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New boy starting out, what the best recommendations to set myself up

Discussion in 'General Investing Discussion' started by stephenb465, 17th Aug, 2008.

  1. stephenb465

    stephenb465 Member

    Joined:
    17th Aug, 2008
    Posts:
    6
    Location:
    Australia
    Hi there

    Many years ago I entered the market and really lost a lot of money and decided to say never again. Well things change, I'm planning to start out safe and small, so my first purchase was to get NAB and put a bid in for $25. (140 units) Come Monday I probable will have them,

    I'm dedicating $3000 per month at this stage to the shear market, and only buy blue chip i.e. 200ASX.

    Thinking about marginal leading and at the moment I'm with comsec

    I really hope that I have started on a good note as when I see the market as it is ie banks loose half their value, I kind of think it's a good time to enter.

    can anyone see I could do better in what I have done so far?
     
  2. DaveA

    DaveA Well-Known Member

    Joined:
    19th Feb, 2007
    Posts:
    617
    Location:
    Sydney, NSW
    Think about gearing maybe a bit to early at this stage...

    gearing is an easy way to lose alot of money... at 3k a month your able to put in a good portion per year. If the market has scared you before i wouldnt worry about gearing yet..

    think about your purchase sizes... it may be better the invest every two months to try and save on some brokerage however within 2 months it would be easy for nab to move to $25.21 (or 0.86%), the other option might be a managed fund as the entry fees are usually less
     
  3. stephenb465

    stephenb465 Member

    Joined:
    17th Aug, 2008
    Posts:
    6
    Location:
    Australia
    Good idea about the purchasing size, never though of that, so I guess the size depends on the broker cost and at comsec I think it was 35 dollars. So what is the good number to invest with, $5000?

    Now if I invest $5000 in each blue chip I think I will be going good, I had thought about managed funds but seem very boring but on the other hand, it could be a good opportunity to enter that side as well.

    How do people find out what are good share to purpose, is there good web site links I can find?
     
  4. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
    Posts:
    1,367
    Location:
    Melbourne, VIC
    You can subscribe to news letters like the Rivkin Report, Aspect Huntley, FoxInvest etc which make share recommendations.

    As to how good their recommendations are, you need to look at their record.

    Or you can do your own research, and but stocks say in the top 20 or top 100 which you like, and I recon they will be as good as any 'expert' recommendations.

    I think also the ASX has some 'getting started' seminars which you might want to attend.
     
  5. samaka

    samaka Well-Known Member

    Joined:
    30th Sep, 2007
    Posts:
    308
    Location:
    Sydney
    Or you could buy regular parcels of STW which would give you access to the whole ASX200 through one share.

    SSgA: SPDR S&P/ASX 200 Fund