Stock Market

[sabre_ac]

Ok this is the board I thought would be the best place to come to for tips.
Recently I came into a fair bit of money (Ok its only 1,500 but hey im only 18),and was hoping to invest it in shares for a short-medium term investment.

Now over the past I have had great sucess with Westpac,Austal and Hardman thanx to tips.
I was wondering if any of you "smarter people" on the board had any red hot tips for the stock market.

And yes I will take your advice seriously as every time I come to big footy for advice I always walk away with the right stuff.
Ie Alfies constant success at picking the winners in the melbourne cup.

So please suggestions.......

[Shinboners]

Maybe you should read the Margin Call column in the Australian newspaper (Tuesday to Friday).

Other than that, it's actually illegal to give out stock market tips unless you are licensed by the ASIC and add the appropriate disclaimers.

[sabre_ac]

Originally posted by Shinboners
Maybe you should read the Margin Call column in the Australian newspaper (Tuesday to Friday).

Other than that, it's actually illegal to give out stock market tips unless you are licensed by the ASIC and add the appropriate disclaimers.

ahhh thankyou shinners.

Im sure there is a way of wording it that would make it legal.

[Docker_Brat]

Congratulations sabre!

At least you have your head screwed on right to decide to invest your money. I wish I had the same foresight at that age, probably be a lot better off.

I recently joined the ranks of people investing on the share market and have had some gains and losses, but overall infront at this stage.

Remember, to make money, it is a long term thing.

I do all my own research and do not go through a broker. I recommend E*Trade (http://www.etrade.com.au) if you want to handle your own financial affairs.

Avoid smaller companies, although some of the smaller mining companies are making huge gains at the moment. It is a good time to buy shares.

Good luck!

[ah_19]

i recomend now not to be a good time for it, the stock market is more or less a funnel directing money from the majority to the rich, companies are too unstable and its too easy to loose out

for the record i have done quite a bit of reaserch in it reading books and following it although not too closely, i beleive i know the fundamentals of making money and how to spot companies based on thier growth/share availability etc etc and 10 years ago it would have been a good idea but the fact is that were at the end of the cycle with the baby boomers peaking soon and with them supply/demand peaking, stay out

[Shinboners]

Originally posted by Docker_Brat

Remember, to make money, it is a long term thing.

Yep....that's one of the key things you have to remember. By long term, I tend to think of 5 years minimum for an investment.



I do all my own research and do not go through a broker. I recommend E*Trade (http://www.etrade.com.au) if you want to handle your own financial affairs.

I go through Macquarie and use their research plus what I pick up in the financial press. I don't think you need to read the Financial Review every day, but an hour reading the Weekend Australian Financial Review is very useful. Stockbroking firms will cost you more, but if you've got a good stockbroker taking care of you, it's worth it.


Avoid smaller companies, although some of the smaller mining companies are making huge gains at the moment. It is a good time to buy shares.


Smaller companies need a lot more work....they're not really invest and forget. You have to keep a close eye on them.

The other option other than investing direct is to use a managed fund....although $1,500 might be too small for some of them.

[Voice of Reason]

sabre

One of the key things to consider is whether you are "time poor" or not. To manage your own investments is hard work, unless you enjoy it.

$1500 is a very small amount of money to most of the big funds, but at 18 you're in a great position to "go the long term" and invest it for long term accumulation.

There was a "DIY" risk profile on the internet that you could fill out to work out how risk-averse you are. I can't remember where it is now (sorry). All good financial planners will get you to fill out a risk profile before choosing investments.

Also read some of http://www.brw.com.au/ or the hard copy version.

[Dippers Donuts]

Sabre, it depends on the risk you are prepared to take.
With my portfolio I have spread the risk, from no risk safe as houses, to high risk, fasten your seatbelts type stuff.

Have a look at hotcopper.com.au, there is a good trading room section where some of the brokers (and others) have been known to pass on some real hot tips (I didn't think it was illegal Shinboners, caveat emptor etc. As long one doesn't charge for the advice or pass on insider trading stuff and declares their interest, if any, then knock yourself out).

The ASX site (asx.com.au) is also very informative for the novice investor.

oh and sabre...three letters...PTD...do some research on this code...it is HUGE baby

[sabre_ac]

Originally posted by Dippers Donuts
Sabre, it depends on the risk you are prepared to take.
With my portfolio I have spread the risk, from no risk safe as houses, to high risk, fasten your seatbelts type stuff.

Have a look at hotcopper.com.au, there is a good trading room section where some of the brokers (and others) have been known to pass on some real hot tips (I didn't think it was illegal Shinboners, caveat emptor etc. As long one doesn't charge for the advice or pass on insider trading stuff and declares their interest, if any, then knock yourself out).

The ASX site (asx.com.au) is also very informative for the novice investor.

oh and sabre...three letters...PTD...do some research on this code...it is HUGE baby

I should have known an eagle supporter would come to the rescue.
After all you must know wat your talking about if all of your drive range rovers ;)

Thanx allot none the less I shall look into this mysterious PTD.
Also thankyou to the rest of you, your help is much appreciated.

