Young, retired, and wanting some advice!

[YougNomad]

I also think I've identified that being a "trader" is definitely not something I'll be doing right now.

The lingo alone will take me a good 12 months to learn!

I think I'll start by doing my research, and maybe investing in some solid stocks (I'm thinking tech, like Google), or the big banks.

 

[CanOz]

I also think I've identified that being a "trader" is definitely not something I'll be doing right now.

The lingo alone will take me a good 12 months to learn!

I think I'll start by doing my research, and maybe investing in some solid stocks (I'm thinking tech, like Google), or the big banks.

Research is a good idea, could mean learning some lingo though...like SUB-PRIME LOAN

Remember too, if you start investing soon you will be buying into a market that has gained allot this year.

Take your time, do your research....you have so much time.

CanOz

 

[YougNomad]

Here's one for you all - if you were investing your first $10,000, where would you go?

 

[Ves]

Here's one for you all - if you were investing your first $10,000, where would you go?

Into a dark room, without any people or other distractions, alone with my mind to think about all the ideas I've come across so far.

 

[systematic]

I think I'll start by doing my research, and maybe investing in some solid stocks (I'm thinking tech, like Google), or the big banks.

Just an idea to throw at you (feel free to throw it right out!).

You're just 'getting into' shares, right? And it's going to be a side thing for you, at least for now (like it is for most people).

My suggestion (again, do what you think best with it!) is this:
Instead of, "I'll start by doing my research..." make it, "I'll start by doing my research into how I'm going to do my research". Whether or not you do the second bit (buy some stocks for fun) is irrelevant to my idea - just do whatever you think is best (it's obviously worked so far!).

So what I'm suggesting is to think about the fact that lots of successful people invest and trade in lots of different ways. Different reasons for buying, for selling, for holding period, for risk management etc. Now make it your educational pursuit to find out a little about those various ways.

You're already aware of finance and investing generally, and now you're narrowing to the stock market. Okay, so go and quickly learn the basics (what is a share, why do companies list, what does ex-dividend mean). I mean go and get a quick intro guide. Might as well invest a couple hours into the basics.
Even take a short detour into other asset classes. What about commodities (and futures?) Forex? Again, quick intro stuff to get your bearings.

Now the fun stuff.

Realising that lots of people are successful via different means, go and find some educational material (but not too much) on various methods.
Maybe go and research amazon to find out a list of 10 books that are real market classics of various schools of thought (value investing, trend following, technical analysis, fundamental analysis, statistical approaches, psychology of trading, money management etc).
And after a few classics by the well known authors, maybe a few others here and there (Aussie authors, books in a certain area that you find interesting).

Great!

Maybe something appeals to you. Say you like trend following and/or system based approaches. You might then go and get some educational resources from someone in that area. You might have a desire to learn more about futures and short term trading - go and get some education from a successful person in that field. You might like a fundamental/technical analysis approach, so dig a bit deeper on that. Just research your educators a bit to sort the good from the bad and learn a bit more in depth in the area that seems to work for you.

Then, rather than asking something like, "is BHP a good buy right now?" you'll ask, "does BHP meet my criteria in my plan?" - whatever those criteria are, and whatever your plan may be.

Obviously one of my biases is towards education. You might prefer to learn in a different way.

 

[CanOz]

Great post systematic! Agree

 

[Zedd]

Then, rather than asking something like, "is BHP a good buy right now?" you'll ask, "does BHP meet my criteria in my plan?" - whatever those criteria are, and whatever your plan may be.

Excellent way to put it.

YN - Why not use your experience in real estate towards building your portfolio. To turn your question around with relative figures, if you had $10M to invest in RE what would you do? Aim for stable rental yields? Good growth prospects? Undiscovered location before the rest of the market? Underperforming suburbs? High-end inner city? Mining Town? etc.

 

[YougNomad]

Hey everyone!

Thanks again for all the advice - I'm happy to say I've taken my first steps!

Purchased 2 parcels of shares - Telstra and NAB.

Very boring, but I think something I can monitor and watch.

Google is my next pick

 

[CanOz]

Hey everyone!

Thanks again for all the advice - I'm happy to say I've taken my first steps!

Purchased 2 parcels of shares - Telstra and NAB.

Very boring, but I think something I can monitor and watch.

Google is my next pick

Its has a great run and is pulling back...Currently a grail trade when it breaks the channel.

 

[beachlife]

Its has a great run and is pulling back...Currently a grail trade when it breaks the channel.

IF it breaks the channel. If not, the RSI divergence just might be a signalling a pullback within the bigger channel to around $800. Or if the small channel does break, the move, might be stopped by the upper band of the big channel. The decision to pull the trigger or not will depend on your investment time frame.






Thats a good example of how two people can read the same chart differently.


I see monthly XJO struggling at 50% retracement, many here will say Gann and Fibonacci are rubbish. But different views is what makes the markets move, without them there would not be a market.




On TLS monthly I see strong resistance at the psychological $5 which just happens to be near a Fibb level, and an overbought RSI (for the first time in over 13 years). Doesnt mean it would kill the current trend though. There are so many ways to view the data and as sure as night follows day there will be both buyers and sellers next week, each with their own view.





My 2c advice, learn to read charts, use a time frame that suits your objectives and use them to supplement your fundamental views.

 

[CanOz]

Thats a good example of how two people can read the same chart differently.

