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  • Share trading

    I've been thinking about getting into it for a while now, and now that i've got some spare cash lying around been thinking more seriously about it. Just not sure what to do.

    my father-in-law and wife's uncle both do option trading and seem to do alright in it. not sure whether to try some of that with their help, or just trade stocks.

    any suggestions?

    also, what's a reasonable starting amount? $5k? $10k?

  • #2
    if your not going to use leverage (eg CFD's on a margin) 5K might limit you to mining specs etc (great if you can pick a FDL ). 10k might get you into mid caps a bit more or some blue chips on a bit of margin.

    a higher risk otion would be to use the 5k on interest payments on a 50k loan, i would be looking for "better " growth stocks with that sort of deal.
    this may be a "longer term option" and start "trading" a bit later?


    please seek real financial advice and see an accountant as well

    heres hoping for a "the bears have thanksgiving and the bulls have xmas" december lol
    Become a venture capitalist

    Kiva, loans that save lives

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    • #3
      $5k-$10k is fine as a starting point. Dont invest what you cant afford to loose. Mining specs etc yeah great but high risk. Better to start off on some medium to low risk stock to get a feel for things.

      As for taking out a loan some have done it with great success but those people have put alot of time & effort into research. No offence but Im not so sure you've done enough of that just yet. You loose the $50k on the exchange you still have to find the money some how.
      In complete darkness we are all the same. It is only our knowledge and wisdom that seperate us. Dont let your eyes deceive you.
      Its the little things that make the difference
      Originally posted by IPIT on relationships
      If either/both of you can take a dump with the other person being next to you within a week of meeting them then you're in with a VERY good chance.

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      • #4
        I don't have time to follow the market properly, but am doing OK ATM now that my son is trading

        Had a few IPO's come up, that have given me nice little earners,

        Just start slow and don't go in too deep

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        • #5
          pretty much i've wanted to do some little trading for a while now, and now that i'm working for myself i've got some cash i can spare. i won't be getting any loans, i'm only going to trade money i've already got and can live without if it goes tits up.

          Comment


          • #6
            Wise. Very wise.
            In complete darkness we are all the same. It is only our knowledge and wisdom that seperate us. Dont let your eyes deceive you.
            Its the little things that make the difference
            Originally posted by IPIT on relationships
            If either/both of you can take a dump with the other person being next to you within a week of meeting them then you're in with a VERY good chance.

            Comment


            • #7
              my advice is to learn as much as you can and be open minded about it. read some books on "trading" and also read The Intelligent Investor by ben graham. you need to understand the difficulty of making money by actively trading shares and whether you are willing to do the work and research required. the vast majority of people would be better off "investing" rather than trading but that doesnt sound as cool when youre standing round the water cooler.

              "Paradoxically, when “dumb” money acknowledges its limitations, it ceases to be dumb." - warren buffett.
              Originally posted by Friedrich Hayek
              "The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."

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              • #8
                yeah, got some books already.

                i'm not expecting to make craploads of money and buy a new M3 (hi deej), but it's either it sits in my business savings account making maybe 6% interest, or i see if i can a little more than that out of it.

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                • #9
                  as long as they arent booking like "how to make a million bucks in 2 months on the stock market without doing any work or knowing anything about shares" ben graham's book is a very good one.

                  if you look into it honestly you will probably see that trading (as in trying to buy low and sell high) is not the way to go unless you are especially talented. its very hard to beat the return on the total stock market after you take out trading fees and tax. "investing" and "trading" are different things. a lot of people will probably say im wrong but read my sig
                  Originally posted by Friedrich Hayek
                  "The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."

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                  • #10
                    Id suggest you start with plain vanilla listed equities.

                    Learn the ropes there then branch out into other areas if needs be.

                    Dont buy books on how to get rich trading the stock market .. waste of time and money. ASX has a fair amount of info on the market for free ... its a good place to start.

                    Dont get attached to your money .... the more you care about it ... the more it hurts.

                    Dont be afraid to take a loss.

                    Learn how to use a stop loss position .. be it rolling percentage or fix limit they are a very useful tool when you start out.

                    IPOs are great ... just make sure your dealing with a reputable firm ....

                    Try paper trading for a bit.

                    If you want email me and Ill give you hand.

                    [email protected]

                    Cheers

                    H
                    Some say he eats sidchrome for breakfast

                    Some say he only showers on even days of the week

                    Some say he put an R1 motor in a coffee machine

                    All we know is he's Hewie.

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                    • #11
                      my email is [email protected], I have got a ebook, Dr alexander elder and a pile of others I can share with you...or others to get your feet wet.
                      There are many other good reads I can suggest if you want as I have about 20 trading books and growing but it depends on what you want to do..trade or invest?
                      Go to nick radges site www.reefcap.com maybe .au and have a read of the threads their. All crew their are very experienced and will offer great advice.
                      I would say, go out to a few seminars and listen to what they are saying and get into the lingo of the market, its a whole new world and sounds like another language at first but you wil pick it up if your keen.
                      A fool and his money is not a place for the market, it can bite hard if you dont repect it!
                      Success is Choice.

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                      • #12
                        ^^^What Hewie said^^^
                        You need to decide whether you wanna trade fundamental, technical or a mix of both.

                        I would suggest staying away from options trading until you have cut your teeth on equities for a bit.

                        Yes - You can make a lot on options due to the extra leverage they allow but they are high risk.

                        ASX website is the best place to start learning.

                        Gluck with it all and make sure you choose a broker that does offer all the services you require ie: stoploss, conditional ordering, options, cfd's etc etc etc

                        Comment


                        • #13
                          You need to make a few decisions before you start your trading/investing/punting ..

                          Things like appetite for risk, expected returns things like that ... once you have decided where to start you can start learning about that area.

                          Dont try and learn about all the disciplines on the market ... it would take you years to get a good handle on them all ... hence .. work out where you want to be and then go from there.

                          Share trading is a bit like everything else in life ... everyone will have an opinion on how to do it right.

                          Try to find the one that sits well with you then research it before you follow it.
                          Some say he eats sidchrome for breakfast

                          Some say he only showers on even days of the week

                          Some say he put an R1 motor in a coffee machine

                          All we know is he's Hewie.

                          Comment


                          • #14
                            thanks hewie and others.

                            fair enough. i was planning on just doing it myself thru commsec, was going to do some options using support from family already trading in it. but might just wait a bit and look into all avenues first.

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                            • #15
                              If you want a hand let me know .. Im happy to have a coffee and go through the fundamentals with you.
                              Some say he eats sidchrome for breakfast

                              Some say he only showers on even days of the week

                              Some say he put an R1 motor in a coffee machine

                              All we know is he's Hewie.

                              Comment

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