Newbs Shares

Discussion in 'Stocks & Derivatives' started by Wizz1, Mar 16, 2011.

  1. Wizz1

    Wizz1 New Member

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    :rolleyes: im sure ur sick of newbs asking questions all the time but i got to learn somewhere!

    Anyway, im slowly but surely buying up my silver bullion and just started buying shares, i bought SVL and EGO , but wondering if i should just buy up silver mine companys, and then sit on them for a year waiting for the silver to go through the roof!?

    also is there any sites out there that can help me pick my shares, advice and tips etc
     
  2. SilverSanchez

    SilverSanchez Active Member

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    look up "mickey fulp"'s site (the mercinary geologist) - he only comments on TSX shares but learn how he evaluates juniors. Your going to be doing a lot of reading and or listening to podcasts, if you dont you will make a mistake and lose money.
    Also look up 'common mistakes for new share traders" on the internet and read as much as you can, but dont worry when you panic you will ignore everything you have learnt :) I did the first time.

    Consider buying a book called "Gold Trading Boot Camp: How to Master the Basics and Become a Successful trader" ... By Gregory T. Weldon - great book - consider getting everything by "Dave Morgan" he is a silver guy... consider Financial Sence News Hour they have a podcast specifically for metals and mining...
    (ps my spelling isnt very good) :)
     
  3. Naphthalene Man

    Naphthalene Man Active Member Silver Stacker

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    I got bored with that book and couldn't finish it.
     
  4. Bargain Hunter

    Bargain Hunter Member

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    Wizz1 in my opinion there is a lot to learn about junior mining stocks and itsa best to avoid them until you have a number of years investing experience under your belt (I will probably never touch them).

    As someone new to the stock-market you will minimize the risk of losing money (its very easy to lose money in the stock market) if you avoid investing in:
    -Micro-cap, small-cap and mid-cap resource stocks (the big guys like BHP, RIO, Woodside, etc might be okay depending on the circumstances)
    -Banks
    -Insurance Companies
    -Property Trusts (AREITS)
    -Biotechs
    -Difficult to understand high tech companies
    -Non ASX listed businesses
    -Companies currently generating negative operating cash flow
    -Highly geared companies (i.e. companies with a lot of debt)

    Just remember "investing is most intelligent when it is most businesslike"- Benjamin Graham. Treat every stock market purchase as if you where going to buy the whole business. If the stock market shut down for 10 years how would you feel about owning that business. "Don't own a stock for 10 minutes if your not prepared to own it for 10 years" Warren Buffett. Imagine for example you were going to buy a local restaurant or Coffee shop with all your life savings. What sort of research would you do? What figures would you focus on?
     

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