Stock Market investing in Australia - Tips/Advice

Dave085 · July 21, 2015, 06:33:38 PM

We are looking to invest a small amount of money (between $1000 and $1500) in the stock market but trying to learn about it is difficult with so much information out there.

We know very little and trying to learn as we go. More interested in how to get started than what shares to go for (If you want to go in to detail about this feel free but mostly looking at how to get started).

I don't want to spend a fortune on stock brokers.
Is there major banks to stay away from, ie. Commonwealth/St George who offer stock trading through their website??

Has anyone got any experience they can share to help us out??

Cheers.

Big Mac · July 21, 2015, 06:48:02 PM

Hey mate, have you looked into Compound Interest?

jvalles69 · July 21, 2015, 07:34:54 PM

I've recently dabbled in the stock market. Best advice I can give is to do your own research, read the tips in the papers and listen to others advice, but don't follow it as gospel, look into what they are telling you.

Good forum I use to check out peoples views of shares is Hot Copper.

I've also done a bit of research on stockbroking websites and Commsec is prob the most reliable and relatively normal fees involved.

Capper · July 21, 2015, 08:07:27 PM

Bought share 15 years ago and havent looked at them since. Got them via a work offer.

Stay away from telcos

AaronKirk · July 21, 2015, 08:47:12 PM

I've been doing research for around 5 years and finally after intent research over the last 6 months purchased ANZ bank shares on Monday.

I outlayed just over 1k.

Will be investing more in other financials and looking at retail and petroleum companies as well.

Do your own research as jvalles69 said and make your own informed decisions.

Ringo · July 21, 2015, 08:51:53 PM

Have you looked at managed funds as well. May be a safer option if you do not want to lose money.

Remember though that although you can make a quick buck with fluctuations you can also lose just as quick. If wanting a sound investment look at the Blue Chip Shares and be prepared to hold for a long period. Also ensure the Company you buy in is giving a fully franked dividend for taxation purposes.

T Dog · July 21, 2015, 08:54:40 PM

best advice for a conservative like me was 33% shares; 33% cash; 33% property.

Holz · July 21, 2015, 09:45:53 PM

Quote from: T Dog on July 21, 2015, 08:54:40 PM
best advice for a conservative like me was 33% shares; 33% cash; 33% property.

Im not going to say aything as i shouldnt give advice but just wanted to ask a question. With cash are you talking cash or fixed interest as well. secondly do you split between Australian and International Markets.

just a general thing on how to get started. most of the big banks typcially will charge about .12% or $20 per trade. So if your only buying 1,000 thats 2% of your money gone when your buying and 2% when your selling. So you need to make 4% just to break even (not accounting for tax and inflation).

So its probably easier to go with the bank that you currently have a savings account with.

Grazz · July 21, 2015, 09:57:54 PM

Holz knows his stuff, he can't say it probably but he's very good at this stuff.

T Dog · July 22, 2015, 08:35:04 AM

Quote from: Holz on July 21, 2015, 09:45:53 PM
Quote from: T Dog on July 21, 2015, 08:54:40 PM
best advice for a conservative like me was 33% shares; 33% cash; 33% property.

Im not going to say aything as i shouldnt give advice but just wanted to ask a question. With cash are you talking cash or fixed interest as well. secondly do you split between Australian and International Markets.

just a general thing on how to get started. most of the big banks typcially will charge about .12% or $20 per trade. So if your only buying 1,000 thats 2% of your money gone when your buying and 2% when your selling. So you need to make 4% just to break even (not accounting for tax and inflation).

So its probably easier to go with the bank that you currently have a savings account with.

Good point Holz. Cash includes fixed interest and bonds. % split adjusted each year taking a/c of fluctuations in economy.
I had a preference on % splits in shares originally for Australian around 60/40 usually.. Emerging technologies snuck in as well.
Taking qualified advice very important . Well worth an informed yearly independent review.

Capper · July 22, 2015, 12:18:54 PM

Personally im going into Property. About to get number 2 with number 3 not too far away

Dave085 · July 22, 2015, 05:59:07 PM

We realise it is a long term investment and don't plan to make money overnight. Id like it to be long term and something that we can add to every now and then when there is spare cash lying around. I like the idea of spreading the investments over multiple sectors so that is why it is only $1500 max at the moment...

Is there an easy way to describe how dividends work and what needs to happen before dividends are paid out?

Thank you for the tips.