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What type of trading would suit my situation?

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mattryanshares

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Hi Im Matt and im new.

Im looking at getting into shares and at the moment im thinking Blue chip long term growth type scenario?
Im 40 own my home have a job offshore oil and gas that earns 200 to 300 k a year. Down a bit thanks to the gfc. As such i dont really want income as i pay to much tax already.
I spend 4 to 6 months away from home and sometimes have no access to the internet. Im know my self and i need a vested intererest to read info and as such start the learning process.

My intention is to buy some shares purely so i have to learn more, im prepared to make some mistakes then start reading about blue chip shares and then maybe look at daytrading when im home in 12 months or so??

Good plan or stupid??

Ive bought 9k worth of woodside, rio, bhp, woolworths, metcash, lynas, Iron ore holdings in the last 2 weeks up $70 haha but its been good as now im here and im reading and im fired up.
Im getting 14k in the next few days from a suspended fund and another thats been doing nothing for atleast 12 months. Should i just bank that and read more or is there some more blue chips i should stick it on???

I understand somepeople are probably rolling there eyes but im trying to be open and honest and any thoughts would be greatly appreciated.
 
mattryanshares said:
I understand somepeople are probably rolling there eyes but im trying to be open and honest and any thoughts would be greatly appreciated.
Click to expand...

Well you got that bit right

-----------------------

Matt i get the impression that you have some serious excess money and the need to play with it and yet little time and ability to give you expectations of a positive outcome...i feel a disaster coming on.

With all that money rolling in from your day job, have you considered a simple, easy, conservative investment strategy? (oh yeah you did that already)..in general we cant give financial advise on this forum, so im reluctant to comment on your stock selection and timing..however as you have already found out, timing is all important and yet you decided over a 2week period to just jump into WOW, RIO, MTS etc...good luck.
 
the chartist growth portfolio may suit what you need

i understand they are starting an autotrade facility soon which may also suit you being unable to access the internet at times
 

I wasnt actually asking what shares to buy but more what approach to take??

IE, to be a day trader dont worry about it as you spend to much time away from the computer when your at work??? It takes years to learn and you only get half a year each year to use what youve learnt??

IPO's??

Futres????


Ive taken or am attempting to head down the blue chip route going after growth???

I have no mentor or anyone i can turn to personally for advice. Ive had bad experiences with financial advisers and i believe its impossible to pick a good one. Its still just a roll of the dice???
 
Hello Matt and welcome. Not a bad job you have there mate, any openings? If I were you, I'd be putting the maximum contribution of 50k a year into super (self managed of course) to help lower that tax bill and in 20 years (unless the laws change) you can draw that out as tax free income.

My intention is to buy some shares purely so i have to learn more, im prepared to make some mistakes then start reading about blue chip shares and then maybe look at daytrading when im home in 12 months or so??
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Forget about "blue chip" stocks and making mistakes as a path to learning the hard way and get a financial education, be prepared - it will save you many thousands of dollars. Check out Roger Montgomery's blog and read his book "Valueable" as a start to investing in equities.

As for day trading, this is one of the faster ways to separate you from your money. The best day traders I know do it as a profession, not a hobby. Avoid wading in shark infested waters where professional, very experienced traders are the only one's making money. Day trading is a very different skill to value investing.

Since you are doing well financially I suggest you attend Tate & Bedford's mentoring program. It will be one of the best investments you can make for now.
 
mattryanshares said:
I wasnt actually asking what shares to buy but more what approach to take??

day trader

IPO's??

Futres????


Ive taken or am attempting to head down the blue chip route going after growth???

Its still just a roll of the dice???
Click to expand...

You have to find a approach/strategy that your happy and comfortable with, so you need to get your head around the different types of trading/investing.

First up day traders trade and investors invest...usually 2 different things both with many different approaches, on the whole its prob safe to say that people will tend to invest before they trade as trading requires a steeper learning curve and a greater time commitment.
 
1. Talk to a good tax accountant.
2. Have him/her explain your options: e.g. discretionary trust; tax advantages/ disadvantages of being a trader as opposed to investor; postponing CGT; ...
3. Those $9K - is that $9K/stock? or $9K spread across 7 stocks?
4. Why did you pick those 7 to buy exactly at this time?
5. Why did you choose to be so overweight in resource stocks?

Try and figure out those reasons (answer 4 and 5), then look at a simple chart, wheer each of those stocks have been and where they're now. I don't suggest you become a chartist or pay shiploads of money for a charting/ analysis package. Try http://www.incrediblecharts.com/ - it's free - and only look up the daily price chart for each stock; then compare your reasons to buy against the factual outcome.
Come back and tell us your conclusions. Will be interesting ...

PS: FxTrader has covered some other points I was getting to. I especially concur re: Louise Bedford.
 
Seems to be in a hurry to do it. From my experience, a cautious & deliberate approach is more beneficial to learning about this game because it gives you, over a period of time, an experience of stock price movement. Throwing money at stocks without a written & proven trading plan nor understanding is a surefire way to burn cash, though this may be what you inwardly crave.
I can tell you I have been part/fulltime "learning" for around 7 years and there is much to learn.
 
Trading using monthly charts could suit you, where you look at your stocks once a month and put in your buy and stop loss orders?






