Sincerely looking for help and advice on starting in stocks

[debaron]

hie.
I'm a beginner in stocks and basically dont know much about the going ons. I just started reading some basic books and articles online and i find it hard for me to actually cross the stage of actually practising what i read. I understand that i am new and still very much green in this area however i would really like to be more active. However, i dont know how to go about as i dont know anyone within my social circle tt does this sort of things. ( i have also just begun to join community clubs). I dont feel i am learning as much as i ought to be as most of the books i am reading are mostly introductory. I would really like to take a leap to the next level but dont know where to go.
I even considered signing up for a course but after reading soem posts on the forum i realised that the majority thinks that those are just a waste of money. I would really love to hear how most of you started. (any books that are suitable to read ?)
Please advise me on how to proceed. I am really interested to learn and not just to gain a quick buck from the market.

 

[coyotte]

Re: sincerely looking for help and advise.

debaron :

First you must determine which type of help your after.
Investor or Trader ----- they hold opposing views of the sharemarket and their approach to it.

If Trading is what your after have a look at the " Trading Plans " and the "Improving Chart Analysis " thread , the latter has gone over board now for a beginner but the early parts are o/k.

To see a difference in the two approaches check out the OXR thread


Cheers

 

[debaron]

Re: sincerely looking for help and advise.

hie.
i was thinking trading for a start. then investing later on.

 

[doctorj]

Re: sincerely looking for help and advise.

hie.
i was thinking trading for a start. then investing later on.

Is this because you feel that you don't have enough capital to make investing worthwhile?

 

[yogi-in-oz]

Re: sincerely looking for help and advice.



Hi debaron,

Here's a free download of practical stuff that you may
need to address, before you commit your money to
any market .....

http://authorsden.com/visit/viewwork.asp?id=10134

happy days

yogi

 

[ghotib]

Re: sincerely looking for help and advise.

I think Coyotte's idea is that you need to decide first whether to trade or invest, and then focus your learning on one or the other. I disagree... a bit (Isn't that helpful? 2 replies and they disagree )

I also disagree... a bit... with your interpretation of the forum's view of courses. If you look again, you'll find that the majority thinks most of the expensive courses are a waste of money. That doesn't rule them all out. Take a look at the ASX education section: they offer free courses. There are plenty of free websites that are packed with information.

You've obviously already made a start on this road, which is probably why Coyotte suggests you decide between trading and investing. I agree about making a decision, because you sound like you're feeling overwhelmed with information. But I think a big decision like that won't help enough. There are so many different strategies around within both trading and investing that you'd still be battling to see the trees for the forests, so to speak.

What about designing a kind of series of courses for yourself, and doing practical work on paper or with some of the real money you were thinking of spending on courses.

What I mean is this. Pick a method from one of the beginner books and try to put it into practice. You already know that you'll discover things you don't know, so find out about them. IOW, get to know one method in depth. If you find the first method works for you, terrific: you can add another one when you're ready. If it doesn't, write yourself some notes about why, and use them to find another method to explore in depth.

That's pretty well what I'm doing, and I've found it really helpful in sorting through the masses of information around here and elsewhere. I have a lifetime of methods to investigate one day, but they'll keep. There's always an opportunity somewhere.

Have fun.

Ghoti

 

[coyotte]

Re: sincerely looking for help and advice.

What do mean doctorj --- you only need $500 to start investing .


But as the Wall Street bit goes " you have the Bulls , the Bears and the Pigs" Unfortantlly for the Pig the other two keep on trampling over him/her.

Cheers

 

[nioka]

Re: sincerely looking for help and advise.

hie.
i was thinking trading for a start. then investing later on.

I'm sure you have that the wrong way around. Try investing first and paper trade at the same time until you get the feel of things. Remember that in trading for someone to gain there will be someone losing at the same time. On a rising market there is room for both but it can be an expensive exercise on a falling one. Enjoy the experience regardless.

 

[Sean K]

Re: sincerely looking for help and advice.

Invest in something solid for a start. Blue chip. Then buy something else solid. Then something else. Diversify a bit. If you haven't lost all your money you could buy a managed fund with a regular investment. When you've accumulated about $30-50K I'd get a margin loan and start borrowing to invest in some more good stocks and managed funds. If you haven't lost all your money, think about putting some of that harded earned aside to 'trade' with. Paper trade for a while, develop a system, and then put it to practice. You'll lose some money so never bet the house on anything. The money you lose are your trading lessons. They don't come cheap. Plus, read, read, read, and maybe join a tip sheet or two to get ideas and join a forum to ask people questions and get other ideas.

Perhaps if you can, before any of this, get a yonger brother who is the GM of Research at a stockbroking firm, to provide you with some advice to get started.

Well, that was how I got into it 12 years ago.

Good luck.

 

[coyotte]

Re: sincerely looking for help and advice.

debaron

Hate to see U lose. your Capital.

