Questions from a stock market beginner

[HaydnPotgieter]

Hey guys,
Im new to investing and im 20 years old. I am keen to get into day trading. I am currently using the Commsec platform and the issue is that it presents the market 30 minutes behind and when I trade, it has a 3 day settlement per trade. Meaning that I can trade 2-3 times per week max with my capital.
I was just wondering if anyone is aware or any other platforms out there (in australia) which has realtime trading and same day settlement, keeping in mind that I am starting with only $5000. Platforms more suited to day trading whereby id be able to execute more than 2 trades per day??

Thanks

 

[VSntchr]

Hey guys,
Im new to investing and im 20 years old. I am keen to get into day trading. I am currently using the Commsec platform and the issue is that it presents the market 30 minutes behind and when I trade, it has a 3 day settlement per trade. Meaning that I can trade 2-3 times per week max with my capital.
I was just wondering if anyone is aware or any other platforms out there (in australia) which has realtime trading and same day settlement, keeping in mind that I am starting with only $5000. Platforms more suited to day trading whereby id be able to execute more than 2 trades per day??

Thanks

I think you have your information a bit mixed up. Commsec is real time data, however perhaps you are referring to the charts - which are as you say not instant.
Commsec actually lets you trade without the funds in your account, so long as you have the funds available once the time comes (T+3) you won't have any problems. CommSec creates an aggregate balance if you buy/sell on the same day and then applies that balance to your settlement account for settlement on T+3.

That said, CommSec is not your best bet for day trading - the brokerage is too high and the platform is not designed for it.
If you are set on day trading and know what your doing, then I would have a look at some of the CFD brokers which offer decent platforms and cheaper brokerage. But I will provide a warning with this - do not just jump in without doing extensive research on both who you sign up with and what you are trading. Otherwise, your $5k won't be there for very long.

Good luck and feel free to ask more questions as you figure out what you need to know

 

[nomore4s]

Hey guys,
Im new to investing and im 20 years old. I am keen to get into day trading. I am currently using the Commsec platform and the issue is that it presents the market 30 minutes behind and when I trade, it has a 3 day settlement per trade. Meaning that I can trade 2-3 times per week max with my capital.
I was just wondering if anyone is aware or any other platforms out there (in australia) which has realtime trading and same day settlement, keeping in mind that I am starting with only $5000. Platforms more suited to day trading whereby id be able to execute more than 2 trades per day??

Thanks

I will go one step further then VSntchr and be somewhat harsher.

You shouldn't be daytrading full stop, in fact you probably shouldn't be trading at all. You obviously have a very limited understanding of how the market works (not a bad thing we have all been there) and are in no position to day trade based on knowledge, capital and tools.

There is no way you could possibly make money daytrading on a platform like Commsec with only $5000 over the long term when you consider you are outlaying around $40 per trade in brokerage. So straight away you need to make nearly 1% of total capital just to break even.

Also daytrading Aussie stocks is very difficult at the best of times as they don't tend to give a huge range after open very regularly.

You would be better off putting your $5k in a high interest account and opening a demo trading platform and spend some time learning about the markets - everything from stocks to futures - and the different ways to trade them.

 

[sixty2strat]

Hi guys, I'm 27 and looking at getting more into shares.

At the moment I have around $15k sitting in a ubank savings account but would like to split some of this up into an index funds. The plan being this will be my long term 10+ years savings.

I have just opened a broker account with CMC markets and would like to buy around $5k worth of vanguards ASX300 ETF.. I know vanguard give you an option to re-invest your dividends, but how do you go about actually setting this up?
As I understand I will need to place a bid for the $5K worth of shares on my CMC account, but once I have ownership of this, how do I then have the dividends re-invested as more shares?

Should I be concerned at all about timing of buying? since I am looking at buying and holding. I notice ASX:VAS for example is at an all time high at the moment ($70.3).

ALSO, I have around 500 telstra shares which is CHESS sponsored, so I have a HIN number and a platform (link market services) which I can access my shares info. Since I have just opened an account with CMC markets, they asked if I would like to combine any other CHESS accounts. Can I just keep them separate and have two different HIN numbers? Are there any fees associated with consolidation accounts into one?..

 

[MVFC182]

Hey guys, new to the game and really enjoying the information on the forums.

Im sure this has been asked before but I cannot find after a few searches, is there a recommended computer program/app/website that lets you view realtime information whilst letting you view things like Volumes, add averages onto charts etc?

Doesn't worry me if it costs money.

Thanks

 

[MVFC182]

Hey guys, new to the game and really enjoying the information on the forums.

Im sure this has been asked before but I cannot find after a few searches, is there a recommended computer program/app/website that lets you view realtime information whilst letting you view things like Volumes, add averages onto charts etc?

Doesn't worry me if it costs money.

Thanks

Apologies, just saw the Trading Resources forum, all good!

