Investing in Shares for Beginners (ASX 200)

Investing in Shares for Beginners (ASX 200)



hey guys when it comes to these videos to be honest with you guys it doesn't come naturally for me to speak in front of the camera and often and quite scatterbrained and I'll flying it I'll have to pause or I'll ramble or forget my train of thought anyway so this video is a little bit different this video is about is going to be about the share market you may have seen it on the news one of your friends may have mentioned that however you might not have an understanding of exactly how you go about in investing in the chair market and it might be something you're interested in so before you even consider investing in the share market I would say to you don't invest in the show market at all until you're at least quite financially stable in in the sense that you've got at least two or three thousand dollars saved away in an emergency fund for some for those little things that come up that are unexpected so like you know your car breaking down renewal registration and so on you know sir once you've got that sort of out there are two things to consider when investing in the share market so what are your reasons for investing in the show market so that might simply be that you want to make a profit on the savings that you put aside you might just want to learn about the share market so it may be a longer-term thing rather than a short-term thing what I would say as a general rule is if you're going to invest in the share market whatever amount you're going to put into the share market you should consider that amount written off and be happy to lose that amount of money I actually googled how to invest in the share market and it's a couple links here so you can go through the ASX website and that's the official website personally the found this lincare market index to be pretty useful sir they give you a brief summary a little bit of explanation about what stock market is quick explanation of dividends and it's sort of brief and you'll go on to talk about the need to use a stock broker and to create an account in order to trade shares I think that's a pretty useful website there now in short the easiest way to invest in shares is through your bank all the big banks have a trading platform and the Commonwealth Bank Westpac I personally use Commonwealth and the reason for this is I was already banking with them so there's never other reason than that that I do like the platform it is pretty clean and only drawbacks are the fees are a little bit higher than other brokers but that's fine for when you're starting out anyway so I've clicked here on you've got at the top here your home your portfolio which is all the companies you're invested in a watchlist that you can set up companies that you want to keep track of and then you've got quotes and research which gives you a little bit of an overview of what's happened in the market on that particular day or for that particular week including reports prices you can choose most actives caps have gone up or down in price and here you've got the trading option so these are the four main adults that you need to get familiar with and you place them all through this I'll just go over watchlist quickly so when I first got started the way I went about sort of looking at compiling this watch list I was actually just looking up asx200 list and this is sort of useful this is the top 200 biggest companies in Australia and if you click market cap you can actually sort the companies by the largest market cap so here you can see Commonwealth Bank is the largest company on a six by market capitalization followed by Westpac entered NAB and a few other familiar companies here so when I first started I didn't realize that a lot of the companies that we may have heard of actually owned by one bigger umbrella company for example Wesfarmers is a conglomerate which owns a lot of familiar household brand names such as you know Bunnings Kohl's Kohl's insurance as well so anyway this is the this is a good way to sort of look at some of the big companies and you can individually look up these companies but I won't go too much into that if you sort of go back here on the left here they're they these are known as ticker symbols and they are a three-digit symbol for the companies you invest in and if you highlight them you can see the longer version so I'll click on Cromwell thank you and you can actually see an overview of the trades and if you click on charts they actually provide a chart and you can see how the prices gone up and down over the year and you can change this chart into three years five years three months which will produce different graphs so you can see over ten years it's made sort of steady growth so you can also by looking at the charts consider whereabouts in the cycle your particular company is whether it's at all-time high whether it's recently hit from Lowe's and yes so this is a really useful and I do like do you like to use the interface here it's quite easy to use so for example if I wanted to buy some shares through Commonwealth Bank I would go through here through trading click place order click buy but I will type in the ticker symbol so Commonwealth Bank happens to be CBA let's say I wanted to buy 12 shares I can say about the last price was $86 23 sets so I would wouldn't actually do this now but you'll type in the price that you're happy to pay so $86 20 would actually cost me a thousand fifty four dollars and 35 cents in order to purchase torches and I would then click proceed and carrying on so okay we've covered two things we've covered the reasons why you want to get into shares so think about what are your goals or specific the better and if you're going to invest in a company know why so I have shaped yourself as much as possible before you invest your money in the share market or in a particular company the second thing that I covered was just some people some precautions so only invest as much as you're willing to risk now I can't emphasize that enough and the third thing we covered was how you go about investing in investing in the share market so I've sort of showed you a little bit about what is involved in purchasing a stock and what the platform looks like but you're probably wondering where do I get ideas for companies to invest in so I would start by if you haven't already reading the newspaper so the age there or the Sun reads the news online start thinking about the trends that we're currently going through so there's an increase using drones there tesla's is a good example so that they're looking at doing electric cars which requires lithium so you might look at the trends around resources like lithium and their role in electric cars also you can look at look at companies that are doing innovative things because those kind of companies if you believe in the technology or the idea and it's got the potential to disrupt those are the kind of companies that will provide you greater returns especially if you're making long-term investments and I hope you guys enjoyed this video I've thought about talking a little bit about other investments such as Bitcoin and cryptocurrency but I'll save that for another video if you enjoyed this video subscribe and I'll keep making these videos hopefully on a more regular basis

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About the Author: Maximilian Kuhn

49 Comments

  1. Can anyone plz guide me what to do after the initial investment? Say I invested $500 today and got a return of 4% which means Now i have $520 in my account. How should I re-invest that $520?

  2. Thank you for sharing this! I started to use CommSec.

  3. can you please explain me how to set the DRIP(Dividend Re Investment Plan) on the shares we buy on commSec, Thank you

  4. Opening up and exposing your vulnerabilities straight up followed by solid info= instant sub dude. Stay authentic ๐Ÿ˜‰

  5. Does a trade include a buy and sell or if you sell does it count as another trade.. also if you buy more shares for the same bank or whatever does it add to your previous trade so you donโ€™t keep loosing money on brockers

  6. I sell shares for the fruit of myย  one Apple tree to neighbors, allowing for bad apples, fruit bat damage there is NOT enough to go round annually & the tree has a 'LIMITED life'.ย  Shares feed leeches feeding from YOUR money & buys FAR LESSย ย at exit time. imo

  7. Thanks for sharing! It has definitely helped me, especially for someone who is a beginner and wanting to start learning about trading. Thanks again!!

  8. Great video.. you dont need to mention how you struggle with videos.. I do also. All you need to do is edit out any ums and aahrs etc

  9. I am currently putting a significant portion of my income into shares. But this was only after I did months of research.

  10. This clip really helped! I was just wondering if you knew a bit about micro-investing apps available in aus?

  11. if you want to grow,successful,good forex education,how to time a trade, then i must advice you to get in touch with MR MICHEAL`S trading system. his strategy has changed a considerable numbers of traders life online with his brand of unique and great strategy for more visit him via email. { [email protected] .com }?? and you will see what am talking about.?

  12. Great video Mark. One of first videos I have been watching to start. Thanks on giving me a good start. Getting educated myself and gonna read more about companies in news.

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