First Time Share Buyer (Tesla)

xdivino on 24/02/2022 - 15:05
Last edited 24/02/2022 - 15:14 by 1 other user

Hi

Given the recent market dip and that I've been wanting to buy some shares for a while I've had my mind set on TSLA for a long time and it's within reach for my small portfolio plan now with the recent dip.

That said, I've been told it can take a few days to get funds moved over or converted to USD and forms and legalities etc to sort out buying USA shares etc.

I was planning or the dream goal was 20x Shares at 1K AUD which would essentially be a one of drop, I'll be looking to keep long term view of it really. So family and friends just said do Commsec and eat the fee since it'll be a little higher than most but wont have to deal with different setups/forex transfers etc. The other one I see recommended a fair bit is Stake.

I'd like to work out a somewhat idiots guide for this first step or happy to be pointed to one similar if there is such a thing. Just worried cause last few time I've gone to pull the trigger the price went back up notably as I decided now would be the time etc.

Financial

Comments

  • Mokr on 24/02/2022 - 15:23
    +1

    Diversfy. Look at Moderna. It just dropped 70 percent.

    Unless you don't mind losing that 20k.

    I bought using self wealth. Not real issues but no idea how dividends work etc.

    Technically I don't own the shares as it's a broker

    • Crow K on 24/02/2022 - 15:42
      +7

      Dropping a response on this so you can't go back and edit what's some of the most arrogant and terrible advice posted here.

      "hurr durr diversifying is for paper hands and n00bs"

      • rektrading on 24/02/2022 - 15:46
        +1

        You don't have to worry about me editing this post.

        I only go long on assets with a high conviction. Assets that will change an industry or world not today, not tomorrow but 10Y, 20Y or 30Y from now.

        • Crow K on 24/02/2022 - 15:51

          Implying that "research" lets you pick those winners.

          In the mid 70s hundreds, thousands of entrepreneurs were developing computer products to change the entire industry forever. But only one of those people was Bill Gates. 999/1000 investments you made back then would have become worthless.

        • Mokr on 24/02/2022 - 15:58

          i have 20k invested- basically nothing

          how much do you have? what are your returns? how long you been doing this?

          • rektrading on 24/02/2022 - 16:08

            @Mokr: I'm 100.00% in disruptive tech and networks. All growth, high risk and none of that sucker value divs stuff.

            My risk profile is high which means I have the stomach to watch a -50% drawdown without losing any sleep. That is also the time I BTFD.

      • rektrading on 24/02/2022 - 15:51
        -1

        I don't normally quote dinosaurs but they can be right sometimes.

        Diversification is protection against ignorance. It makes little sense if you know what you are doing. – W. B.

        All that asset management, diversification, that’s for idiots. You can’t diversify enough to know what you’re doing. – M. C

  • EightImmortals on 24/02/2022 - 15:44

    Keep your eye on the looming war.

    EightImmortals on 24/02/2022 - 15:44 (Collapsed - Offtopic. Show)
  • AustriaBargain on 24/02/2022 - 15:48
    +2

    I wouldn't bet on Musk, even though he's the face of technologies that are obviously going to be huge.

    • rektrading on 24/02/2022 - 15:56
      -1

      I wouldn't bet against Musk. He kills shorts for fun.

    • Ultimate Gattai on 26/02/2022 - 14:37

      I applaud his technology and companies, but I really wish the man himself would keep quiet, he does some real dick-ish things.

      • w37hsyea on 02/03/2022 - 17:33

        Such as?

        • Ultimate Gattai on 02/03/2022 - 23:46

          Calling that one cave rescuer a pedophile or hinting that Tesla might be bought out on Twitter when there was no buyer, threatened to take stock options away from employees who unionize, treated his wife badly who he has now divorced…

          Personally, I think the man is brilliant, I even own Tesla stock myself, but he kinda is a dick to people, I think the pedophile thing is probably the worst thing he's done (he even hired a lawyer to trying prove this but no evidence was found and didn't make it to court as far as I know).

  • xdivino on 24/02/2022 - 16:05
    +1

    Love the banter but would love to know any advice on setting up thtings, i'm just gonna bite the bullet with Commsec at this rate and see how it goes since they would have most of the relevant data and tax info etc with my existing account seems like path of least resistance but i've read on a few other forums/posts that you can move to other platforms etc later on?

    • EightImmortals on 24/02/2022 - 16:14

      Pretty sure commsec is on CHESS so if you wanted to move your holding to another CHESS sponsor later on it's 'shouldn't' be too much hassle. The main difference is in the brokerage fee but if you are going to be investing rather than trading it's probably not that big a deal.

