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jeremyhowell
23-07-2010, 04:07 PM
...and I am completely lost at where to put my money, and really need some help in learning the ropes.

I was thinking of buying into NZ Oil and Gas (NZO) while they're very low (obviously with not all my money, but yeah), and wait a few months and then sell them, if the profits look good. Feedback on this plan welcomed.

Onthemoney
23-07-2010, 05:25 PM
For a bit of speculation go with PPP instead.....

shasta
23-07-2010, 05:36 PM
...and I am completely lost at where to put my money, and really need some help in learning the ropes.

I was thinking of buying into NZ Oil and Gas (NZO) while they're very low (obviously with not all my money, but yeah), and wait a few months and then sell them, if the profits look good. Feedback on this plan welcomed.

There are plenty of oil & gas companies looking "cheap", especially with a fairly stable oil price in the $US70-80/bbl range

I've held NZO many times & did hold for 3 years before & into production, so i know the company well.

It's cheap because:

1. Tui is in decline
2. Problems with Pike getting up to forecast targets
3. They had plenty of cash, & did nothing with it during the Global Financial Crisis ("GFC")
4. There play for a blocking stake in PPP hasnt come off (its now a non core asset IMO)
5. There exploration drills have all been dusters

Positives:

1. Kupe is a big project with a long life of stable revenue, sold into offtake agreements
2. No debt, & still have plenty of cash
3. Pays a dividend
4. Upside in there PRC holding, when Pike get into full production

If you are looking at NZX shares, theres NZO, PPP, CUE, LME in the O&G sector

If you are wanting a cheap oil & gas company from the ASX, heres a few for you to look into further (check the ASX threads)

OEL, CUE, TAP, AWE, BPT, ROC, AED, VPE - at the bigger end of the sector OSH, STO, WPL

jeremyhowell
23-07-2010, 05:42 PM
How easy it to sell shares like PPP?

shasta
23-07-2010, 07:27 PM
How easy it to sell shares like PPP?

PPP is listed on the NZX & ASX, liquidity shouldn't be an issue unless you are moving 500k parcels

ENP
14-08-2010, 12:58 PM
Buy decent companies with a competitive advantage. Read the book the new buffetology.

Companies like Colgate, Coca Cola, Kellogs, etc are all good from USA

Ones from NZ I like are Ryman Health and Sky TV.

Ones from AUS I like are Woolworths, Dominoes Pizza, Super Cheap Auto, etc.

STRAT
15-08-2010, 09:11 AM
...and I am completely lost at where to put my money, and really need some help in learning the ropes.
.Hi Jeremy.

Keep your money in your pocket till you have learned the ropes

jeremyhowell
15-08-2010, 09:41 AM
Thanks strat, I think I will do that. So whats the best way to learn the ropes?

peat
15-08-2010, 11:51 AM
learn the ropes?

Want to develop your knowledge of markets and trading? We've included everything you need to get started.
http://virtual.nzx.com/education/

NZX virtualTrading is a free online trading platform for those wanting to learn about key concepts in markets and investing by actively trading equities (http://virtual.nzx.com/education/equities/) and derivatives (http://virtual.nzx.com/education/derivatives/) products in a virtual, risk-free environment.
http://virtual.nzx.com/

STRAT
16-08-2010, 04:20 PM
Thanks strat, I think I will do that. So whats the best way to learn the ropes?There are some good people here at Share Trader who will set you in the right direction. Problem is, There are many good directions.

How about sharing your goals, skills and plan thus far. That should narrow responses down a tad.

Here are a few things to consider

FA, TA or both
Trader, investor or both.

short, medium, long term or all.

Best throw your self at it and ask for help as you go.

Once you know what you dont know some folk here will answer your questions or point you at useful places to find out.

As to keeping your money in your pocket. There are a few who know the ropes who are doing just that right now ;)

jeremyhowell
16-08-2010, 05:40 PM
Thanks Strat. I really am just starting out, my goal is to eventually be able to confidently and fairly successfully trade, probably mostly day trading, CFDs mostly. Probably mostly trading more than investing.

I have no notable skills in this area to speak of, so yeah, trying to learn all I can from others. :)

shasta
16-08-2010, 07:20 PM
Thanks Strat. I really am just starting out, my goal is to eventually be able to confidently and fairly successfully trade, probably mostly day trading, CFDs mostly. Probably mostly trading more than investing.

I have no notable skills in this area to speak of, so yeah, trying to learn all I can from others. :)

Are you serious?

Day trading using CFD's for leverage, you couldn't pick a harder way to make money if you tried!

If you have been "seduced" into the markets thinking it's easy, you will lose all your capital quicker than you think.

If you wanna go the trading way, read all the related threads where Phaedrus provide links to educational sites etc & learn about charting etc

It's not easy & as a novice you do realise you are "up against" experienced pro's who trade for a living, & not many "experts" make money off the markets day trading, it really is a hard way to make money & takes total discipline to do.