 

[burglar]

Apologies, just saw the Trading Resources forum, all good!

Apologies, I thought Sum Wun would respond.

 

[crypto]

I have just spent the best part of the last 4 hours reading this whole thread.
Fascinating stuff - looks like a great community here.

Hello from a terrapin

 

[Mlbbkk]

Hi, a simple question on my behalf..
Can somebody kindly introduce me on the difference between the S&P the NYSE, NASDAQ and FTSE?
I googled it, couldn't find much info besides the fact that they are the American indexes.
The DOW is strictly the top 30 AMERICAN stocks, right?
Cheers.

 

[burglar]

http://www.investopedia.com/ask/answers/03/072403.asp


http://www.investopedia.com/terms/d/djia.asp


http://www.investopedia.com/terms/s/sp.asp


http://www.investopedia.com/terms/f/ftse.asp

 

[Mlbbkk]

http://www.investopedia.com/ask/answers/03/072403.asp


http://www.investopedia.com/terms/d/djia.asp


http://www.investopedia.com/terms/s/sp.asp


http://www.investopedia.com/terms/f/ftse.asp

Thanks Burglar. It's still not great sense though. I already know they are stock indicies.
What characteristics makes them differ? Why would anyone trade on the S&P and not the NYSE. Why is there even different stock indexes rather than having these together?

 

[Mlbbkk]

Thanks Burglar. It's still not great sense though. I already know they are stock indicies.
What characteristics makes them differ? Why would anyone trade on the S&P and not the NYSE. Why is there even different stock indexes rather than having these together?

Bump

 

[burglar]

Bump

Why are there different cheeses?

 

[Julia]

Bump

Have you simply googled the various acronyms you don't understand?

 

[DeepState]

Hi, a simple question on my behalf..
Can somebody kindly introduce me on the difference between the S&P the NYSE, NASDAQ and FTSE?
I googled it, couldn't find much info besides the fact that they are the American indexes.
The DOW is strictly the top 30 AMERICAN stocks, right?
Cheers.

S&P 500 is an index of US listed stocks. S&P also offers indices over other markets, including Australia (S&P/ASX).
NYSE is an exchange
NASDAQ is an exchange
FTSE 100 is an index of UK stocks. FTSE also offers indices over other markets, including Australia (FTSE/ASFA).

DJIA is maintained by S&P and does consist of 30 stocks listed in the US. It is price weighted as opposed to market-weighted as per above.

Why different indices? Why so many makes of cars and trucks and breakfast cereals? Choice, differentiation, price, purposes...

 

[burglar]

... Hello from a terrapin

What an exquisite creature!
Ohh, the terrapin is nice too!!

:

 

[Mlbbkk]

Have you simply googled the various acronyms you don't understand?

Yes I did, Julia. If you read my question you would see I purposely mentioned I had searched google.

S&P 500 is an index of US listed stocks. S&P also offers indices over other markets, including Australia (S&P/ASX).
NYSE is an exchange
NASDAQ is an exchange
FTSE 100 is an index of UK stocks. FTSE also offers indices over other markets, including Australia (FTSE/ASFA).

DJIA is maintained by S&P and does consist of 30 stocks listed in the US. It is price weighted as opposed to market-weighted as per above.

Why different indices? Why so many makes of cars and trucks and breakfast cereals? Choice, differentiation, price, purposes...

Thank you for the straight forward answer. Just what I needed.

 

[crypto]

What an exquisite creature!
Ohh, the terrapin is nice too!!

:

Have just started with this - fascinating reading

 

[Julia]

Yes I did, Julia. If you read my question you would see I purposely mentioned I had searched google.

I asked specifically if you'd googled individual index acronyms, eg FTSE.

RY has since kindly typed it all out for you. I just checked, and entering just FTSE provides multiple links to many choices of concise and detailed explanations.

This is not criticism, but usually when you're beginning, the more you learn about how to research something yourself, the faster and more comprehensive will be your progress.
Good luck.

 

[Mlbbkk]

I asked specifically if you'd googled individual index acronyms, eg FTSE.

RY has since kindly typed it all out for you. I just checked, and entering just FTSE provides multiple links to many choices of concise and detailed explanations.

This is not criticism, but usually when you're beginning, the more you learn about how to research something yourself, the faster and more comprehensive will be your progress.
Good luck.

Apologies, I assumed it was criticism! I understand having to answer beginners questions such as myself's would feel like the tech support department for internet troubleshooting, "have you tried turning it on and off?"

Researching this topic is very difficult, finding the right way to get THERE (alpha?) QUICKER as you mention...

I'm finding no balance on information. Reading 'The Intelligent Investor' was a nightmare. And rich dad poor dad seeming only relevant for poor money management.. When I look up key terms, valuation techniques etc information either seems too basic or too complex to understand.

Does anybody else experience this?
Cheers