Trading requires a min of $10,000 of back-up risk capital --- whether U trade with a Broker or CFDs ---- you only want a small amount say $100, for a practice/training account with CFDs (IGM) --- But do not expect to make a overall profit for at least 12 months.


Cheers

 

[debaron]

Re: sincerely looking for help and advice.

guys thanks for all the input.
i should prolly mention that i jz finished from uni, meaning that i have not much capital yet. I want to take this time to learn and read more. However i would want to get started on something small. I want to learn to trade before i invest as i want to get the liquidity for a bigger invesment in the future as i understand that trading is usually related to shorter term than investing?? (correct me if i got the whole concept wrong)

 

[tech/a]

Re: sincerely looking for help and advice.

Little capital?

Then paper trade as if you had it.

While you wont learn the psycological side of the equation you can test both longterm and short term trading ideas at the onetime.

Enter competitions like Yogi does (Yogi does it to win you'll do it to compare how you go.)

All without the necessity of losing a cent.
Plus you'll get a hang of how much you need to work at this business.
My guess is that it will take 3 yrs to become competent.

 

[Realist]

Re: sincerely looking for help and advice.

To make much money from a small start by trading requires one hell of alot of skill (and some luck).

And investing takes one hell of alot of patience.

If I was you at your age I spend my money on travelling, buy a car, or saving to buy a house.

The stockmarket is no money making machine....

 

[Shroomos]

Re: sincerely looking for help and advice.

I am only in the early days of trading myself, dont let low capital put you of, if you choose your shares carefully, and reinvest your profits, then that small amount could end up a large amount. The biggest worry when begining is the fear of loosing your cash.Share trading is often viewed as gambling, I disagree with this, as I feel that even if your share price goes down, you stil should have a larger percentage of your capital in existance. And ofcourse, educate yourself, to put odds in your favour. asx has an online sharemarket tutorial, books can be a good source. financial review, magazines (Financial reviews magazine and money are good ones) These will give you an idea of what investment stategies are out there, and also investment products, as well as information about companies etc. Choose a few stocks to watch, see what influences make them go up and down. Once you feel you have chosen a good stock, at a low entry, buy, the best way of learning is by experience.

 

[tech/a]

Re: sincerely looking for help and advice.

The stockmarket is no money making machine....

Well its worth the time and effort------trust me it certainly can be.

 

[coyotte]

Re: sincerely looking for help and advice.

I am only in the early days of trading myself, dont let low capital put you of, if you choose your shares carefully, and reinvest your profits, then that small amount could end up a large amount. The biggest worry when begining is the fear of loosing your cash.Share trading is often viewed as gambling, I disagree with this, as I feel that even if your share price goes down, you stil should have a larger percentage of your capital in existance. And ofcourse, educate yourself, to put odds in your favour. asx has an online sharemarket tutorial, books can be a good source. financial review, magazines (Financial reviews magazine and money are good ones) These will give you an idea of what investment stategies are out there, and also investment products, as well as information about companies etc. Choose a few stocks to watch, see what influences make them go up and down. Once you feel you have chosen a good stock, at a low entry, buy, the best way of learning is by experience.

It's GAMBLING!

Learn how ODDS/ PROBABILITY are calculated, and always keep the edge your way.

Cheers

 

[Shroomos]

Re: sincerely looking for help and advice.

It's GAMBLING!

Learn how ODDS/ PROBABILITY are calculated, and always keep the edge your way.

Cheers

Its not gambling if you make well informed decisons, and know how the market works. Anyone who thinks it is gambling should not be trading.

 

[tech/a]

Re: sincerely looking for help and advice.

It's GAMBLING!

Learn how ODDS/ PROBABILITY are calculated, and always keep the edge your way.

Cheers

Interested Coyotte how YOU do this?
IE Keep the edge your way.

Do you think having the information below is important?

If so
Whats your longest string of losses?
Whats your average win rate?
Whats your average loss?
Whats your average hold time?
Whats your expectancy?
Whats your biggest winning trade?
Whats your biggest losing trade?
Whats your longest string of wins?

 

[ghotib]

Re: sincerely looking for help and advise.

Hi debaron,

hie.
i was thinking trading for a start. then investing later on.

In your own mind, what is the difference?

Specifically, what will you do differently when you make the change?

Cheers,

Ghoti

 

[debaron]

Re: sincerely looking for help and advice.

Realist : dont worry i do make it a point to go on a holiday at least once a year and buy a car in the near future. I just want to learn something when i can still afford the time to take is slowly.

I'm not in a rush to make big bucks. I just want to learn and hopefully apply what i learn soon(?).

Speaking of online sharemarket games, do you guys know of any to reco?
I heard they are suppose to mimic the real market in terms of trends etc?

As for books.. im looking to start of some tech/a ones like Guppy's trend trading. Anymore recos? (btw should i even touch those by buffett or benjamin graham's?).