Stock Exchange

[deeman12]

Hi guys im 15 and i really want to learn more about the stock exchange, i know abit about it like shares and stuff like that but can you please explain the dynamics of it, i saw Slater and Gordon yesterday on the stock exchange can you please explain why they did that and how they benefit. thanx guys. and forgive the bad spelling before my teacher is always over my shoulder making sure im not on this site.

 

[local]

Re: Stock Excahnge

Check out the ASX website www.asx.com.au
Heaps on info on how the stock exchanges works.

 

[deeman12]

Re: Stock Excahnge

Thanks alot mate, i really want to learn more about it.

 

[year of the roo]

Re: Stock Excahnge

I'd recommend attending some seminars. Get in touch with Universities close to you as they conduct regular stock market short courses. And also do your reading, there are plenty of 'stock market for dummies' type of books out there.

Good to see someone so young getting into the stock market. I was about your age when I got started and got burnt early on. Hopefully that doesn't happen to you as it can dent ones confidence!

 

[Lindy]

Re: Stock Excahnge

stick to major companies thr uat will grow slowly long term, and then when ur loaded put ur money into cheaper companies. In the long at term u'll make more money with companies that are bigger now. My tip for some1 ur age is BPT, ARQ or TIM
good luck mate

 

[deeman12]

Re: Stock Excahnge

What about slater and gordon i saw a share was $1.40 is that good because you would think a company like slater and gordon would grow

 

[year of the roo]

Re: Stock Excahnge

What about slater and gordon i saw a share was $1.40 is that good because you would think a company like slater and gordon would grow

Yes, no, maybe. Who knows.

Stick to banks and insurance companies for the time being. Westpac, QBE, Bank of QLD, etc.

 

[deeman12]

Re: Stock Excahnge

Do i have to be 18 to be able to buy shares, if i do im going to make my dad do it for me and i am going to start by buying shares in slater and gordon, they seem to have a upside to them.

 

[Rooboy 34]

Re: Stock Excahnge

Do i have to be 18 to be able to buy shares, if i do im going to make my dad do it for me and i am going to start by buying shares in slater and gordon, they seem to have a upside to them.

How do you know that they have an upside - just because their price is $1.40??? The price is irrelevant when looking at potential future growth - you have to look at the company for that. A company like SGH makes the majority of its profits from group litigation - can you see the number of cases of this type increasing in the future??? If you can, then they might be considered a reasonable company - otherwise try something else. Personally, I would look elsewhere, but that may be just me!!!

 

[deeman12]

Re: Stock Excahnge

How do you know that they have an upside - just because their price is $1.40??? The price is irrelevant when looking at potential future growth - you have to look at the company for that. A company like SGH makes the majority of its profits from group litigation - can you see the number of cases of this type increasing in the future??? If you can, then they might be considered a reasonable company - otherwise try something else. Personally, I would look elsewhere, but that may be just me!!!

Yeh i know that just because they are $1.40 that doesnt mean they have automatic upside, what i meant was slater and gordon are growing alot so they would have a bit upside to them.

 

[year of the roo]

Re: Stock Excahnge

Yeh i know that just because they are $1.40 that doesnt mean they have automatic upside, what i meant was slater and gordon are growing alot so they would have a bit upside to them.

Your old man's a lawyer isn't he?

 

[deeman12]

Re: Stock Excahnge

Your old man's a lawyer isn't he?

Lol nah my old man isnt a lawyer. Do i have to be 18 to be able to buy shares and also is it possible for me to buy oil.

 

[FrediKanoute]

There is this American guy (the name eludes me), but he is one of the most successful share investors. His simple advice was when picking stocks, only invest in stocks whose business you understand. What I'd add to that is

1. Put together an investment strategy with clear rules about the types of stocks you will invest in. It may be a particular industry/sector/type/yield range/speculative

2. Set clear sell points on each stock in your portfolio and be prepared to trade out.

3. Worry less about the gain you didn't make, than the one you have made $1,000 gain in your pocket is better than a £1,200 unrealised gain.

4. Monitor your shares at a minimum daily and not just the price, look at announcements, look at which companies are trading in and out of your stocks etc

5. Stick to your investing rules and always ask does this fit my investment profile. If it doesn't and you are still keen find 5 good reasons why you think you should spend money on it.

6. Learn how to use derivatives. They can enhance your returns and limit risk, but never use them it you don't fully understand them.

 

[Barry Zuckercorn]

There is this American guy (the name eludes me), but he is one of the most successful share investors. His simple advice was when picking stocks, only invest in stocks whose business you understand. What I'd add to that is

1. Put together an investment strategy with clear rules about the types of stocks you will invest in. It may be a particular industry/sector/type/yield range/speculative

2. Set clear sell points on each stock in your portfolio and be prepared to trade out.

3. Worry less about the gain you didn't make, than the one you have made $1,000 gain in your pocket is better than a £1,200 unrealised gain.

4. Monitor your shares at a minimum daily and not just the price, look at announcements, look at which companies are trading in and out of your stocks etc

5. Stick to your investing rules and always ask does this fit my investment profile. If it doesn't and you are still keen find 5 good reasons why you think you should spend money on it.

