Im trading and making a retirement account. Two accounts diferents. The trading is to in and out. The retirement only in blue chips with raising dividends all years. Read here i learn a lot http://seekingalpha.com/dashboard/investing_income I recomend this autors http://seekingalpha.com/author/dividend-growth-investor http://seekingalpha.com/author/dividends4life http://seekingalpha.com/author/david-van-knapp And a lot more
@contrarian, Boot your computer up for the openning of the asx tomorrow morning and there will be your answer!
It's so crazy it might just work Leveraged traders are gonna rush out while they can like rats leaving a sinking ship, but that doesn't mean the companies they are selling out off cease having any fundamentals.
I'll be watching for sure. No doubt it will be a bloodbath. I'm still swapping silver for gold but any new investment capital is going into shares. PM's are no longer a contrarian investment. C
@ contrarian Good luck with that brother. :| I,m not saying it cannot be done but it would need an experienced operator with a multi screen setup. Not the ideal situation for a noob. Noddy.
Simple... buy into irrational fear Fear 2+2 = 3 Greed 2+2 = 5 stick to fundamentals and never get emotional over a stock.
Just look at the major gold shares.... they are down? Gold surged almost 50$ in aud to a new high and yet big stocks like medusa mining ltd are down lol ( I don't hold medusa but their cost per oz are like less than 300$!!) Fear is making everyone exit shares. Very good time to accumulate. Avoid those who are too far from production or high capex costs.
LOL +1! thats so true - i love hearing the Crickets churp around here where silver tanked 30% lol it was hilarious, then again when the asx correction was on... When I think about the mistakes Ive made - and then look at what I have in my portfolio - Im friggin proud I can say im down 3% at this moment... i should have bankrupted and wasted all my money - thats what i diserve, but hard work and cost averaging down and lots of reading, listening, thinking - im still here.. and I plan on being here for the long haul. loss isnt bad and gain isnt good - we put that on them because of our desire, fear or greed. Sometimes a stock 'tanking' is AWESOME for the stock, and (like in the case of silver) when it starts going through the roof - that is a really bad sign something is going to explode and people are going to get hurt badly. That parabolic move could have destroyed the silver bull market - i dont think it has, but it could have.
A muliti screen what? The only time I watch the screen is when things are booming and I've got heaps of capital at risk. The risk in trickling money in now is minimal. Noob or experienced. I've made as much out of shares as any thing else and I know next to nothing about them. Get in when everyone is getting out and get out when everyone is getting in. Simple. C
As a property investor with zero shares I have watched with interest the share markets since the late 1960's first in Canada and then in Australia from 1973 to 1975 then in the States from 1979 to 1980 and then in Australia from 1983 to present. During that time I have been present in the various locations when the share market collapsed four times and the property market dipped twice and tanked once (1990-1991). Some good advice my wife obtained from a boyfriend at the time who was up the food chain in BHP upper management was.. never borrow money to buy shares, never buy shares that you don't understand, don't buy shares unless you can afford to lose the lot. His final comment was your not in a position to obtain inside information on when the management have stuffed up and its time to sell, Do your self a favour save for a big deposit on a unit and don't borrow too much and use the rental income to make extra repayments. When I met her in 1983 she had 1 unit in Caulfield and plans to by another one every four to five years. I suffed that up for her as she married me and had to support me while I went back to full time Uni study for 5 years Kind regards nonrecourse
My advice is if you must dabble in the stock market only use money you can "afford" to lose. I bought some shares around a year ago I am down on every share even the so-called blue chips have been smashed. In that time ANZ down 30 per cent!!! So much for a safe investment. You are better off buying gold and silver. Gold and silver are RISING, stocks are being SMASHED, sad to say but I think there is more pain to come before things turn around, if they do turn around that is. I would only invest a minimal sum at this time. One share I am hopeful of making a profit on is Voyager Resources (VOR). Copper miner in Mongolia, should have positive drilling results coming out this week, may see the share price spike up. Anyway they went up 30 or 40 per cent in the last 2 weeks, am hoping this trend continues. Besides copper they may also have gold and silver in their tenements!!!
