Starting from zero knowledge

[Kuruk]

Hi all

Nice forum. I have only been reading for a few days but the information overload is exciting.

I am 37 living in Melbourne. I guess you could peg me as the average guy working to support his family for the average wage. This has ment while the stock market very much interested me I faced the reality of not having the $$$ to invest in any meaningful way. I have not followed the market at all up until now.

I will be made redundant in a few months. While the prospect of finding a new job is scary (its been 20 years since I went for a job interview). I now have a chance to invest in the stock market.

I have been trying to take in as much as I can about how to get started and still only have a basic understanding of how the market works. Hopefully some of you can answer some questions for me

1. What sort of platform should I look at using to learn the ropes. I have seen IG Markets mentioned a few times but honestly it seems like a pretty full on platform and maybe overkill for a real beginner. Are platforms like Commsec with $19.95 trades ok ?

2. Are there any good guides on the method and process to be a disciplined researcher ? What to look for before picking a instrument.

3. What would be the best type of investing to do when starting from the bottom ?

4. What sort of money should I look at opening my account with. I am not looking to be rich in a year. I will be happy if I can follow the 2% rule and just work on picking enough winners to grow or even maintain my starting investment. I would be happy to ramp up the investments when I have a clue.

Thanks in advance and again great site.

 

[Plasmo]

Re: Starting from zero knowlegde

Commsec or BellDirect are fine.

For tax reasons, you would have to pick some damn good stocks to outperform buying and holding the entire market for as long as possible.


Buying the entire market has a few main advantages:

1. Compound interest works really great when you don't have to pay any tax for 20 years

2. Risk is as low as you can get in stocks

3. The time required on your part is close to zero.

I assume here that you are investing to make long run returns, if you are investing for entertainment or short term purposes different principles may apply.

 

[Kuruk]

Re: Starting from zero knowlegde

I assume here that you are investing to make long run returns, if you are investing for entertainment or short term purposes different principles may apply.

I am most definitely interested in investing for entertainment, and the aim to make some money in the process. I however must concede I am going into this with very little understanding of the game. I am a gamer at heart.

I should have stated my objective from trading in my first post, sorry.

 

[disarray]

Re: Starting from zero knowlegde

kuruk from SA? (wow, eq etc.)

 

[Kuruk]

Re: Starting from zero knowlegde

kuruk from SA? (wow, eq etc.)

Yes mate

I have a feeling there are a few of us here.

 

[disarray]

sent you a pm

 

[Spanning Tree]

Are platforms like Commsec with $19.95 trades ok ?

I've used Commsec and it's fine for me. You can sign up for free. What what I hear you get $600 free trade if you sign up.

For tax reasons, you would have to pick some damn good stocks to outperform buying and holding the entire market for as long as possible.

To buy the whole market, i.e. the whole Aussie market, you buy STW, which buys the top 200 Australian companies for you. If you want worldwide coverage, you can also get IVV, IVE, and IEM.

Good luck.