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Stocks buy or not to buy???

Discussion in 'The Pub' at netrider.net.au started by awseome, Oct 16, 2008.

  1. Hi Guys,

    i am real noob when it comes to finance, can someone with experience tell me if its the right time? if so what ones you reckon?

    thanks for your help


  2. They reckon every time the market drops by 5%, you should put in money. Keep doing it every time it drops 5%. Historically that seems to be the best way to make gains in hard times.

    Don't take my advice though, I still own every share I ever bought, and I curse myself daily for the tens of thousands I've lost through waiting too long.
  3. They are probably current (on average) well below their asset value. That means it's a bloody good time to buy.

    Even if they continue to drop a bit more, they will bounce back to much stronger than they are now.
  4. you guys reckon banking and minerals are a good buy at present?
  5. Anything but these two. Banks will loose value at the next interest rate cut and a world economic downturn will hit minerals.
  6. BHP and RIO are very undervalued at the moment imho, and will bounce back strongly in the future. Gold is a winner atm I reckon too.....

    But what do I know?.....

    Are you looking for a quick gain or a long term winner?

    You should really speak to an investment advisor if you have $$ to invest.
  7. i want spread it out 50-50. i guess you are right i will suss someone out from the forum i think we have few finacial advisors on here. :)
  8. I'm an assistant for an accountant and he's been telling clients that "he predicts" February will be worse than this. He's been telling his bigger clients for months that the market was going to receed dramatically this year. He is also telling clients that it is worth squirelling away some cash to buy up around the new year - loose a little dosh to start with but it'd be worth it in the end to hang on for a little while.

    I know nothing about the market but (as much as I hate to admit it) he's been right about a lot of things.
  9. Cash will be king, within 6 months.
  10. Sweet... I'll be in the market for a new washing machine... I play my wog gene card: "eh, you chipper for kesh? yoo giva dishcont? I pay kesh" lol
  11. There is no right time to buy. I certainly wouldn't be mucking around with individual shares unless you've done some proper analysis (either technical or fundamental depending on your objectives).

    This all depends on your time frame also, individual shares are too risky to enter without good information. Unless you go a blue chip and have long term goals in sight.

    Chance are that unless you have 7 years to wait, you're not going to see good returns on your money. There are much better ways of getting into the share market than buying shares.

    If you've got less than 5grand and might need it within the next 7 years, I'd suggest finding a cushy highish interest place to put it (with adequate security).

    If you've got a bit more cash and a longer time horizon, I would seriously suggest speaking to a professional about it or doing some serious research yourself.

    Btw, I personally think banking's a good stock to buy in at the moment, but not for a quick buck.

    Hope all goes well.
  12. thanks mate
  13. I'd buy some BHP if i hadn't already lost all my money... :)
    shows my credibility...
  14. Best advice i could give is to research into the companies/industries you're interested in.

    Markets can fluctuate for a ton of reasons - looking at the replies, a lot of people have faith that the share market will pick up, which means now would be a good time to buy
  15. Whatever you do, don't listen to stock market experts or professional investors.
    Teh last upset clearly proved again they don't have a clue and that anyone's guess is as good as theirs......

    Regards, Andrew.

  16. Just a fancy name for professional gamblers eh. And they charge you for the privilege :? :?
  17. LOL. You're crazy if you think people aren't making big bucks from a falling market.

    The best stock market tips don't get shared, that's what keeps investors rich and the market efficient. Bit of a paradox there, but that's how it works.

    One thing I don't get is how a falling stock market gives every arm-chair, bush investor who's never gone near a share in their life the right to criticise the workings of the market and its players. This one's not directed at you personally, but it's a trend I've noticed.

    Suddenly people who've never opened the AFR in their lives (or showed any interest in the economy previously) think they know more about the economy than professional economists, just because the economy isn't doing well.

    The best stock market tips come from inside information or very good personal knowledge beyond what the market knows. If the market knows the information you do, it's embodied in the price and someone's already made the profit.

    Not for the faint hearted.
  18. These guys don't pick stocks based on the prettiest name. A stupid amount of research goes into transactions and their level of skills is crazy. I went for a job at a stockbroking firm and the level of maths/skills required was nuts.

    I have a huge amount of respect for the profession and I definitely understand why they get paid the dosh they do.

    Unlike most gamblers, these guys do a lot of research and makes a BUCKET LOAD more money than most investors.

    I have a feeling if you gave $20,000 to "Joe Blow" and $10,000 to a professional derivatives trader, the derivatives trader would walk away with much much more and it's got nothing to do with luck.
  19. How do you make money in a falling market?

    Why are the super & managed fund going backwards?
  20. Options, derivatives, futures, CFD's. All are highly complicated and as I'm finding out, the knowledge required goes far beyond what I've been taught in my degree. I'm in the process of learning, but these are all very good ways of making money from falling markets.

    In another word, short selling. You enter an agreement to sell a stock at the current price at a future date.

    So if NAB shares are $30 today. You agree to sell someone 10 shares at $30 tomorrow.

    If NAB shares fall to $10. You buy 10 shares at $10 and sell them at $30. Minus put/call premiums.

    As for Super and Managed funds. For very obvious reasons. Lol, if you had a super fund run by good derivatives traders, the result would be interesting. It's very high risk, but very high return. A lot of the time, the people who don't know what they're doing, pay for the returns of the people that do.