newbie question, regarding the softwares and others basics

[stone small green]

hey everyone, I've finally decided to enter the market after watching it on the sideline for almost a year.

anyway, I thought I'd start with NZX, but it seems that the number of people who are trading and number of securities are very limited.

I'm not really sure about the relationship between NZX and ASX, should I start trading both at the same time? or should i follow my old plan of doing NZX first which I have more understanding about the companies.

also, I realize a software is very essential, but don't know which one to get, incredible doesn't really have anything regarding NZX.. others I have very limited knowledge of.

I'm currently a uni student, but believe I can get time doing daily analysis everyday. before I had a relatively good idea and plan of what I need to do, by searching for every company and finding the right one and look it in detail, including relevant figures and news, also the line trends.
I'm using asb securities at the moment..

but now I'm kind of confused to start with, and sincerely asking for a beginner's talk..
thanks!!

[shasta]

hey everyone, I've finally decided to enter the market after watching it on the sideline for almost a year.

anyway, I thought I'd start with NZX, but it seems that the number of people who are trading and number of securities are very limited.

I'm not really sure about the relationship between NZX and ASX, should I start trading both at the same time? or should i follow my old plan of doing NZX first which I have more understanding about the companies.

also, I realize a software is very essential, but don't know which one to get, incredible doesn't really have anything regarding NZX.. others I have very limited knowledge of.

I'm currently a uni student, but believe I can get time doing daily analysis everyday. before I had a relatively good idea and plan of what I need to do, by searching for every company and finding the right one and look it in detail, including relevant figures and news, also the line trends.
I'm using asb securities at the moment..

but now I'm kind of confused to start with, and sincerely asking for a beginner's talk..
thanks!!

A few questions for you to ask yourself.

1. Why are you wanting to buy shares now?

2. What sectors are of interest to you? (Gold, Oil, Retail stocks?)

3. What is your risk tolerance (especially if you have limited capital)

4. What timeframes are you looking at, short term, long term?

5. If you are wanting to trade, you will need some charting software, if you navigate around this site, there are plenty of threads comparing the various software packages.

6. During the year you stood back & watched, did you "paper trade"

7. Are you wanting mainly capital/share price growth, or income via dividends?

8. Are you wanting to buy the larger stocks, or the speculative end of the market.

9. The NZX doesn't have the liquidity of the ASX, but doesn;t come with the foreign exchange risk either

10. Is what you are doing at Varsity an area of interest you want to invest in?

Finally as i also use the ASB Sec broker, have a good look through there research section, & there reccomendations, they include all relevant figures (including historical ones) & they do have basic charts as well.

Feel free to ask questions in this thread, it's what this is for

[stone small green]

another things I commonly see people do it that, they usually invest rather than trade, personnally I think trading is more of a passion..

and maybe more in income since u dealing in the short-term.

so I suppose I want more of an income from trading than income from investing via dividend.

Sectors, no any in particular. as long as profitable, as that's why the company exists.

paper trade, no, the only thing I did was telling other people what to buy, which they all got a fair return.

I guess as new to the market with a "monetary mind" the thing I do care is how to stablise your income, I know this will change as you become a more advance investor/trader.

So would just focusing on nzx be a good idea to start with or start looking asx at the same time?

[shasta]

another things I commonly see people do it that, they usually invest rather than trade, personnally I think trading is more of a passion..

and maybe more in income since u dealing in the short-term.

so I suppose I want more of an income from trading than income from investing via dividend.

Sectors, no any in particular. as long as profitable, as that's why the company exists.

paper trade, no, the only thing I did was telling other people what to buy, which they all got a fair return.

I guess as new to the market with a "monetary mind" the thing I do care is how to stablise your income, I know this will change as you become a more advance investor/trader.

So would just focusing on nzx be a good idea to start with or start looking asx at the same time?

Investing in the ASX has the added factor of the exchange rate.

Phaedrus kindly posts many charts on the NZX threads.

There are hundreds of ASX threads, so i'd suggest you form a watchlist & research them further, check the charts, & wait until you are comfortable to make a buy.

The DOW Jones dropped ~2% overnight, & may be the start of a "correction", this bear market rally has surged past most analysts predictions, so i'd be a little cautious buying in this market.

Disc: I have sold down some BPT & OEL of late to reduce my exposure to oil.

[CJ]

Start paper trading. factor in all costs (brokerage, dividends and tax). Dont cheat (Ie. say you were going to 'sell' the share just before it dropped when you were actually at the pub).

learn from your mistakes before you actually make them.

[CFO]

stone small, NZX is cheaper to invest in from both transaction costs and exchange risk hedging. If you are just starting out, NZX might be a better idea.

ASX is a deeper market, so there is more action, which is better for a trader. In the end you want to be in both markets, which would help offset exchange risk.

[AMR]

Start paper trading. factor in all costs (brokerage, dividends and tax). Dont cheat (Ie. say you were going to 'sell' the share just before it dropped when you were actually at the pub).

learn from your mistakes before you actually make them.

Yes learn from paper trading first rather than doing the real thing especiailly you are trying to do the HSI contract.

Even better, start a very small account (<$4k) and see how you react to gains and losses. Things are different when you have money on th eline.

[STRAT]

incredible doesn't really have anything regarding NZX..

Hi SSG.
You can enter NZX stocks into your IC program by downloading them through Yahoo.

Click Securities ( top RHC )
and scroll down to

LOAD BY SYMBOL FROM YAHOO

[stone small green]

cheers for all your advices, I guess I've already got started in NZx, what I can do now it learn from anything and everything and of course, this forum!

[Lego_Man]

9. The NZX doesn't have the liquidity of the ASX, but doesn;t come with the foreign exchange risk either

I get your point, but would argue that at the present time any Forex risk is only to the upside. Also you CAN add taxation disadvantages here too though...