Im not trying to insult you so please dont take it that way, but maybe this is an example of the importance of timing and investing for value. Patience and timing are really important in conjunction with a clear investment plan and exit strategy. Are you investing for income? Growth? Security? - have a detailed assesment of why you are investing in the first place (truth be told im sure many poeple initially invest because of greed - I cant prove that but I suspect not many invest for other fundamental reasons) - so we probably get in because of greed, but we learn quickly and stay in for investment.
Getting too complicated, if you are a first timer and don't know how to research or what to look at financially (you don't, as you have pointed out) there is a simple few steps you can follow: 1. Look around you, who looks like they are surviving and who is thriving under these current conditions? In 30 years time, if you stood on the same spot as you are now, who do you think will still be here? Consumer sentiment is a good indication - if all your mates are bitching out at Vodafone because they suck, well, it's probably cause they suck. 2. Write down a list of these companies, research them and find out what kind of balance sheet they have. Some of the things you should look out for are - if they are leveraged to the hilt, run away. Too much debt is the single worst thing that a company can have - everyone here knows what debt can do. Keep in mind though, some industries are capital intensive, so always compare debt to the industry average. - Check cash flows, not enough cash flow will freeze a company as well. 3. Check if these companies are listed and have a low P/E and are paying consistent dividends. P/E's are almost always priced above fair value these days, too much money been dumped in to the market, diluting divs, etc. When GFC2 hits and dumps all P/E's down well below 12, that's when it's time to buy. 4. Invest with your own money, once you've invested it, consider it gone - don't get emotionally attached, markets are fickle but you have to always remember the fundamentals of a good company will remain (if it's still good that is). A company can be undervalued for years before someone notices and it pops. Remember, if the market crashes 30%, that's just irrational people running - the business hasn't suddenly lost 30% of it's physical stock, 30% of its land, or 30% of its customers. i.e. bargain! 5. profit (long term)! This is all you should be doing. Unless you understand financial statements, have inordinate amount of time to research to pick the 1 or 2 good ones out of the 100's of crap ones, you will be doing nothing better than having a punt, you might as well go to the pokies. If you try game the market and day trade well.. good luck mate. P.S. As a Hint, take a look at WOW cheers
The advice I give to necomers in the stockmarket is to treat it as a business and to quote one market commentator 'turn the stockmarket off'. Imagine if you wanted to buy a local business e.g. bakery, coffee shop, retuarant, mechanic's garage, etc how woud you treat the transaction? If you were sensible you would look at the financial history of the business, consider the location, try and figure what sort of customers the business has and why, what are the drivers of the business performance (e.g. highly skilled staff?, repeat clients/customers?, bargain prices?, good service?, good location?, etc?) check out local competitors, have a look inside the business premises and test it products/services, consider the earnings growth potential of the business (i.e. can you offer new products/services, renovate the premises, increase prices, increase advertising, cut costs, implement new technology, build a website, etc?). You would then try and work out how much you thought the business is worth (based on balance sheets and cash flow statements), compare the price to other similar businesses for sale, and decide whether the asking price is reasonable. If after all that you decided it was worthwhile you might buy the business. After you bought the business you would focus on the performance, e.g. balance sheet strength, cash flow situation, profit margins, sales, etc. Over time the cash flow and balance sheet performance would indiucate whether your purchase decision was successful or not. You probably wouldn't bother getting a market valuation of the business unless you decided to sell which would likely be some years later if it happened. If you approach the stockmarket with the same disciplined approach of a small businessmen you will be successful. Forget about the comany's share price, the daily, weekly and yearly movements of the stockmarket, current market trends, etc and focus on the performance of the business as if you owned the whole business but outsourced the management of the business to others. "Investment is most intelligent when it is most business-like." -- Benjamin Graham I would be interested to hear the experience of anyone who has purchased both small business and publicly listed shares and how they treated both transactions and how much profit or loss they made from these transactions.
