If you cry wolf long enough eventually it will happen. Why the crash? What will bring it on? What levels will we go to? How will the recovery come about? And if it isn't August, September, October could it be November, December, February?
Investing my first $1500
- Thread starter asfpep
- Start date
If you cry wolf long enough eventually it will happen. Why the crash? What will bring it on? What levels will we go to? How will the recovery come about? And if it isn't August, September, October could it be November, December, February?
Wysiwyg
Everyone wants money
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A good first move would be to avoid down trending stock unless one has a great pivot point entry strategy. UXC back on down trend as the exuberance buyers bail out and the faith players cling on in hope of some definite acquisition.
So_Cynical
The Contrarian Averager
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Hows this for objectivity
...UXC appears to me to be clearly ranging more than down trending, at least on the 6 month chart.
Wysiwyg
Everyone wants money
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Hows this for objectivity
Yes you are right and I'm swinging to that objectivity too. Old support sinking the hooks in for an ascension of sorts maybe. Let's see what the majority think.
Getting back to the original question.
$1500 imho is enough to start with, you could put $500 into three different companies and though $500 is not much, it's a start, and your risk is reduced.
Someone earlier felt that by the time a company was all over the forum it was too late, i'd disagree. I heard about SSN and ADI from looking through forum posts. I'd also suggest that the stock tipping competitons can give you some good companies to consider.
It does all depend on what you are hoping to achieve and how much effort you are willing to put in.
Some very good advice i received was, that you have to find a investment style that suits you, that you are comfortable with and of course one that works!
I'd also suggest that rather than buy books the library is a good resource, and indeed online.
Good luck
$1500 imho is enough to start with, you could put $500 into three different companies and though $500 is not much, it's a start, and your risk is reduced.
Someone earlier felt that by the time a company was all over the forum it was too late, i'd disagree. I heard about SSN and ADI from looking through forum posts. I'd also suggest that the stock tipping competitons can give you some good companies to consider.
It does all depend on what you are hoping to achieve and how much effort you are willing to put in.
Some very good advice i received was, that you have to find a investment style that suits you, that you are comfortable with and of course one that works!
I'd also suggest that rather than buy books the library is a good resource, and indeed online.
Good luck
McCoy Pauley
Get out of here Budweiser!
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Why would you stick it under the proverbial mattress when the OP could stick the money in a 90 day term deposit or into an online-only high interest rate account and not lose money to the remorseless advance of inflation?
Anyway, one possible means of gaining some experience is to play the shares game on the ASX website here. Get a hypothetical portfolio of $50,000 to start with, apparently.
In view of the relationship in the SP with AUT and my assessment that 1 AUT is worth 4.5 EKA as a minimum I have bought 1536 AUT with the funds left after the amount set aside for the SPP. As below:
"WB53247015 30/07/2010 B AUT 1,536 0.828 29.95 1,302.06 5/08/2010 Confirmed "
If or when the compatative value changes in favour of EKA I may trade back.
Still early days.
Hey Nioka '
I also have a holding in AUT
Pls keep us newbies informed its a learning experience
thanks '
James
Progress report;
The value of the holding is now;
1536 AUT @ 94c = $1444 plus
1290 EKA @ 24c ($309) = $1753.
Target now is to trade AUT for the EKA if the ratio will get me 5 EKA for 1 AUT. With news to come for AUT regarding drilling in which EKA has no interest I suggest that this is possible. If not then will just hold as is for now.
The value of the holding is now;
1536 AUT @ 94c = $1444 plus
1290 EKA @ 24c ($309) = $1753.
Target now is to trade AUT for the EKA if the ratio will get me 5 EKA for 1 AUT. With news to come for AUT regarding drilling in which EKA has no interest I suggest that this is possible. If not then will just hold as is for now.
Progress report;
The value of the holding is now;
1536 AUT @ 97c = $1490 plus
1290 EKA @ 26c ($309) = $1825. a 20% increase in a very short period.
So at this stage,yes it is worth starting with $1500.
The potential is still great. On some brokers forward valuations this holding has plenty of upside in the immediate future. As it turns out today it would have been better to have stayed with EKA.
The value of the holding is now;
1536 AUT @ 97c = $1490 plus
1290 EKA @ 26c ($309) = $1825. a 20% increase in a very short period.
So at this stage,yes it is worth starting with $1500.
The potential is still great. On some brokers forward valuations this holding has plenty of upside in the immediate future. As it turns out today it would have been better to have stayed with EKA.
