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Totally new beginner

Discussion in 'Beginner's Lounge' started by Kimmy1981, Oct 1, 2016.

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  1. Kimmy1981

    Kimmy1981 New Member

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    Hi Everyone, I'm new here and only just starting to learn about buying shares. It's all a bit confusing but I've got $1000 that I want to use. What's the best way to spend it? I was thinking of buying into the APN Property Group, would love your thoughts and feedback. Many thanks in advance.

    Kim
     
  2. barney

    barney Well-Known Member

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    Hi Kim,
    Its the kind of question many ask when they first arrive at ASF. The standard reply is that your fellow forum members are by law unable to offer you any 'specific' trading advice, however you will still find lots of answers to many of your future questions if you read the various threads.

    Trading is a long journey and most here will agree that $1000 is going to get gobbled up with fees if you are trading stocks. My opinion if I were you .... keep saving until you have a more substantial capital base, and in the meantime paper trade your way to some basic knowledge which will cost you nothing when trades go wrong ..... and they will go wrong at times! Good luck:)
     
  3. pixel

    pixel Well-Known Member

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    Hi Kim, and welcome.

    If your intention is "trading", then Barney's post is giving you the best advice.
    If, however, I interpret your "buying shares" as the intention to start investing, then any amount above $500 could become a starting point, that being the minimum size of one "marketable parcel".
    None of us, old hands or newbies, will be able to tell you what to invest in. You will have to find that out for yourself. But there are various ways to improve the odds when picking a suitable starting point. If you are visually inclined, a simple chart can provide a lead - at one glance, it will show you what a particular share has done over, say, the last 2 years. You will have heard the standard warning "Past performance is not a reliable indicator for future performance." That is definitely true, but if a stock has been well managed and its share price rising for years, it is also less likely to suddenly fall out of bed the day after you bought it.

    For a free start into charts, I find https://www.incrediblecharts.com/ right up there. Other more basic ones are Bigcharts - check out your APD (code for APN Property) with http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=au:apd&insttype=&freq=1&show=&time=9
    https://au.finance.yahoo.com/ is also a good free starting point,

    Once you have identified a few candidates, it will be sensible to read up on some background:
    • What business are they in? Is it future-proof? What are the risks?
    • Are they making money or spending lots on research and exploration?
    • Have they financed their operation from past profits or are they regularly raising capital?
    • Do they pay dividends? If so, at what rate, how consistently and how often?
    That should keep you busy for a few weekends, but in the end, you'll be better equipped to decide, where to invest your hard-earned $1,000 - hopefully with less reason to worry about losing it.

    On the subject of worrying and losing though: Remember the old chestnut that you should only enter the share market with money that you can afford to lose.

    Good luck on an enjoyable journey.
     
  4. Kimmy1981

    Kimmy1981 New Member

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    Thank you both for your replies :)
     
  5. luutzu

    luutzu Well-Known Member

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    Great advice Pixel.

    btw, I thought you're a techy all these time. Since when does techy look into the business? :D
     
  6. luutzu

    luutzu Well-Known Member

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    Regarding property trust and property companies in general... probably best to wait for the coming crash then load them up for at least 50cents on the dollar.

    I haven't look at any property related stock for a while so don't take my word, but history have shown that when the property market is hot and bubbly, like it is now, property related stocks are very high. When the property market crash, the bad ones will lose its shirts and pants, the decent ones still see its stock price crash and burn too.

    So maybe get to know who are the good and the over-leveraged at the moment... then wait
     
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