First time trading & I want to invest about $1000? Love some advice please

robz · 4 May 2016

Hi Guys

First time trader, I don't know anything really and would love some advice please.

So I've got about $1000 I would like to play with and test how this Thing works. I was hoping to find a good Stockbroker I could pretty much hand the cash to and he does all the hard work and makes me some money. I was thinking investing for quick gains in the short term.

Would this be a OK option? Pros & Cons?

If this is a OK idea where would I find the best stockbroker for my needs?

Thanks in advance

VSntchr · 4 May 2016

robz said:
Hi Guys

First time trader, I don't know anything really and would love some advice please.

So I've got about $1000 I would like to play with and test how this Thing works. I was hoping to find a good Stockbroker I could pretty much hand the cash to and he does all the hard work and makes me some money. I was thinking investing for quick gains in the short term.

Would this be a OK option? Pros & Cons?

If this is a OK idea where would I find the best stockbroker for my needs?

Thanks in advance

A full service stockbroker wont take you on with $1000 and even if they did the brokerage would cripple any returns. "Quick gains for the short term" coming from a beginner is a perfect storm for destruction of capital.

My advice would be to keep learning about various investments, what risk and return profiles different asset classes have and keep your money stashed until you gain further knowledge.

CanOz · 4 May 2016

robz said:
Hi Guys

First time trader, I don't know anything really and would love some advice please.

So I've got about $1000 I would like to play with and test how this Thing works. I was hoping to find a good Stockbroker I could pretty much hand the cash to and he does all the hard work and makes me some money. I was thinking investing for quick gains in the short term.

Would this be a OK option? Pros & Cons?

If this is a OK idea where would I find the best stockbroker for my needs?

Thanks in advance

Where do people get these ideas from? Wouldn't you think if it were that easy we could all just give our money to a broker and get back the profits?

How do you feel about taking the money and opening the second floor window on a dark and stormy night and just chucking it out?

darkhorse70 · 4 May 2016

Faramir · 4 May 2016

Please go easy on the OP. It may have taken a very long time to save $1000 and that is a lot of money. I value $1000 very dearly.

My only advice is to paper trade while you are saving more money. I hate to say this but $1000 is grossly inadequate for what you want to do. It takes a long time to build knowledge. The very modest gains that many traders maybe happy with but below your expectations, takes so much work to achieve.

If you just expect a broker to take care of your money and you expect them to care for it? Well I am not sure I should say. Maybe there are some brokers willing to do that - at what cost?

If you study the various threads in this forum. Plus save as hard as you can, you will learn how to ask more specific questions that our experienced contributors are willing to reply more politely.

Going from paper trading to real trading is a massive step. Build up your knowledge first. I need to build up my knowledge as well.

Thank you.

MacDizzle · 5 May 2016

The most you'll get being a passive investor is probably 15-30%p/a in an aggressive growth fund(on a good year). Targets for fund managers are only to outperform the market average for that type of investment in general by a few points so don't expect a wild return. Some funds have a minimum of $2500 so you might be better off with an Automatic Investment Plan of $100-$200 per month might be better on your hip pocket while you build your account.

If the stock market becomes bearish you could switch to a bear index fund but again the minimum is probably $2500.

A lot of people are attracted to spec and penny stocks but even if you get lucky you'll probably give it all back trying to get more money, so better to educate yourself as you have to earn the right to make money(most times).
Well that's just my one cents worth..

CanOz · 5 May 2016

Faramir said:
Please go easy on the OP. It may have taken a very long time to save $1000 and that is a lot of money. I value $1000 very dearly.

My only advice is to paper trade while you are saving more money. I hate to say this but $1000 is grossly inadequate for what you want to do. It takes a long time to build knowledge. The very modest gains that many traders maybe happy with but below your expectations, takes so much work to achieve.

If you just expect a broker to take care of your money and you expect them to care for it? Well I am not sure I should say. Maybe there are some brokers willing to do that - at what cost?

If you study the various threads in this forum. Plus save as hard as you can, you will learn how to ask more specific questions that our experienced contributors are willing to reply more politely.

Going from paper trading to real trading is a massive step. Build up your knowledge first. I need to build up my knowledge as well.

Thank you.

My point about the window, is that this needs to be money you are willing to lose, so assess how you would feel losing it. It is inadequate capital but it makes a good education fund.

McLovin · 5 May 2016

Not to generalise, but the average broker would put $1,000 up his nostrils on a Friday night.

I'd suggest taking the time to read and learn. A broker isn't going to make you wealthy. These forums are a pretty good place to start. It's a long slow continual process, so don't rush.

Do retail full service brokers still exist? I thought they all became financial planners.

JJZ · 5 May 2016

Welcome to the forums

As you have probably gathered making a start with $1000 is going to be tough.

My suggestion is park the $$$ in a high interest account and keep saving.

Do some search's for some recommended books on this forum and do some studying on the subject.

Everyone's investment journey is different, what works for some wont work for others.

GoodLuck

JJZ

CanOz · 5 May 2016

McLovin said:
Not to generalise, but the average broker would put $1,000 up his nostrils on a Friday night.

I'd suggest taking the time to read and learn. A broker isn't going to make you wealthy. These forums are a pretty good place to start. It's a long slow continual process, so don't rush.

Do retail full service brokers still exist? I thought they all became financial planners.

lol....well said

robz · 6 May 2016

THANK YOU EVERYONE FOR YOUR REPLIES. I can definitely tell by your responses i have a lot to learn haha.

Great Forum and great too see people helping each other out. I am hoping to be a successful Trader and I am happy to start at the bottom.

Thanks again!!

robz · 6 May 2016

Any recommended books Please??

