Commsec New Starter

Discussion in 'Shares & Funds' started by Lone_Wolf, 16th Jan, 2020.

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  1. Lone_Wolf

    Lone_Wolf Well-Known Member

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    As part of my 2020 goal to diversify my investment medium
    Just signed up with Commsec today to learn to play shares

    Was really hoping for some guidance from the experts on this forum and point me to the right direction.
    I am not afraid of learning and doing research, but just don't want to get off on the wrong foot.

    Thanks in advance ya'al
     
  2. Piston_Broke

    Piston_Broke Well-Known Member

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    If trading shares for profit was about "learning and research" there would be a million billionaires.

    Ray Dalio is worth over 18Bil usd and his returns a little more than the index over the long term
     
  3. diagnostic

    diagnostic Well-Known Member

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    I'm no expert, but have a read about LIC's and ETF's on these forums to get started :)
     
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  4. Phar Lap

    Phar Lap Well-Known Member

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    Just remember me when you become the (Lone) Wolf of Wall St !

    Read everything about Warren Buffet.
     
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  5. Phar Lap

    Phar Lap Well-Known Member

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    Thats if you like drinking and other fine trappings of life! :p
     
  6. willair

    willair Well-Known Member Premium Member

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    I'm no expert,but with the platform start with the CommSec Community section then look into --Sector and Companies section look at the starting levels and read on from there..

    A simple way is just transfer xxxxxk into your trading account ,then run a few test runs place the order at 10 percent below the market range and set the order for one trading day..

    That way as the order will never go too settlement stage and will cancel out that afternoon you can learn about about yourself in one day in the wild west of equities investing and after testing the system then as it's your share holding you can do what ever you want when you want..good luck and before you press the buy no return tab just step back and think about what you are about to do..imho..
     
  7. The Y-man

    The Y-man Moderator Staff Member

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    Kinda like playing with fire.... careful or you'll burn the house down :eek:

    Where to start?

    Catch22 - can't provide answers without questions, can't think of questions without knowing what we don't know....


    If were to start right at the start:
    (Ordinary) Shares are pretty simple in it's basics - it's just part ownership of a business (please note I said "ordinary" - they come in different flavours just like real estate, but let's start simple, like a simple house, not a commercial, not a dev site, not a student accomo).

    As a part owner of the business, you get a say in how the company is run (you get to vote based on the number of shares you own), you get a share of the profits (called a dividend).

    The company may decide to hold on to part or all of it's profits to develop the business (in fact, I'd be worried if it did NOT retain any for growth projects)

    ... and that's about it.

    Crap boring huh?

    So now it really just comes down to "what's a good business top own?'

    I suggest you really ask yourself that question (just like you would in buying real estate): "is that a business I'd like to own?"

    My suggestion is, buy into a business that you understand - not some 3 letter stock code that someone suggested would be good.

    If you ever find yourself saying: "Wow, what a great business, I'd love to own a business like that" - well maybe you can :D

    The Y-man
     
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  8. The Y-man

    The Y-man Moderator Staff Member

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    As for individual research, go to the Quotes and Research tab, type in a stock code in the search box.

    The key info I am usually interested in is under "Financials".

    The Y-man
     
  9. Lone_Wolf

    Lone_Wolf Well-Known Member

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    Thank you Y-man, very informative and provides much prospective.
     
  10. PandS

    PandS Well-Known Member

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    probably get use to the lingo and the terminology and how the market works then if you real want to successfully picking stock you need to know how to read financial statement and cash flow and business model and have an ability to pick up if they are spinning or telling the truth.

    and all this will take times and experience but once you are good at it, picking good stock isn't too hard but you wont get it right away it will takes times and experience like any other skills.

    there are a lot of thing to learn and know if you are serious, decipher ROE ROC ROA and whether they use any trickery to inflates the number, know their cash flow and free cash flow, their market, regulations around the business etc...

    Even after knowing all that and there is no guarantee that you will beat the market so ETF or LIC or something maybe your cup of tea, the only way you know if you are any good is give yourself a few years and play and see how well you go, if you cant beat the index buy the index

    I say 5 years is a good time frame to run the gauntlet or if you are scare put 70% of the money into the index and play with 30% and see if you are any good.

    It can be crazy at time so you need pretty strong mental and foundation to withstand the headlines and the madness of the crowd, it not like properties market, your asset don't get quote every seconds with hundred of buyer bidding it up and down during the bull and bear market frenzies.

    the key is to know your boundary and limit and stick to that and enjoy life, everything has pro and cons, stake your claim on some of them and enjoy the journey

    Good luck
     
    Last edited: 16th Jan, 2020
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  11. Lone_Wolf

    Lone_Wolf Well-Known Member

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    Thanks mate, very informative, this is what I need, for now, a sense of direction.

    Understand it will be a steep learning curve, like everything, you gotta start somewhere, right?

