ASX

[RustyCage]

bought x number of BHP shares at $24.87
watched them go up to $25.10

Sell sell sell

[Punk Rooster]

bought x number of BHP shares at $24.87
watched them go up to $25.10

Sell sell sell

& miss out on the gains today?

Owning shares certainly gives me an interest in something on a day to day basis.

[JAS]

Punky you should think about writing a little diary/blog once a week or so...doesn't have to be in any great detail but just letting everyone know how it's going and what your experiences as a stock market virgin have been like. Might encourge some others to take the plunge.

Regards
JAS

[Punk Rooster]

I contacted my broker expressing interest in Fortascue Mining (FMG) today, & my instructions were to buy @ $3- however, despite closing at $2.80, they opened well over $3 (on the back of a strong Wall St overnight), & hovered around $3.05.
If I can get them at $3, I'm in.

[Punk Rooster]

BHP rose about $1.50-$2 today

[devilsadvocate]

You'll be showing Warren Buffet how it's done soon!

I'm waiting and watching to see what happens in the next 2-3 weeks. Generally, they say that a bear market lasts 18 months. The All Ords peaked in around Nov '07, so we're only 2/3rds of the way through this market phase.

I've read that only around half to 2/3rds of bank and other asset write downs have been announced to the market, so there could be a touch of pain still to be had in the markets.

I'm a risk taker, so I'll be accumulating in the next few months in anticipation of a recovery late next year.

[Punk Rooster]

You'll be showing Warren Buffet how it's done soon!

I'm waiting and watching to see what happens in the next 2-3 weeks. Generally, they say that a bear market lasts 18 months. The All Ords peaked in around Nov '07, so we're only 2/3rds of the way through this market phase.

I've read that only around half to 2/3rds of bank and other asset write downs have been announced to the market, so there could be a touch of pain still to be had in the markets.

I'm a risk taker, so I'll be accumulating in the next few months in anticipation of a recovery late next year.

I hope so, as I'd like to pick up a few more bargains.
I've been advised to hold onto BHP long-term, but with some others (FMG), I'm waiting for the price to drop again, so I can buy

[Sploosh]

BHP rose about $1.50-$2 today

Did you find the process of investing difficult? And, what fees (apart from the cost of the actual shares of course) were involved? I'm interested, cause, like you, I'm thinking of getting into it for the first time.

[devilsadvocate]

Did you find the process of investing difficult? And, what fees (apart from the cost of the actual shares of course) were involved? I'm interested, cause, like you, I'm thinking of getting into it for the first time.

Not sure who Punk traded with, but I trade with Comsec. I have a Commonwealth Direct Investment account, so when I settle trades from that account, it costs $19.95 for trades with a value of up to $10,000, $29.95 for trades with a value between $10,001 - $25,000 and 0.12% or the transaction value of trades exceeding $25,001.

So, say I buy 200 BHP shares at $25 per share, the total cost is $5,000 plus $19.95. If I then sell the 200 shares for $30 per share, the proceeds are $6,000, less $19.95.

So the total cost of that trade (buy and sell) is $39.90.

It's really easy to setup a trading account. It will take approximately 3-5 working days.

Good luck.

[Sploosh]

Not sure who Punk traded with, but I trade with Comsec. I have a Commonwealth Direct Investment account, so when I settle trades from that account, it costs $19.95 for trades with a value of up to $10,000, $29.95 for trades with a value between $10,001 - $25,000 and 0.12% or the transaction value of trades exceeding $25,001.

So, say I buy 200 BHP shares at $25 per share, the total cost is $5,000 plus $19.95. If I then sell the 200 shares for $30 per share, the proceeds are $6,000, less $19.95.

So the total cost of that trade (buy and sell) is $39.90.

It's really easy to setup a trading account. It will take approximately 3-5 working days.

Good luck.

Thanks very much for that. I'll have a look at them. I feel a lot of FAQ reading / steep learning curve coming up...

[devilsadvocate]

Thanks very much for that. I'll have a look at them. I feel a lot of FAQ reading / steep learning curve coming up...

It's worth it. Have a look at the other online brokers too like E*Trade, Westpac securities etc, you could even have a look at some full-service brokers, but personally, I don't trust them at all.

Read as much as you can. The best book I've ever read is 'Intelligent Investor' by Benjamin Graham. Unfortunately I only read it last year, despite having played about for 5 years+ in the stockmarket. If ONLY I'd read it earlier!!!

