Stockbrokers.

[HolyWars]

Hey all. I currently have some shares in NAB/BDG through the old man and was thinking of starting to do some small trading myself. I have some knowledge and understanding of the markets though the old man, ASX site, and these/other forums, etc.
My question is, is it worthwhile going through a full service broker or do you perfer just to go with a non advisory?
Also which brokers do you perfer?

Thanks

 

[Chief]

Really, my advice would be to buy index funds until you have been watching the market for a few years. Then take a bit out and buy promising under-valued shares and hold onto them for a long time. But I'm no expert.

 

[Moo]

I trade my own via the net but then I know what I want to buy and am not really looking for any advice.

Chieftan has a good point just buy into some indexed funds and reinvest until you have some cash.

My advice is don't go chasing the quick capital gains, find good stocks.

I know folks read the hot tips and think that is what I want but basically that is a game if you know a lot or dont need the cash.

I always need the cash ...I like to pick nicely priced shares in good companies and aim to have a mill under mgmt in good companies in the next decade.

This means ignoring the 1c mining companies, the fish farm in PNG and the likes and simply buying into the Wesfarmers, banking sector etc.

When I screw around I basically do it with a tiny portion of my cash - at the moment all I have is about 5K in this part of the market.

Pretty soon I am going to be bathed in cash due to a contract settlement and I really dont know what I am going to do with the cash as I dont think this market is going anywhere but sideways for a while.

I think at this stage I'll just pay off my mortgage...and wait.

 

[Pornstar]

Do your own market research and don't plonk down too much cash whilst you are learning. You will make mistakes along the way (which is fine, it's the best way to learn!), so make sure they don't end up costing you an arm and a leg.

 

[James23]

Hold off until the end of the year, would be the best advice.

 

[Frodo]

I trade my own via the net but then I know what I want to buy and am not really looking for any advice.

Chieftan has a good point just buy into some indexed funds and reinvest until you have some cash.

My advice is don't go chasing the quick capital gains, find good stocks.

I know folks read the hot tips and think that is what I want but basically that is a game if you know a lot or dont need the cash.

I always need the cash ...I like to pick nicely priced shares in good companies and aim to have a mill under mgmt in good companies in the next decade.

This means ignoring the 1c mining companies, the fish farm in PNG and the likes and simply buying into the Wesfarmers, banking sector etc.

When I screw around I basically do it with a tiny portion of my cash - at the moment all I have is about 5K in this part of the market.

Pretty soon I am going to be bathed in cash due to a contract settlement and I really dont know what I am going to do with the cash as I dont think this market is going anywhere but sideways for a while.

I think at this stage I'll just pay off my mortgage...and wait.

Good post, and pretty spot on.

There are three types of players

Investors
Traders
Gamblers

The first requires a sensible long term approach
The second needs a lot of knowledge and research (and time).
The third needs luck, and most people don't win at the casino.

 

[Matty Knights]

I have both online and a broker so get the best of both worlds.

I'm lucky I have an excellent broker who's advice is invaluable, great communicator and a good grasp on a wide variety of stocks.

Whilst long term I'm an investor the market atm is a horses for courses type situation which pretty much makes me a trader.

Learn from your mistakes is the best advice I can give and don't be frightened to take a profit.

 

[HolyWars]

So I went with a stock that I have been watching for quite sometime and with the old man bringing this particular stock up during the week without me mentioning it too him that it was one of the few I had narrowed it down too, I made the decision.
Going in with only a small amount that we can invest without needing it and are happy to hold for a long period if needed, we went with Bluescope @ 3.29 as our first addition to our personal portfolio.


Thanks for all the different advice I you guys have given and all where very helpful and appreciated.

 

[samm]

So I went with a stock that I have been watching for quite sometime and with the old man bringing this particular stock up during the week without me mentioning it too him that it was one of the few I had narrowed it down too, I made the decision.
Going in with only a small amount that we can invest without needing it and are happy to hold for a long period if needed, we went with Bluescope @ 3.29 as our first addition to our personal portfolio.


Thanks for all the different advice I you guys have given and all where very helpful and appreciated.

yes i also went with blue scope @3.34 as my first addition to my potfolio, and its now down to $2.76.

