Want to start investing in the share market. Where to start?

phoenixeagle

phoenixeagle

Member
I'm wanting to learn more about the share market and possibly use it as another investment stream.

Just want to know where the best place to start learning about the basics is?

Cheers :)
 
I've just started myself, my advice would be to start simple. Read up on a lot of general information about trading and the state of the market and then home in on something you know well and at least think you understand. Don't put your money down until your confident in what your doing, no need to pay for your early mistakes, there are plenty of play money stock market games.

It's not exactly a boom time for australia so think hard before you spend.

As for courses I would do as much free online as you can so you can evaluate what your getting for any money you spend on a course. I would think about finding one you can do in person so you can ask questions and get clarifications rather than buying a series of e books.
 
I learnt everything I know from going to the market and reading the back of a Campbell's chicken stock packet
 
Read. Then read some more.
Have a strategy based on what you know, NOT what you believe.
Write down your plan.
Devise your risk management for when it all goes pear-shaped.
Test it before laying down money.
:)
 
Thanks everyone for your input so far. I've done a bit of reading and they all say to invest in Blue Chip stocks to start out with as they're low risk.

But looking for more material to educate myself. Anyone have some good links to videos/books?
 
Just do what the rest of us do.
Read , learn, buy, lose....then throw everything out the window, buy heavily into a spec stock then wait and pray hard.......Easy.
 
Look into the so called 'technical' aspects of the charts of stocks of interest. The chart of a stock is an expression of sentiment towards a stock - so you try by hook or crook to read the sentiment and seek to buy low, sell high.

http://bigcharts.marketwatch.com/
Use prefix au: then stock code. For example au:BHP

http://stockcharts.com/school/doku.php?id=chart_school

I agree with starting off on big cap stocks. They absorb bad news much better, the instos inhibit managements from raping shareholders, they are more liquid, they are not one shot at glory businesses.

Don't try to get rich quick, that's why punters go for small cap.

Go for something that is already profitable, and crucially, PAYS a DIVIDEND and has consistently done so.

If you're investing not trading, consider putting something into 'proven' fund managers like MFG or PTM. Also consider Listed Investment Companies (LICS) such as AFIC (AFI), Argo (ARG), Wilsons (WAM)

Invest in at least one subscriber tip sheet. I like Motley Fool Share Advisor
http://www.fool.com.au/
 
Is Motley still pumping CCL? Seems every time I read their tips regardless of how long in between there's always an article about how CCL is moments away from rebounding
 
Motley Share Advisor
December 3 Best Buys Now
December 11, 2014

Coca-Cola Amatil (ASX:CCL)

It has been an eventful year for the Australian bottler of the iconic Coke and other brands, with significant write-downs (and a lower dividend) seeing the business fall from investors' favour.

Underlying our continued optimism, though, is a view that the new CEO, Alison Watkins, will be able to improve the business' operations by reducing costs, and continuing to strengthen established brands in new and existing markets. To that end, the company recently announced that they would be shrinking its workforce, resulting in one-off charges for 2015. Though this is a short-term negative, it will result in a leaner business in future years, to the ultimate benefit of Coca-Cola Amatil shareholders.

We see this as an opportunity to buy an established company with a sustainable competitive advantage (the powerful brands) at an attractive price. Coca-Cola Amatil shares provide a reasonable income stream and will add a fizz to your portfolio returns
 
There's a good semi automated online valuation service run by Clime asset Management:
http://www.stocksinvalue.com.au/terms-conditions/
10 day free trial available from this page

If you like a chart for judging 'entry' into a stock, it's reassuring if a good fundamental analyst concurs that it is worth buying. Also vice versa - you might become attracted to a company because of the quality of the business and valuation considerations, but for timing of entry you might like to use your perception of the chart.