     
  12. Lone_Wolf

    Lone_Wolf Well-Known Member

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    Maybe I aint the Wolf of "Wall st", today

    But I am the "Wolf" of some street!!

     
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  13. The Y-man

    The Y-man Moderator Staff Member

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    I've written elsewhere but I used to be into the heavy fundamental analysis and charting and god knows what else.... but at the end of the day, I have decided to keep it really simple.

    For instance - banks.
    One of the Big 4.

    Will they keep making money desptie the royal commission, legal action, yadda yadda - my gut (very scientific analysis as you can see) tells me yes (whether ethically or not is beside the point here.... for now)

    Will they go under? (and I lose all the money I invested) - I think unlikely (as in I reckon the Gov will step in if it really turns to crap)

    Then the big question:
    Is it worth buying right now?

    That's where I look at the yield (again think of this like a CF+ house!)

    Well let's look at CBA: $84.46 today, makes $4.31 pa dividend (that's like rent per year)

    4.31/84.46 = 5.10%

    Not bad!

    But let's look at WBC:

    $24.90 today
    $1.60 pa (I am actually using the last figure as expectations are that WBC will need to keep divs a bit lower due to ongoing legal and RC sagas...)

    1.6/24.9 = 6.43%

    So I go and get the WBC....

    And boringly enough that's it.

    Sure I miss out on the big "up and coming" plays, the big growth sectors, yadda yadda, but I'll just stay boring for now.

    The Y-man
     
  14. geoffw

    geoffw Moderator Staff Member

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    But then, while you're gathering the dividend, the price has declined. A downward trend in the last five years.

    The old cashflow vs capital growth discussion.

    I don't have the capital to rely just on dividends, so I need to utilise capital appreciation as well.
     
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  15. The Y-man

    The Y-man Moderator Staff Member

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    Very true - and without going too far off topic, for myself, I find that identifying a house that is likely to have good CG a lot easier than identifying a business whose shares are going to have good CG.... :(

    The Y-man
     
  16. PandS

    PandS Well-Known Member

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    End of the day find what excites you most of this stuff is boring as hell if you don’t have the interest or the motivation, decipher free cash flow and try to get an idea what they doing with their money is as boring as you can get.

    You got to find something that you like doing, keep it simple and it doesn't feel like a chore, that the perfect combo, whether it like what the Y-man described or something else or what SatayKing and a whole bunch of rich guys over ETF and LICs do.

    There is no perfect setup, the perfect setup is the one that perfect for you not my way or someone else way

    One thing I suggest that far better than any course or books if you real want to play the stock market is an AFR subscriptions it build your knowledge by Stealth

    I read it daily, it is a religion I always have time for it, AFR is very good at telling you a lot about a lot of business, the existing one, the new one and the future darling and they are unbiased, they report you make your decision and they always present 2 views to most things one pro and one against it, your choice which view prevail.

    after reading for a while all these knowledge stacked some where in your brains and you have a profile of what most business do, how they make their money and who own what.

    then more information emerge you be able to link A to B, then it becomes interesting because
    you be able to picture together likely take over target or spins off or the sum of all part is much greater than the listed price and you make your move accordingly and profit.

    They did that for FXJ and stock rally strongly before a merger with NEC
     
  17. PandS

    PandS Well-Known Member

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    Are you aware that banks can be rescued and survive but your investment can get wiped out?
    as in your equity stake will be worth next to nothing during the recap process.
     
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  18. The Y-man

    The Y-man Moderator Staff Member

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    True - pity they won't forget about the couple of mill I owe them :p

    The Y-man
     
  19. willair

    willair Well-Known Member Premium Member

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    That's a good way to look at the big picture,and i like the outlook for CBA and the 7 others that i have invested in for just over 26 years now,went to several AGM'S within Australia last year or watched live the only one that on the white boards displays that made me think sell and pay the tax and walk away was xxx
    but a few days after that AGM the share price went down around xxx cents and as i had already bought a small parcel when i though the buy back offer was around x-xxx i just bought another small order..
    In a hour time that will balance each other out and if you stick by the old simple rule when things don't go your way :never blame your advisers ..or become your own.
    Plan ''B''..As far as banks going bust and everything going like water on the white hot bbq plate up in steam,the warning signals are not there and if i think it will all implode the next time around could be next week who knows i,d take the skin off their hands grabbing the cheque because thinking back when CBA broke above 95 bucks then went into free fall back to mid 20 bucks range looking back selling at 90bucks then the tax side dollar wise would have cut the worry factor there and then..
     
    Last edited: 17th Jan, 2020
  20. PandS

    PandS Well-Known Member

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    :) that a difference beast money you owned them you cant get out even if the banks collapsed someone will take over their loan book and chased you.

    your equity position however will be wiped out that the nature of the beat :p

    but I think the likelihood of CBA went belly up is fairly slim but you can never completely rule anything out with anything, risk management is best course of action