 

[HolyWars]

yes i also went with blue scope @3.34 as my first addition to my potfolio, and its now down to $2.76.

Don't panic, you havn't lost anything unless you sell

 

[DeanoT]

Don't panic, you havn't lost anything unless you sell

Wise words spoken by owners of the stocks of HIH, OneTel, Enron, MCI WorldCom, BoA, AIG......

If there is one great sin in the stock market, it is not knowing when to cut your losses.

 

[HolyWars]

Wise words spoken by owners of the stocks of HIH, OneTel, Enron, MCI WorldCom, BoA, AIG......

If there is one great sin in the stock market, it is not knowing when to cut your losses.

So Bluescope are on verge of collapse then? I would agree if the prices had halved in this time and against the trend for that matter. It's a long term investment and if you dont have the pacience for a long term strat, then why invest in a bluechip stock that obviously at present doesnt fit the category of looking towards a collapse?

 

[DeanoT]

So Bluescope are on verge of collapse then?

Did I say that ?

I would agree if the prices had halved in this time and against the trend for that matter. It's a long term investment and if you dont have the pacience for a long term strat, then why invest in a bluechip stock that obviously at present doesnt fit the category of looking towards a collapse?

My point is that the old saying of "you haven't lost anything unless you sell" is flawed thinking, and best demonstrated by the many blue chip coys which have gone bust, all the while stockholders kept hanging on hoping for the recovery that never happened.

A paper loss is a very real loss, and no professional investor would ever tell you otherwise.

And no-one predicted the collapse of any of those companies listed above until it was all too late.

It's pure risk management, that is all.

 

[Frodo]

I cut my BSL portfolio when they advised suppliers they were unilaterally increasing their credit terms...ie how long they would take to pay.

To me it is a sign of cash flow concerns.

 

[Frodo]

Did I say that ?



My point is that the old saying of "you haven't lost anything unless you sell" is flawed thinking, and best demonstrated by the many blue chip coys which have gone bust, all the while stockholders kept hanging on hoping for the recovery that never happened.

A paper loss is a very real loss, and no professional investor would ever tell you otherwise.

I don't think it's flawed.

A paper loss is not a loss until crystalised.

And so is a paper gain. The market fluctuates and investment is all about risk management.

 

[DeanoT]

I don't think it's flawed.

A paper loss is not a loss until crystalised.

And so is a paper gain. The market fluctuates and investment is all about risk management.

A gain is a gain, and a loss is a loss, whether you decide to sell or not.

Cutting losses short IS risk management.

 

[Frodo]

A gain is a gain, and a loss is a loss, whether you decide to sell or not.

Cutting losses short IS risk management.

No doubt

....but my balance sheet shows actual losses or gains...nor prospective ones.

And gains and losses don't materialise until crystalised.

At the moment I have a 50%+ unrealised gain.

Now that word ' unrealised' means that it's not yet real.

Hope you understand

 

[DeanoT]

No doubt

....but my balance sheet shows actual losses or gains...nor prospective ones.

And gains and losses don't materialise until crystalised.

At the moment I have a 50%+ unrealised gain.

Now that word ' unrealised' means that it's not yet real.

Hope you understand

Yeah, I understand your explanation.

My comments were not so much in response to your post, but the earlier post that said "you haven't lost anything unless you sell". That advice is a sure way to the poor house.

I often hear of people waiting for a stock to return to their buy point so they can break even, as if that stock owes them something. Investors get personal with individual stocks, instead of selling once its clear it is no longer a good investment, and moving on to something else. Instead they try to make their money back by waiting for an eternity for the stock to bounce, or even worse, make the all time amateur mistake of dollar-cost averaging into a stock sinking like a stone. Dollar cost averaging is a sure way to have a massive percentage of your portfolio in an Enron, HIH scenario.

My point was that all stock investors should have a firm exit price in mind when making the initial purchase. i.e. get out if the stock loses half its value. Such a rule means you will NEVER own a stock that goes broke, since you will have exited much earlier. Better to cut your losses, and move onto something better, than to hope and pray that your stock bounces back, which may never happen.