Questions from a stock market beginner

[tech/a]

and if anyone knows some cool beginner sources that have all the stuff one needs to know to get up and running with day trading, let me know.

my original question, about day trading, was: Just wondering, what does the process involve for finding stock to buy and hold and soon after trade (day trading )? how does one go about it? i'm at home (for various reasons can't work) so maybe this might suit me.

(thanks for the dummies day trading link. don't know if that's a comprehensive source for ozzie asx day traders, but will investigate)

a day trader is a day trader.

Stock you need a fair bit of capital to make it work---if your good at it.
If you can pull say 1% a day you'll need around 50K if you get it right 1/2 the time.
Day trading is simply buying and selling in the same day.
It was really adopted by many to reduce overnight risk.

To become competent I think you'd need about 2 yrs of experience and education.

Learn how to Sim trade first to avoid Bankruptcy! Learn how to trade.
If you simply gamble--guess with no knowledge of risk mitigation and what your doing.
You WILL get cleaned out!

 

[grah33]

thx everyone for all the advice. i'm getting more and more of it. i played the game, and you guys are right, it was just a lucky week. the hot gains securities aren't always winners.

i'm now looking at technical analyses. if i learnt all that stuff (charting and technicals), could i make some money? even just a small income, say 150-300 bucks per week? if anyone knows any other resources for day trading the asx let me know. i'm at home (can't work due to illness) so this could be a path for me i'm thinking.

 

[Funda-Struck]

In regard of conditional orders, I will however urge caution, Personally, I never set an automatic order where I leave it up to a broker's operator or computer system to execute a sell order. At your current state of study, it would probably take too much time to explain the details: searching this Forum for "stop raids" might give a clue.

Hey Pixel,
I can't seem to find "stop raids" on a search, do you have a link? Sounds interesting, as I have always used conditionals.

thanks mate

 

[castart]

List of essentially considerable problems for newb

hi i'm foreign who live in aussie now.


when i lived in my country, i was ant who profit with small amount money in stock.

in my country, it can be possible. because my country's brokerage is really small compared with price of stock price.(i think it is the reason that stock market is very popular => many people pay brokerage => small price)

and also there is no minimum asset that government decided for stocking.

but in this country, really expensive is the brokerage.




so what i want to ask is...



1. minimum asset for stocking (mean not "should have", but "must have")

2. minimum brokerage is really 8~15$? is there no broker for ant(small amount investor)?




i will really happy if you answer my question..

 

[burglar]

Re: List of essentially considerable problems for newb

...
1. minimum asset for stocking (mean not "should have", but "must have")

2. minimum brokerage is really 8~15$? is there no broker for ant(small amount investor)? ...

Hi castart,
Welcome to ASF!

A1.) AUD$500.00 is the minimum amount of a single 'buy' transaction.

http://www.asx.com.au/education/investor-update-newsletter/20110310_asx_qa.htm

A2.) To get lower brokerage, you need to trade volume.
So sorry, there is no broker for ants.

 

[burglar]

Re: List of essentially considerable problems for newb

... when i lived in my country, i was ant ...

http://en.wikipedia.org/wiki/Echidna

 

[monkey619]

Hi. I'm 24 and saved up a little over 100k. I recently invested 27k into ETFs of which a couple offer dividend reinvestment schemes. Apart from the complicated record keeping, what do people think about these? I don't particularly need the money from the dividends and this seems a cost effective way to grow my portfolio by avoiding brokerage fees. Or would I be better to keep the dividends and reinvest in other assets rather than grow what I currently have?

 

[Wysiwyg]

Hi. I'm 24 and saved up a little over 100k.

Let's see. You're a tertiary educated professional that spent 4 years getting qualified to earn a living. So from end of high school, 18 to 22 yo. In 2 years earning since being qualified you have saved over 100k. That is extremely hard to believe and I don't.

 

[monkey619]

That is extremely hard to believe and I don't.

Graduated as a health professional and went to work in the bush where there is heaps of money to be made and very little to spend it on. I've been working for 2.5 years now. Maybe more believable now But thats irrelevant to my question, is there anyone who had any advice on my original post?