Err no...i wasn't reading a chart. I was presenting what will be a valid signal IF it triggers. I didn't present any analysis other than the obvious "its had a good run".

I realize that the OP likely has no interest in the technicals Beach, so i didn't want to present any analysis, if they want to buy in May after the market is clearly in the middle of a pullback after a liquidity fueled run then whom am i to stop them?

CanOz

 

[YougNomad]

Err no...i wasn't reading a chart. I was presenting what will be a valid signal IF it triggers. I didn't present any analysis other than the obvious "its had a good run".

I realize that the OP likely has no interest in the technicals Beach, so i didn't want to present any analysis, if they want to buy in May after the market is clearly in the middle of a pullback after a liquidity fueled run then whom am i to stop them?

CanOz

Wow.

^^^ Clearly shows that my ignorance with share could fill my rather large pool ...

In my infancy of investing, I want to pick companies which I think will hopefully perform and grow over the long term. I have an affinity with Google and they way they operate in the market, so it's a company I like and place personal value in.

End of the day, hopefully Telstra, NAB and the other more robust companies do well by me, and the more speculative ones are on a wing and a prayer.

For me it's the only way to learn.

 

[burglar]

... Start off small ...

+one

 

[CanOz]

Wow.

^^^ Clearly shows that my ignorance with share could fill my rather large pool ...

In my infancy of investing, I want to pick companies which I think will hopefully perform and grow over the long term. I have an affinity with Google and they way they operate in the market, so it's a company I like and place personal value in.

End of the day, hopefully Telstra, NAB and the other more robust companies do well by me, and the more speculative ones are on a wing and a prayer.

For me it's the only way to learn.

Hmm, yup agree...I'm a huge fan of google actually...but what does that have to do with making money off the equity?

 

[YougNomad]

Hmm, yup agree...I'm a huge fan of google actually...but what does that have to do with making money off the equity?

I've got a small pool of money that I want to invest in shares - the majority of the equity from the sale of the business is tied up in property, which is all performing quite well with cash flow and equity gains.

If I can get my head around shares, and it works for me, I'll probably end up pulling some of the money out of property (selling), or investing money from one of the new businesses i'm starting (fingers crossed once launched they will be successful as well!)

So for me it's about not putting all my eggs into the property basket. Shares seem like a great idea because of the fluidity - no need to wait 6 weeks to exchange and settle if you need to release the cash.

 

[prawn_86]

I've got a small pool of money that I want to invest in shares - the majority of the equity from the sale of the business is tied up in property, which is all performing quite well with cash flow and equity gains.

If I can get my head around shares, and it works for me, I'll probably end up pulling some of the money out of property (selling), or investing money from one of the new businesses i'm starting (fingers crossed once launched they will be successful as well!)

So for me it's about not putting all my eggs into the property basket. Shares seem like a great idea because of the fluidity - no need to wait 6 weeks to exchange and settle if you need to release the cash.

I think what Canoz was asking is why do you think Google, at current prices, will make you money?

Why did you buy your first 2 parcels of shares? Do you have a plan or forecast? What if that plan doesnt eventuate, do you have a stop loss or contingency plan? How often will you re-assess?

These are all things you need to look at if you are to take it from 'gambling' to a business style investment and/or trade

 

[YougNomad]

I think what Canoz was asking is why do you think Google, at current prices, will make you money?

Why did you buy your first 2 parcels of shares? Do you have a plan or forecast? What if that plan doesnt eventuate, do you have a stop loss or contingency plan? How often will you re-assess?

These are all things you need to look at if you are to take it from 'gambling' to a business style investment and/or trade

My bad - I completely misread Canoz's reply.

I bought 5k worth of NAB as well as 5k worth of Telstra. From my research they seem to be the bread and butter darling of shares for long term holding. It let's me watch and see what goes on while I start learning how everything works.

Google - I love the company, and from what I've researched they have some pretty big and amazing things coming out over the next 12 months, so I'd love to have some shares for the longer term.

With these shares I'm not looking at selling - I'd like to have these shares in years to come, and maybe add to them if things go well.

I'm not sure if there is a right or a wrong way with blue chip shares like NAB and Telstra - but I hope my assumption and plan is correct!

When I purchase shares in iiNet or some other medium sized, more risky companies, then I'll definitely have a plan to sell.

 

[tigerboi]

what was the name of your real estate business in Canberra, mate of mine

owns a century 21 & does ok...tb

 

[McLovin]

My bad - I completely misread Canoz's reply.

I bought 5k worth of NAB as well as 5k worth of Telstra. From my research they seem to be the bread and butter darling of shares for long term holding. It let's me watch and see what goes on while I start learning how everything works.

Over the last decade TLS and NAB were probably two of the worst large cap stocks to have invested in. TLS was at $8.50 in 1999 and NAB hit $30 that year. By way of comparison, in 1999 NAB was the largest bank in Australia it's now the third largest and the All Ords has gone from ~3,000 to 5,000 over that period.

I'm not sure who told you they were the darling of shares but they were lying!

 

[jjbinks]

it may be desirable to have stocks in google from point of view you own part of a great powerful tech company.

I guess its similar to how some peoplei i know buy qantas because they want to own an airline.

But if you are buying purely too grow your wealth then you research to suggest that the shares you are buying will increase in price or are currently undervalued imo.