Best place to start for beginner investors?

Discussion in 'Share Investing Strategies, Theories & Education' started by MoneyNotorious, 12th Mar, 2018.

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  1. Hodor

    Hodor Well-Known Member

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    ETFs you need a broker, online ones are cheap and easy to use. If you bank with a big four you can just use their own broker platform. They aren't the absolute cheapest available, however if you aren't trading (i.e buy and hold) the extra $10s or so a trade isn't an issue (for me).

    Managed funds you traditionally needed to go to the fund or through a planner. Some are now listed as mFunds and can be purchased through your broker in the same fashion as ETFs.

    Let everyone know how you go and what you decide to purchase.
     
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  2. MoneyNotorious

    MoneyNotorious Member

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    Awsome thanks guys.

    I'm narrowing down my choices then I see Myer falls to 0.42 cents a share....it may be my nature of value sniping speaking but as they search for a new CEO is this a good opportunity?

    Or am I being foolish bull?
     
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  3. Gockie

    Gockie Life is good ☺️ Premium Member

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    Hi,
    I'd also look on the Propertychat forum.... There's a lot of share market chat going on there too.

    Me personally... I wouldn't buy department stores because I think long term, they are a dying breed. I could be wrong but I think they are dying a slow death. You can buy clothes online, electronics online, housewares typically you can buy that from housewares specialists....
     
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  4. twisted strategies

    twisted strategies Well-Known Member

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    ( i hold MYR )

    according to the Chairman the deposed CEO did a bad job

    HOWEVER as i read Umber's CV he looked like a logistics specialist , either he was there to clean up the supply lines and back-room stuff , or they selected the wrong CEO.

    either way the board is in a mess and Lew smells easy meat

    testing times ahead for MYR
     
  5. Hodor

    Hodor Well-Known Member

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    Plenty of knives amongst the bargains. Do you really want to go down the stock picking pathway when you are new to all this?
     
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  6. MoneyNotorious

    MoneyNotorious Member

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    Well Yes and no. Given my age, I’m quite ready to take risks, but calculated risks. Although this looks like a bargain, I’m doing background research as to why and how this happened and what their plans are. My reasoning is this could be a long term payoff, which is my style rather than short term. But as many people would understand about beginners, we immediately think “they have been around for centuries, they’re too big to fail”

    Lehman Brothers says otherwise.



    At now 0.38cents a share, I’m sitting between the wall on whether this is a value investors dream or a major trap
     
  7. kum yin lau

    kum yin lau Well-Known Member

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    Hi to the OP,
    you've made a good start. My 5 cents worth. if i were you, i'd forget about ETFs and managed funds. because you seem quite smart with your reading and research.

    MYR is not a bad choice. What makes it work is that it goes up and down. It's a calculated risk.

    The good thing about it is you can get a decent return for a small starting pot. 10K shares cost under four thousand dollars. It's a fairly easy stock to dollar cost average.

    On the other forum, we discussed falling knives. If MYR is a falling knife, then there might come a day that the stores become like Dick Smith's.

    What are the odds? Your guess is as good as anyone else's.

    good luck.

    KY
     
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  8. kum yin lau

    kum yin lau Well-Known Member

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    hi, i'm a little bit mad. I just bought 27000 shares in MYR at 0.363

    I look at the maths like this. if I make 2 cents per share, that's $540

    I only need to sell at 39 cents.

    If I bought BHP i'd get only bout 350 shares. the share price has to go up $1.80 before I can make $500

    We'll see what happens.

    My friend who bought TLS and holding tight/ I told her that I'd sell half my holdings at 4.25-4.50 and then look to buy them back later. She said, "No, i'd lose too much."

    I think i'm right and she thinks she's right. Different strokes, different folks.

    KY
     
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  9. twisted strategies

    twisted strategies Well-Known Member

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    good luck on MYR , i hold MYR ( at a large paper loss ) and unwilling to throw more money at it .. it has missed too many targets for me

    to your friend ;flipping ( selling and rebuying lower as it is called ) can work , especially if a tax loss can be claimed , but there are risks involved like selling at the bottom .. ideally you would want TLS to slide lower after selling

    i hold TLS and MYR

    good luck
     
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  10. Hosko

    Hosko Well-Known Member

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    If I'm sitting on a loss, the main question I ask is "what would I do today knowing what I know now". The purchase price is irrelevant to all except yourself, the market doesn't care what you paid to get into a position.
    The gambling side of me says that MYR might be a good play in a couple of days for a short term win.......
     
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  11. Renton Parker

    Renton Parker New Member

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    To the OP,

    I've been interested in investing for a few years now and I've had many friends in your position ask where to start. Unfortunately it's hard to articulate over a conversation all the information required to know your starting point so over the last few months I've written it down on a web page. While the purpose of the web page targets predominately the Financial Independence Retire Early community it does walk through different investing strategies.

    The website is www.investforfire.com if you're interested.

    But in terms of overall advice, before you invest in anything, make sure you fully understand what you're doing. You won't know the risks associated with the asset unless you understand the asset. Personally I'd be very careful with options if you haven't invested in shares as a baseline.
     
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  12. kum yin lau

    kum yin lau Well-Known Member

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    Hi, I wasn't comfortable holding MYR so I sold at 38.5 slightly below 39. Looks like not a bad short term decision. I dubt that the price will go anywhere fast but it appears oversold at the time I bought.

    I'd be more comfortable holding QBE but of course it costs a lot more.

    KY
     
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  13. Sargent

    Sargent Member

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    Good work MoneyNotorious,

    A big step and at a good time...

    I would recommend investing in low fee ETFs personally would recommend Vanguard.

    Would not bother going long at these levels so would recommend continuing your research and continuing to save before buying.
     
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  14. kum yin lau

    kum yin lau Well-Known Member

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    Hi, I couldn't resist MYR at 35.5 so I bought 28000 shares. I just sold today at 37. I'm still not very comfortable holding this particular share but if it dips below 36 in the short term, I doubt that I can resist!

    But I have a 10K maximum spend.

    KY
     
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  15. Hosko

    Hosko Well-Known Member

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    Nice work for a couple of hours. Well done
     
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  16. kum yin lau

    kum yin lau Well-Known Member

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    Hi, I can't quite believe that I'm doing this. I bought another 27000 shares of MYR at 36 cents and today I sold for 38.3 cents.
    This time I kept back 2000 shares to hold. I wanted to hold back only 1000 but apparently I have to hold at least $500 worth.
    This is round three. Can I go 15 rounds, I wonder?
    KY
     
  17. twisted strategies

    twisted strategies Well-Known Member

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    kum yin lau ,

    you are braver than me ...

    good luck
     
  18. Hosko

    Hosko Well-Known Member

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    Why are you holding onto 2,000 units? Do you see it recovering?

    Personally I see it as a trade - all in then all out then go again as you have done successfully 3 times. Just scalping small wins, nice work.
    To me holding $700 of MYR is doing nothing for the future. Even if it goes back to $1 we are talking about holding $2k of MYR.

    There is no right or wrong way, I'm just very interested in your thought process.
     
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  19. twisted strategies

    twisted strategies Well-Known Member

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    hoping for a favorable take-over offer perhaps ??

    unless a suitor was offering a scrip component i can see no fortunate outcome for me with MYR i hung on hoping Umbers would sort out the back-room problems

    but now we are where we are and a probable economic downturn looming
     
  20. Hosko

    Hosko Well-Known Member

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    Yep, let's supplement the MYR ticker for BHP or any other. My question is a little broader, why would you hold onto $700 of any stock for the long term?
     
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