I'll give you a great tip - don't listen to tips! If you are tempted by a tip, at least research the company for double the time you normally would!

Another good place to start is an excellent website which is run by the guys who used to contribute to the old Shares Magazine. It's at http://www.compareshares.com.au . Once again, there's a few broker tips put up each week, which I read, but NEVER act on. Always do your own research.

Enjoy mate. The stockmarket is my heroin - I can't keep away!

[Punk Rooster]

i dealt with a firm- citi smith barney
they charge a flat fee- $85 + GST.
Sure, I could've got it cheaper through commsec or other places, but as a first timer, I decided it was worth going through someone experienced.
I ended up buying some Fortescue Metals shares recently, & will look to keep topping up over the next 12 months.
With BHP rising nicely, I will just sit tight there for the time being.

[Sploosh]

Enjoy mate. The stockmarket is my heroin - I can't keep away!

You obviously put a lot of time and effort into it.

If a hypothetical person (i.e. me) couldn't / wouldn't be prepared to devote a whole lot of time to it, would it be better just to stay out?

[Punk Rooster]

Enjoy mate. The stockmarket is my heroin - I can't keep away!

You obviously put a lot of time and effort into it.

If a hypothetical person (i.e. me) couldn't / wouldn't be prepared to devote a whole lot of time to it, would it be better just to stay out?

this is where a broker becomes important- he should be able to advise you.
First, you'll have to state you goals & objectives, so he can tailor a plan to suit your investment needs.
You may be willing to enter high risk investments, you may want lower risk, guaranteed investments.
Me, I believe I'm buying in a market that has bottomed out, but am prepared to leave my money in until it shows a profit- whether it's 2 yrs or 5 yrs.

[devilsadvocate]

You obviously put a lot of time and effort into it.

If a hypothetical person (i.e. me) couldn't / wouldn't be prepared to devote a whole lot of time to it, would it be better just to stay out?

I wouldn't invest without putting a reasonable amount of time into investing.
Alternatively, you can buy some index-tracking shares or funds, which basically hold a representative selection of the ever stock in the market. So basically the performance of those shares/funds tracks the performance of the market. Over time, share markets tend to outperform other assets, so this is a reasonably safe way to go. You won't make huge overnight returns, but you wont lose all your money overnight either.

[devilsadvocate]

Enjoy mate. The stockmarket is my heroin - I can't keep away!

You obviously put a lot of time and effort into it.

If a hypothetical person (i.e. me) couldn't / wouldn't be prepared to devote a whole lot of time to it, would it be better just to stay out?

this is where a broker becomes important- he should be able to advise you.
First, you'll have to state you goals & objectives, so he can tailor a plan to suit your investment needs.
You may be willing to enter high risk investments, you may want lower risk, guaranteed investments.
Me, I believe I'm buying in a market that has bottomed out, but am prepared to leave my money in until it shows a profit- whether it's 2 yrs or 5 yrs.

Agreed, this is the benefit of a full service broker. Personally I don't like trusting my money with anoyone, but they should listed to your needs and risk profile and then be able to advise you accordingly, but for an additional fee as mentioned.

BHP is a very cheeky first trade!

[Punk Rooster]

BHP is a very cheeky first trade!

interesting- why is that?

[Psyber]

... Agreed, this is the benefit of a full service broker. Personally I don't like trusting my money with anyone, but they should listen to your needs and risk profile and then be able to advise you accordingly, but for an additional fee as mentioned.

Full service Brokers are a bit like other Financial Advisors - they have a tendency to steer you towards dealings that are profitable for them. CommSec do it too though. I managed my sister's account with them for a while under Power of Attorney, and they were big on encouraging you to invest in schemes the Commonwealth Bank had put up the finance for - presumably to ensure the security of the CBA's investment!
Some of the schemes they put up as "good investment opportunities" looked pretty risky to me.

So, in the end you have to listen to the advice, but not assume the advisor's are really committed to your best interest.

I was also annoyed with the exit fees when my sister died and her CommSec account had to be closed and the shares transferred to me. I'd been prepared to open my own CommSec account and transfer them to it, but they wouldn't waive the fees. So, I'll set up with e-trade. Their transaction fees are a little higher, but there are no exit fees. And because I bank with the ANZ it appears I can set it up all on one log in.

[Punk Rooster]

adding Geodynamics @ $1.05

[devilsadvocate]

BHP is a very cheeky first trade!

interesting- why is that?

Given your entry price and the price movement since, it's a great first trade!