In the case of Coca Cola Amatil CCL, i Looked at the chart after the stock was mentioned here and saw what seems potential. Chart interesting. But as I look at the valuation at stocksinvalue I see they currently see it as 27% overpriced using the last two half year actual earnings and 21% overpriced using financial year 2015 expected earnings. So seeing that dialled down my interest in CCL as a chart a bit.

decade monthly CCL
[imgz=http://forums.silverstackers.com/uploads/1893_ccl_mthly_decade_dec_28.gif]
1893_ccl_mthly_decade_dec_28.gif
[/imgz]
 
Just be prepared to lose your money. A lot of penny dreadful Directors are in it for themselves and don't give a rats about diluting your holdings to keep themselves funded. Also be careful of wildcats. Lessons learned. But saying that, there is def money to be made.
 
balance sheets, costs of production, life of mines, geographical locations of mines, bi-products from mining, quality of management
 
I spent a good year reading a lot of material to get into it. At the end of the day I took Warren Buffet's advice: If you aren't prepared to read company reports 5 hours a day, then invest in low fee index funds and do it monthly (dollar cost averaging). Boring, but you'll get a very satisfactory result that way.
 
phoenixeagle said:
Thanks everyone for your input so far. I've done a bit of reading and they all say to invest in Blue Chip stocks to start out with as they're low risk.
Click to expand...

Low risk of going bust and down to zero (you must be aware shares are capable of this), but certainly not low risk in the short or medium term.
Take for example Woolworth (WOW), a solid company everyone is familiar with, so you might feel at home buying them.
If you bought a few month back at say $36 on a flatish part of the curve then you might have felt quite confident. But now it's down at $30 or less, bingo, a good 15% drop.
And to a first timer that looks really bad.

Another thing to remember, it takes a lot of different shares to "average out" your portfolio and spread your risk. If you only have say 5 companies or less, and especially if they are in one market segment (e.g. retail, or banks) then you are more at mercy of those market segments.

One tip would be to "dollar cost average". i.e. spread out the buying of your shares in the one company in order to average out your buy-in price.
e.g. if you want to invest $10K in WOW, then perhaps buy $2K no and see what happens. If the price drops, then great, buy another $2K (if the reasons are still good) and you have averaged down. if it goes up then you may decide not to buy any more and be happy with your $2K investment. Spend the money on another company until WOW drops again. It might not of course, but you have to be happy with what you have and not regret "missing the boat".
 
SilverDJ said:
phoenixeagle said:
Thanks everyone for your input so far. I've done a bit of reading and they all say to invest in Blue Chip stocks to start out with as they're low risk.
Click to expand...
Another thing to remember, it takes a lot of different shares to "average out" your portfolio and spread your risk. If you only have say 5 companies or less, and especially if they are in one market segment (e.g. retail, or banks) then you are more at mercy of those market segments.

One tip would be to "dollar cost average". i.e. spread out the buying of your shares in the one company in order to average out your buy-in price.
e.g. if you want to invest $10K in WOW, then perhaps buy $2K no and see what happens. If the price drops, then great, buy another $2K (if the reasons are still good) and you have averaged down. if it goes up then you may decide not to buy any more and be happy with your $2K investment. Spend the money on another company until WOW drops again. It might not of course, but you have to be happy with what you have and not regret "missing the boat".
Click to expand...
Agree, for a portfolio resembling diversity, you need a minimum of 6 stocks spread across different market sectors.

However, beware of dollar-cost-averaging. It is a mugs game, serves no risk-management purpose, and statistically is a losing method. Fact.
 
petey said:
Buy the index.
Click to expand...

Good advice. Low cost index fund, or listed investment companies are a great starting point. Instant diversification, low overheads, reduced paperwork, and they generally give you regular market reports which are good learning tools.

I worked for a stockbroker for about 15 years. Due to staff trading restrictions it was easier for me to invest in LICs. They're about half my portfolio and generating very good returns. Ie. Australian Leaders (ALF.AX) has returned an average 18% p.a. over the last decade.

If you're struggling to find the right fund, https://www.stockspot.com.au are a good way to figure out your investment style and match you to the best funds.
 
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