Hello from a newbie - some questions also

[ratsinvest]

Hi,


Complete newbie here.


All my life I've been working and putting money in the bank. I've dabbled in a bit of property but haven't really had much luck. I am interested in investing in shares but I want to invest in US shares as they are the ones


I have some questions and was hoping you guys could help me:


1) What is the best way for buying and selling US shares? I've searched this forum and also googled and I see there are some online options available. I am interested in what ANZ offers but their costs seem a bit high. Are there other options?


2) If I was to purchase some shares and the next day they went up significantly and I wsold would I then have to pay tax on my profit? Example buy $1000 shares, next day shares are worth $1800 and I sell. Would I pay tax on the $800?


3) Are dividends taxed?


4) I am particularly interested in finding the next Apple stock, aren't we all? :-) Any advice on how one spots the next Apple stock? ;-)


5) Any tips and strategies for the first time share trader?


6) Any obviously glaring mistakes not to make?


These are all complete newbie questions so any help is much appreciated.


Thanks!

[blackcap]

Hi,


Complete newbie here.


All my life I've been working and putting money in the bank. I've dabbled in a bit of property but haven't really had much luck. I am interested in investing in shares but I want to invest in US shares as they are the ones


I have some questions and was hoping you guys could help me:


1) What is the best way for buying and selling US shares? I've searched this forum and also googled and I see there are some online options available. I am interested in what ANZ offers but their costs seem a bit high. Are there other options?

Good question. I have Euro account but can have one due to citizinship there. Some of the Australian brokers may offer a better service than the NZ ones.


2) If I was to purchase some shares and the next day they went up significantly and I wsold would I then have to pay tax on my profit? Example buy $1000 shares, next day shares are worth $1800 and I sell. Would I pay tax on the $800?

In NZ... YES




3) Are dividends taxed?

YES


4) I am particularly interested in finding the next Apple stock, aren't we all? :-) Any advice on how one spots the next Apple stock? ;-)

Cant help you there.


5) Any tips and strategies for the first time share trader?

Do a lot of reading. I can recommend "One up on Wall Street" by Peter Lynch. Your question 4 may be answered by this book.
Trading.... um do not know too much about it but I would recommend "Market Wizards" by Jack Schwalger. He identifies and interviews the top traders and they give insight into their winning methods and what makes them tick


6) Any obviously glaring mistakes not to make?

Do not hold onto losses, and do not become emotionally attached to a stock.


These are all complete newbie questions so any help is much appreciated.




Thanks!

Welcome onboard the forum!

[percy]

Hi,


Complete newbie here.


All my life I've been working and putting money in the bank. I've dabbled in a bit of property but haven't really had much luck. I am interested in investing in shares but I want to invest in US shares as they are the ones


I have some questions and was hoping you guys could help me:


1) What is the best way for buying and selling US shares? I've searched this forum and also googled and I see there are some online options available. I am interested in what ANZ offers but their costs seem a bit high. Are there other options?


2) If I was to purchase some shares and the next day they went up significantly and I wsold would I then have to pay tax on my profit? Example buy $1000 shares, next day shares are worth $1800 and I sell. Would I pay tax on the $800?


3) Are dividends taxed?


4) I am particularly interested in finding the next Apple stock, aren't we all? :-) Any advice on how one spots the next Apple stock? ;-)


5) Any tips and strategies for the first time share trader?


6) Any obviously glaring mistakes not to make?


These are all complete newbie questions so any help is much appreciated.


Thanks!

Successful property investors do well in the sharemarket.
As you haven't had much luck in property,I can't see you will do any better in the sharemarket.
Leave your money in the bank.

[artemis]

Why not dip a toe in the water first by setting up a play portfolio (no real money) and watching what happens over time. Most broking sites have that facility. Keep an eye on news about the companies you are interested in (eg stockmarket announcements, Google 'alerts') and see the impact - if any - on the share price.

Personally I would start with the NZX and the ASX as their shares are easier to follow while gathering experience. Good luck with the next 'Apple' stock. I prefer 'get rich slowly' with a little play money at the high risk end. Which sometimes pays big, but usually doesn't.

[iceman]

Welcome aboard.
Unless you have a lot of time on your hands and a good grasp of balance sheets and company valuations, I suggest you look at ETFs. I invest in Vanguard Capital´s SP500 tracker and am happy with it. I use it for monthly fixed amount investments and am happy with the performance and the fair fees charged.
Of course there are many others but my favourites and Vanguard and Blackrock.
Have a browse and see if that is something that mayn interest you. I think they are hard to beat in the long run !

But I am assuming that you are a long term investor, not a short term trader. Forget about trading in individual US stocks in small numbers like you suggested. Brokerage fees will kill it before you even get off the ground.

[Kaspar]

Welcome aboard.
Unless you have a lot of time on your hands and a good grasp of balance sheets and company valuations, I suggest you look at ETFs. I invest in Vanguard Capital´s SP500 tracker and am happy with it. I use it for monthly fixed amount investments and am happy with the performance and the fair fees charged.
Of course there are many others but my favourites and Vanguard and Blackrock.
Have a browse and see if that is something that mayn interest you. I think they are hard to beat in the long run !

But I am assuming that you are a long term investor, not a short term trader. Forget about trading in individual US stocks in small numbers like you suggested. Brokerage fees will kill it before you even get off the ground.

Hey Iceman, do you invest in ETFs through a US broker? you mention monthly investments, I would have thought the brokerage would be quite high doing this?

[Longhaul]

Welcome. For tips and strategies I'd suggest reading this excellent post from Sparkytheclown. Good luck

[iceman]

Hey Iceman, do you invest in ETFs through a US broker? you mention monthly investments, I would have thought the brokerage would be quite high doing this?

No not through a US broker. Just an account with Vanguard with a fixed monthly investment. No " brokerage" fees, just the normal management fee which I find very reasonable

[winner69]

Successful property investors do well in the sharemarket.
As you haven't had much luck in property,I can't see you will do any better in the sharemarket.
Leave your money in the bank.

Jeez ratsinvest. - bet you didn't come here to be called a born loser eh

Sounds like you if you serious about this write down what you want to achieve and then writing down how you will do this .....as well as writing down some milestones ......and writing down some contingency plans if plans don't work.

[ratsinvest]

Guys, thanks for your replies. Much appreciated. Winner69, I like your suggestion the most. I'm going to come up with a plan on what I want to achieve and then hopefully you guys can give me a few tips on where to go with this.