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. twisted strategies

    twisted strategies Well-Known Member

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    why would I ( me personally ) hold a small parcel of shares ( and i do in several companies )

    the most obvious reason is the stock price has tumbled ( and i see no good reason to throw good cash after bad outcomes ... some shares i average down like BSL and some i don't like AGO and MYR )

    now why would i keep a 'toehold ' in a company i have already made a healthy profit in say BPG and ISX there i have taken the opportunity ( profit ) BUT kept a small holding just in case those big ambitions come to pass .. sometimes those small caps do come good in several years time .

    for a 'free seat ' at the table i will risk a little of my profits ( but not the investment capital which has been redeployed elsewhere )

    in the case of MYR specifically i would consider the best deal FOR ME as i did in accepting EQT's offer in the take-over of TRU ( in preference to the 'superior ' PPT offer )
     
  2. twisted strategies

    twisted strategies Well-Known Member

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    by the way , one preliminary question i ALWAYS ask myself , is am i happy to hold ( some of ) this share forever ... before buying ( i may change my opinion after a while such as SGM ,ORG , NCM , KCN , but at the time the question was asked )

    this reduces my 'quick speculation trades ' dramatically
     
  3. kum yin lau

    kum yin lau Well-Known Member

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    Hi, interesting question. My reason is I'm not sure where it's going , more likely down than up.
    If I don't hold any of it, then I don't have any motivation to track its progress.

    The 2000 shares are a start. I don't hold small parcels of shares. That's why I buy ten thousand dollars at a time and I don't get to buy the really expensive shares at that price.

    The 2000 shares are "free", didn't cost me anything. Ideally, I'd just hold 1000 but that's less than the five hundred dollars allowed.

    My starting pot has dropped to $8500 after 3 rounds.

    For MYR, 36 cents seems to be an impasse. I'll continue to track it.

    KY
     
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  4. twisted strategies

    twisted strategies Well-Known Member

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    *** not sure where MYR is going ****... i suspect that puts you in a very large group

    good luck
     
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  5. Hosko

    Hosko Well-Known Member

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    Thank-you, I like your thinking
     
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  6. kum yin lau

    kum yin lau Well-Known Member

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    Hi, I always knew trading is a tough gig. I'm kicking myself for underselling QBE.

    But I did buy TLS and when it dropped below 3.10, I bought some more. I,m happy to hold the shares for a bit higher profit.

    I seem to have fallen into a trading pattern. I,m thinking I'll hold till $3.50 and then sell.

    KY
     
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  7. twisted strategies

    twisted strategies Well-Known Member

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    QBE is difficult and counter-intuitive

    and can test your patience

    i find treating it with an individual trading style helps
     
  8. Hosko

    Hosko Well-Known Member

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    QBE - Tough to pick........
     
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  9. kum yin lau

    kum yin lau Well-Known Member

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    Hi, for those who hold QBE or who're interested. I started buying QBE at $22 something and it went backwards but I sold and traded down and eked out a small profit. I started calling it the dastardly insurer. And then I saw that at $12, there was a profit and so I eked out another bout of small profits, around $1500 each round.

    And then it dropped to around $9 and I eked out small profits.

    Now, every time it drops below $10, I begin to be interested.

    this round, I actually bought a lot of shares, 22000 which cost me a lot of money. But there was always a small profit.

    It's the reason why I didn't wait for a higher profit. I'd rather have that cash sitting in my account than to hold them all in a "dastardly insurer"!

    There's neither rhyme nor reason in what I do. With TLS, it's because I can't understand why my friend is losing money. Within ten days, I'm looking at $1600 profit. But I did have to spend over fifty thousand dollars.

    I better not jinx myself by telling people what I do.

    KY
     
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  10. twisted strategies

    twisted strategies Well-Known Member

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    reverse your thinking for QBE

    OBE is always one disaster/disappointment away from a big share drop

    my price triggers originally were buy ( some ) under $11 and sell ( some ) above $14

    that worked for a while but once the downtrend became obvious i lowered my targets to buy sub $9 and sell ( some ) above $13 .. since i DRP the the long wait between triggers only means bonus DRP shares

    i will ( so far ) always keep some QBE shares .. just not all what i have bought

    i don't use a margin loan ( or committed money ) so i can wait a year or two or three
     
  11. Hosko

    Hosko Well-Known Member

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    Good thing is that the potential price drop (in dollar terms) is getting less with the SP heading down. A smaller drop from $9 than from $22 in the event of a cat event.
     
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  12. Hosko

    Hosko Well-Known Member

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    Nice one. At what point do you decide a trade isn't going your way?
    Do you measure this in a percentage/dollar drop or if you have been in a position for xx/days you decide that it isn't going to work out this time?
    Thanks for sharing
     
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  13. kum yin lau

    kum yin lau Well-Known Member

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    Like I said, there's neither rhyme nor reason. It's just a gut feel thing. I suspect that I watch the daily movements and something in my brain triggers a call. My student said, 'It's not me, sir, my mother born me like this!"

    Time is an important factor. If I make 1% in 2 days, I take profit because it doesn't cost me anything. Some shares can double but if it takes 15 years, then the annual yield is very average.

    I think I always have an eye on the yield and the moving average both in a particular share or in the overall index. Every time the ASX hits 6000, I itch to sell everything!

    And look at MYR today. My 2000 shares aren't looking too shabby at all. Wish I had had more faith in it.

    Ky
     
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  14. twisted strategies

    twisted strategies Well-Known Member

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    LOL i wish i had more faith in MYR

    with QBE , i have had a good run , but half the time i don't know why ( right outcome for the wrong reason )

    think of it as walking down the street and finding a series of ten dollar notes , and you really lucky or being led into trouble ????

    2 days doesn't work for me ( not even i tipping completions )

    but your 6000 itch might prove to be a good instinct ( but again that doesn't suit me i will ride the roller-coaster , for better or worse )
     
  15. Graham J Whyte

    Graham J Whyte New Member

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    Hi, I am a new user of this forum and want to share my views and idea.
     
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  16. twisted strategies

    twisted strategies Well-Known Member

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    Welcome to InvestChat ,

    type away
    , the ASX/ASIC have guidelines and we usually resort to polite language ( and polite disagreement )

    your views and ideas might provoke some interesting thoughts and strategies

    cheers ,
     
  17. Financial Advisers AU

    Financial Advisers AU Member

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    Good luck with it all!
     

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