sharetrader
Page 4 of 5 FirstFirst 12345 LastLast
Results 31 to 40 of 50

Thread: Mentor wanted

  1. #31
    Senior Member
    Join Date
    Jul 2002
    Location
    Auckland, New Zealand.
    Posts
    820

    Default

    OS.

    You are trying to embark upon a trading career and have probably been excited by forex due to the leverage and potential profit.
    As a former forex dealer and trader. DO NOT DO IT.

    Second.
    We are in the worst bear market since the 1930's. It's killing even the most experienced traders.
    My advice.
    Wait. use TA and wait till the next bull emerges.
    You may have to wait 6 months maybe 2 years, but believe me, it will be much much easier to learn in that environment than the current one.

    If you do not heed the advice of myself Phaedrus and others who have been in this game for some time I would give you probably 2 weeks in FX and 2 months in equities before you blow up.

    Stick to stocks, and wait for the next bull. While you are waiting read a book on markets every week. Pratice TA whenever you can.
    Remind yourself every day that making money is not easy and will require hard work.
    “If you're worried about falling off the bike, you’d never get on.”

  2. #32
    Member
    Join Date
    Jan 2009
    Location
    London
    Posts
    80

    Default

    Hey Outspoken
    Thanks for prompting such great responses, I am in the same boat as you and very new to trading (21 just graduated from Vic in commerce).
    Before I bacame a member I have been following these forums for 6 months. In regards to your lack of fundamental analysis a member (i forget who) recommended www.informedtrades.com. This site is great with videos talking through the lessons and text accompanying them. I have used it to learn the basics of both TA and FA.
    Thanks to all the members for the great responses, as this is the newbies place I have a newbie question someone may be able to help me with. Are there any patterns between inflation and the sharemarket, I just feel with the continuing cutting of interest rates (huge 1.5% in NZ today so we are down to 3.5 from 8 now) and the billions and billions of $US being pumped into the economy that inflation may pickup rapidly. The low oil prices and lack of consumer spending because of job losses and fear are holding inflation down but when economy recovers so will inflation?.

  3. #33
    Legend shasta's Avatar
    Join Date
    Sep 2004
    Location
    Wellington
    Posts
    5,914

    Default

    Quote Originally Posted by O Dusty View Post
    Hey Outspoken
    Thanks for prompting such great responses, I am in the same boat as you and very new to trading (21 just graduated from Vic in commerce).
    Before I bacame a member I have been following these forums for 6 months. In regards to your lack of fundamental analysis a member (i forget who) recommended www.informedtrades.com. This site is great with videos talking through the lessons and text accompanying them. I have used it to learn the basics of both TA and FA.
    Thanks to all the members for the great responses, as this is the newbies place I have a newbie question someone may be able to help me with. Are there any patterns between inflation and the sharemarket, I just feel with the continuing cutting of interest rates (huge 1.5% in NZ today so we are down to 3.5 from 8 now) and the billions and billions of $US being pumped into the economy that inflation may pickup rapidly. The low oil prices and lack of consumer spending because of job losses and fear are holding inflation down but when economy recovers so will inflation?.
    Its just the economic cycle, inflation will lead to higher wages etc, & eventually the interest rates will go back up to steem the flow.

    With interest rates lowering, both property investment & mainly the sharemarket become more appealing especially for companies that pay a good steady dividend yield.

    Expect the money flows from banks term deposits to go into the markets (even the conservative journalist Mary Holm is suggesting investing in the sharemarket )

    Just remember we have had tax cuts (& getting more 1 April & its not a joke!), lower petrol prices, & now lower interest rates, not all bad aye?

    O Dusty - you should come along to the Wellington Sharetraders meeting on the 14th Feb, & meet some of the posters who will be happy to answer your questions.

  4. #34
    Always learning
    Join Date
    Nov 2008
    Location
    North Shore
    Posts
    44

    Default

    Yes, O Dusty, I'm pleased with the responses I've had. I'm also pleased that they are useful to others such as yourself.

    To all that have replied: Thank-you.

    I've taken some time, deliberated on the warnings, the advice, read some more on the topics I'm interested in, contemplated my reasons, reworked my rules and put a stake in the ground. I am going to trade, full stop. I will take it slowly, I have a cash management system, I'll paper trade mostly but look for good signals and use my TA knowledge when a likely trade entry presents, I'll enter with Sl and TP .

    I'm determined and forewarned, forearmed.

    I've found someone who is willing to guide me (for free) and I'm completely comfortable with what I'm planning to do.

    Thanks again to you all, I'll be sure to post results as applicable.

  5. #35
    Guru
    Join Date
    Apr 2007
    Location
    Hamilton New Zealand.
    Posts
    4,251

    Default

    Just noticed and not sure of other newbie posters...

    Be very careful .... armed with a business degree can give you a false assumption that you are in control of the marketplace.

    Knowing some FA techniques taught at varsity is only a small part of the overall Investment Disciplines.

