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Investing in Shares for the complete novice

Discussion in 'Shares' started by staceyo, 9th Aug, 2007.

  1. staceyo

    staceyo New Member

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    HI

    I'd really like to start investing in shares, yet I know nothing about this yet. I would like to start out on a smaller basis, and hopefully learn as I go. Can anyone recommend any good resources for the novice?

    Many Thanks in advance
    Stacey
     
  2. Tropo

    Tropo Well-Known Member

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    Read some books about Stock Market and attend some seminars.
    Search this forum for books and other resources.
    :cool:
     
  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Don't the ASX run seminars on the stockmarket ? Could be a good place to start.
     
  4. Tropo

    Tropo Well-Known Member

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    Yes. It may be a good place to start.:p
     
  5. Triu

    Triu Well-Known Member

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    asx books

    You can get a lot of books from the library on investing in the sharemarket. Also you can attend Hometrader share trading course which is about $5k for about 6months training. They teach you how to trade all markets including currencies, options etc.
     
  6. islandgirl

    islandgirl Well-Known Member

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    I did a ASX course a long long time ago and it was excellent. I would think its a definate must for starting out in share investments.

    Another good start is some of the stock market reports such as the Fat Profit etc. The key is to understanding why they are making recommendations to see if the stock not only fits into your investment strategy but to educate yourself as to the market.
     
  7. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    ASX do lunchtime thingies (maybe that's what people mean when they refer to seminars), which are free I believe. Unfortunately, this only works if you work in the city or don't have a job. I would not suggest borrowing books from the library - unless it is to check out the book itself first before you buy it. Spending thirty bucks for a resource which you can read over and over and make notes in and draw on and highlight and etc etc isn't a huge expense.

    My investment 'library' covers one half of one shelf in my bookcase - both shares and property. To put it in perspective, my record collection takes up two shelves and I need to start making more room! It's not that I don't want to read books, it's just that I pick the best only and re-read them over and over and highlight them and draw in them and make notes.

    My tip for a good starter book is Buffettology by Mary Buffett. It's fairly simple and is written for people with little or no knowledge of the market, although being a complete novice, you might need to read it a few times to get the gist of it (but that's the point) and has great working examples as well. When I first read The Warren Buffett Way, most of it went straight over my head, but in the following years as I read it again and again, my understanding grew. I'm currently re-reading it - for the sixth time, I think.

    Mark
     
  8. Glebe

    Glebe Well-Known Member

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    I would be exploring all free/cheap training and resources before spending $5k.
     
  9. islandgirl

    islandgirl Well-Known Member

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    I agree, suck up as much of the free resources as you can and then once you have a little better understanding go for more targetted stuff. That way you understand more of what you are paying for!
     
  10. voigtstr

    voigtstr Well-Known Member

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    Mark, The ASX has free, online training in fundamental and technical analysis.
     
  11. bonecrusher

    bonecrusher Member

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    Hi Staceyo

    Don't put money in that you cannot afford to lose.

    Buy one stock and see how it feels with the ups and downs of it.

    Nothing like testing the water while you are chalking up on things.

    What i will say that you may end up more confused than you are now there is just so much opinion on different strategies and types if investing in the market.

    Cheers
    BC
     
  12. Saskatoon

    Saskatoon Well-Known Member

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    Hi, there is plenty of free education available. Use the local library first, then buy the books you like best (as Mark L. suggests). As well as information mentioned above (the ASX website etc.) the Commsec website has an education centre for both new and more experienced investors.
    You can try practice share portfolios without risking real money (I think on ASX as well, and probably others).
     
    Last edited by a moderator: 3rd Sep, 2007
  13. TheCamel

    TheCamel Active Member

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    I'll be honest. I had a short chat with my father in law, then sat back for a while.

    Then, i just bought some shares. BHP, CBA and WES.
    Only a few of each.. just testing my toes in the water to see how I feel.

    WES was probably not such a good idea.. it keeps fluctuating, and i've yet to learn the whole "long term' idea and i keep lookin every 15 minutes.
     
  14. Tropo

    Tropo Well-Known Member

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    "Only a few of each.. just testing my toes in the water to see how I feel."


    What do you mean by "few of each"?

    The first determining factor is the minimum investing/trading size talking brokerage and another costs into account.
    The minimum amount payable for a lot of shares is $2000 +. It may not be worth your effort if you spend less than $2000.
    If you are willing to play with a blue chips you should allocate at least $4000 (preferably much much more) per single position.
    Basically diversification into few small positions (similar small size) does not reduce risk.
    William O'Neil said once: "Diversification is a hedge for the ignorant".
    If you can not get one position right, how are you going to get few positions right?:eek:
     
  15. TheCamel

    TheCamel Active Member

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    ah, about 30 of each
     
  16. Tropo

    Tropo Well-Known Member

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    Holy father in law of yours...
    You must be kidding me. :confused:
    Why don't you educate yourself first instead of wasting time and money...:eek:
     
  17. Rod_WA

    Rod_WA Well-Known Member

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    Hang on, Tropo, you can get $550 free trades if you start an ETrade account, and other online brokers are doing the same thing.

    For a beginner, if there is zero brokerage, surely it's a very reasonable approach, to try with small parcels of blue chip shares, and get a feel for market gyrations without a significant capital outlay. Better than playing with 'paper money', and much better than doing nothing, I suggest.

    However, I'd suggest starting with an index base (maybe a SPDR ETF?), and adding individual shares after a while. After all, isn't this what most fund managers would do - hug the index and try to pluck some alpha?
     
  18. Tropo

    Tropo Well-Known Member

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    First few free trades may be a bonus but after all you are trying to make money (I may be wrong on this) and not saving on free brokerage.
    I would suggest to learn how to trade/invest one stock at the time...
    If you get it right few times you may try to play with dozen of stocks.
    Beginners quite often are undercapitalised compare to fund managers who have got buckets of OPM to play with.;)
     
  19. TheCamel

    TheCamel Active Member

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    he didn't tell me how many to buy.. just that they'd be the ones to buy.
    i'll slowly increase them as i have available resources to direct towards it.
     
  20. Tropo

    Tropo Well-Known Member

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    O.K. than...Do not worry about worry. ;)
    LEI may be a good horse. But watch divergence (on weekly chart) between LEI price action and volume...It may/may not pull back a bit.

    Happy trading.:p