Join our investing community

Hiya

Discussion in 'Introductions' started by en710, 25th Oct, 2016.

Tags:
  1. en710

    en710 New Member

    Joined:
    31st Dec, 2011
    Posts:
    4
    Location:
    NSW
    Hiya :)

    Totally new to this side of investing. Looking forward to read and learn new things.

    I had tried Forex before (although it's more like dip my toes in without knowing what's involved and get burned) and bought small amount of shares (and luckily made little profit). Know almost zilch so most likely will be reading and not posting for a while.
     
    pinkboy likes this.
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,778
    Location:
    Sydney, Australia
    Awesome to have you here @en710 !
     
    twisted strategies and en710 like this.
  3. Hodor

    Hodor Well-Known Member

    Joined:
    17th Sep, 2016
    Posts:
    264
    Location:
    hodor
    Good to have you on board.

    Questions and posting are great ways to learn.

    I've been down similar paths to you. Tried Forex (trial account) and couldn't turn a profit, tried random shares and had random results. Now I stick to investments based on a couple of simple rules and results have been much more predictable (along with better).
     
    twisted strategies, en710 and austing like this.
  4. trinity168

    trinity168 Active Member

    Joined:
    16th Sep, 2016
    Posts:
    41
    Location:
    NSW
    Hey welcome to InvestChat :cool:
     
    en710 likes this.
  5. en710

    en710 New Member

    Joined:
    31st Dec, 2011
    Posts:
    4
    Location:
    NSW
    Thanks guys!

    I put several hundred bucks in the real account and leverage the heck out of it... win a but, then lost all of it ... my main lesson back then
    - don't play with money you can't handle to lose, in a game you don't understand
    - I am bad with day trading o_O

    I was pretty lucky with the shares, know zilch about how to actually do it properly!

    Do you have link to your rules so I can steal the method? ;)
     
    twisted strategies likes this.
  6. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    934
    Location:
    QLD
    OK then unless you desperately need big gains quickly ,

    how about NOT leveraging but buying into companies that provide a service to traders and investors

    i hold BFG ( Bell Financial Group ) they have probably had a bit of a spike that now puts them outside good value ( but if you are prepared to wait for the SP to falll ...

    but also .. testing a 12 month low today is OFX ( i do not hold OFX , but it is something i would like a tiny bit lower ).

    ( DYOR )

    these are ideas only, but even $1,000 , will give you a chance to build up a bank balance with one of these.
     
    en710 likes this.
  7. Hodor

    Hodor Well-Known Member

    Joined:
    17th Sep, 2016
    Posts:
    264
    Location:
    hodor
    These are some of the general ideas I use;

    - #1 Don't lose money - anything that has anything but the smallest chance of going to zero (nothing is 100% certain) I won't touch
    - Treat all money invested in the same way, invest $1,000 with the same caution as with $100,000
    - Invest regularly
    - Investments in shares must pay a regular dividend
    - Only buy what I reasonably expect to never have to sell, (increased tax efficiency and compounding)
    - Don't leverage into shares (technically I am saving equity cash outs for the next big stock market crash, be it 1 year or 20 years)
    - Avoid high fees

    Stay the course and have realistic expectations, I'm not looking to retire in 5 years, it just isn't possible on my income without taking signification risks - which are more likely to put you years behind than ahead.

    I plan to live off dividends one day and hence I aim to increase my cashflow through dividends.

    These rules have led me to invest mainly in specific Listed Investment Companies (LICs) and some Exchange Traded Funds (ETFs).
     
    twisted strategies and en710 like this.
  8. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    934
    Location:
    QLD
    i AM hoping to retire within 5 years ( 3 actually ) , but NOT cash out

    i am hoping to set-up a steady income to supplement ( replace , possibly ) a pension ( and reseist inflation )

    i may sell some but am planning to keep the best earners ( the rest of my life if possible )
     
    en710 likes this.
  9. en710

    en710 New Member

    Joined:
    31st Dec, 2011
    Posts:
    4
    Location:
    NSW
    I do want it quick, but know better now (was young when I did the forex thing) ;)
    Currently above my head, but surely will be able to understand this soon... I hope :)


    Thanks for sharing @Hodor !

    Currently investing mainly in property, I allowed up to 15 years from when I start, so hoping to get somewhere when I'm 35-37 or hopefully quicker, at least to allow hubby and I to work part time. The idea is to put things in property, turn them positive then start diversing to other vehicles (like shares, LICs, ETFs) but first need to know what exactly they are first!

    The idea is living yield while preserving capital - i.e. cashflow from rent and dividends. Fingers crossed achievable
     
  10. Hodor

    Hodor Well-Known Member

    Joined:
    17th Sep, 2016
    Posts:
    264
    Location:
    hodor
    We have a few investment properties too and thought about getting a few more before focusing on shares. Last year we looked at our positions and likely outcomes, figured we could still likely find properties that due to leverage would still far outperform our returns on the stock market. We also looked at what if we were wrong, what if property performs poorly for the next decade? Where would that leave us? I was still keen on two more properties where my partner was less so.

