Starting out in trading as a newbie

[Zorwarrior]

Morning all, I have been a longtime investor in business & property with acceptable levels of success. I have dabbled in shares previously and done rather miserably. I am now at a point where I want to explore other home-based residual income options. In talking to some friends this weekend, share trading came up as one option.

What would your advice be for a newbie starting in share trading? Which platform to use, where to trade (NZ, AU, US) abd how to put some training wheels on to see if this is something I could learn?

Thanks in advance

[bohemian]

Good luck trading you'll need it. You will find that the gurus on here are share investors. Learn from them.

[JeremyALD]

ASB securities is a good place, but probably not a bad idea to speak to a financial advisor.

Personally I think the best way is to start off small. Either buy a few shares with a low investment and track them to see how they are going, whilst following them and the wider share market, or create a virtual portfolio and follow that. Look at Share Trader on threads because there's lots of good info here. Ignore hotcopper until you can learn whose ramping / shorting etc, there's a lot more crap on there but some good comments too.

If you don't want to have an active portfolio yourself there are plenty of good fund managers to look at.

[LAC]

Hi and welcome Zorwarrior,
Can you give us a little info on what you mean by "trading" and what are your main objectives. Residual income in the form of dividends? or residual income for buying and selling shares everyday?

[777]

If you are going to trade /invest offshore then get yourself up to speed with taxation requirements.

Also look at ANZ securities for NZ trading. They are cheaper.

[minimoke]

I'd see trading the NZX as high risk. Relatively low liquidity means you may not be able to enter / exit when you want. Then there is the relatively high broker fees - even $30 a trade for online. Then knock off 33% tax on gains. Margin for risk isn't there in my eyes.

If you trade AU or USA you then have to manage exchange rates which adds another risk / complexity.

I'm sure people make money trading. But I suspect you will hear more about the wins rather than the losses.

Disc: I couldn't trade out of a top even if it smacked me in the face.

[Vagabond47]

Once you figure out trading analysis and strategies, you could try them out and see how they work for you at https://virtualtrading.nzx.com/, then remember to factor in brokerage and taxes and see if they are going to work for you.

Also:

https://www.asx.com.au/education/sharemarket-game.htm

Just remember to treat it as you would real money and you get a risk free (and gain free) practice run.

[bull....]

Once you figure out trading analysis and strategies, you could try them out and see how they work for you at https://virtualtrading.nzx.com/, then remember to factor in brokerage and taxes and see if they are going to work for you.

Also:

https://www.asx.com.au/education/sharemarket-game.htm

Just remember to treat it as you would real money and you get a risk free (and gain free) practice run.

totally agree good places to try out stuff , remember though when you put real money on the line it is totally different to paper trading also you dont need to win every time to make money ,

cut losses let profits run
be a stone cold fish when trading
stick to your plan

plenty more, as well as plenty books written on the topic

nz market not very good for trading no liquidity, brokerage costs high
asx much better in this respect

[JBmurc]

Well for one you need to look at the ASX or bigger markets >> NZX is really an investor only market IMHO

disc-Been Trading the ASX market for last 12yrs

thread I started on here

https://www.sharetrader.co.nz/showth...ove-to-pay-TAX

[RTM]

I was where you perhaps are a few years ago.
Firstly...make sure you are clear on what you want to do ?
Are you going to try to be a trader and make (lose?) money from buying and selling shares ?
Or do you want to be more of an investor who buys shares and holds relying on the dividends for income ? And of course enjoying any capital gains and losses along the way. There is a big difference in the mind-set involved.

I went along to a couple of the major investment houses and discussed what I was trying to do with them. They both provided a couple of sample portfolios for my funds. After reviewing their fees, I decided to go it alone and slowly started to purchase stocks and a few bonds myself.

The advice I saw above of starting small and then tracking progress and adding stocks over time is good.
Like any money making venture....it takes quite a bit of time to manage and keep up to date with everything.
(There are no free lunches..or...the harder I work, the luckier I get)