Starting to invest

[theasxgorilla]

You have some great advice here already.

I think the key thing is to be in the market. You will learn utmost about any given share by actually holding it. A little tip about research. Get yourself an RSS feed news reader (I use Feedreader but I have heard that RSS Bandit is also good). Go to Google news, plug in "asxsharehere " location:australia. Once you have your results click through the "RSS" link on the left hand side. Go to the location bar, right click, copy. Plug the feed into your chosen reader.

This will give you up to the minute news articles on your chosen share from all Australian online news sources.

The other key thing is to protect your capital so that you can remain in the market long enough to actually get a feel for it. Ease into it. Let your line out slowly. You might have $15k to invest, but holding one $3k position and watching it will probably teach you more than pulling the trigger on the whole $15k (and will probably end up being a cheaper lesson).

 

[sirk]

Good advice so far I think.

What does everyone think about financial planners or the likes. For example, I know if I don't invest my money I will spend it on crap (a new car, play station 3, booze, gambling etc) So what about the option of getting some "hot tips" from someone with years and years experience. That way in theory it'll be a smarter move then just having a guess and learning later and at the same time I can get into the market quickly.

 

[theasxgorilla]

I would probably value a mentor over a financial planner. However the process of talking to a handful of different financial planners can be enlightening, even if you ultimately choose to go it alone.

 

[Freeballinginawetsuit]

Unless those planners advised you into Westpoint and such. DYOR mate, be educated and diversify, you should out do the experts

 

[larry123]

Hey guys,

I'm looking to invest in the stock market and I don't know where to start.

I heard of this site and it sounded great. Because I am only young I am looking for high growth and I have plenty of time to stay in the market. Does anyone have any suggestions to what I should invest in or any other information?

That would be awesome.!!

 

[michael_selway]

How exactly do you do your research?

Do you just look at the ASX website for good or bad news? Do you view the companies financial reports and look at certain ratios, if so which ones?

I find it very hard to know what shares are "cheap" and what companies will grow in the next year or 2. Is there any tutorials that give a run down on how to do this?

Some great sites to learn how to "value shares'

http://www.fnarena.com (try the free trial - then broker call/stock analysis)
http://www.aireview.com.au

Also you should get to knwo more about commodities & energy etc, below is a stat for basemetals etc

http://www.kitcometals.com
http://www.basemetals.com/stocks.aspx

Also yeah, I wouldnt borrow to invest when markets are so high as they are now, unless if you are a risky day trader.

All the best

thx

MS

 

[nizar]

Also yeah, I wouldnt borrow to invest when markets are so high as they are now, unless if you are a risky day trader

Markets were also "so high" at the end of last year relative to the year before?

And guess what - markets were also "so high" at the end of 2004 relative to the end of 2003.

We are in a bullmarket. Higher highs are to be expected.

Enjoy it while it lasts and let the good times roll

And I wouldnt mind to be what you call a "risky day trader". I heard they make alot of money.

 

[It's Snake Pliskin]

And I wouldnt mind to be what you call a "risky day trader". I heard they make alot of money.

In defence of those serious day-traders, or any trader, their understanding of risk is far more advanced than the average layman.

 

[nioka]

It is interesting to note the results of the stock picking comp. Even on a "bull" market only 45 stocks out of 87 are showing a profit. This should be a sobering statistic for a beginner to start using borrowed funds.

 

[nizar]

In defence of those serious day-traders, or any trader, their understanding of risk is far more advanced than the average layman.

I wasnt being serious. Just trying to prove a point.
I agree wholly with the above statement, Snake.

Risk, if you understand it, and manage it ie. quantify it, then its not a problem at all.

 

[Mofra]

sirk,

Another option to consider would be a capital-protected loan or GEI type loan that allows entry into a variety of managed funds & shares whilst offering protection to the downside. Most financial planners can offer entry to these products from a variety of institutions, and the funds available (even if all products are from one institution) are provided by a wide range of providers & fundies.

Less exciting than direct share investment or trading, however there are other benefits to consider as well as the opportunity to gear into the markets at levels private investors normally only consider for residential property.

Good luck

 

[bvbfan]

It is interesting to note the results of the stock picking comp. Even on a "bull" market only 45 stocks out of 87 are showing a profit. This should be a sobering statistic for a beginner to start using borrowed funds

Any new investor who buys one stock is asking for trouble, thats one of the drawbacks of the tipping comp if you are only going to choose one.
My tips have not been great but the ones I didn't tip but held/liked have done far better.

Would be interesting to see how the tips went from the month they were tipped to the end of the year.

 

[nioka]

Any new investor who buys one stock is asking for trouble, thats one of the drawbacks of the tipping comp if you are only going to choose one.
My tips have not been great but the ones I didn't tip but held/liked have done far better.

Would be interesting to see how the tips went from the month they were tipped to the end of the year.

A very valid point to consider.The other point is that entries in the comp are very speculative and do not carry a financial penalty.

 

[marklar]

A very valid point to consider.The other point is that entries in the comp are very speculative and do not carry a financial penalty.

True, but I'm going to continue to pick stocks I have am curious about (eg. I sold all my ARR in November but picked it for December comp.)

m.