Questions from a stock market beginner

[ParleVouFrancois]

Basically sweetclassics, almost everyone here thinks that you should learn a bit more about the sharemarket before you go "all in" and lose a bunch of cash you perhaps might have avoided had you had more knowledge about the sharemarket. I'd have to say I agree with them, with 500k at stake, this isn't some kid investing 5k all in on RIO, this is a life changing amount of money, invest a bit of time learning how the sharemarket works is the advice given, and it's obviously up to you how you want to take it. If you keep contradicting the well meaning advice given here on ASF for you to take your time and learn a bit more, then go right ahead and chuck it all on one stock, noone else here's money is at risk, and to be brutally honest, noone will care if you lose the entire 500k (or a large part of it), infact a few people might feel justified for telling you to learn more, in the end it's up to you man, but just think how many hours you'd have to work for that 500k, and how many years earlier you could retire from being a 9 to 5 slave to the wage.

PVF.

 

[Julia]

Julia, the issue isn't so much the fact he/she wants to do it with RIO or the bigger $ amounts, it is more the lack of position sizing or risk control that is the issue.

I tend to trade RIO, BHP & the banks a fair bit as they do provide good swings that I can trade with tight stops giving me large position sizes. But I don't trade them with all my capital and I have stops in place but even then these stocks can have large gap down days which can really burn the account.

Yes, I understand exactly what you and others are saying, but given the swings that typify RIO, it's just not that hard to buy in a dip and sell when it bounces back up around $2 or $3. I've done it multiple times with about half the amount Sweetcakes is suggesting using. Sometimes it's quick, other times I'll hang in there for a while.

hmmm excuse me but i actually go to uni, so you guys could lay off calling me dumb a lil you know.

I suggested you were inexperienced and lacked financial education which is obviously correct and you have confirmed this. So please don't start with the hissy fit about being called dumb. If you actually read all I wrote, I've gone against the general tenor of this thread and suggested what you want to do is not impossible.

It does, however, as others have pointed out, go against all principles of risk management and position sizing, especially given your total lack of experience.

But hey, if you reckon you know what you're doing, go for it. Might be good in future to just do it and not seek input to which you are not prepared to listen.

 

[tech/a]

Secondly, for an investment of 500k, how long do you guys think the process of acquiring and selling my shares would take?

Then

hmmm excuse me but i actually go to uni, so you guys could lay off calling me dumb a lil you know.

Time waster--wanna be.

 

[863]

It seems there are a lot of books people recommend, i think guppy and pitbull are some of the ones I was going to look into, are there any newer ones or other good recommendations for a newer trader interested more in day trading and learning the ropes I should look into- also are these books very specific on short or long term trading styles or can most of these ideas and strategies be applied anywhere?

Thanks,
863

 

[Tysonboss1]

It seems there are a lot of books people recommend, i think guppy and pitbull are some of the ones I was going to look into, are there any newer ones or other good recommendations for a newer trader interested more in day trading and learning the ropes I should look into- also are these books very specific on short or long term trading styles or can most of these ideas and strategies be applied anywhere?

Thanks,
863

Not really for traders, But here is a book that changed my life. this is part one in a 24 video series, you will have to go to you tube for the rest.

But I recommend buying the book

 

[Greedy_Kev]

It seems there are a lot of books people recommend, i think guppy and pitbull are some of the ones I was going to look into, are there any newer ones or other good recommendations for a newer trader interested more in day trading and learning the ropes I should look into- also are these books very specific on short or long term trading styles or can most of these ideas and strategies be applied anywhere?

Thanks,
863

Everyone has their own trading strategy some works and some don't u just have to go by experience, the market wouldn't function properly if everyone did the same thing.

if u want an idea that can be applied anywhere, it would be to buy low and sell high, "a good share is only good if bought at the right price"

 

[Wysiwyg]

Not really for traders, But here is a book that changed my life. this is part one in a 24 video series, you will have to go to you tube for the rest.

But I recommend buying the book

Timely reminder about the pitfalls of speculating. No wonder I have never met anyone in person that trades the markets.

 

[skyQuake]

Timely reminder about the pitfalls of speculating. No wonder I have never met anyone in person that trades the markets.