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You are progressing really well so far nioka. If the stock market turns pear shaped, are you going to sell out or hold tight for more gains?
Definitely hold at this stage. I never worry about pear shaped markets. They are where you make money. I will only sell for 3 reasons. The first is if the fundamentals turn me off and second to trade for freebies. I'll just try and end up with more shares in the company regardless of the price. The third reason will come if I find something that I think has much more potential.
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Its good to see someone take up a challenge, put their money on the line and posting updates as they go. Good luck for the rest of the year.
Hi nioka, nice to see a fellow north nsw resident enjoying paradise.
As a new investor, learning about eps and pb etc ratios as assessing value of stocks was a big jump from looking at feet all day(I'm a podiatrist) If you don't mind, what are your personal fundamental areas you look at?
Thanks very much
Phil
Id take note of what nokia syas, hes on a winner, im in there with him, 400%+ this year and plenty more if oil price stays strong. With $1500 chasing dividneds is probably too slow. Consider chasing growth.
Managed funds are not for anyone who wants to learn. Problem is learning does involve mistakes, but the price is worth it. When you learn how to identify high growth low risk stocks , its game on.
Many people cant do it casue they are blinded by negativity and bad experiences. But the opportunities are out there.
I cnat reccomend AUT, but i can say nokias figures stack up and the thread is worht the time it will take you to read it.
Managed funds are not for anyone who wants to learn. Problem is learning does involve mistakes, but the price is worth it. When you learn how to identify high growth low risk stocks , its game on.
Many people cant do it casue they are blinded by negativity and bad experiences. But the opportunities are out there.
I cnat reccomend AUT, but i can say nokias figures stack up and the thread is worht the time it will take you to read it.
I did PM you with the following question;
"I'm not sure what you mean by personal fundamental areas. Do you mean what fundamental areas relating to stocks do I personally use or do you mean what fundamental areas do I use to establish my personality?"
Assuming you mean with regards to investing;
I like to pick companies that have growth potential. I like companies that have an action plan. Either as develloping some resource or reinvigorating something that has had a "bad period". Of the 28 stocks that I currently hold there is only one that has paid a dividend this year.
I look to see what I believe are the prospects of the company. Then I look to see if I recognise any directors on my black list. That list includes any that I feel have let me down in the past. (It includes the directors of ADI that sold us down the river recently.) Next comes finance to complete the current stage including the prospect of obtaining further finance to advance their project.
I need to see that company working hard to reach the goal without the directors using the company as a cash cow.
Two companies that fit that bill are AUT and EKA. Not only do they fit the bill but because they have identical aims it has been easy to trade the difference in their relative values and increase the overall holding while never being out of holding an interest in the play. With other companies that I trade for freebies I can never be sure whether I will end up in front or behind when I sell, whereas I buy and sell AUT and EKA mostly at the same time. The actual SP on the day doesn't matter. It is only the relative SP that counts.
This particular challenge was all about whether or not it is worthwhile investing with only $1,500.
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Getting back to the original question.
If your a newbie, expanding your stock market knowledge before investing all you hard earned cash is sound advice, as Brty first mentioned.
Buying a good stock market book is good idea, but I'd suggest keeping you money in your pocket first up, and absorb as much free stock market information on the web to help lay a solid knowledge foundation.
Apart from forums like ASF, Youtube is one of the best free information sources online, and watching videos is a great way to absorb the information on all sorts of Stock Market topics.
Once you've learnt enough, you will be in a better position to make an educated decision on what specialized knowledge you want to learn and where to invest your money.
If your a newbie, expanding your stock market knowledge before investing all you hard earned cash is sound advice, as Brty first mentioned.
Buying a good stock market book is good idea, but I'd suggest keeping you money in your pocket first up, and absorb as much free stock market information on the web to help lay a solid knowledge foundation.
Apart from forums like ASF, Youtube is one of the best free information sources online, and watching videos is a great way to absorb the information on all sorts of Stock Market topics.
Once you've learnt enough, you will be in a better position to make an educated decision on what specialized knowledge you want to learn and where to invest your money.
The original question was about whether or not it was worth starting out with only $1500. I am endeavouring to show that it is. I am endeavouring to show also that it can be done without too much risk by choosing researched stocks that are fundamentally sound. There is always some risk and anyone should always invest in the stock market money that they could afford to lose or at least lose a proportion. But then life itself is a risky business.
After all this is a stock forum so I assume most people logging on are interested in investing.
