Looking for Advice on Share Trading for a first timer.

LazyOtter on 08/04/2020 - 14:54

Hi Everyone,

Im looking for some advice on share-trading. Knowing the situtation of the ASX right now, i think its a good time to buy some blue-collar shares to build up my investment portfolio.

I've got a few questions, i'd like to know before diving into this.

  1. Which trading platform should i sign up to? (e.g. commsec)?
  2. Would this somehow effect my credit score? postively or negatively? (planning to purchase a property when the market picks up again).
  3. How much capital should i start off with?

More questions to follow.

Thanks for any advice in advance.

Financial

Comments

  • Donaldhump on 08/04/2020 - 15:01

    1.) commsec / nabtrade
    2.) no
    3.) this is not an amount its a percentage, and capped at how much you are ok to lose.

    if < 5k just use spaceship or something

    • IVI on 08/04/2020 - 17:50

      1. Play the ASX 200 (or some #) game, & see how you go

      2. Get the AudioBook version of "The Barefoot Investor"
        .. (New to Audible? This and 1 more can be yours Free)

  • dcep on 08/04/2020 - 15:04
    +1

    1. For ASX only, use Selfwealth at $9.50 per trade
      But if you're unlikely to do lots of trades then Commsec is fine and it also allows trading US shares (at hefty cost)

    2. No, unless you go bankrupt trading options & CFDs.

    3. How much you're willing to lose ?

    • [Deactivated] on 08/04/2020 - 18:23
      1. Its not what youre willing to loose, because unless you go on a gamble penny stock (dumb) you wont 'loose'it. More what can you afford to lock away for 12 months and not me temped to touch no matter what happens.
      • kahn on 08/04/2020 - 18:42
        +1

        Loose = the opposite of tight
        Lose = the opposite of win

        • [Deactivated] on 08/04/2020 - 18:50
          +1

          Ty

      • dcep on 08/04/2020 - 19:16

        you never know what you're up to

        say you bought AMP at $5 before the banking RC , now stuck at 1 buck and probably won't survive this climate

        • [Deactivated] on 08/04/2020 - 19:19

          Lucky amp has only dropped 50% in last 12 months …

  • [Deactivated] on 08/04/2020 - 15:05
    +4

    1) selfwealth, use a referral code
    2) no unless you get into borrowing money to fund your investments
    3) whatever you are comfortable with

    also, i think you mean blue chip shares

  • Seraphin7 on 08/04/2020 - 15:18
    +1

    1. Other than cost, it makes precious little difference. Comsec if you want a "brand" with a few more bells and whistles, otherwise Selfwealth.

    2. No. Only credit applications, etc. affect your score. Buying and selling stock does not come into it.

    3. Hard to say. If you're going to do it more as "live education" to start with, probably wouldn't want to trade in parcels of less than $1,000, otherwise you start getting eaten alive on brokerage. If you're talking about making some material money out of it (i.e. more than maybe a few hundred to a couple of thousand a year if you do really well on small parcels), you need to think in larger chunks.

    Some "rule of thumb" trading rules for beginners is to set stop losses such that no single trade will lose more than 10% of its own capital and no more than 2% of your total portfolio capital. In practical terms, this means that you would have at least five "identical" holdings, each with a stop loss set at 10% of the initial outlay and then crept up over time should the share price rise to maintain the 10% level. At $1,000 a piece, each would have a stop loss set at $900 … each trade can then only lose you $100 from your $5,000 and no more than $500 in totality.

    • frewer on 30/04/2020 - 09:43

      If you want to see it on chart of what @Seraphin7 talk about, go watch past vid of these guys https://www.twitch.tv/markettraderstv. They explain it with chart, I would bring those % a little bit lower too, cause if you lose 5 x 2% streak is a lot …

  • GangGang on 08/04/2020 - 15:23
    +1

    I've just started and comsecc have a good intro for beginners. Check out the website and do the research.

  • azndraon on 08/04/2020 - 15:32
    +1
    1. selfwealth is cheapest (9.50 per trade), commsec has nicest app but 19.95 per trade
    2. no
    3. depends on your risk tolerance, it's more efficient to do big parcels to reduce brokerage costs
  • Destin on 08/04/2020 - 16:08
    +2

    Investing or trading? If trading, try some paper trading first.

    Edit: More info

    A lot of the advice so far is regarding trading - since you've mentioned building a portfolio it sounds like you're actually after advice on 'investing'.

    • Mentallysick on 08/04/2020 - 22:59

      what is the diff between investing and trading? are they not the same?

      • Destin on 09/04/2020 - 07:41

        Investing is for the long term (buying and holding good companies/ETFs). Trading is buying and selling in the short term in attempt to make a profit from smaller market moves. There are also different tax implications if you're a 'stock trader'.

  • Ghost47 on 08/04/2020 - 16:21
    +4

    1) Selfwealth. One of the cheapest platforms in Australia with a flat fee of $9.50 no matter how much you trade. There's a referral page on OzBargain where if you use the referral link you can get 5 extra free trades on sign up.
    2) It shouldn't unless you borrow to invest (i.e. leveraged investing). Use your own money since you're new to investing.
    3) As much as you can afford. Ensure you have a decent emergency fund first though. Don't invest money you aren't willing to possibly lose. Also depends on the share price and how many units you can purchase as well as potential future growth.

  • randomusername2017 on 08/04/2020 - 16:49
    +7

    i think its a good time to buy some blue-collar shares to build up my investment portfolio.

    Definitely, they work harder than blue chip shares.

  • watertight on 27/01/2021 - 00:28

    Equitymates.com. An Aussie podcast series.

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