 

[Wysiwyg]

Graduated as a health professional and went to work in the bush where there is heaps of money to be made and very little to spend it on. I've been working for 2.5 years now. Maybe more believable now But thats irrelevant to my question, is there anyone who had any advice on my original post?

Well with no food or accommodation expenses, no telephone, gas or electricity bills, no car/fuel expenses and no health or property insurance payments you should be a millionaire by your thirties.

P.S. I think the ETF DRP is a great idea for long term investment. You are on the right track.

 

[monkey619]

P.S. I think the ETF DRP is a great idea for long term investment. You are on the right track.

Thanks. Will be moving back into the city soon so will have increased expenses and 30% drop in pay so millionaire by thirty is unlikely. But we shall see.

 

[adnie]

I thought I'd revive this thread a bit with a couple of questions I have.

I'm a newbie to the market and have spent the last few months reading books on technical analysis and teaching myself as much as I can.

But reading so many books also means I have absorbed quite a lot of information and have so many different ideas in my head. For example the Stain Weinstein book on stage analysis I really liked, but then there are different books that explain different things and an unlimited different amount of approaches towards making technical analysis work for you.

My question is towards people who have found success using technical analysis.

Anyone on this forum who is now successful with trading obviously would have started in my position at one point, before finding their way. So I guess my question is how did you find the approach you use now? Have you tried any other approaches? Are you continually fine tuning your system? How do you deal with bear markets like we are currently undergoing now?

Thanks in advance

 

[tech/a]

I thought I'd revive this thread a bit with a couple of questions I have.

My question is towards people who have found success using technical analysis.

Anyone on this forum who is now successful with trading obviously would have started in my position at one point, before finding their way. So I guess my question is how did you find the approach you use now? Have you tried any other approaches? Are you continually fine tuning your system? How do you deal with bear markets like we are currently undergoing now?

Thanks in advance

Now I trade index futures. DAX
I can't trade short and long
When I want to no more than a few hrs
A week.
Traded technically for 21 yrs. Did many years of " Fine Tuning "
spent years studying everything from conventional T/A to Elliott
Point and Figure VSA finally settled on
Price structure and volume structure.

Risk management and trade management.
You'll know when you " get it"
it just clicks .

 

[adnie]

Now I trade index futures. DAX
I can't trade short and long
When I want to no more than a few hrs
A week.
Traded technically for 21 yrs. Did many years of " Fine Tuning "
spent years studying everything from conventional T/A to Elliott
Point and Figure VSA finally settled on
Price structure and volume structure.

Risk management and trade management.
You'll know when you " get it"
it just clicks .

Thanks for your reply tech/a

As a newbie, I'm just looking at trading long at the moment and focusing only on stocks, but would like to trade CFD's and maybe Futures in the future, but I won't touch those instruments until I am competent at trading stocks first.

When you first began trading, or were in the position I am in now, did you ever have the feeling of "ahhhh this is too hard, I want to give up" type of thing? And if so, what helped you push through and continue on until you got to the point where 'it clicked' as you mentioned above?

Reason I say that is because many years ago, about 4-5yrs or so, I first had a go at the sharemarket using fundamental analysis. I did ok, nothing special, but did not have all that much money to invest and ended getting bored and stopping. This time around I'm a lot more focused, have saved up a substantial amount of money to set aside specifically for trading and I feel now I have enough basic knowledge to get on the right path and succeed.

I just like hearing stories of people who have been where I am now and succeeded, and what drove them to push through the barriers and succeed.

 

[tech/a]

I guess the biggest issue for me was the initial in consistencies in profit.
Wins losses/stagnation.
Really my break through came when I spent 3 yrs systems developing.
Tech trader is known and is published in Radges book " Un holy Grails "

Here I found out what works and how it works.
Refining risk and trade management certainly added to the tree of knowledge.

Watching Radges over 20 yrs hasn't been a disadvantage either.

Realizing that if your trading technically you actually trading the phsycology
Of the market participants being recorded on a price and volume chart changed
The way I ready the story a chart reveals.
Developing my own version of VSA gave me the tools to anticipate forward price action

Risk mitigation and trade management gave me the tools to survive.

You'll have to investigate a lot that you don't need before you discover that which you do need!

