thanks for those responses guys =]

from a newbie thought, it will not affecting me at all..
or maybe i missing something?
because they play quite a big amount of money there..around 300k, must not be a newbie like me, so i thought maybe there is some trick that i am missing..

regards

Sergio

 

[Sergio]

Good day everyone =]

i got another question about dividend.

yesterday i bought 8000 shares of SWM.

today is the ex div date. the dividend is 6c per share..

so, by the dividend pay, how much will i got? 6c X 8000 ?

is it gonna be subtracted by tax first before i receive it?

because on my last GMG case, i just receive $165 out of $355 worth of dividend (i forget to nominate my TFN)

thanks heaps guys =]

best regards
Sergio

 

[Trentb]

Hi Newb Questions

Hey Everyone.

I've been interested in investing my money better for a few years, but was never really been in the position where I had the money to take the risk until now. I've missed out on some great potential long-term deals in the share market because of that. Now i'm in the position where I can invest.

Can anyone recommend a good online broker that is reliable?

The huge benefit i've got at the moment is that i'm a student and have secure tax free scholarship income. So my income from shares would be tax free.

Are there any short term strategies that are easier to learn than others?

cheers.

 

[Sergio]

Good Day,

i would like to ask about data source..

on comsec iress , i find out that there are 4 data sources
AUX, TM, CXA and PM

and i notice that all of my parcel will go through TM only...(comsec and IB)
how do i participate in others?

moreover, there is no market depth on AUX on comsec iress..only TM and CXA..is that normal?

cheers
Sergio

 

[skc]

so, by the dividend pay, how much will i got? 6c X 8000 ?

is it gonna be subtracted by tax first before i receive it?

Yes. 6c x 8000.

If you provided your TFN then no tax will be deducted / withheld.

Good Day,

i would like to ask about data source..

on comsec iress , i find out that there are 4 data sources
AUX, TM, CXA and PM

and i notice that all of my parcel will go through TM only...(comsec and IB)
how do i participate in others?

moreover, there is no market depth on AUX on comsec iress..only TM and CXA..is that normal?

cheers
Sergio

Don't know but the only way to find out the correct answer is to ask Comsec. However I think it is quite usual for a retail trader to not have access to CXA (Chi-X).

 

[Sergio]

tha

 

[Sergio]

thanks for ur answers SKC..=]


cheers,
sergio

 

[gez82]

Hey guys, just joined today after being an infrequent voyeur of sorts. I have had a waxing and waning interest in investing for about the last 4 years. Never owned shares, but have played around with my super fund, putting my super into different kinds of funds just to see if I can beat the returns I had previously been getting.

Anyway... I'm putting away money from each pay cheque to start my portfolio at some stage this year, just a matter of timing, and will probably have to engage in some dollar costs averaging. In terms of strategy, I would like to consider myself as a value investor (have read Graham and Greenwald et. al.). We shall see how I go once I enter the heat of the market.

My initial question is about watch lists - I have about 20 stocks on my watch list but I wonder if this is too much? I will probably only be able to afford substantial holding of 1-2 stocks before the year is out (got a mortgage to service as well, unfortunately). Am I just wasting my time watching so many stocks, some of which I really have no intention of purchasing in the next 12 months.

 

[RNI]

Hi all

I have been investing in shares for several years but I really do not understand a lot of the 'details of investing'.

For example, I have only in recent years learned there is FA (fundamental analysis) and TA (Techinal analysis) but I do not understand anything much about TA at all except it seems to be about understanding charts for example. FA I understand to be the type of analysis you would do when researching a company by looking at the financial details, type of industry/product usefulness and where it is and the risks, managements experience etc.

Listening to this thread I have found out about books to read to learn more about TA, so that is good, but there is still much I don't understand for example re shorting stocks. I understand they sell the stock high and re buy it at a lower price, but where do they get the stock from in the first place to sell??

Then there are CROSS TRADES. I understand cross trades are when a broker matches a sell order with a buy order with the same broker. That part I understand, but with one stock I own it has been 'controlled' within a certain range for nearly 12 months and not let run it's normal way. Posters on the share forum for this stock, seem to have worked out it is being controlled for the purpose 'washing back and forth-buying and selling' by the fund managers who hold a lot of shares and are 'making money from this' by selling and buying other peoples shares, hence why it is held in this bracket of mostly 63c - 72c range. How can they determine this?? They say the fund managers, would be buying off the shorters ( but if the shorters sell high, why would the big boys buy at the top range?) I don't understand it really and that they are using others shares to trade with.

Next question: Would they sell to each other as ppl are suggesting (somehow)?? and would those sells to each other, if it is occurring be labelled CROSS TRADES as this stock there are dozens of cross trades.