 
So_Cynical said:
Well you got that bit right
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Well, I wasn't rolling my eyes at all. Matt was being candid about his approach and apparently aware that it may have been less than perfect. So he's asking for some guidance. Seems reasonable to me.

Matt, I'm in the camp of suggesting you get some education before you start buying anything. The sort of random 'poke a stick at a stock and buy it' lacks any sort of logic.

It may seem horribly basic but if you haven't worked through the education modules on the ASX website, and you continue to just throw money at so called blue chips without any comparative analysis or price consideration, you're pretty much destined to lose money.
 
Julia said:
if you haven't worked through the education modules on the ASX website, and you continue to just throw money at so called blue chips without any comparative analysis or price consideration, you're pretty much destined to lose money.
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Onya Julia,

I keep forgetting the free education on asx.com.au
Simply because it wasn't nearly half as good and elaborate when I got my grounding.
 
My impression is you're a long term investor who doesn't want to lose sleep daily on positions. Otherwise you're a position trader who might hold positions over days to months.

So look for long term fundamentals. Or long term technicals. You're definitely not short term orientated or a scalper.

Other than that, you can either put it in an index fund or let a fund manager manage your money. Both of which would be objectionable by many on this forum.
 
If I wished to be invested in shares and didn't have internet access for periods of time then I'd need to find someone or something that can do it for me. Of course, it depends on how long these periods are. It would cost.

An autotrade facility may be of benefit but that depends on the details. You could use a full service broker - my FIL does - who has the authority to sell - his does now after getting caught in the 70's. The comment about speaking to a good tax accountant is a good first step - that's what I'd do. That would be money well spent. Your action also depends on what currency your pay is in.

Look through ASF re books (can take them with you when offshore) to read.

Otherwise you could go for property and become a slum landlord.
 
+1 for contributing the max to super pre-tax, and also for maxing out spouse contributions if you have a non-working wife.
 
poverty said:
+1 for contributing the max to super pre-tax, and also for maxing out spouse contributions if you have a non-working wife.
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Problem with super is that you can't pull it out unless you hit 65. Now that's not a huge problem if you're in your 40s. But if you're in your 20s or 30s, geez ... that's a long time before drinks.
 
With respect, IB12, I doubt the OP would have any idea what you're talking about here. On another thread, the poster suggested he was daunted by the jargon. I think that's understandable.

I'd be very surprised if Matt knows the difference between a fundamental and a technical approach, ditto what a position trader or scalper is.
Hence my suggestion that he should get some very basic education before doing anything at all.

IB12 said:
Problem with super is that you can't pull it out unless you hit 65. Now that's not a huge problem if you're in your 40s. But if you're in your 20s or 30s, geez ... that's a long time before drinks.
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Agree absolutely. The way governments are going with deciding to regulate pretty much every breath we take, if I were under 40 I wouldn't be putting a cent more than I had to into Super. I believe the day is not far off when the government (if it's still Labor) will dictate that a certain, probably quite large proportion, of everyone's Super must be channeled into a lifetime annuity.

i.e. you will not have access to the lump sum but will be forced to take it as an income stream, thus reducing the likelihood of your blowing the lump sum and then accessing the Age Pension.

Super is a great investment for those near or in retirement, hugely tax advantaged, but imo it's a big risk for young people.
 

Well I tend to see the glass half full, and don't assume that the OP is stupid, quite the opposite really if he is what he says he is.
I'm sure he can work out what I'm saying.
 
IB12 said:
I'm sure he can work out what I'm saying.
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What you're saying leads Matt nowhere IB12, what he needs is a roadmap to help him on the path to self education so he can discover what type of investor he wants to be, hopefully an informed and well read one in the end. He clearly has no idea at this stage of his journey and is just dabbling in the equity market.
 
Matt given your limited access to the internet for large portions of time I would restrict my investments were I in your situation to safer companies. Safer doesn't necessarily mean so called "blue chips" but instead it means investing in companies that have a much larger fundamental value than their current trading price.

These companies can be found in a variety of ways, but most are time consuming. Shares, like any other form of wealth generation, take alot of time and effort to become proficient at. I read somewhere that the estimated time to become proficient in anything is about 10,000 hours, whether that is shares, music, arts, or anything. 10,000 hours is a long period of time to devote to a single subject, and if you're pulling down cash like that from a legit job, imo I probably wouldn't even bother (cash at bank might be good enough for me ). However each to their own, good luck with the investing, and remember to not buy into a "get rich quick scheme".

PVF.
 

poverty said:
+1 for contributing the max to super pre-tax, and also for maxing out spouse contributions if you have a non-working wife.
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-1:10 to the power of 50

Don't do this.



Therefore you need to look at a negatively geared strategy. WHilst the ability to do so in shares is possible, the volatile nature of the asset cass means that your risk protection is highly important. Don't do something in this area if you don't know what I mean. You may wish to look at property as a means of creating a negative gearing scenario.

You should also be speaking to a good accountant and get some financial advice regarding structures. Look at what types of companies of trust structures will work to minimise your tax liability. At that level of income there are several things you can do. I'd go with the words uneducated about the realities of the situation rather than a considered and careful approach to wealth creation. Whilst I can't give advice.... what harm is there in banking it? As opposed to the potential harm of choosing incorrectly
I understand somepeople are probably rolling there eyes but im trying to be open and honest and any thoughts would be greatly appreciated.
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Good Luck

Sir O
 
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