Really dumb question about shares

[wategos]

Here's a few companies formerly listed on the Australian Securities Exchange

Normandy Mining

WMC Resources

These companies are no longer listed because they were taken over at significant premiums.

I held both of them and did well, it's great when a two companies are battling each other to get your stake, Anglo and Newmont kept outbidding each other trying to get Normandy, and XStrata and BHP were after WMC.

 

[see_change]

There will be no winners.

pinkboy

Pinkboy

You forgot the lawyers

Cliff

 

[D.T.]

lawyers win at every transaction

 

[pinkboy]

Pinkboy

You forgot the lawyers

Cliff

Indeed!

And the Administrators will do ok!

pinkboy

 

[MIW]

Yeah, exactly.

Probably not the sort of thing to do with spec stocks, as they would very likely go to zero, but as long as it's with the genuine profit making, asset owning
Traders can carry on with all this nonsense with stop losses and charts and stuff. But I'm not a trader, I'm an investor. A lot of my stocks I've owned for 10 years or more, and actually I haven't even bought or sold anything for a few years. I'll certainly average down into blue chips when we get another big crash.
See ya's.

luckily we are not Japan, and I often wonder how we can predict the future? To me if I do not have control over something that's more like gambling and assuming blue chip stocks to go up is a little bit scary. Yes overall I agree with this concept in principle but I still think one must acquire certain stock knowledge (what is blue chip, which industry stocks, how long to keep for, having stop loss or exit strategy for any stock, etc).

 

[D.T.]

luckily we are not Japan, and I often wonder how we can predict the future? To me if I do not have control over something that's more like gambling and assuming blue chip stocks to go up is a little bit scary. Yes overall I agree with this concept in principle but I still think one must acquire certain stock knowledge (what is blue chip, which industry stocks, how long to keep for, having stop loss or exit strategy for any stock, etc).

This is the basic stuff, no?
Crossing the road is a whole lot less scary when you know how

 

[topcropper]

luckily we are not Japan, and I often wonder how we can predict the future? To me if I do not have control over something that's more like gambling and assuming blue chip stocks to go up is a little bit scary.

If a selection of industry wide blue chips that I own all dropped by a similar amount like what happened in Japan, is there anyone silly enough to think that property wouldn't do the same? It would be impossible. People in property would be in much bigger trouble due to higher debt.

Yes overall I agree with this concept in principle but I still think one must acquire certain stock knowledge (what is blue chip, which industry stocks, how long to keep for, having stop loss or exit strategy for any stock, etc).

True. I've been dabbling in shares for 20 years. Entered all the big floats. One of my biggest regrets is that I didn't hold onto Woolworths and CBA from the floats, as then I'd have 3 ten baggers instead of one in Ramsay Health. But I did OK out of them though. Also other floats that didn't do as well of course. My parents hold Woolworths and CBA from the float.

Not trying to brag, but here is a post I made right at the very top of the market, Nov 2007, about selling shares, getting rid of a share loan and going to cash. On the old BHP thread.

http://somersoft.com/forums/showpost.php?p=346690&postcount=432

I then held a core portfolio right to the bottom of the GFC. Felt a bit silly at the time losing tens of thousands of dollars a day on paper, but there came a period where things were just downright stupid. BHP was cashflow positive when it was $20. CBA was paying 10% fully franked when it was at $27.

After the market had dropped below a certain level, I just wasn't going to sell anything because it was totally dumb to do so. It was a matter of waiting till things turned around and then pile in. And I didn't pile in right at the bottom, but got in within a few months.

After being through the 2008 GFC, I like shares more than ever.


See ya's.

 

[TPI]

After being through the 2008 GFC, I like shares more than ever.


See ya's.

Good stuff TC.

I guess if your first foray into shares was just before the GFC (and if you were highly leveraged at the time) you would have a lop-sided perspective on the usefulness of shares, but if you've seen and understand the ups and downs then you can take advantage of this over time.

For interest a quote from Buffet's recent letter:

"The main danger is that the timid or beginning investor will enter the market at a time of extreme exuberance and then become disillusioned when paper losses occur...The antidote to that kind of mistiming is for an investor to accumulate shares over a long period and never sell when the news is bad and stocks are well off their highs..."

 

[roe]

How much do you play with to pocket $2000?

Sorry I haven't read this thread for a while..

Large capital small movement is my thing ... it very hard for you to pocket
5% move or 10% but it fairly easy to get 1%-3% move...most stocks move this much in a day or few days...

I usually trade parcel of 50K, sometimes less sometimes more depend on certain stocks.. 2% of 50K is $1000, 2% of 100K is 2K,

sometimes I only aim for 1-3% move but luck is on my side and it move much more...

and I only trade solid business, the one I know will be around and know well and wont go belly up so I don't chase mining Specs or high risk stock... the pay off can be more but the loss can be just as big.

I do play speculative stuff here and there but it not big in scheme of thing
throw 10-20K here and there..

I also generate income from options, the ways I use options is unlike anyone else so I wont go into here...I know options but if you ask me all the strategy people use I use none of them ... I only do Naked Put and Covered call...nothing else.... My whole purpose of options is to generate income not to trade options contract..

Again if you know your stuff, share market can be a wonderful place with many tools and strategy for you to generate income and capital gain and if you dont know your stuff you just get eaten up by more experience investors or gamblers