AFF Member Stock Discussion

[Mr_Orange]

Top 20 holdings for an ASX listed fund, note the highlighted short position:

 

[cove]

If those rusty drivers in Melbourne and Sydney get moving AMA should benefit from car panel and paint repair surge.The recent share issue at 37.5 cents have arrived so there may be a week or two of sellers from profit takers.

 

[Ktan89]

Top 20 holdings for an ASX listed fund, note the highlighted short position:

View attachment 261553

Newbie question, regarding shares: what's short and long

 

[cove]

When you sell shares you don’t own that is a short position. You will be required to have funds set aside with the broker you use in case the shares rocket upwards.
Have done it several times and had one go up to my dismay.

 

[Mr_Orange]

Newbie question, regarding shares: what's short and long

A short position is one where you believe the stock price will decrease.

A long position is one where you believe the stock price will increase.

Most people only hold long positions.

Short positions can be traded as @cove has said or by using derivatives such as a CFD (Contract for Difference) or Futures.

There are also ETFs that allow you to trade more generalised short positions such as ASX:BEAR. This is an inverted product in that the price goes up when the market goes down so if you are bearish about the market you buy a long position in BEAR.

 

[Ktan89]

Thank you. Going to start looking into shares. Not sure for long term gain or short term buy and sell. I think the later is harder huh?

 

[Mr_Orange]

Thank you. Going to start looking into shares. Not sure for long term gain or short term buy and sell. I think the later is harder huh?

You need a tried and tested strategy for short term trading otherwise the market will eat your capital in no time. Long term or short term though you need to get yourself into a mental space where you can take a loss and move on when a trade doesn't work out. It's harder than you think.

 

[Buzzard]

Thank you. Going to start looking into shares. Not sure for long term gain or short term buy and sell. I think the later is harder huh?

For long term, not short term / trading, you can do a lot worse than investigate investing in an LIC such as AFI or Argo, or having a look at the various Vanguard ETF options. You may also want to consider some international exposure with Vanguard, after all Australia is such a small player on the world stage. I'm not giving you financial advice simply suggesting where you might head for more research.

 

[Gladstone Tim]

My father was a serious long-term investor so I have a general understanding. However, it is 35+ years ago since I lived at home. Where would you suggest one gains up-to-date understanding? I am keen to invest as a hobby as well as make a profit where possible, as I plan my not-too-distant retirement.

 

[Mr_Orange]

Investing hasn't really changed except for the availability of internet-based broking platofrms meaning you don't need a broker that buys and sells on your behalf, unless of course you want that.

 

[Buzzard]

My father was a serious long-term investor so I have a general understanding. However, it is 35+ years ago since I lived at home. Where would you suggest one gains up-to-date understanding? I am keen to invest as a hobby as well as make a profit where possible, as I plan my not-too-distant retirement.

A good place to start would be read some books. I would highly recommend Noel Whittaker, he knows what he's talking about. Check out his website too.
I would avoid Motley Fool like the plague, or the virus.
Some people play the game and are more traders than investors. If you're an investor I would suggest quality and consider 5 to 10 years as a minimum to hold for. If you panic and sell in a downturn, and there will be one, you will lock in your loss.

 

[Gladstone Tim]

A good place to start would be read some books. I would highly recommend Noel Whittaker, he knows what he's talking about. Check out his website too.
I would avoid Motley Fool like the plague, or the virus.
Some people play the game and are more traders than investors. If you're an investor I would suggest quality and consider 5 to 10 years as a minimum to hold for. If you panic and sell in a downturn, and there will be one, you will lock in your loss.

Thank you.

 

[TheRealTMA]

My father was a serious long-term investor so I have a general understanding. However, it is 35+ years ago since I lived at home. Where would you suggest one gains up-to-date understanding? I am keen to invest as a hobby as well as make a profit where possible, as I plan my not-too-distant retirement.