 

[Triathlete]

I'm a newbie to the market and have spent the last few months reading books on technical analysis and teaching

My question is towards people who have found success using technical analysis.

Anyone on this forum who is now successful with trading obviously would have started in my position at one point, before finding their way. So I guess my question is how did you find the approach you use now? Have you tried any other approaches? Are you continually fine tuning your system? How do you deal with bear markets like we are currently undergoing now?

Thanks in advance

After starting out as a fundamental investor I now use Technical analysis to back up the fundamentals and I never place a trade without reading/analysing a chart first.

I mainly trade medium term using a combination of Price, Pattern and Time analysis and am successful with this way of trading.

I did some courses to understand how all three types of analysis improves your probabilities of being successful and so far so good.

Elliott wave,Gann and Fibonacci are some of the strategies and tools I use.

 

[shank]

Hi All,

Posted in the introduction thread, but saw this later and thought i would paste my questions here as well!!

My name's Shashank (please call me Shank!!), i am 26 years old and an absolute newbie when it comes to investing.

I have recently taken charge of my finances and want to improve on them.

I currently have a property that is rented out and negatively geared, but am looking into managed funds/ ETF's.
I am looking at putting approximately 2k into VHY (for the regular income) and have another 2k to put into another.

Any suggestions on where to go or thoughts on going with VHY?

Also how would investing in this affect my negative gearing, i am in the 80k tax bracket.

Thanks in advance!

 

[Tom32]

Brokerage question:

I have this far made 3 trades with my new Macquarie account. One into an oil etf one back out and then trying to buy an extremely small cap gold explorer.

I have been in the queue to buy this for about 2 weeks and now today at front of queue I have bought a small portion of my trade for about 260dollars... 260,000 shares. Macquarie have sent me a trade confirm at cob today with the 19dollar brokerage. I am not clear on what happens tomorrow if I get 6 takers each selling 60dollars each. Then next day same etc. I am considering pulling my order as This seems to be a risk that cannot be quantified? The share used to be worth more so lots of smallish parcels about.

After today It seems clear I will pay per day there is a trade. Am I likely to pay each individual trade as well?

 

[Gringotts Bank]

Brokerage question:

I have this far made 3 trades with my new Macquarie account. One into an oil etf one back out and then trying to buy an extremely small cap gold explorer.

I have been in the queue to buy this for about 2 weeks and now today at front of queue I have bought a small portion of my trade for about 260dollars... 260,000 shares. Macquarie have sent me a trade confirm at cob today with the 19dollar brokerage. I am not clear on what happens tomorrow if I get 6 takers each selling 60dollars each. Then next day same etc. I am considering pulling my order as This seems to be a risk that cannot be quantified? The share used to be worth more so lots of smallish parcels about.

After today It seems clear I will pay per day there is a trade. Am I likely to pay each individual trade as well?

Not sure of Macquarie's rules, but it's likely you will only pay $19 to enter your full position. If you're at the top of the buyer's queue, then you may get filled tomorrow or subsequent days (for no extra brokerage). Alternatively, the share price may head upwards from tomorrow and you'll be left with the bulk of your order un-filled. You can still sell your 260000 shares and cancel the unfilled portion at any stage. Or you can leave the un-filled order un-filled and hope that the price revisits that level at some stage in the future.

 

[Tom32]

Thanks gringots, that's comforting it is at least unlikely. ComSec used to be one per order but tonight when I saw the trade confirm along with the 19dollar brokerage for 260bucks worth of shares I panicked that this would occur each time a portion fills out. I don think back in the day I ever got partially filled over a day.

Especially upon researching it trying to get an answer on Macquarie, which I haven't confirmed but your post means I will sleep tonight at least. Am ringing in morning to be safe though.

Having discovered other brokers during my research in Google "multiple trades in one stock in one day" who offer multiple trades in one day (diff prices buy n sell in one stock all day for one fee.) this would leave me open to some nut bag (who wanted his Macquarie bank bonus) could place 100sell orders (or worse.....) at market for 1000 shares each and cost me 2k (or 40million dollars, which I don't have, if they really took the Pi##) and sold 2m times 1 share for a bit of a laugh...

Did think it was unlikely am glad it sounds like from your post it would at least be unusual.