Need to go out and meet more people

 

[863]

Everyone has their own trading strategy some works and some don't u just have to go by experience, the market wouldn't function properly if everyone did the same thing.

if u want an idea that can be applied anywhere, it would be to buy low and sell high, "a good share is only good if bought at the right price"

I agree but my knowledge of the market is nothing compared to most here I believe, I'm just after good books to read to learn anything I can about trading and the market

 

[Market Depth]

I agree but my knowledge of the market is nothing compared to most here I believe, I'm just after good books to read to learn anything I can about trading and the market

Books are great start 863. But I can tell you one thing and that's Day Trading is not for the novice. First you have to learn how to survive in the market. Keep the Day Trading side of things in the back of your mind for when you have survived long enough to reach prosperity in your trading journey. As a suggestion Daryl Guppy Trend Trading is well worth a read.

 

[863]

Books are great start 863. But I can tell you one thing and that's Day Trading is not for the novice. First you have to learn how to survive in the market. Keep the Day Trading side of things in the back of your mind for when you have survived long enough to reach prosperity in your trading journey. As a suggestion Daryl Guppy Trend Trading is well worth a read.

Another good one to read, I have heard Guppy a lot so I will look on Amazon for it. I do appreciate the feedback so much, any others that would help along the way?
I have a bit of time coming up to read as many books possible and as such I am very keen to immerse myself in all the knowledge I can regarding how to understand the markets and buying behaviour, strategies, and great traders etc
again, thanks all
863

 

[Market Depth]

A couple of 'Oldies' But 'Goodies'

The Battle for Investment Survival, by Gerald M. Loeb. Published in 1935.
Tape Reading and Market Tactics, by Humphrey Bancroft Neill. Published in 1931.

 

[Wysiwyg]

Need to go out and meet more people

Oh I know why. It is too high risk for the majority. That is they are pretty confident of losing their capital. The cost of experience just isn't worth it.

 

[tech/a]

Timely reminder about the pitfalls of speculating. No wonder I have never met anyone in person that trades the markets.

Look me up when in town.

 

[WaveSurfer]

A couple of 'Oldies' But 'Goodies'

The Battle for Investment Survival, by Gerald M. Loeb. Published in 1935.
Tape Reading and Market Tactics, by Humphrey Bancroft Neill. Published in 1931.

Haven't read the first one (yet), but the second is an absolute pearler.

 

[863]

Hey guys thanks for those recommendations on books, I have ordered them and should be going through them soon, any other good ones, maybe some more for day trading- although I know experience is needed to succeed with day trading I would like to read into it more-just to many books out there to choose from so it's not easy to know which are the useful ones and which are not.
Cheers for any further help

 

[Market Depth]

G'Day 863,

Books on 'Day Trading' can be taken with a grain of salt. It's very hard to actually teach someone how to 'Daytrade' well. A little book I find useful from time to time is
"The Long Term Day Trader" by Michael Sincere and Deron Wagner, printed in about 2000 I think

 

[ChaoSI]

Hi guys,
I've been working my way through the trading for beginners thread which has been incredibly helpful but i have a burning question to have.

what is a 'core position" ?

the reason why i'm asking is cos it always get bandying about.. and i have some shares that .. sold now would make a nice 25% even if i only sold a part of it... but this whole core position thing makes me think that i shouldn't and just take dividends
i know noone's to offer specific advice but the main question is as above.. i was just explaining the context of why i'm asking..

thanks =)

 

[Market Depth]

Hi guys,
I've been working my way through the trading for beginners thread which has been incredibly helpful but i have a burning question to have.

what is a 'core position" ?

the reason why i'm asking is cos it always get bandying about.. and i have some shares that .. sold now would make a nice 25% even if i only sold a part of it... but this whole core position thing makes me think that i shouldn't and just take dividends
i know noone's to offer specific advice but the main question is as above.. i was just explaining the context of why i'm asking..

thanks =)

Basically a 'Core Postion' is stock that you own in a company, that you are holding for a long period of time. I have 'Core Postions' in BHP and CBA for instance, as I bought these shares a long time ago. I sell some shares when prices spike and I buy more back when prices ease off, but I retain a certain level of stock in these companies.

Hope that helps

 

[ChaoSI]

ahhh i think i do.
i have CBA too.. from not as long ago..
but for me atm it's ANZ
so basically the idea is that you never sell all of the shares.. but you 'earn' by selling portions of it off at highs to gain cash. THis is repeated a number of times with the long term aim of basically increasing the number of shares owned in the company?

so if you don't mind me asking what % of the total do you sell?

thanks for the ridiculously quick reply btw !