Share advice for beginner

HI Everyone..... first post so go easy on me

I don;t really know to much about the sharemarket I did buy some Telstra shares back in 2005 ( I think ) when they floated them I just had some spare cash and thought what the heck I only hold 550 shares and basically its set and forget I only really are reminded of them at tax time.

Im now 33 years old and starting to look at getting a bit more serious and was thinking of investing $10,000 on some good quality strong shares. Just after a bit of advice on

1. How many companies do you think I should go with to spread the risk over the $10,000
2. Is $10,000 even worth investing
3. My main goal ( I think ) is to hold long term in future to make a decent profit whilst also collecting a tidy dividend along the way.
4. Would I be better finding a cheap share eg $2 and buying 5000 shares or buying for eg CBA share $90 each and only owning 111 shares which sounds dismal.

I will be funding the above by pulling $10000 from my ofsett account on my ppor. Im figuring/hoping in say 10 years time I can make a tidy profit and then pool the money back in to help pay off my ppor or hold long term for retirement.

I have been doing some research or Ardent Leisure they provide an ok dividend and apparently are buying out alot of fitness centres in WA and expanding in the US the share price is around $2.70 just thinking would now be a good time to buy?

Thanks guys after any advice hints or tips I don;t know much but would like to learn

bfhoon said:

HI Everyone..... first post so go easy on me

I don;t really know to much about the sharemarket I did buy some Telstra shares back in 2005 ( I think ) when they floated them I just had some spare cash and thought what the heck I only hold 550 shares and basically its set and forget I only really are reminded of them at tax time.

Im now 33 years old and starting to look at getting a bit more serious and was thinking of investing $10,000 on some good quality strong shares. Just after a bit of advice on

1. How many companies do you think I should go with to spread the risk over the $10,000
2. Is $10,000 even worth investing
3. My main goal ( I think ) is to hold long term in future to make a decent profit whilst also collecting a tidy dividend along the way.
4. Would I be better finding a cheap share eg $2 and buying 5000 shares or buying for eg CBA share $90 each and only owning 111 shares which sounds dismal.

I will be funding the above by pulling $10000 from my ofsett account on my ppor. Im figuring/hoping in say 10 years time I can make a tidy profit and then pool the money back in to help pay off my ppor or hold long term for retirement.

I have been doing some research or Ardent Leisure they provide an ok dividend and apparently are buying out alot of fitness centres in WA and expanding in the US the share price is around $2.70 just thinking would now be a good time to buy?

Thanks guys after any advice hints or tips I don;t know much but would like to learn

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Hi bfhoon,
Welcome to ASF!

1.) I like $3,000 parcels!
Smaller parcels, I would be working for the broker.
Larger parcels would risk too much of my capital.

2.) A worthy start.
If you are successful, it will grow!

3.) High yield shares have been plundered for more than a year.

4.) Number of shares is irrelevant!
Percentage increase (=capital gain) is more important, as is yield.

Just my opinion, mind.

bfhoon said:

HI Everyone..... first post so go easy on me

I don;t really know to much about the sharemarket

Click to expand...

Hi Bfhoon,

Your opening statement says it all and this is the first problem you need to address.
In my life I have met many people who have worked hard retired with money to find that in a few short years they have managed to loose 90% of there nest egg through investing. I have only ever met a small few who still have their nest egg and grown it.

$5000 will buy you a start on the education you require to make it to the end with cash in your hands. Failing to prepare is really Preparing to Fail.

My opinion is you need to start off this journey of sensible investing on the right foot. You should consider a FX account with $500 this will give you $100,000 to invest / trade with at cheap brokerage. After you have made 1000 trading decisions on getting in and getting out with a profit you will have some knowledge of your inner demons. Within a year or two you will fully understand targets , stops and you should have formulated a trading plan that suits you.

The markets are a wonderful classroom where you will learn about who you really are, your strengths and weaknesses. The markets have been around for hundreds of years and they will be there for hundreds more.
You don't have to rush in just because you have the money to invest ( That will be your first mistake ) . You are only 33 and if you had started learning at 23 you would be a good investor / trader by now. But have faith that you will be an outstanding trader by 43 and from there if you can profit 20 - 30% per annum you will have more then enough to retire on and the knowledge to pass to your children / family / friends.

Without the required knowledge you have only got chance and luck on your side in a game where the learned ones have the advantage.

Below is a 300 year old print I have above my desk. That depicts the trading of stocks and shares. Have a close look and you can see the monkey dropping the fools hat onto the entering traders as they spin on the merry go round, trying to catch the $0 dollar bills that are being dropped from above. There are men entering with wheel barrows full of money and leaving with nothing. The guy who is making the money is the one that operates the gate allowing men to enter.
This is how it was depicted 300 years ago in 1701 and probably is still quite valid today.
My thoughts only.
Pnut



P.S. Here is AAD but you need to know where to get out with a profit before you get in.

Pnut said:

My opinion is you need to start off this journey of sensible investing on the right foot. You should consider a FX account with $500 this will give you $100,000 to invest / trade with at cheap brokerage. After you have made 1000 trading decisions on getting in and getting out with a profit you will have some knowledge of your inner demons. Within a year or two you will fully understand targets , stops and you should have formulated a trading plan that suits you.

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Your advice to a newbie is that they should lever up 200x and trade fx? "Sensible investing".

OP, check out robusta's thread. He also used credit to get started and has done very well.

https://www.aussiestockforums.com/forums/showthread.php?t=23106

Pnut said:

My opinion is you need to start off this journey of sensible investing on the right foot. You should consider a FX account with $500 this will give you $100,000 to invest / trade with at cheap brokerage.

Click to expand...

Hopefully the OP can see the problem with saying he has started off on the right foot for sensible investing - and then being advised to enter the highly speculative market of gambling on FX!

I think am asx 200 accumulation index fund would be best until you have learned a lot more, leave your original $10K there, and as you get more confident and build up some more knowledge and savings, put together a secondary portfolio of about 6 companies you have picked yourself.

But you could just do the index fund if you don't want to pick stocks yourself, It's the easiest way to get a market average return, and it can be difficult to beat the market without gambling if your a novice.

Hi

Alot of what everyone is saying to me is foreign language. Is there a begginners guide or a good read up on the net somewhere. Maybe something like the ASX explained for dummies? I have really taken a step back now after reading alo on this forum seems like alot of people loose money on the ASX and the only people that make it are the very smart investors with bucketloads of experience. I know I will never gain a heap of knowledge or experience due to my family situation. Would I be better if I was hell bent on share going for blue chip companies? I guess the trade off is not much risk and probably not much return but the assurance of never really loosing a great deal.

Thanks

bfhoon said:

... Is there a begginners guide or a good read up on the net somewhere. Maybe something like the ASX explained for dummies? ...

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There is a section on the ASX website devoted to education.