Starting out in trading as a newbie

[Brain]

You are a property investor and business investor so you must have the smarts to Navigate company accounts. Investing in businesses must also mean that you can spot a good prospect so sharemarket investment should be a natural fit for you. Trading though is a totally different issue.
Trying to time market entries and exits reliably is nigh on impossible unless you are lucky.
There are a number of very Knowledgable posters on here that are investors with a long term view. I do not see many trading decisions solely based on squiggly lines and I think that such behaviour would end in tears.

[BeeBop]

I suggest you try trading off-shore using an off-shore account. NZ is too small for full on trading. I live off-shore and know a couple of people that trade (I don’t as I seem to use too much emotion as I select the company rather than the number) these people are doing the Canadian market and the UK market. I do have to admit that I did a small amount of short-term trading following suggestions from Cramer on CNBC during 2011 through 2013 this was on the US market and I did very well (who didn’t though as the economies started to recover: see charts on PFE, MMM etc). There would also be some excellent trading in the US at the moment due to the volatility.

[Zorwarrior]

Thanks all for the advice and comments. My aim was to see if I can make some income out of trading to supplement my other income streams. I do have a small buy/hold share portfolio which will be treated separately. I completely understand that NZ is not the place for trading as there is not enough volatility.

I was thinking of starting in the AU markets as training, then perhaps graduate to US and UK markets. I dont really know how difficult it is to make money from trading but I thought it would be worth a try. I am only looking to do small trades to generate basic income (maybe $20-30k). Of course if I can make more great but I am not trying to be the Wolf of Auckland.

[minimoke]

I dont really know how difficult it is to make money from trading but I thought it would be worth a try. I am only looking to do small trades to generate basic income (maybe $20-30k). Of course if I can make more great but I am not trying to be the Wolf of Auckland.

If it was easy every one would be doing it.

[nzspeak]

The most highly paid investment managers in the world (hedgefund managers) can't beat the market trading- so why do you think you can? Zorwarrior ask yourself 'why would I be an investment genuis? what's my edge?' if you cant think of an edge- maybe you're in the wrong game.
"I dont really know how difficult it is to make money from trading but I thought it would be worth a try" Look up index funds vs active investing. It will tell you how hard trading is.

[JBmurc]

Thanks all for the advice and comments. My aim was to see if I can make some income out of trading to supplement my other income streams. I do have a small buy/hold share portfolio which will be treated separately. I completely understand that NZ is not the place for trading as there is not enough volatility.

I was thinking of starting in the AU markets as training, then perhaps graduate to US and UK markets. I dont really know how difficult it is to make money from trading but I thought it would be worth a try. I am only looking to do small trades to generate basic income (maybe $20-30k). Of course if I can make more great but I am not trying to be the Wolf of Auckland.

Yes can be done ...don't listen to the negative comments ...there is many successive traders both in Property and shares of course just like any business many fail and have the add rough year but that doesn't mean one cannot succeed and make a profitable income more years than not...it's like anything the harder you work the better your luck .... just go checkout my last 3x ASX comp results ... 5 picks at the start of the year all companies I have traded over the last 3yrs

[Baa_Baa]

Using the word 'income' in a question of whether one should embark on a 'trading' adventure is a bit contradictory.

I think you might mean "what companies should I invest in that will earn me an income over time", rather than the pure trader question which might be "which companies should I take a long or short position on and exit when it turns so I can make a profit on my trade".

They are quite different circumstances and require different strategies and skills. The outcome is the same though, as if successful they both make money.

Which is it?

[Yoda]

I am trying to do what you want to do . for the last 15 yrs . I have made 14.8 % pa acc to Sharesight pre tax, where I keep my records. Last year 40% that made up for some really bad years . Like others that have commented , trying to sell at the top of a run is hardly possible. If I had invested in Tourism alone , or ATM or basically anything, I would have been far... far better off now.
Look at some of the companies , say 5 yrs ago, and then look at the % rise they have made.
Pretty much most of the big favourites would have made far more than 10%.

But if you are doing it for the buzz or needing cash out each month ...... then you cant invest
If you still have a mortgage ('death-grip'), than you have to pay that 5% back off the winnings too.


if I had my time over, would I trade?
No

[couta1]

At the end of the day, do what you enjoy most according to your personality type and available time, as the saying goes investing is like a flat white whilst trading is a double exspresso. PS-Im not a coffee drinker.

[RGR367]

No guts, no glory so just do it! After all, whether you trade or invest, you'll definitely pay your "tuition fees" learning about the Market. And it's better that you find that out yourself. GL.