I've never done this myself, as im primarily a fundamental investor, although i do understands some aspects of TA (charting).

Like Strat mentioned, try & narrow down what it is you really want to do/achieve & perhaps try out investing before trading.

You can make money using either, but the better results come from using both TA & FA

STRAT
17-08-2010, 08:00 AM
Thanks Strat. I really am just starting out, my goal is to eventually be able to confidently and fairly successfully trade, probably mostly day trading, CFDs mostly. Probably mostly trading more than investing.

I have no notable skills in this area to speak of, so yeah, trying to learn all I can from others. :)A fella joined this site to sell his wares a wee while back. Anyways when asked directly how many of his CFD clients were winners I think he admitted to about 10%. Reckon it would have been a lot less. I will try and find the thread a bit later.
If its being advertized on the TV its either been and gone or never was worth the bother in the first place I reckon.


The single most important and effective thing I have done in this game was to realize my skill level or lack of and when it all got too hard I got out and stayed out until it got easier. sometimes not trading for as long as 7 months. Just sitting on my hands watching.

Day trading is a difficult and full time job. Im not saying dont do it, just leave it till last.

By the way Im mostly sitting on my hands now.

jeremyhowell
17-08-2010, 10:12 AM
OK, thanks very much for the advice. I am actually just watching at the moment myself. I will probably start out with just investing as you have suggested, but I probably need help their too. How do you know what companies will do well in the long haul? How do you pick winners? Any good books to read? People to listen too?

STRAT
17-08-2010, 10:33 AM
OK, thanks very much for the advice. I am actually just watching at the moment myself. I will probably start out with just investing as you have suggested, but I probably need help their too. How do you know what companies will do well in the long haul? How do you pick winners? Any good books to read? People to listen too?Hi Jeremy
Not so much advice, just opinion.

As to investing, This also takes considerable skill in which I am sadly lacking. I have had relative success in short to medium term trading. This is where I have found I do best.

There are many ways to skin a cat. In the end it will be up to you to find where you you fit.

jeremyhowell
17-08-2010, 11:07 AM
I guess I'll get their one day. :)

So apart from CFDs, are their any other note worthy ways to trade short term?

shasta
17-08-2010, 11:32 AM
OK, thanks very much for the advice. I am actually just watching at the moment myself. I will probably start out with just investing as you have suggested, but I probably need help their too. How do you know what companies will do well in the long haul? How do you pick winners? Any good books to read? People to listen too?

A great place to start is to find an area of interest that you have, or some industry you may have an insight into.

Have a look thru the NZX & see if there are any sectors/companies you like, that fit the bill

Also have a look on the ASX where there are far more companies (& much larger) for comparisons

Being very general here, the but NZX interest on Sharetrader largely is with the conservative, dividend paying companies (investors needing the income)

The ASX on Sharetrader is largely focussed on Oil & Gas companies & the mining sector, but theres far more to it than that!

Navigate your way around the newbie section & see where the other new members have posted questions & got answers

shasta
17-08-2010, 11:34 AM
I guess I'll get their one day. :)

So apart from CFDs, are their any other note worthy ways to trade short term?

If you are hell bent on using leveraged instruments you could find a broker who has "margin lending" facilities

I've used these before, but they arent for everyone!

peat
17-08-2010, 11:45 AM
CFD's dont need to be highly leveraged jeremy
I trade them but I only use them as a relatively cheap (transaction costs) way to be in the market without necessarily highly leveraging
And of course they provide the additional benefit of being able to easily trade long or short

leverage is what kills.

jeremyhowell
17-08-2010, 12:27 PM
So whats the best way to find companies in a particular sector ie mining listed on the ASX/NZX?

jeremyhowell
17-08-2010, 12:30 PM
Also, concerning candlestick charts. I know I should probably be using them for whatever reason, but really, I can't for the life of me read the darn things. I've tried google, but no good tutorials at all. :(

Any suggestions?

peat
17-08-2010, 01:34 PM
reading candlesticks is critical in my opinion
they give so much more information than a line chart

here is a couple of pictures
try and figure them out and let me know how you go.

there is a body which covers the open and the closing prices for the period eg a day or an hour
a wick (or shadow) which tells you the highs and lows for the period
there is the colour, which tells you whether it closed higher or lower than it opened (hence a colour for up - usually white - and a colour for down - usually black as the anatomy picture.


www.investopedia.com (http://www.investopedia.com) is a good site for learning stuff

http://www.investopedia.com/terms/c/candlestick.asp
ignore the doji for now

jeremyhowell
17-08-2010, 01:53 PM
Thanks for that peat. Much appreciated. How many main indicators/patterns are their to show the direction a stock/index may move?

peat
17-08-2010, 02:00 PM
how long is a piece of string?
spend a week on investopedia to get an idea then come back and ask some more questions
http://www.investopedia.com/terms/p/pattern.asp
or buy a book like John Murphy's Technical Analysis of the Financial Markets - read it three times. keep it on your desk always

I'm still learning after many years

airedale
17-08-2010, 04:27 PM
Lots of reading....any books by Alex Elder, Martin Pring, Chris Tate in OZ. There are lots to choose from. Day trading hmm?{That might be more accurately described as night trading} do you want to be chained to the computer, maybe in the middle of the night if you are trading the US or European markets.
JUst a few more things to consider.

STRAT
18-08-2010, 07:40 AM
Thanks for that peat. Much appreciated. How many main indicators/patterns are their to show the direction a stock/index may move?
http://www.incrediblecharts.com/sitemap.php?cluster=13

The education section at IC is a good starter for most things TA

jeremyhowell
18-08-2010, 07:47 AM
Might be a problem with my computer, but I got an email saying their was a reply, with this:



Jeremy,

Its like this (if you want to get good), the markets highly dimensional, facts are if you want to make good money, you will lose money learning, its money well spent, get ready to burn $50,000 or $30,000 on paper if you paper trade trade first, either way you will get burnt you will learn more with real money which you can afford! (if it doesn't break you and you end up giving up), fact is all the education you need is already available online , however not in one place, its scattered over 600,000 places in fact, its found in over 20,000 minds , in 100,000 chat views, in learning to use chart packages, in trying to create market screens, learning indicators ,grasping the functions of leverage, return on equity , p/e , divs, blah , blah and even then after learning all that crap if you follow anyone else you won't make a buck at least nothing decent, to make money you need individual instinct .

you need individual instinct


But its not here when I looked?

jeremyhowell
18-08-2010, 07:49 AM
http://www.incrediblecharts.com/sitemap.php?cluster=13

The education section at IC is a good starter for most things TA

Thank you, I have been browsing their site quite a bit lately, I will have another look. Thanks STRAT.

peat
18-08-2010, 09:11 AM
Might be a problem with my computer, but I got an email saying their was a reply, with this:



But its not here when I looked?

maybe they deleted it
on this forum posts can be edited or deleted anytime after wards...
some forums limit the time available to make changes or dont allow them at all.

percy
18-08-2010, 03:39 PM
Try to use everyday experiences.You buy a computer atMagnum Mac and get good service,then buy their shares.You enjoy KFC and see they are really busy,then look at their shares.Grandma goes into a retirement home and tells you she only wants to go into a Ryman home,then look at RYM shares.Your own field where you work you may deal with listed companies.I go past 4 fish & chip shops to the one I like.If they were listed I would buy shares in them.!!

jeremyhowell
18-08-2010, 04:35 PM
Lol percy, thanks great advice.

STRAT
20-08-2010, 08:33 AM
Lol percy, thanks great advice.Bloody good advice.

Mind you if you are looking at miners and oilers you could clock up a few miles in your car and a few frequent flyer miles on your credit card :eek2:

STRAT
29-08-2010, 08:22 AM
Hi Jeremy.
Heres an article on CFDs that was posted by Ratkin ( thanks ) Thought Id post it here in case you missed it. Its right up your alley.

http://www.smh.com.au/business/when-brokers-are-the-enemy-20100827-13w40.html

jeremyhowell
29-08-2010, 09:19 AM
Thank you STRAT, I have heeded your previous advice, and my IGM account has been dormant for a while.

It was quite appealing to trade the indices on IG Markets platoform, ie Australia 200 Cash, etc, which were practically free to trade, no fee etc.

Thanks again, will rethink my approach to trading.

peat
29-08-2010, 11:47 AM
CFD's are simply the modern electronic way of implementing margin trades therefore providing a way to take large risk with small capital.
Obviously novices are open to using them without understanding the risks involved and getting seriously burned.
I dont see anything wrong with CFD's in themself - its all up to the way you use them. Margin trading has always been risky whether it operates as a CFD or not.
My point is that a CFD is not evil in itself. They allow one to UP the risk factor which of course is going to mean the wins and losses are amplified. So yes you need to understand that before entering into the deals. I assume that most people would work this out before proceeding but I guess not all do. Why would anyone think they are going to allow them to get rich with no risk ? Only idiots imo.


Not related to this thread so much but its the same as these reverse mortgages that ASB are now offering. FINSEC criticisms are emotional claptrap. Reverse mortgages are very useful for some people, used in an appropriate way they relieve financial pressure. Banks stealing inheritances lol.

JonJ
07-01-2011, 05:26 PM
I'm much in the same boat as Jeremy. I want to learn about trading for the short term. I reckon i might have a steep learning curve. I'm going to sit on my money for now. I case I don't find out for myself what is FA and TA?

STRAT
07-01-2011, 10:59 PM
I'm much in the same boat as Jeremy. I want to learn about trading for the short term. I reckon i might have a steep learning curve. I'm going to sit on my money for now. I case I don't find out for myself what is FA and TA?Google is your friend.

http://en.wikipedia.org/wiki/Fundamental_analysis
http://en.wikipedia.org/wiki/Technical_analysis