• Australian (ASX) Stock Market Forum

New to the game

Discussion in 'Beginner's Lounge' started by tugga, May 30, 2008.

  1. tugga

    tugga Well-Known Member

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    I'm a police officer and recently invested in solagran bought in at 1.20 they are now 40c haha bad timing.

    What I wanna know is, is there any tafe courses that would assist me in trading?

    or university courses?

    thanks
     
  2. hangseng

    hangseng Gong Xi Fa Cai

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    Yes there is, but in my view NO and a complete waste of time and money unless you want to go into this professionally and work with banks or funds.

    Remember highly skilled and educated fund managers were recommending Centro and ABC learning just before they collapsed. ANZ was involved with Opes Prime and they are really well educated *shaking head in disbelief*.

    Read all you can, learn both fundamental and technical (charts) analysis. Also plenty of resources here on ASF and the web. Learn how to read financial reports, I did a simple 1yr accounting course years ago for a business I was in and this has helped me greatly.

    Your first lesson is no surprise to me, as the renewable energy sector has little govt support and rightly or wrongly has been trashed due to it. Second lesson look at the sectors that are favourable or due to be. Currently anything iron ore or phosphate, with uranium about to burst at the seams. I woudn't touch banks with a barge pole, but that is me and others will disagree I am sure. Welcome to the market :)

    Best advice I can give you is to sign up for the next ASX game. You trade real time with someone elses money :) Who knows you may even win.

    Also you can paper trade, that is trade without actually placing any funds and record your trading. This will help but it won't teach you the biggest lesson of all, how to manage your worst enemy being yourself.

    Trading psychology i.e. knowing your own risk tolerance and emotions is 90% of what you ned to control. The rest can easily be learn't.

    Go to the ASX website as they have loads of free resources and education information. Listen to the podcasts, learn market movements and why they move. The web is a free valuable resource, as is ASF.

    Don't pay others thousands to attend courses and buy their software, unless you simply have loads of cash and want to. IMO of no benefit and the money is better invested in the market.

    A great lesson I learnt is to not trade on what is in the papers or on the news, it has already happened. You need to research and find them before they move, or at least as they begin to move. Once they are running don't chase them, learn charting and you will learn when to enter these stocks.

    Most of all have fun and never panic sell or over leverage. This is a world of enjoyment, disappointment, losses, gains, villains, heroes, risks and rewards all wrapped up in one. I absolutely love it and the dynamics involved, as you may have noticed :D
     
  3. Miner

    Miner Well-Known Member

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    Dear Tugga

    First of all I am not competent to advise you,

    However learning from others and my lessons learnt in real investment in a year, if I may add what Hang Seng said that the items covered by Hangseng to you in less than one page will be covered by the glorious lecturers in TAFE over two sessions So as he said it best to adopt to his suggestions and then of course build up your lessons through more readings. ASF has some educational books and consider buying them. They are not expensive at all and of good value.

    Good advise Hangseng and thanks for your note . It is refreshing
     
  4. tugga

    tugga Well-Known Member

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    opes prime is involved with my company and as soon as public caught wind, the sp dropped like a lead balloon.

    thanks for the advice hangseng

    I will continue to read up and i hope it sinks in rather quick
     
  5. hangseng

    hangseng Gong Xi Fa Cai

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    Disclaimer:
    The information provided previously and in this post is not intended nor does it constitute financial advice. I am not licensed to provide financial advice and as such you should seek professional financial advice prior to investing.


    Now I have that out of the way enjoy, good luck and most of all have fun and at all times:

    PRESERVE AND PROTECT YOUR CAPITAL AT ALL COSTS You will then survive to invest again and learn from the experience. Better to take a loss than to lose your capital entirely:eek::banghead:

    I spent years searching how to invest and paid for 'professional advice' which was a waste of my time and money, lost money to super funds 'left on hold' (due to bad financial decisions and serious illness) after I was told they would be safe untill I began contributing again only to find the funds chewed up by fees completely.

    Then I had enough. 10 years ago the search began in earnest as I was stone cold broke, 40 yrs old with a young family and had my back against the wall. Welcome mindset change. I changed careers, have spent countless hours re-educating myself, reading, practising, paper trading, attending seminars, listening to podcasts and online videos. I now have over $2.5m in tangible assets, manage my own superannuation (with returns funds only dream of), invest in property and shares and I am an active part time trader.