      • xdivino on 24/02/2022 - 16:16

        that's my thoughts i'm not going to be in much of a position to trade frequently and/or often but looking to start maybe 2-3 times a year so the fee's I dont think are drastically different between platforms given that plus another app/account/layer to manage.. so far the commsec setup has been ok, i just hope that I can get approved and sorted to do international trades before the price jumps up 20%

      • MrMarket on 24/02/2022 - 16:48
        +4

        CHESS don't applied to shares listed in the US
        they all go under custodian model

    • xylarr on 26/02/2022 - 14:19

      I set myself up on Commsec for international trading. I have been a long time (25 year) customer of Commsec, but only for local equities. Setting up the international bit does take a while - I'm talking two weeks or so.

      • xdivino on 26/02/2022 - 14:30

        Yeah learning this now and have missed the low 700 price of tsla now I feels like won’t get back to this for a while, forms and such etc so annoying. Thinking I’ll drop perusing it and etfs now instead

      • Ultimate Gattai on 26/02/2022 - 14:36

        I think the Ben 8 forms are the worst, I kinda hate filling those out, otherwise the setup process was pretty quick for me.

  • rektrading on 24/02/2022 - 16:19

    I got a small bag under $800 and will ladder in more if it goes down to $690, $635, $518, $321 and $146.

    • rektrading on 27/02/2022 - 19:15

      The low was at $696.

  • Gabz on 24/02/2022 - 16:36
    +1

    Worth doing some reading on the TAX you have to pay US Tax then AU tax, (when you sell unlikely to see dividends) sometimes just easier to pick an ASX listed ETF that has Tesla shares (NDQ, ERTH etc..) you only pay AU Tax on the ASX Listed ETF

    • rektrading on 24/02/2022 - 16:49
      -1

      TSLA isn't a sucker stonk. They don't pay divs.

  • Drakesy on 24/02/2022 - 18:25
    +1

    Tesla is all hype imho and has corrected a long way from the hype peak.

    I'd etf and lithium most of my stocks.
    Plus don't forget buying in American stocks opens you up to currency variations. As the AUD increases your USD stock decreases in value and must be factored in and vice versa.

  • Sweetnsour on 27/02/2022 - 08:45

    Nobody has mentioned fees.
    Commsec Fx fee 0.6% plus 0.31%.
    Stake Fx fee 0 7%, trade free.

    Both charge the Fx fee again when you change back to Aussie dollar. $42 difference if you buy in one tranche. Stake would offer you flexibility to buy other shares (or separate Tesla purchases) but commsec 0.31% fee or $19.95US per trade.

    Stake was easy to set up. Annoying part is money transfers take 48 hours, 24 hours option is available for extra fee.

  • w37hsyea on 02/03/2022 - 17:38

    You need to also assess broker fees for transferring US holdings, in the event you want to move brokers, years from now.

    US holding transfer fees vary significantly, and I don't believe you can transfer fractional shares.

  • MITM on 04/03/2022 - 15:12

    Which way did you go ?
    Big shift from TSLA to EFT as far as a investment strategy. I wouldn't worry about todays/week/month share price if you're going to hold long term and reap the rewards of future growth. Instead of a single 20k purchase you could make smaller purchases along the way with other dips. At the end of the day it's how many shares you hold.
    If you look at any historical sharemarket price chart, you'll see it zig-zags in an upward direction - guaranteed !

    If you do download the STAKE app - don't forget to use a referral code from the Ozbargain referral page.
    You can use the STAKE app from the get go. GLTA.

  • rektrading on 29/03/2022 - 18:50

    Gm Fam,

    It's been 1M since I posted.

    I just wanted to give an update on the TSLA trade from 24/02/2022 - 13:19
    https://www.ozbargain.com.au/comment/11807808/redir
    https://ibb.co/wLQZWk1

    Congrats to anyone that BTFD.

    @CrowReally

    • xdivino on 29/03/2022 - 19:02

      Brutal, I hadn't submitted some paperwork to commsec and missed out.. this pains me seeing the jump from like 750 upwards..

      • rektrading on 29/03/2022 - 19:24

        TSLA damp twice below $800. I managed to get an order in the first time but missed the second one on March 14 & 15.

        It has been pamping for 13D and could take a breather at any time now. Get your paperwork done, Tx fiat to the account and wait for a pullback. Don't chase the price. Wait for the price to come to you.

        Btw Musk is filing paper to do a TSLA stonk split. This could be an opportunity to buy the rumour, sell the news event.

