Need help with investing

Hi Guys,

I have been following the sharemarket for a while now and looking to take the plunge by buying shares in one or many companies.

Having read a few other threads, i gather it is a good idea to invest $5000-$10000, to minimise your transaction costs. I don't have that much of spare cash at this stage and was thinking of investing an amount of $500-$1000 each month from my salary. Is this a good idea??

I intend to accumulate shares over the next few years and grow my portfolio. Also it has been confusing what industry to invest in, as there are top performers in each industry i.e. mining, financials, etc..

It would be great to receive some expert advise from some savvy investors on where to start and how to invest.

Thanks,

Micky

 

Hi Micky

I would research; Asset allocation, Stop losses, Hedging, Franked dividends, International shares, ETF's, BRIC shares and Margin lending.






Johny.

 

I think it all depends on the individual!
Personally (but im new to trading hence the username) i research companies that have a good forward looking structure.
I only invest in speccies(small cap explorers in resource sector) as my risk/reward appetite is high.
I started with $5000 last year and to date i have $61000 on market as we speak.Now thats not all profit(i wish) as i invest 50% of my pay each week.
Now i earn ok $$$$ and im young so if i lose it it wont break me.
This is a very risky way of doing it,but as i said my appetite is HUNGARY.
Im confident that one day ill log in to my account and one of my speculative penny dreadfulls has discovered something big.
Always DYOR (do your own research) and never ever invest on advise from a mate or an online forum.
Good luck
Cheers NT

 

Before you get started, I would recommend you do as much reading as possible. I would recommend books on/by Ben Graham (Intelligent Investor and Rediscovered Benjamin Graham) and Value Investing: Tools and Techniques by James Montier as starting points. Essays of Warren Buffett is also a good one.

Before you put your money in you should have a very clear picture of:
- When to buy
- When to sell
- How to process new information relevant to what you own (e.g. announcements, industry news etc)

Otherwise you will be taking someone else's recommendation, and it may move up, move down, move sideways over an hour, a day, a month - however long - and you won't know what to do.

Ultimately you need to rely on your own analysis and judgement. If you can't do that you should consider putting the money with a fund manager.