Bonds?

[makybe04]

Hey,
I'm relatively new to the sharemarket and have a small portfolio, say about 4k. I've got a spare $2500 this week and I've been doing a lot of research paper trading and viewing a lot of charts. It seems to me for someone who is relatively inexperience it is hard to make a buck at the present time.

So i was just wondering should i buy into a government bond or something like that? What kind of returns do i get? Also I'm thinking of purchasing some gold stocks, like RMS.

Am i a loony and a massive pessimist for buying bonds or gold stocks at the present time or should i just continue sifting through charts and finding a decent stock?

Thanks in advance.

 

[ParleVouFrancois]

First of all noone can give out financial advise without proper qualifications. Anyway, what kind of investments were you looking for, long term, short term, safe capital gains etc, there are many kinds of investments and trades that you can attempt even with that small amount. My advice would be to read more and keep learning for a while, and only enter the stock market when you can answer all the questions you listed yourself.

 

[makybe04]

After reviewing my situation, i need the liquidity that shares can provide, instead of my money being stuck in a bonds for 1+ years.

I'm thinking i will purchase RMS and maybe another gold stock. This will hold me in good stead if the market does have a double dip recession.

 

[Tysonboss1]

As has already been said, you need to think about what type of results you expect to get from you investing.

Set some realistic goals and then learn as much as you can about some different asset classes so that you can piece together a portfolio of investments that has a good chance of meeting your expectations.

When your new to investing and your capital base is so low, the best way of getting ahead is by working on your earnings vs savings ratio. you should try to earn the maximum amount you can while spending the minimum amount you can. Doing this is the early days of investing will really give you a kick start.

Then as your capital base starts to grow through saving, Start to seek out investments that produce income or growth and that have a natural inflation hedge or that will provide a rate of return that is well above inflation.

 

[makybe04]

Had a good start, bought RMS at 0.54 yesterday morning and now they have risen to 0.64 today. Just sifting the charts to find what to buy next. Have a stop loss in now to protect my profits on RMS.

 

[Tysonboss1]

Had a good start, bought RMS at 0.54 yesterday morning and now they have risen to 0.64 today. Just sifting the charts to find what to buy next. Have a stop loss in now to protect my profits on RMS.

I am glad your buy has worked out for you. But just remember to not judge the performance of a company by what it's share price does the day, week or month after you have bought it.

Buying a share because you hope it share price will go up the next day is pure speculation.

A wise man once said " A stock is more than just a piece of paper or ticker symbol whose price bounces around on a daily basis. A stock represents a part ownership of a real company that has a measurable value that does not depend on it's share price."

There is very little that a chart can tell you about the long term prospects of a company.