6. Learn how to use derivatives. They can enhance your returns and limit risk, but never use them it you don't fully understand them.

Sounds like Warren Buffet.

 

[Brad Goodman]

He provides a virtual smorgasbord of investment tips.

 

[Barry Zuckercorn]

He provides a virtual smorgasbord of investment tips.

 

[FrediKanoute]

Sounds like Warren Buffet.

That's the one!!!!

 

[hackysack86]

Investing in the stock market can be a daunting experience. I am 21 and have yet to purchase shares in the stock market directly (and im into my 4th of studing applied finance and economics at university).

My advice would be at your age to invest in managed funds. I started at 15 with $1000 initial investment and $100 a month. I now have over $16 000 in managed funds, mainly thanks to the strength of equities over the past 3 years.

There are many managed funds with differing risk profiles, so you can pick a fund that best suits you. If you are looking at taking on alot of risk, hedge funds or long/short funds can help you out there. I can explain what they are if you like.

If you want to buy shares directly though, you have to decide on a strategy. Id say at 15 you wont be looking to trade to much, therefore long growth assets will be best. With the ageing population in Australia and compulsory super now at 9% (and a present push to increase it further), most finance companies should provide strong growth over the next 30 years.

However, now is probably not the best time to be getting into the market. I am anticipating personally a downturn in world-wide equity markets over the next 12-18 months. The Chinese stock market is quickly becoming over-valued, with many P/E ratios over 40. This is not sustainable. And if China declines, the rest of the world will follow.

 

[hackysack86]

6. Learn how to use derivatives. They can enhance your returns and limit risk, but never use them it you don't fully understand them.

He is 15! I wouldnt recommend anyone without a university degree and experience in the finance sector use derivatives. Yes, they do provide leverage - they do also provide more risk. I cant really see this 15yr old delta and gamma neutralising his portfolio!

 

[deeman12]

My main goal is to get a job, have $1000 in the bank then start to decide on what has the potential to grow. I dont really know what i want to do when i finish school but if i dont get into uni i want to buy a property I would probably rent the joint of and try to pay of as much as possibe. A plan along those lines in what i want to do. Any suggestions would be great.

 

[hackysack86]

My main goal is to get a job, have $1000 in the bank then start to decide on what has the potential to grow. I dont really know what i want to do when i finish school but if i dont get into uni i want to buy a property I would probably rent the joint of and try to pay of as much as possibe. A plan along those lines in what i want to do. Any suggestions would be great.

Are you saying that you want to possibly purchase a house straight after you get out of school if you dont make it into university?

If so, well i doubt you will have the necesary income to enable you to acquire you to purchase a property. Even if you do, its not entirely straight forward. For one thing, if you buy a house you only recieve the first home owners grant if you actually live in the house for the first 6 or 12 months (can someone clarify this). I dont how they actually determine this, so there may be some way to illegally get around this rule.

Property is a good investment, however these days, with high house prices in sydney, melbourne and perth, and probably everywhere in Australia too, purchasing your first property even in your early 20s is an optimisitic goal and a reality for only a small percentage of young adults.

My advice would be as follows:
1. Get a job - keep looking around and just apply for everything even if you dont want the particular job (any interview experience is valuable). In the next few months alot of retail places start to hire people for the busy christmas period, so there should be a number of opportunities available. I recommend applying online at ColesMyer
2. Save your earnings - plan the majority of your spending and keep spending to a minimum if you are serious about investing.
3. Investing - At your young age, my advice would be managed funds. If you are a risk taker and want to earn high returns, or alternatively if you are more risk averse and want consistent returns, managed funds can provide you with an appropriate investment to suit your objectives. Warning: if you opt for a higher risk fund, you have to be willing to put up with negative returns in some years. However, if you have a long investment horizon (>5yrs) this should not really be a problem. I would recommend if your are going to invest in a managed fund, go through a financial advisor such as NevilleWardDirect, as this will dramatically decrease any fees that you have to pay.
4. Work hard at school - Good marks in high school and at university are not dependent on how smart you are, but rather how hard you work. If you want to go to uni, work hard at school and sacrifice some social outings, and you should be able to get the marks.

If you are interested in a career in the finance industry, here are some additional tips:
- At high school, the subjects you should be doing are economics, business studies, as a high a level of maths as possible (maths is extremely important, something i only realised once i got into uni), as high an english level as possible (it is important in most white collar jobs to be able to communicate, both orally and in writing, effectively). Other electives which are good to do would be drama (again, will help out your communication skills, but is not for everyone - it certainly wasnt for me!) and any of the sciences.
- Good degrees to do are Economics, Applied Finance, Actuarial Studies and Commerce with a finance or economics major. Combining any of these degrees is also good, as well as combining them with law.
- The main subjects at uni which are best for finance graduates are economics, finance, econometrics, actuarial units, statistics and maths (alot of employers value math graduates very highly, so do not underestimate the value of a mathematics degree or including math units as part of your degree)
- If you dont get the marks to get into your ideal degree and/or your ideal uni, it is pretty easy to change uni's and degrees after one year of study, as long as you have worked hard and marks are good.

Most important though, if you want to get into uni bad enough, you will - you just have to put in the hard yards at school, which includes making sacrifices.