    Our exposure to property is sufficient that if there is another good run for the next decade we will do well, but we won't delay our retirement greatly if we are wrong and it stagnates/falls.

    "What if I am wrong?" Is an important question to ask, what should happen often doesn't and the unlikely and unpredictable will inevitably occur at some point.

    We have/are sacrificing the opportunity to perhaps have financial independence sooner for a more certain chance a little later.
     
  11. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    934
    Location:
    QLD
    * The idea is living yield while preserving capital *

    . .. OK if you understand property better , how about REITs and companies that finance or insure property purchases .

    one trick i found was to use something you understand , already and biuld from there

    something i was hoping to buy more of this week is CMW it pays divs 3 monthly while the share price is unlikely to rise much ... it is currently paying more than 8% and are roughly 90c a share ( currently )

    some of the banks would do OK as well but some challenges are coming their way so the SP may trend lower for a couple of years ( GMA ,MOC and HOM might appeal to you also )

    make good friends with your calculator investor faith SHOULD slip in REITs and banks in the coming two years so be mentally prepared for some slides ( and some plans if they do )

    it is now a few years back but i put solar arrays on my properties and ( so far ) generated extra income that way .
     
    en710 likes this.
  12. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    934
    Location:
    QLD
    another tip , i invest by is DON'T BE GREEDY

    the share market is basically a collection of cycles ... eventually share prices will come down ( in most cases , and some never seem to go up )

    so IF your investment doubles , triples or quadruples , have a plan to recover some of the cash

    i prefer recovering the invested cash and costs , fairly early ( BUT NOT ALWAYS ) and letting the' profit ' grow

    you may think 400% is about dreams but 400% rise in 4 years is the stuff of dreams but it does happen ... the problem is it didn't know it would happen until afterwards , i just but nice shares , that looked steady and boring .

    take PME , a wierd little stock in medical imaging

    if you had told me it would double in price in 3 years ( have now held it 5 years + ) i would ave smiled a little and say that would be nice

    it was 16.5c and was starting to pay divs

    PME PRO MEDICUS LIMITED ORDINARY
    Change
    [​IMG]

    Balance Date Dividend Type Cents per share Ccy Franked % Ex-Dividend Date Books Close Date Pay Date
    30/06/2016 Final 1.500 AUD 0.00 08/09/2016 09/09/2016 29/09/2016
    31/12/2015 Interim 1.500 AUD 0.00 10/03/2016 11/03/2016 24/03/2016
    30/06/2015 Final 1.000 AUD 0.00 09/09/2015 11/09/2015 02/10/2015
    31/12/2014 Interim 1.000 AUD 0.00 04/03/2015 06/03/2015 20/03/2015
    30/06/2014 Final 1.000 AUD 100.00 10/09/2014 12/09/2014 03/10/2014
    31/12/2013 Interim 1.000 AUD 100.00 03/03/2014 07/03/2014 21/03/2014
    30/06/2013 Final 1.000 AUD 100.00 09/09/2013 13/09/2013 04/10/2013
    31/12/2012 Interim 1.000 AUD 100.00 04/03/2013 08/03/2013 22/03/2013
    30/06/2012 Final 1.000 AUD 100.00 10/09/2012 14/09/2012 05/10/2012
    31/12/2011 Interim 0.500 AUD 100.00 01/03/2012 07/03/2012 21/03/2012

    as a div. paying stock , i am very happy BUT the SP went up a little ( over 30 times or 3100% in fact )

    AND THAT MADE ME NERVOUS ... the solution was to sell down a fair amount of this and invest that money elsewhere

    PME has been my best fluke but is not unique .... but NONE of my big wins had ' will triple in price ' written on them when i bought in .
     
    en710 likes this.
  13. en710

    en710 New Member

    Joined:
    31st Dec, 2011
    Posts:
    4
    Location:
    NSW
    Will try!

    WOW :eek: That's amazing and I kinda get why it made you nervous. I'd love to have some 'fluke' like that in the future :D
     
  14. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    934
    Location:
    QLD
    the BIG TRAP is trying for those sort of results

    BKL was another , i sold down on another stock after making a nice gain and bought ( grandma/granddad stock ) BKL around $22 , and hoped for nothing more than regular divs ,

    things changed and the price went up and up so i swapped each BKL share for 3 ( and a bit ) WES shares which is now my 5th largest holding ... totally unexpected , but i had a 'what if' plan when the unexpected happened

    PS not all stocks win, several have disappeared into bankruptcy and annoyingly some were at one stage rather large companies , Gunns , Hastie , Newsat , Dick Smith , and Arrium has the black armband on .

    to name some , also Goodman Fielder and Transfield Services crystallized losses

    BIG doesn't always equal safety , and tiny doesn't always mean no chance of growing bigger .

    i just try to pick good shares at a 'fair price ' ( hope they don't collapse , and don't get too greedy if they are going well )
     
    en710 likes this.