I learn better and faster reading

MacDizzle · 7 May 2016

Most novices would probably look for books on entry signals or a holy grail system to money, but from my own experience your psychology will probably pose the biggest challenge. Its hard to know how you'll go until you have money on the line.

Technical systems and entries change, I read a good technical book by Darryl Guppy about 8 years ago but admits his count-back entry and technical system is not as great in today's environment with lower volumes so hes focused on Forex with a newer system. However performance psychology remains a key foundation supporting success in sports and in trading. Just a few books I've recently read..

Trade-Mindfully, Gary Dayton (Psychology)
Trade your way to financial freedom- Van Tharp (Psychology,Money Management)
The New trading for a living- Alexander Elder, (Psychology,Technical,Money Management)

Just my

So_Cynical · 7 May 2016

robz said:
Any recommended books Please??

I learn better and faster reading

The Big Short - is a good place to start.

systematic · 7 May 2016

Not to anyone in particular, but I have a personal policy of never using sarcasm or short shrift replies in the beginner's lounge specifically. Elsewhere, I might reply with a, "let me google that for you" but not in the beginner's lounge. Why? Because the OP, who hopes to be a trader or investor or whatever...has come to the right place...and should feel like they did, indeed come to the right place. i.e. If the OP had the courtesy of posing their question in the appropriate forum (for beginner's) then, IMO, they deserve the utmost respect and careful reply to their question.

After all; you were a beginner, once, and would've appreciated the same.

ROE · 7 May 2016

robz said:
Hi Guys

First time trader, I don't know anything really and would love some advice please.

So I've got about $1000 I would like to play with and test how this Thing works. I was hoping to find a good Stockbroker I could pretty much hand the cash to and he does all the hard work and makes me some money. I was thinking investing for quick gains in the short term.

Would this be a OK option? Pros & Cons?

If this is a OK idea where would I find the best stockbroker for my needs?

Thanks in advance

Quickest and safest way to build wealth comes from money in greater than money out (regarless of income source)
and invest those surplus wisely, it doesnt matter if you have $1000 or $1 million to invest, without sound money and investing principles you going to lose it all or blow it all.

Some books to read, I am an investor not a technical trader so I dont know much about technical books maybe tech trader can list some for you.

1. The richest man in Babylon
2. Once up on Wall St
3. Common Stock Uncommon Profit
4. The Intelligent Investor, (Only really need chapter 8 and Chapter 20)
Margin of Safety and Mr Market.

Good luck

Value Collector · 8 May 2016

ROE said:
Quickest and safest way to build wealth comes from money in greater than money out (regarless of income source)
and invest those surplus wisely, it doesnt matter if you have $1000 or $1 million to invest, without sound money and investing principles you going to lose it all or blow it all.

Some books to read, I am an investor not a technical trader so I dont know much about technical books maybe tech trader can list some for you.

1. The richest man in Babylon
2. Once up on Wall St
3. Common Stock Uncommon Profit
4. The Intelligent Investor, (Only really need chapter 8 and Chapter 20)
Margin of Safety and Mr Market.

Good luck

I agree with this, focus on spending less than you earn or earning more than you spend, and get into a solid routine of saving, as you build that savings account read some books and learn, building wealth is 90% behaviour, you have to be able to generate savings and then put these to work effectively, not gambling.

Donkhorsepower · 8 May 2016

robz said:
Hi Guys

First time trader, I don't know anything really and would love some advice please.

So I've got about $1000 I would like to play with and test how this Thing works. I was hoping to find a good Stockbroker I could pretty much hand the cash to and he does all the hard work and makes me some money. I was thinking investing for quick gains in the short term.

Would this be a OK option? Pros & Cons?

If this is a OK idea where would I find the best stockbroker for my needs?

Thanks in advance

You need to settle on a system that works for you. And once you have settled on a particular system (Fundamentals, Technical or a mixture of both) then you need to test this system out in the real world. 'Paper Trading' is a great exercise for you to do stocks as you can learn what may work, what will work and then spend more time refining it without spending a lot of money. Until you get this down pat, the money needs to stay in the bank and you need to work out HOW you want to trade.

I subscribe to 'Momentum Trading' which is a variety of Technical Trading. Here are a couple of resources that will allow you to do some more research on this area of trading.

https://www.youtube.com/watch?v=O7cpNdyku6E&list=PLUwxfY3sZAaJmyYGZejRRTQZT70txP6c1&index=8

https://www.youtube.com/watch?v=kY9n8EQqs7w

If you have a PC and you want an excellent charting package for free, try this:

www.incrediblecharts.com

Also here is a clip from Marcus Padley. I often get people to watch this as he explains the basics of trading right at the start. And that is what you are looking for now.

https://www.youtube.com/watch?v=165Lx62YEdA&list=PLUwxfY3sZAaJmyYGZejRRTQZT70txP6c1&index=9

Do your homework and keep your money in the bank until you feel confident that you have the skills to not lose a set percentage when you place a trade. And good luck with it and keep on asking questions.

robz · 8 May 2016

Thanks for the resources and advice everyone!!

I went to Dymocks bookshop and ended up buying 'Online Investing on the Australian Sharemarket' by Roger Kinsky.

It is great so far, really giving me the basics which is what I needed being such a newbie. After taking your guys advice I am thinking of just researching, reading for awhile before I throw money into this. Cheers

First time trading & I want to invest about $1000? Love some advice please

robz

VSntchr

CanOz

Home runs feel good, but base hits pay bills!

darkhorse70

Faramir

Very New Investor

MacDizzle

CanOz

Home runs feel good, but base hits pay bills!

McLovin

JJZ

CanOz

Home runs feel good, but base hits pay bills!

robz

robz

MacDizzle

So_Cynical

The Contrarian Averager

systematic

ROE

Value Collector

Have courage, and be kind.

Donkhorsepower

robz

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