    Not for everyone but my journey has not only made me financially secure it has also made me a stronger and better person. I also learnt to share information, as a great friend once did with me to kick me off on the journey.

    Sharing knowledge and information is the greatest gift to anyone, only good flows from it. The Chinese have a term 'Chie tsuo' which loosely means to to learn from each other by exchanging views and to improve oneself through discussions with another. Learn to network ;)



    Some useful links to kick you off:

    http://vinvesting.com/buffett/docs/BuffettInterview_CNBC_20NOV06.html
    http://www.investopedia.com/articles/01/071801.asp
    http://stocks.about.com/od/1/u/Evalstocks.htm#s1
    http://www.investorweb.com.au/schoo...3E-D19FA998750A&_c=&_dt=15/04/2007+4:57:41+PM
    http://www.moneybags.com.au/default.asp?a=74
    https://www.asx.com.au/asx/myasx/login.do
    http://www.asx.com.au/resources/videos/index.htm
    http://www.asx.com.au/resources/podcast/2008.htm
    http://www.search.asic.gov.au/cgi-bin/gns030c
    http://www.jorc.org/main.php
    http://www.kitcometals.com/news/
    http://www.stideas.com/Free Trading Tools.htm#Downloader
    http://www.trader-soft.com/japanese-candlestick/index.html
    http://au.finance.yahoo.com/intlindices
    http://www.incrediblecharts.com/
    http://www.marketwatch.com/
    http://money.cnn.com/
    http://www.bloomberg.com/
    http://www.guppytraders.com/
    http://www.afr.com/home/

    My favourite trading read (I have read over 50 books on trading in the market):
    36 Strategies Of The Chinese For Financial Traders by Daryl Guppy
    http://www.moneybags.com.au/default.asp?d=0&t=1&id=5096&c=0&a=74

    My favourite investors:
    Warren Buffet and Ben Graham
    http://everythingwarrenbuffett.blogspot.com/2008/03/guru-focus-warren-buffetts-mentor.html
    http://www.buffettsecrets.com/articles.htm

    My single most successful stocks (both held for long term):
    Gindalbie Metals (GBG)
    Alliance Resources (AGS)

    My speculative (near producer) stock pick for 2008/2009:
    Peninsula Minerals (PEN)

    My Favoured Blue Chips:
    Wesfarmers (WES)
    Woolworths (WOW)
    BHP Billiton (BHP)

    My biggest mistakes:
    View Resources (VRE)
    Brierty Limited (BYL)

    Stocks I am avoiding for now:
    Banks
    Solar/wind power and biofuels (until they gain govt support they are going nowhere fast)

    Sectors I believe will perform well:
    Resources to continue especially Iron ore, LNG, Oil, gold, silver
    Base metals will suffer short term but long term the outlook is good, Zinc in particular has copped a battering lately.
    Anything supplying food or contributing to food production such as fertiliser stocks, Beef cattle, grains etc.
    Did you know that India's Prime Minister recently stated "the biggest challenge faced is to feed the people of India". Most Indian and Chinese people used to only eat one meal a day, they now eat two (do your maths).

    Energy of the future and next sector to run IMO:
    Uranium - see my speculative stock pick ;)

    Oh and I don't sleep much so I had plenty of time to put this info together :D
     
  6. kennas

    kennas hoarding tinned food

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    You could do a Diploma of Finance Services and it's variations for some formal education. I did about half of the course before I relocated to Peru. It's mostly just theory, of course, and concentrates more of fundamentals, but it's a great source of general education of the financial systems.

    Your real education is from getting into the market, learning by trial and error, reading every financial paper and magazine you can, following YTs picks :) lol, and finding an investment/trading profile that suits you. Some people are fundamental investors, some technical traders, and some a blend. I prefer being blended myself.

    ASF is a great sourse of information too of course :), although tends to lean towards the technical side for some reason.

    Good luck!
    kennas
     
  7. tugga

    tugga Well-Known Member

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    Thank you very much hangseng

    let the reading begin

    so kennas what your saying is copy young traders suggestions hahaha
     
  8. prawn_86

    prawn_86 Mod: Call me Dendrobranchiata

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    Well done Hangseng, great info there.

