I would love to learn & invest some money in Sharemarket
but I don't have much knowledge about it.
How did you start? Does any broker offer seminar or training?
And which online-broker is the best in your opinion?
I'm not good at just sitting and read all papers, would like to learn by doing it.
The ASX has free online courses, some of which include simulations (of varying complexity) so you can have a bit of a play rather than just sit and read.
ASX Podcasts are pretty good sometimes too (sometimes they're incomprehensible, others they are more basic)
+1
you could also practise in the asx comp
registrations are closed for this year though
try not to get read so much from www.asx.com.au as information on the site will be chunk loaded.
I just buy some cheap shares through broker then buildup your confidence from watching broker recommendation and stuff there
Get the right attitude first.
Decide if you are an investor or speculator. If you don't like reading then consider listening to this: (the intelligent investor by Benjamin Graham) http://www.youtube.com/watch?v=02_kWrNOAQk&feature=mfu_in_or… - it is a famous book someone put on youtube to listen too. While long it may be the best investment you can make- i.e. in yourself.
A good way to invest without getting your hands too dirty is in "Managed Fund" type stocks, pretty much the same setup as Superannuation Funds.
You buy shares in a company who then goes and buys shares of other companies. Argo Investments and Milton are two of the historically good performers.
Take patientvalue's advice too.. basically if you want to speculate, you really need to know your stuff.. If you're a longer term investor, then buying Blue Chip and reinvesting dividends is the best bet.
I agree with what everyone has said.
I started investing in Share markets when i was a poor uni student, and started with the minimum $500 needed with Commsec and invested in the "cheaper" bluechip stocks, and DRP'ed (dividend reinvestment plan) my dividends. Then i slowly built up on that.
It's best to be aiming as a "long term investor" at first as if you want to actively trade and speculate, you will need to be very informed and experienced in the market.
Jumped in a cab and got a hot tip. As it turns out Firepower wasn't the best buy.
I thought it wasn't customary to tip a cabbie in Australia!
Hahaha, as the course instructor said, if their tips are that good, how come they are still driving a taxi. :)
Read lots of things. If you want to be an investor, try Smart Investor magazine/paper, Benjamin Graham's book (very thick though), Peter Lynch's book, aussiestockforum etc
I'd suggest getting one of the free brokerage offers and experiment. Just choose a blue chip stock (ASX 50) for your experiments. It takes a while to understand how ASX really works(how to use market depth, impact of dividends on pricing, DRP, capital gains tax, intra day movements, purging of orders, whether you are an investor or a speculator etc)
He doesn't actually need to make a trade to learn any of the above mentioned things. You should not be trading real money if those concepts are foreign to you.
Are there any good managed funds? Do they actually get you good returns?
I've had great returns from Argo (over 20 years) and less so from Milton (although I only bought into them following the stock market crash in late 2009). Milton was recommended to me by my (real, not online) stockbroker.
Only 10% of active traders beat the market. If you think you can fall into that 10% (amidst all the other professional and home traders), by all means go for it.
What matters more than timing the market is time in the market, I suggest you do your research, identify some industries you want to go with and purchase bluchips. Dont worry about short term capital growth, look for dividend yield and reinvest that.
I don't fully agree with this, it all comes down to the risk profile the individual investor wishes to take on. I started as a blue-chip only but migrated to mid-caps and haven't looked back.
quote "I'm not good at just sitting and read all papers, would like to learn by doing it."
Do you want to be an investor in businesses or a trader of shares?
As mentioned traders are gamblers/speculators/pokie-machine players. There are no "experienced" traders as the longer you spend in the casino the mathematics works against you. If you want to properly invest in the sharemarket then you need to learn to identify "wonderful businesses at a fair price". You will need to start studying Benjamin Graham and Warren Buffet to learn business concepts such as margin of safety, predictable and recurring earnings, barriers to entry and circle of competence. Once you can identify a "wonderful business" you then need to able to calculate a "fair price". This means being able to read company financial statements such as balance sheets and profit and loss statements (you will need to understand accounting). Once this is accomplished the final step is to conquer your own emotions of fear and greed so that you can make sensible buy/sell decisions which are indepedent of what everyone else is doing (colloquially known as the "share-market").
Your first step should be to buy an easy entry-level Warren Buffet book. My preferred are "Buffetology" or "The Tao of Warren Buffett". These books will set you on the right path.
well said cheap steve.
somewhat off topic - have you read Competition Demystified, by Bruce Greenwald? http://competitiondemystified.com/summary.htm. In essence the only sustainable competitive advantage are barriers to entry. well worth it in terms of understanding industry/companies.
Thanks for the book recommendation. I like the concept. Will add to the reading list.
Don't put too much faith in the so called 'analysts', 'experts' or stuff in business section of newspapers. They get paid to give an opinion and certainly they won't give you tips for free! As mentioned above, your attitude is very important!
Register for ozstockforums. Wealth of information out there. It depends whether you want to be a trader or investor.
I'd also suggest reading Wikipedia on a range of topics. You should have a basic understanding of how the financial system works, that the stock market is not a stand-alone entity. Learn how interest rates will affect the market and also things like forex rates and effects of the dow. Understanding the terminology and learning the interconnectedness of all financial markets/news is vital.
From personal experience if you want to get into the stock market as an investment, stick with a managed fund. If you've got lots of spare time and want to gamble, read some of the books above. Decide before you buy, when to cut your losses or take your profits and stick to it.
Getting greedy or holding onto a turkey in the hope it'll come good are mistakes most of us learn the hard way.
Take one of those courses on share market basics at your local evening college to understand the terms and then realise that it's not a game for amateurs or if you don't have a lot of time.