    Remember ....the key driver of the markets is Human Group Behaviour, and rightly or wrongly that group behaviour is what dictates at the time.

    From experience when I first started out...using my own business degree I analysed companies and invested in the good ones...and often in those companies that the market did not like...I felt because of my varsity degree I was right and everyone else (the market) was wrong....Result got my arse kicked more often than not.

    Don't get me wrong FA (fundamental analysis) is an essential sub-discipline but it is only one of many.
    Also TA which deals more with group behavior is an essential sub-discipline but it is only one of many.

    The most important factor be a successful investor is to understand yourself mentally...all the degrees and book reading in the world will not help if you are not mentaly tuned in to this investing world. Unless you are a born "natural" it will take years of learning..for most people it will never happen.

  6. #36
    Member
    Join Date
    Jan 2009
    Location
    London
    Posts
    80

    Default

    Thanks Shasta as a Vic student I know St Johns very well, it would be a very interesting experience for me.

    Quote Originally Posted by Hoop View Post
    Be very careful .... armed with a business degree can give you a false assumption that you are in control of the marketplace.

    Knowing some FA techniques taught at varsity is only a small part of the overall Investment Disciplines.

    Remember ....the key driver of the markets is Human Group Behaviour, and rightly or wrongly that group behaviour is what dictates at the time.

    From experience when I first started out...using my own business degree I analysed companies and invested in the good ones...and often in those companies that the market did not like...I felt because of my varsity degree I was right and everyone else (the market) was wrong....Result got my arse kicked more often than not.
    Others may disagree but I feel that in some ways I am lucky to have begun my trading career in such tumultuous times because it has installed the understanding that far more seasoned and experienced investors are not in control of the market so how on earth could I be.
    Thanks hoop I agree in regards to human group behaviour being a key driver, thats why I found the anthropology areas of economics invaluable. My business degree only helped to spark my interest in trading, I feel as though I have grown more through my own learning in the last 6 months as opposed to my 3 years at uni.

    I guess I will disclose, bought CUE several weeks ago, avg 12.5

  7. #37
    Member
    Join Date
    Jan 2009
    Location
    London
    Posts
    80

    Default

    Hoop, could you point me towards other investment disciplines that you feel may be useful for a youngster as I would like to continue to broaden my knowledge. I will further my studies in TA because I feel the indicators of the market will dictate when I invest the bulk of my capital not the value of companies which will come later.

  8. #38
    Muppet Placebo's Avatar
    Join Date
    Apr 2004
    Location
    Lower Hutt, , New Zealand.
    Posts
    435

    Default

    Yes the human behaviour factor can't be underestimated. When I was an `observer' of the market (and since being involved) it has never ceased to amaze me how "good" companies can be undervalued simply because of market sentiment. The more usual thing you see is a company being irrationally overpriced simply because it is a market "darling" or is making hollow promises on what it may or may not deliver. There are plenty of these on the NZ market who have had their day in the sun - FTB, SLG, BLT... Some people actually made money on them

    I agree, the best way to go ahead is to get your feet wet - but don't bet more than you're prepared to lose. These are volatile times. Though if you are an optimist, you may see plenty of upside potential in a lot of companies and of course there are plenty of safe haven utilities.

    OS it is good you have a mentor and this will be a good sounding board for you, but you would be well advised to also `do your own research' and convince yourself the advice is sound. Don't just blindly follow.

    Two heads on investing is a little like wearing two watches. You can be doubly assured that your thinking is right, but if there is disagreement, how can you be sure either is right?

    Good luck.
    Marriage isn't a word. It's a sentence

  9. #39
    Junior Member
    Join Date
    Jan 2009
    Posts
    10

    Default

    I have used advise from brokers before and lost money. You really need to look at comapnies you like and then do your own research Learn how to read charts. follow your gut instinct. spread your risk between a few companies. Don't put your eggs in one basket. I recommended a company on here just over 1 week ago. I see no one replied and it jumped 118% I think it will jump another 25% within the next 2 weeks. Will any one take my advise? probably not so do your own DD and be careful which companies you invest in. The share trading arm of several banks have analysis and recommendations and that could be a good place to start.
    Last edited by graeme50; 01-02-2009 at 10:09 AM.

  10. #40
    Member
    Join Date
    Aug 2000
    Location
    Waitakere
    Posts
    163

    Default

    Just read this thread for first time and take issue with a comment by SC
    earlier that losses are only paper until sold - this is fallacy.
    A paper loss is a REAL LOSS just as a paper profit is real - at that point.
    I think TIME is an important consideration when trading - how long do you give
    a position before selling out. It may be a daytrade, overnight, 3 days, a week,
    month, year, whatever, one should work out the best time period for them and
    stick to it if not already stopped out. I am angling towards daytrading Aussie
    shares and have my worst periods when holding a losing daytrade
    overnight or for weeks in the mistaken belief it will come good. Trouble is, it
    sometimes does, and that sets you up for an eventual wipeout.

    George

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •