3 Questions for those with sharemarket experience

Hi guys and girls,

I've skim read through the stickies and didn't notice any clear cut answers to a few questions I have:

What are your views on investing in bluechip stocks as a newbie looking to get his feet wet?

What are the current industries that have good potential and strength? (I want to spend some of my uni holidays researching particular industries but I don't know where to start! ...Mining?)

Where is a good place to start learning the technical knowledge with respect to chart analysis/candlesticking/stop losses and other funky jargon that I'll need to know in order to physically trade and maintain a portfolio?

Thanks in advance!

This is what you should listen to

Not that I have decades of experience. But I'm not ready to get hammered just yet!

http://www.youtube.com/watch?v=4n3g5lUgkWk&NR=1&feature=fvwp

akkxn said:

Hi guys and girls,

I've skim read through the stickies and didn't notice any clear cut answers to a few questions I have:

What are your views on investing in bluechip stocks as a newbie looking to get his feet wet?

What are the current industries that have good potential and strength? (I want to spend some of my uni holidays researching particular industries but I don't know where to start! ...Mining?)

Where is a good place to start learning the technical knowledge with respect to chart analysis/candlesticking/stop losses and other funky jargon that I'll need to know in order to physically trade and maintain a portfolio?

Thanks in advance!

Click to expand...

Hi.
Blue Chip stocks. There is a saying, " pick the correct sector thats moving and pick the best stocks from that sector" all the sectors do not advance at the same time or speed.
Relative strength comparison is a indicator that can help.

Current industries. Gold has been running strong.
i personally like copper. I think there a lot to come here.
OZL, PNA, DML,PNX, MGO etc. i have 19 copper stocks as a reference stocks.

I compile stocks in a watch list based on a commodity.
Emerging companies in energy and mining is how i look at it.
Take a short term position in wave 1, then buy back in at wave 3 advance.

Technical Analysis. This is a huge subject. I do not believe you can or need to learn the subject technical analysis. What you need to learn what in Technical Analysis gives you the edge against the crowd to form a strategy to trade.

You can form a trading strategy from one moving average, CCI indicator, with
Williams %R to buy in or sell. Its as simple as that.
What most traders are trying to impress on you is that there way is the best, with a complex combinations.

Keep it simple, use a small number of indicators, and understand them well.

Finally buy "Sell and sell short" from Elder. For a small outlay you will be so far ahead of the crowd, you will be suprised.
How to buy.
Risk Management.
Keeping Records
How to sell. Selling at target. Selling on a stop. Grade your trades.
How to sell short.
All in the book.
Cheers.

Thanks very much for the advice,

I've already started reading Sell and Sell Short, it's really well written and I'm already learning a ton!

wrt Candlesticks and more generally, an intro into T/A chart patterns, I recommend Leavitt Brothers.

I've also compiled a page with links to a variety of useful websites, not only T/A-oriented. Check out my Links Page.

In the selection of sectors, I share JoeA's view on copper; longer-term, Rare Earths should also appreciate, in spite of recent overbuying. Don't forget iron ore and precious metals - there's more to them than gold.
Financials are on a roll, although too much greed could put them on conflict course with our gov'mint - see what Joolya tried to do to the successful miners

For a newbie, bluechips are probably a safer start - provided you avoid buying too high up in a rising trend. At least, you can rest reasonably assured that you will be able to enact your stop loss without fearing the loss will blow out to 100%. With most of the small fries that fill the Forum pages, that is not always the case. (But don't let that deter you from taking advantage of a speccie - as long as you know the risk and size your gamble accordingly )

akkxn said:

Where is a good place to start learning the technical knowledge with respect to chart analysis/candlesticking/stop losses and other funky jargon that I'll need to know in order to physically trade and maintain a portfolio?

Thanks in advance!

Click to expand...

Like most professions or occupations you need to serve as an apprentice first. How you do that is up to you. This business is loaded with conmen, snakeoil salesmen, white collar thieves and plenty of advice, some good some bad. Before you start you need to work out who is what.

My advice; hasten slowly and throw your money around like a scotsman with no hands.

akkxn said:

Where is a good place to start learning the technical knowledge with respect to chart analysis/candlesticking/stop losses and other funky jargon that I'll need to know in order to physically trade and maintain a portfolio?

Click to expand...

Type your subject of interest into the Aussie stock forums' search engine and sift from there. Not hard to differentiate the pushers from the true blues.

p.s. tick "search titles only".

p.p.s. sorry, no platter service.