What would you guys say the golden rule or rule of thumb when choosing a company to buy shares also should I rather start with EFT,s first or go directly into shares like Old Mutual and Netcare and lastly alexander Forbes, you thoughts would be greatly appreciated.
My golden rule before anything when buying whether it EFT, Shares etc is to calculate your estimated cost first before anything else. Too often people will say buy this or buy that or tell you about strategy but noone ever tells you about the REAL cost of buying or selling.
Again cost. Cost can determine your entry point into a particular security. Yes you can cash out everyday if you make money only if the funds have been settled unless you pay the additional cost to have it available. As much as you can make money, you can also lose money.
First of all, one of the mistakes all rookies make is having no strategy for selling. Buying is simple. It's the selling part rookies get wrong. Before you buy, know when you'll be selling and stick to it all cost, even at a loss (stop loss). With R25k I'll buy Discovery and keep it for 3 years plus. They are in insurance and medical aid and their expansion in China is shaping up nicely.
First understand the difference between investing and trading (as well as the tax implications).If you are just starting out you could pick a decent investment share or shares with a little bit of reading and understanding provided you are prepared to sit on the investment for at least 3 years+.If you are a genuine newbie I suggest you stay away from trading altogether until you have a whole lot more understanding.The prices at this time of the year can be particularly volatile on very small volumes of shares traded. Best advice I could give is put your money in your piggy bank and start reading and learning. Then after a couple of months in the new year you could start putting your toe in the water. That way you are more likely to have a Merry Christmas and especially a Happy New year.
I would like to go into trading i am really a newbie I bought a minimal amount of shares in well-known companies like Old Mutual Netcare and alexander Forbes just to see what happens and IÂ’ve seen growth in all 3, I would like to assume that IÂ’m off to a good start as I did as much research as I could on these three companies but i donÂ’t really want to rely on waiting 3 years plus for a return and i also havenÂ’t taken into consideration the cost involved in buying and selling but am now one step at a time though, You guys might think this is a silly question however IÂ’m going to ask anyway as you guys seem to really give good advice can one cash out a profit daily if you had enough capital and knew what you are doing? And lastly how would I go about doing that? Thanks again all!