    Tugga, i would add that it really depends on what your goals are. If your looking at longer term investing and not actively trading, then something like the DFS Kennas suggsted could be useful. Or even a cert III in accounting or something just to learn how to read the books etc, but again it depends on your level of financial competency and how quickly/well you pick up numbers.

    If your looking at actively trading its a whole different ball game, and there are many members way more qualified than me to talk about that.

    As Hangseng said, the ASX share game is a great starting point. Its where i first started also.

    My golden rule for those starting out in the markets is DONT PUT IN WHAT YOU CANT AFFORD TO LOSE.

    Obviously this changes as you get more experience. I would also say if your starting out to look at the larger top 200 companies. The massive gains and 'gambling' appeal may not be there, but it is a good place to cut your teeth with "solid" companies.
     
  9. tugga

    tugga Well-Known Member

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    I learnt that the hard way and majorly over bought on my last trade and it backfired big time. Now I just gotta wait it out I guess.

    My first trade went a charm, a nice 90% gain on 20k

    Then i sunk all that plus more borrowed money into my last venture, which hasn't gone to plan as well as I hoped.
     
  10. Julia

    Julia In Memoriam

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    Hang Seng, great story. Good for you in turning everything around.
    That takes determination and courage.
     
  11. hangseng

    hangseng Gong Xi Fa Cai

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    I appreciate the kind words Julia. I will share a few moments of it if I may.

    Yes it has been one hell of a journey and I wouldn't wish it on anyone. However should it happen then you definately must have an undying resolve to succeed and be prepared to sacrifice significantly. If you do the rewards are worth every tear and heartbreaking moment.

    The only left over aspect with me now is that I don't sleep very much. All those years I worked away doing 12hr days, 7 days a week, on 6/1 rosters and studying by distance education for 4 years. Many a late night studying and early morning starts. Now I wake up at 4am regardless of what time I go to bed.

    The greatest reward for me though was attending my daughters graduation from Uni. She told me my resolve showed her that anything can be achieved once you set your mind to it. This lovely person always wanted to be a Veterinary Surgeon and was told at high school she should forget about going to uni, this broke her heart (she was failing as she was worried about me). We had a little heart to heart and she not only went on to Uni and became a Vet, she passed high school with several distinctions, went on to achieve honours in Veterinary Science and Veterinary Surgery and was granted an internship in the US.

    Never ever give up, no matter what it is you do or desire to do in life. Never do harm to anyone on the journey and offer others all the help you can. The life rewards outweigh any monetary aspect by a country mile.

    The journey continues.
     
  12. MRC & Co

    MRC & Co Well-Known Member

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    Fantastic posts hangseng.
     
  13. uahmad

    uahmad Active Member

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    Wow,

    Im VERY new to the game and reading your post Hang sent shivers down my spine!

    Congrats! and thanks for the insight!
     
  14. Timmy

    Timmy white swans need love too

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    Just saw this thread for the first time - great stuff HangSeng, really great.

    Tugga - thanks for starting the thread.
     
  15. ThingyMajiggy

    ThingyMajiggy Well-Known Member

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  16. disarray

    disarray Well-Known Member

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    mods can you sticky this for a while? some quality info there and a good place to start.
     
  17. professor_frink

    professor_frink Moderator

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    good idea disarray. Done:)
     
  18. hangseng

    hangseng Gong Xi Fa Cai

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    I am humbled, my first involvement in a sticky :D

    Thank for all of the kind words.
     
  19. rob

    rob Active Member

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    :hello there. i have been doing alot of research and have bought a few shares. would someone tell me roughly how i do a market cap on a company rather than relying on someone to post it as i would like to be able to make some kind of comitment to the threads to. thnks for helping :)
     
  20. Pommiegranite

    Pommiegranite Well-Known Member

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    Take the latest Appendix 3b from the announcement. Add up all of the holdings (including options with the excercise price) for the fully diluted share registry. Multiply this by the current share price. This gives you the fully diluted market cap.

    One thing to note though is that sometimes options aren't excercised, so the fully diluted market cap is sometimes never exact, but is thereabouts.

    Someone can perhaps explain this in a better english than me. I'm only a Pommie afterall!!
     
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