[dees01]

I am happy. I got Woolworths at $4 and now it is around $12. You probably should play it safe. Perhaps some of the banks. It is a virtual guarantee of making a profit, although I would think to make the most of it, you would need more than $1500.

[Shinboners]

Originally posted by Dippers Donuts
I didn't think it was illegal Shinboners, caveat emptor etc. As long one doesn't charge for the advice or pass on insider trading stuff and declares their interest, if any, then knock yourself out.
[/SIZE]

I think you're probably right there.

Personally, I'm just wary of giving out tips. If they go wrong and the other person does their cash, they can sometimes blame the person giving out the tip rather than themselves for taking on the risk.

[sabre_ac]

Originally posted by Shinboners


I think you're probably right there.

Personally, I'm just wary of giving out tips. If they go wrong and the other person does their cash, they can sometimes blame the person giving out the tip rather than themselves for taking on the risk.

Like was said earlier it really is a very little amount of money.
And I literally fell ass backwards into it, so easy come easy go.I am a risk taker and I am looking at this is a bit of a "toy", to mess around with.
Ive always wanted to have a dable and its probally better I learn stock market lessons young with little money, than at a later stage in life with allot.

[Shinboners]

Originally posted by sabre_ac


Like was said earlier it really is a very little amount of money.
And I literally fell ass backwards into it, so easy come easy go.I am a risk taker and I am looking at this is a bit of a "toy", to mess around with.
Ive always wanted to have a dable and its probally better I learn stock market lessons young with little money, than at a later stage in life with allot.

That's fair enough.

Following on from Dipper's example, you might want to look at ResMed (ASX code RMD). They were $11.50 only a few weeks ago, but have fallen back to about $7.50 due to the entry of a competitor in their market (RMD makes sleeping masks for people with sleeping disorders). The research I've gotten says that this might be an over-reaction, so it's a good time to buy. They don't pay dividends. Oh, and the RMD shares listed here at the ASX are actually depository rececipts for the equivalent shares listed in the New York Stock Exchange (similar to how News Corporation operates). But I'd suggest that you do a bit of research and learn about the company that you're going to buy into before you start buying the shares. Don't worry if you miss an opportunity, there will always be another one coming along. Oh, and I do own RMD shares.

Finally, a website worth checking out is the Motley Fool. It's at www.fool.com (or just do a search for the Motley Fool) and has heaps of free information on investment and strategies (albeit from a US perspective).

[Darky]

Originally posted by Shinboners

RMD makes sleeping masks for people with sleeping disorders

Do they make masks for ugly people too? :D

[StrengthThroughLoyalty]

Originally posted by sabre_ac


Thanx allot none the less I shall look into this mysterious PTD.
Also thankyou to the rest of you, your help is much appreciated.

sabre,

if you had of taken dippers advice and bought peptech (ptd) shares yesterday you would have made an 8% profit in a day. they have just been granted a us patent, and i believe there is still plenty of value at the current price. i am holder of ptd :D. do your own research on the company.

the important thing for you to do is to get into a routine of putting some money aside for investment. it doesn't matter how small an amount, it is just a good habit to get into. open a trading account with nab, e*trade, investorweb etc and create a watch list of shares that you are interested in. build the amount up in your trading account until you have enough to buy a decent parcel of shares. invest in blue chip shares over a variety of sectors and leave a very small percentage of your portfolio for speculative shares. if you like a bit of risk then research a company called looksmart (lok).;)

[Shinboners]

STL has posted some great advice above.

But here's my little Looksmart anecdote.

Originally posted by StrengthThroughLoyalty
leave a very small percentage of your portfolio for speculative shares. if you like a bit of risk then research a company called looksmart (lok).;)

Oh, I remember during the height of the internet share boom, my broker sent me some research on Looksmart. At the time, they had just listed ($2 issue price) and had hit $4.50 or something like that. So I asked her to send me the research report. Okay, the first lesson is that when you get a research report, go straight to the financial statements. With Looksmart, they had five years of projected losses before their first profit......five years is a hell of a long time in an area with technological change, so I passed up the offer.....a good idea in the end since the Looksmart shares crashed along with all of the other tech stocks.

Learn to read financial statements. Two books that I recommend are:

"Balance Sheets - The Basics " by Bill Jamieson

and

"The Numbers Game" by Trevor Sykes

[StrengthThroughLoyalty]

Originally posted by Shinboners
STL has posted some great advice above.

But here's my little Looksmart anecdote.



Oh, I remember during the height of the internet share boom, my broker sent me some research on Looksmart. At the time, they had just listed ($2 issue price) and had hit $4.50 or something like that. So I asked her to send me the research report. Okay, the first lesson is that when you get a research report, go straight to the financial statements. With Looksmart, they had five years of projected losses before their first profit......five years is a hell of a long time in an area with technological change, so I passed up the offer.....a good idea in the end since the Looksmart shares crashed along with all of the other tech stocks.

