Start investing in Australian Stock Exchange - ( ASX ) - Tutorial 1

Before Start Investing 

Even though this is not an IT related topic it's always best to learn something new.  So before you jump in to ASX please read following tips. These are not my ideas and they belongs to some people who are in this business and who became wealthy. I just put them together in one place for your knowledge.

1. Investing in any stock market has a risk and its greater than real estate and term deposits.

2. As a small investor ( less than 1000$ ) do not use your future savings to invest in shares or never borrow money  from a bank or friend. It's always best to save some money  from your each salary and use it for investing.

So make sure you follow above rules at first place. So you have minimised the risk of losing  your potential savings and you just avoided an unsuccessful business loan.


 Investing 

I'm using comsecc from common wealth bank as my stock broker. Its the cheapest full service broker I found  in Australia and they have very user friendly web and mobile tools. But that comes with a price of 19.90$ per trade. That means whenever you buying a stock you have to pay 19.90$ to them. Same goes with selling a stock too.

Comsecc Tip 1 -  Create your comescc acount just before you need to buy your first set of shares  as they will not charge you for your first few month trade's brokerage.  (This is an offer and I'm not sure whether they giving this offer  )


Now here are my golden tips when I'm buying shares for beginners.

1. Always buy shares of stable companies you know . ( As an example if your salary going to ANZ and you have few loans with them so you truest their business go for it. )

2. Always buy companies which are paying dividends. ( This kind of  my idea because once you get some money in every year as dividends it will make you happy  )

3. Wait for right time to buy a stock. ( Lets say you decided to buy 12 shares of CBA - Common Wealth Bank of Australia. Study the share price of CBA at-least for one month and if its 85.00$ today may be you can by it 82.00$ in 3 weeks later. Buy it at your price or at least nearest price to the price you decided  )

I think this is bit longer. So I'll come with more ASX tips for beginners with next post.