Basic Questions

[Redwing]

I've thought up some basic questions from a beginners perspective..

Getting Started on my portfolio..

Should I look for shares that produce Income or Growth?

And how do I find the better ones?

If I trade regularly I will have to pay full CGT on my profits?

What type of shares should I start with?

and....Who’s the Right broker for you?

Internet broking?
*E-Trade
Comsec

Discount Broker?

Full service Broker?

How did you find your current broker and how would you recommend to do so?


Basic i know, but it fits this thread for beginners looking at the forum..


REDWING

 

[tech/a]

Should I look for shares that produce Income or Growth?[/COLOR]This depends on your Initial capital,and the time you can devote to trading.

And how do I find the better ones?
There are a number of methods,Technical,Fundamental----but thats only part of the picture of profit.

If I trade regularly I will have to pay full CGT on my profits?
Yes if you have trades which last less than 12 mths---If you have a tax problem then your trading profitably----very few have one!

What type of shares should I start with?
Depends again on your initial capital----try not to get sucked in by the lure of leverage and cheap is VALUE.

and....Who’s the Right broker for you?
Generally an online broker is best,If your trading shorter term you may need a full service broker who is linked to SEATS,so you can confirm buy and sells on the phone and you wont get caught if there is an internet hitch during a panic---this cost me $7K once!!

Internet broking?

See above
*E-Trade
Comsec

Discount Broker?

Full service Broker?

How did you find your current broker and how would you recommend to do so?




tech

 

[RichKid]

and....Who’s the Right broker for you?
Internet broking?
*E-Trade
Comsec
Discount Broker?
Full service Broker?
How did you find your current broker and how would you recommend to do so?
REDWING

I had a look at Etrade but went for Comsec as they're the cheapest and I don't want any advice just info and tools. Comsec is not perfect but it's got most of what I want (charting, watchlists, financial summaries, basic data and updates etc). Also, I can always upgrade if I want more features- I don't trade intraday so I don't need live market depth but it would have been good.

So basically I reckon a beginner would need to decide if they are just going to use their broker to execute orders or for orders and advice. From what I've heard of full service brokers unless you know one really well or have lots of money and are prepared to pay lots in commission it's better to use a discount broker and do your own research or subscribe to a tipsheet or the broker will not give you adequate service. That's just my view.

 

[Alvin]

I have been using E-TRADE for a few years now, no major problems, sometimes the stock quotes are wrong, or not updated on the chart,
i do get some slips in my buying executions meaning i have missed out on some awesome opportunites.
You can also do conditional orders which i like.

The next thing would be to do some serious reading, on everything, from Trend trading, Gant swings, Fibonacci etc.
Once you appreciate all of these different methods of trading, then you will be in a position to see what works for your personaility and your level of comfort, and then you can design a system of your own.
Takes time, i had been reading and paper trading for 6 years before i executed my first live trade. I am not saying i have a perfect system but i know if i stick with my plan and e consistent and cut my losses i will be allright.

Alvin