Subscribe to a couple of investment newsletters, particularly the more conservative ones, or not, depending on your risk profile.

Join an online share portal, maybe one of the banks or other.

Use the excellent Microsoft Excel Share functions to do what ifs for a while and see which newsletters or advisors have a track record over a 6-12 month period.

look for long term investments in shares with good franked dividends.

Don’t overreact to market trends or newspaper articles.

Don’t believe all you read on AFF. A number of members are sophisticated investors with long term plans.

 

[Mr_Orange]

The best thing you can do is to learn to read a chart and understand what it is telling you.

Don’t overreact to market trends or newspaper articles.

Don't even read them.

Don’t believe all you read on AFF.

Don't believe anything you read about a particular stock. The news is there to get you, the retail investor, to do what the professionals want you to do so that they can make more money at your expense.

 

[cove]

Ok here is some non financial advice......
Start investing in yourself by getting your home mortgage to zero (or close to zero if you want to do a re-draw). Keep your property fully insured.
Next you can concentrate on getting your superannuation into great shape as it is tax advantaged.
Once you have done this you can get into investing in shares and funds outside of superannuation.
These are purely our thoughts and not financial advice.

 

[Gladstone Tim]

Ok here is some non financial advice......
Start investing in yourself by getting your home mortgage to zero (or close to zero if you want to do a re-draw). Keep your property fully insured.
Next you can concentrate on getting your superannuation into great shape as it is tax advantaged.
Once you have done this you can get into investing in shares and funds outside of superannuation.
These are purely our thoughts and not financial advice.

Thanks, Cove. Pretty much have those aspects in place. Home mortgage can be at zero if a redrawble account, just reducing by the amount of the originally scheduled payment each month. Seeing the financial advisor again in January so will also get his advice re shares.

 

[ramamba]

My father was a serious long-term investor so I have a general understanding. However, it is 35+ years ago since I lived at home. Where would you suggest one gains up-to-date understanding? I am keen to invest as a hobby as well as make a profit where possible, as I plan my not-too-distant retirement.

I second advice on the books. Head to Goondoon St, they had I think a couple Noel Whittaker's books. I've also borrowed Motivated Money by Peter Thornhill and JL Collins Simple path to wealth. Highly recommend both of those, especially the latter.

 

[tgh]

Noel was the local real estate agent, with his partner they started some small developments.
I worked with them for many years, eventually he saw the opportunity in writing about money and the rest is history.

 

[cove]

Yes @Gladstone Tim your financial advisor is registered to be able to give you financial advice.
Because I had some health issues in 1994 I fast forwarded some lifestyle assets after i prepaid my two sons education and paid out the house mortgage.
Then we had to get to those places so we got stuck into frequent flyer points and miles.
Now that we haven’t been travelling much the stock market and industrial real estate has been a good place for us.
We are planning to go to the Finbar AGM as the directors need some questions to answer. They have been underperforming Profit wise.

 

[MARTINE]

Investing hasn't really changed except for the availability of internet-based broking platofrms meaning you don't need a broker that buys and sells on your behalf, unless of course you want that.

I use an online platform with the yellow bank - which is all I need.

I do all my own research/ trading on my phone - for the long term (Always reinvest dividends when I can) and about 5% I play with for speculations/fun.
….. Its very easy to sign up as I only want a portal not all the rest.

As I do more than a certain number trades per month brokerage becomes free.

I like reading Warren Buffet. Re: newsletters and other spruikers - they only have a business model by taking your money and if riches were that simple to make - why give it away?
e.g I do get access to info re broker recommendations/valuations etc because of my trading volume
…invariably I read about stock X - expert a - strong buy b- strong hold and c- strong sell…

So - the above is just my experience and - as everyone says this is not financial advice - do your research including whose research you will listen to.

Warren Buffet says only invest what you could tolerate losing 50% in a day (given Black Monday was 25-40% drop depending where you were) I like that..