seremify007
Junior Member
I rely on volume to make money, and I don't follow broker recommendations.
Share trading. (1 Viewer)
- Thread starter powlmao
- Start date
seremify007
Junior Member
I started small with my savings from working as a trainee.. I'm still holding my original parcel of 150 ORI shares which I bought at $23.00 back in 2008! (i.e. under $5k)
How do you pick stocks then? Do you read any other recommendations, i.e any particular source of info?
seremify007
Junior Member
Depends what it is relative to your net worth, and how much you are willing to lose. My minimum trade size now is much larger than that. My Orica holdings are worth like $500 more in capital alone, plus I received Dulux Group shares when they demerged (before the shares were bought back) and I think both entities have paid dividends over the years. I guess it's not too bad given it only cost me like $3.5k to buy in the first place but it was more out of laziness that I never sold such a small parcel.
The only news I read (for investing) is the live Reuters/Bloomberg updates which I receive from my dealers which is FX oriented but you can still create links with shares/equities. Once in a while I'll read a trading report/update from a bank or something. I tend to avoid mainstream news has already been read and reacted to on the mainstream so I tend not to use that at all- particularly editorial pieces.
Riproot
Addiction Psychiatrist
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Guys, you'd be really stupid to miss this offer.
seremify007
Junior Member
1. You're young, I'm old. I started small too but then over time I realised that buying 1000-5000 shares at a time means that if something moves by even a small amount such as 50c which is quite easy on the ASX20 stocks, then I'm already making enough pocket change to buy something to eat for no capital outlay thanks to T+3
2. Don't bet all your money in one go. If you want to play it safe, get a term deposit with a future value of $30k, and whatever is left over you can use to buy speculative penny stocks.
(or failing 2, assuming it works out to be tax advantageous and better for an indirect/passive investment style, put money into a capital guaranteed structured product or fund)
I do have a term deposit. I meant to say my term deposit has 20k in and my bank had 10k in it. (matures next week so I'll bump my term despoit to 30k since I am under 18 and can't do much)
What kind of investment products are there?
My term deposit makes ~$1,500 a year so I might use that to buy stocks next year when they can be in my name
What kind of investment products are there?
My term deposit makes ~$1,500 a year so I might use that to buy stocks next year when they can be in my name
seremify007
Junior Member
Dang you did a good job of saving up. Much better than me.
For someone still in school you are doing very well. Congratulations. You seem careful with your money. Should get far financially.
Also it's hard to get 7.5% p.a. implied in your Term Deposit. Nowadays it's around 6%.
30k at 5.5% = ~$1.500
At the moment rates are 5.5%
My current one which matures soon is at 6.2
To be honest i don't really care what the interest rate is, i just want to be able to invest in a effective manner.
And thankyou, my parents have encouraged me to save during my life and it has served me well, i will still probably get a uni hex only to the fact i could better invest my money and earn of it and probably put a down payment on something big later in life (Especially since getting a hex isn't financially expensive)
EDIT: only reason i am more geared towards ANZ is that i have multiple accounts with them and i have seen it on the website, just would be easier i assume, but i would be interested in other financial institutions offering this kind of fund
also i have looked at ANZ's investment account which your funds get pulled together to invest in the S&P/ASX 200 Index
http://anz.com.au/personal/investing-super/shares-managed-funds/online-investment-account/
What do you think? Does it seem like a good thing to do before jumping into buying shares fully? It does seem good since your money is put with the top 200 companies and that dividend payments get redirected into purchasing more units (Of shares in this investment fund thing, basically dividends get reinvested)
But i don't like the idea that my money will be invested in qantas or electronic chains. Qantas because i foresee in the future it struggling and making poor. Electrnoic chains because i work at Big W and i have seen sales for electronic goods fall dramatically.
At the moment rates are 5.5%
My current one which matures soon is at 6.2
To be honest i don't really care what the interest rate is, i just want to be able to invest in a effective manner.
And thankyou, my parents have encouraged me to save during my life and it has served me well, i will still probably get a uni hex only to the fact i could better invest my money and earn of it and probably put a down payment on something big later in life (Especially since getting a hex isn't financially expensive)
EDIT: only reason i am more geared towards ANZ is that i have multiple accounts with them and i have seen it on the website, just would be easier i assume, but i would be interested in other financial institutions offering this kind of fund
also i have looked at ANZ's investment account which your funds get pulled together to invest in the S&P/ASX 200 Index
http://anz.com.au/personal/investing-super/shares-managed-funds/online-investment-account/
What do you think? Does it seem like a good thing to do before jumping into buying shares fully? It does seem good since your money is put with the top 200 companies and that dividend payments get redirected into purchasing more units (Of shares in this investment fund thing, basically dividends get reinvested)
But i don't like the idea that my money will be invested in qantas or electronic chains. Qantas because i foresee in the future it struggling and making poor. Electrnoic chains because i work at Big W and i have seen sales for electronic goods fall dramatically.
Watch the market for a while first before jumping in. Remember it is 100 times easier to lose a dollar than to make one. Read the business pages of the papers. I've been with Commsec maybe 15 years now.
We prefer to pay for uni fees upfront then to use HECS - the discount offered used to be much more attractive; much better than you can get for your deposits from your bank. Remember - always compare the different rates of return. You should normally go for the higher rate (provided the risk is not higher). I wished I had bought the banks (the big 4) 10 to 15 years ago! Better to own the bank then to lend them your money (term deposit etc). ING Direct recently offered 6% p.a. for 6 month for personal term dep (now 5.7%). Don't put your money with financial institutions that offer you 3 to 4 % higher rates than the main banks. Usually they are dodgy.
We prefer to pay for uni fees upfront then to use HECS - the discount offered used to be much more attractive; much better than you can get for your deposits from your bank. Remember - always compare the different rates of return. You should normally go for the higher rate (provided the risk is not higher). I wished I had bought the banks (the big 4) 10 to 15 years ago! Better to own the bank then to lend them your money (term deposit etc). ING Direct recently offered 6% p.a. for 6 month for personal term dep (now 5.7%). Don't put your money with financial institutions that offer you 3 to 4 % higher rates than the main banks. Usually they are dodgy.
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^as of 1/1/12 HECS discount rate reduced from 20% to 10%.
@powlmao learn how stock market work before you jump in. A good place to start, http://www.investopedia.com/. Then paper trade.
@powlmao learn how stock market work before you jump in. A good place to start, http://www.investopedia.com/. Then paper trade.
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seremify007
Junior Member
Not sure where you got that from but I thought it was 5% from January 1, 2012 onwards > http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/00291063.htm&page=30&H30 . But this is when repaying HECS debt through the tax system rather than with the university. I remember receiving a letter from the ATO about it and deciding to repay my balance in full before my compulsory instalment last year.
Just don't become complacent. A lot of people are great at being thrifty when they are young and not earning much but suddenly when money comes in their habits change significantly. I admit mine did too (coincided with when I realised I like cars) but I always ensured I saved at least a quarter of every dollar I earned.
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I'm talking about up-front payment, not repaying HECS debt.
"If you are a Commonwealth Supported Student(HECS-HELP) and are eligible for 10% discount for payments of $500 or more, you must pay by the University's due date to avoid receiving a $200 late payment fee." From my uni finance section.