Next question: with the 'BOTS' trading. Is this to control the share price to be able to accumulate more shares and how do 'BOTS' work??

Sorry lots of questions on different subjects, but I just want to understand all these subjects.

 

[cbc]

They usually get the stock from brokers for shorting. Youl need a shorting enabled broker. They "rent" the stock to you. They might not be the brokers stock though. Other people may put their stock "up for rent" via the broker. The broker brings the parties going short and long together... and well.... from there.... its game on.

They think that the stock is going to go up so they "rent" it to you. If it goes up they keep the amount it goes up and they also collect the "rent" from u.

Mbey look at a derivative instead if you want to profit from the price going down? Options / Futures / CFDs(spit) / warrants(invest for your great grandchildren)

 

[Trembling Hand]

Then there are CROSS TRADES. I understand cross trades are when a broker matches a sell order with a buy order with the same broker. That part I understand, but with one stock I own it has been 'controlled' within a certain range for nearly 12 months and not let run it's normal way. Posters on the share forum for this stock, seem to have worked out it is being controlled for the purpose 'washing back and forth-buying and selling' by the fund managers who hold a lot of shares and are 'making money from this' by selling and buying other peoples shares, hence why it is held in this bracket of mostly 63c - 72c range. How can they determine this??

They cannot!

They say the fund managers, would be buying off the shorters ( but if the shorters sell high, why would the big boys buy at the top range?) I don't understand it really and that they are using others shares to trade with.

Well that just shows how silly this notion is that a range bound stock is being manipulated by some all knowing and powerful controlling fund manager. It's utter BS. If the game was that easy for them to move many many millions their performance figures would be way higher than they are. Bottom line is its a rough and tough game. Everyone is trying to make money from the other persons mistakes. And the fundies are the one who have the toughest time as they cannot just enter and exit in an instant. They also cannot just will a stock to do as they want it to do. For every 1 fundie or hedge fund who wants to push it one way there are plenty of others who want to push it the other way.

Next question: Would they sell to each other as ppl are suggesting (somehow)?? and would those sells to each other, if it is occurring be labelled CROSS TRADES as this stock there are dozens of cross trades.

Maybe as a way to do large trades but not as some secret to manipulatable the small punter. There are a few Dark Pool markets where its possible to swap shares in large volumes without putting quotes into the ASX but they have nothing to do with what you are talking about. They are just ways of doing large business.

Next question: with the 'BOTS' trading. Is this to control the share price to be able to accumulate more shares and how do 'BOTS' work??

They just break up large orders into lots of small orders. And do it efficiently without having to pay a person to sit at a trading terminal and hit the buy or sell button hundreds of times in a day.

 

[WilkensOne]

Hey folks, hope you are enjoying the weekend the weather in Perth is beautiful!

I was hoping someone could answer my.. I think basic question. I am creating a excel document to track my small portfolio and was wondering how I record shares acquired from the DRP. Should I record the buy price as $0 as I didn't actually pay for it, or the price which the share was issued to me, eg. $5.45?

Thanks all.

 

[McLovin]

Hey folks, hope you are enjoying the weekend the weather in Perth is beautiful!

I was hoping someone could answer my.. I think basic question. I am creating a excel document to track my small portfolio and was wondering how I record shares acquired from the DRP. Should I record the buy price as $0 as I didn't actually pay for it, or the price which the share was issued to me, eg. $5.45?

Thanks all.

Of course you paid for it!

Your dividend was used to buy shares at $5.45, so you record the cost base as $5.45.

 

[WilkensOne]

Of course you paid for it!

Your dividend was used to buy shares at $5.45, so you record the cost base as $5.45.

Great that is what I was thinking, thank you!

 

[ROE]

Hey folks, hope you are enjoying the weekend the weather in Perth is beautiful!

I was hoping someone could answer my.. I think basic question. I am creating a excel document to track my small portfolio and was wondering how I record shares acquired from the DRP. Should I record the buy price as $0 as I didn't actually pay for it, or the price which the share was issued to me, eg. $5.45?

Thanks all.

If you intend to invest in the market for a long time ..I recommend get this piece of software
http://www.topshare.com.au/

it keep track of everything and you can go back in time and work out, what, where, when and when it comes to tax time it takes you 5 minutes for do....hit the tax report button...

excel is good but if you have to go back 5 years and said what you paid for what at what price and when you got dividend and how much and cross check back to the time you sell now, it can be a pain unless you write some macro for it... for $250 and it's a one time purchase and it will save you a lot of time....

it also do capital gain minimisation for you, when you sell shares, and you have multiple parcels...tell it
to minimise your capital gain and it automatically work out the perfect combo to minimise your gain, excel could be a bit of work...