        Tesla wants to split its stock so it can pay a stock dividend; shares gain
        PUBLISHED MON, MAR 28 20226:28 AM EDT UPDATED MON, MAR 28 20227:46 PM EDT
        https://www.cnbc.com/2022/03/28/tesla-wants-to-split-its-sto…

  • MITM on 18/05/2022 - 10:13

    @xdivino An update would be nice.
    How did you use our information contributions ?

    • xdivino on 18/05/2022 - 12:59

      Well I have commsec setup I think with the form but not much help or clear easy way to see what/how to use for buying specific international shares

      I’m glad I hadn’t as the prices now around the 700 are ideal again but still on the fence as was hit with some unexpected strata costs

      Tempted to try stake and see if easier based on feedback above

      • MITM on 20/05/2022 - 16:13

        Thanks for the update. So still haven't pulled the trigger with your 20k then ?
        Stake update - is now offering "instant" cash in/out for a 0.5% fee. Was 2 days previously and so are improving their service.

  • Rako on 18/05/2022 - 13:47
    +1

    Self Wealth are chess sponsored so are Comsec
    Comsec's website is probably the better of the two however brokerage on trades are more expensive
    US Trading on Self Wealth
    Buy US shares for $9.50 USD per trade
    Chess sponsorship is very important
    Some other brokers, notably IG Markets and Interactive Brokers, operate under a custodian model, meaning they hold the shares on your behalf.
    If either of those companies goes under, your ownership of the shares isn’t as clear as if they were CHESS Sponsored.
    Hope this helps

    • Bigboomboom on 18/05/2022 - 14:41

      We are talking US Shares, so none of them are CHESS Sponsored because that's only for Australian shares.
      For instance, Commsec requires you to do one trade every calendar year or pay the custodian fee for trading international shares.

  • rektrading on 18/05/2022 - 14:47

    I've orders set at sub $700 now that $TSLA has 👊 it three times since 🇷🇺 special operation. It keeps going back there to pick up liquidity.

    • Crow K on 18/05/2022 - 16:43

      I only just noticed you tagged me in an above post, sorry for the radio silence. Looks like it was an excellent opportunity to buy on 24/02 for what is today's price?

      Do you want me to link directly to the posts where you push TSLA and LUNA or are you done pretending your crystal ball is something to be in awe of?

      • rektrading on 18/05/2022 - 17:01

        I'm a forgetful person.

        Could you 🙏 be so kind and 🔗 so that I can 🔖 them?

        🙇. Much appreciated.

        • Crow K on 18/05/2022 - 17:06

          I feel like it's page … 14.. or 15 … of the Cryptocurrency AMA thread. It's like a 5 word post you made, and two of the words were TSLA [congrats! it's worth what it was 3 months back! excellent analysis!] and LUNA [better luck next time! BTFD!]

          • rektrading on 18/05/2022 - 17:11

            @Crow K: You forgot to add the 🔗.

            Can someone else 🙏 help?

            🙇.

          • rektrading on 18/05/2022 - 19:36

            @Crow K: Ok. I found the $TSLA post.

            https://www.ozbargain.com.au/comment/11807514/redir
            rektrading on 24/02/2022 - 12:36
            TSLA under $800 is a good buy.

            BTW Diversification is for people that don't do their homework or understand what they're buying.

            $TSLA went from sub $800 to $1,157. That was juicy +44.0% pamp in 40D.
            https://ibb.co/yf4tZN3

            People who bought in the red zone had plenty of time (+2 months) to take profits in the yellow boxes or anywhere in the green zone.

            People who didn't sell have now been upgraded to hodl.

            • Crow K on 18/05/2022 - 19:45

              @rektrading: And even knowing the post was there and he had the option of slinking away ("Maybe if I never respond it didn't happen") he couldn't resist the temptation to self-aggrandise with some cherry picking.

              For those who want the three word post ("TLSA and LUNA"), it's riiiiiiiiiiiiiiiiight here: https://www.ozbargain.com.au/comment/11823295/redir

              "People who bought in the red zone had plenty of time (+2 months) to take profits in the yellow boxes or anywhere in the green zone.

              People who didn't sell have now been upgraded to hodl."

              You speak like someone who doesn't know anything about the future, but you can look at a graph and circle the exact moments people should buy and sell in the past. Colour coding them as zones is a cute touch. What colour zone should I be colouring LUNA in, while we're charting your excellent advice?

              • rektrading on 18/05/2022 - 19:57

                @Crow K:

                https://www.ozbargain.com.au/comment/11823295/redir
                TSLA and LUNA.