Learn to read financial statements. Two books that I recommend are:

"Balance Sheets - The Basics " by Bill Jamieson

and

"The Numbers Game" by Trevor Sykes

to true shinners,

i bought some lok shares for 13c at the start of jan and crossed my fingers that they were going to post there first ever profit at the end of jan. when they did and the share price went to 25.5 i sold a parcel of shares worth my initial investment and am now sailing on the good ship looksmart with pure profit.:D :D

of course i'm not going to tell you about the penny dreadfuls that have bitten me on the arse.:mad: ;)

[Shinboners]

Originally posted by StrengthThroughLoyalty

i bought some lok shares for 13c at the start of jan and crossed my fingers that they were going to post there first ever profit at the end of jan. when they did and the share price went to 25.5 i sold a parcel of shares worth my initial investment and am now sailing on the good ship looksmart with pure profit.:D :D

of course i'm not going to tell you about the penny dreadfuls that have bitten me on the arse.:mad: ;)

Well done on Looksmart....you took the risk and got the reward.

I don't have the nerve to play amongst the penny dreadfuls. Sure, a 10 cent share can go to 20 and double your money, but then again, it could also drop to 1 cent and you've blown 90% of it. Then there's the problem of liquidity....you can't sell if nobody is interested in buying and the penny dreadfuls generally don't generate good volumes.

Mind you, I've been bitten on the arse by the blue chips as well. I've lost on Lend Lease and QBE, sold out of News Corp and St.George way too early. The irony is that the shares that I've held onto through thick and thin have generally paid off. I've taken the attitude that as long as they've got a reliable earnings stream (with fully franked dividends an added bonus), I'm happy to hold onto them.

[Frodo]

The investment is quite small, minimum brokerage fees will apply. I hear that RESMED may be good but they are having problems with their new product. I hear ERG may bounce well. Telstra are undervalued and Qantas will have a bounce following Ansetts demise. MtBurgess are waiting on follow ups of a good gold strike. Futuris to bounce. Tab, AGL, Orica, Burswood all good buys.

but

Burswood, maybe $10 on red, double if you lose and go on doubling til you win. It will take an awefully bad run to lose :cool:

or

5 Eagles memberships. Now as the seats will run out at Subi you'll be able to trade them for at least double by next year :)

[Fat Red]

Originally posted by Frodo


Burswood, maybe $10 on red, double if you lose and go on doubling til you win. It will take an awefully bad run to lose :cool:

or

This can be a good strategy but there are two problems with it.

First, the casinos are onto it and if you do it with a lot of money they'll see you coming.

Second, you don't need to get that bad a run to run out of money. Eg say you bet $100 on red and lose, double that, $200, lose, double that, $400, lose, double that, $800, that's four in a row and you've lost your $1500. Four in a row happens. Sure, if you had another $1600 and you put it down and won, you'd be fine, but if you didn't, it's all over.

[i_luv_westcoast]

Sabre_ac if you do not have a lot of experience with the stock market I think your best strategy would be a managed fund. A managed fund will allow you to make monthly deposits of $100 also which enables you to increase your investment.

You said it was for the short term however, if this is the case I would probably advise you against investing in the stock market as shinboners has already advised.

Im a Uni student like yourself and have some money invested in shares. I also have a sum of money invested in a Cash Management Trust. The reason for the CMT is that it is very low risk with what it invests in. As a result of this however the returns are approx 4% p.a.

I think your best option would be to go and see a financial adviser who has been recommended to you by someone who is happy with their work. If this is not possible just give the money to me :)

[Dr Zaius]

I was wondering when someone would mention managed funds.

With $1500 you are really only able to buy 1 share which lets face it gives a pretty low margin for error. Anything more and your brokerage fees will take a big bite out of your profit.

Most managed funds are now entry fee free or can be bought through companies like "Funds Direct" which refund entry fees.

As boring as it sounds managed funds will offer the easiest entry to growth assets (shares, property) and without charging brokerage (directly anyway).

Suggest Colonial First State for aussie shares, property or Platinum for overseas shares.

However its your money and Earth will be destroyed by you humans soon, so maybe you should just have fun with it.

[Satay Mat]

Originally posted by Frodo
The investment is quite small, minimum brokerage fees will apply. I hear that RESMED may be good but they are having problems with their new product. I hear ERG may bounce well. Telstra are undervalued and Qantas will have a bounce following Ansetts demise. MtBurgess are waiting on follow ups of a good gold strike. Futuris to bounce. Tab, AGL, Orica, Burswood all good buys.

but

Burswood, maybe $10 on red, double if you lose and go on doubling til you win. It will take an awefully bad run to lose :cool:

or

5 Eagles memberships. Now as the seats will run out at Subi you'll be able to trade them for at least double by next year :)

surely you jest Frodo....

I will giv you a hint.....37 numbers, 18 red ones....if you win you get even money.....

I don't care which strategy you use play it long enough (or often enough) and there is no way you will win.


Satay Mat