                I never gave a price or shilled anyone to buy LUNA.

                I liquidated traders at a 1% discount on the reversal trade.

                • Crow K on 18/05/2022 - 19:59

                  @rektrading: Crypto words, crypto words. Line goes up means I'm great, line goes down means who knows what.

                  Stay in the yellow zone. Be sure to guzzle down plenty of yellow fluid while you're there.

                  • rektrading on 18/05/2022 - 20:04

                    @Crow K: You sound upset. May be you should take a break from the screen and chill a bit.

              • rektrading on 18/05/2022 - 20:02
                +1

                @Crow K: People press the buy button and press the sell button on their own. I've no interest in what they do.

                https://www.ozbargain.com.au/comment/11807514/redir
                rektrading on 24/02/2022 - 12:36
                TSLA under $800 is a good buy.

                BTW Diversification is for people that don't do their homework or understand what they're buying.

                I bought $TSLA sub $800 and is still hodl for the stonks split. I've new buy orders sub $700 now that $TSLA has tested it twice.

                • MITM on 20/05/2022 - 16:15

                  @rektrading: Reckon there will still be a stock split ? 20:1 = $35, 10:1 = $70 or another 5:1 = $140

                  • rektrading on 20/05/2022 - 16:38

                    @MITM: It doesn't make any sense to spit below $1,000.

  • ALesha77 on 19/05/2022 - 16:57

    Think before you buy TSLA or any other high-flyer from the easy money era.

    Things have changed a lot and TSLA has got all the headwinds now:
    - increased financing costs
    - much more competition from old school car-brands
    - tough outlook on input costs
    - Ealon has become a hindrance rather than an eye-ball magnet (why did he need Twitter)

    Also technically there was a big distribution at the top, it is unlikely that those money managers will ride the same horse again.

    • xdivino on 19/05/2022 - 17:33

      Fair points for consideration but also short sighted vs long sighted.
      Tesla's AI and long term demand is far out performing the rest of the industry and not slowing down much for their products even in a more competitive space, additionally longer term their AI solutions and tech has ability to move in to other markets with easy with little competitive space, like all other software vendors they can develop a product and license it out etc. very lucrative.
      Most are short sighted on their wider portfolio of battery and solar etc as well. not just cars.
      I don't expect it to go to the moon like some but I think it has potential for long view gains like early Apple and Microsoft days.

      • ALesha77 on 19/05/2022 - 18:01

        Suit yourself.
        I would not call rainbow pony stories about AI and data a "long sight" what will drive new money into stock, especially smart money, especially at this stage in the cycle.

        As an investor, you really need to ask yourself two hard questions:
        - what do I know about the stock that the market does not?
        - who will buy after me?

        Good luck by all means.

      • MrMarket on 19/05/2022 - 21:22

        just because something dropped in price doesn't mean it is cheap or a good long term investment
        it all in the valuation and how much you pay for an asset

        during the internet boom Cisco was the Tesla of its day, it powered majority of internet routers and network
        and still is today, Cisco stock went on march and their earning ratio blowed over 100x times similar to Tesla

        since the dotcom popped it has not recovered to the same high it was back in dotcom days after more than 22 years
        these days it trades on a more reasonable 17x

        Tesla valuation is pretty rich, it has factor in a lot of growth already, if that doesn't eventuates it will due for some major re-rating just like
        many business that went before it

    • MITM on 20/05/2022 - 16:27

      financing - they are sitting on piles of cash
      competition - legacy auto have millstones around their necks. (pension funds on wheels)
      inputs - vertical integration. Battery suppliers will take a cash order over an account order.
      Twitter - who in the world didn't hear about Elon buying Twitter. Tesla is a household name.

      Tesla is being dragged down by macros to become a loaded spring.
      Tesla reinvented the wheel - taking something complicated and making it simple. 30% profit with 50% growth.

      • ALesha77 on 20/05/2022 - 20:09

        You obviously don't know what you are talking about.

        Start with balance-sheets to understand how "they are sitting on piles of cash"
        https://app.koyfin.com/fa/00000000-ca5e-4441-95c7-9905b201c7…

        • MrMarket on 23/05/2022 - 08:35

          Most zoomers or millennials I know just ride trends, they don't know how to decipher balance sheet and cash flow statements
          they have not been in a prolong bear market yet but over time they will learn fad will fades, fundamentals is forever

  • rektrading on 20/05/2022 - 22:33

    https://www.youtube.com/watch?v=rFF9Tg-hL8o
    TESLA Stock: 25 Bullish Reasons

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