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Newbie: Where do I start?


terrine

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In reply to: annaliese on Wednesday 15/08/07 10:45am

HI All,

 

I'm a newbie to this thing as well. Have been investing for the past year and ended up now with a portfolio exclusively made up of oil and gas explorers. In a way I've ended up with the same strategy as Annalise.

 

So I was wonder Annalise .. how do your research .. do you subscribe to a newsletter, do you look and company annoucements and global indices, fundamentals etc. Do you have a background in the industry and can you recommened any good reading / sources for understanding the industry. I'm learning more and more as I go but any pointers you have would be appreciated. For the record I'm into OEL, GRL, SHG and GOP.

 

Love to know your thoughts.

 

 

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In reply to: wolverine on Wednesday 15/08/07 10:49pm

Cheers Wolfie.

 

Moses, I hope you're at least a little cashed up as there are going to be some very good speculative opportunities in the oil/gas sector when this current fallout finds market bottom (theres a way to go yet).

 

Heres some quick answers to your questions:

 

Subscriptions: Oil and Gas Weekly, StockAnalysis,(mainly oil stocks) and Oil and Gas Gazette (tech info and background info). While you're early in your learning curve these sorts of publications provide a wealth of information and techniques. As you advance they should be a peer review of your own research.

 

Company info: Quarterly reports and company presentations are perhaps the best specific and timely docs that must be read. Annual reports and all company announcements (for those you are following). These can all be accessed via the ASX or the companies website. the company website might also hold broker reports and other media reports plus more indepth project info.

 

Books (Oil/Gas):

 

"Non-technical Guide to Petroleum Geology,Exploration,Drilling and Production" by N.J.Hyne

 

"An introduction to Petroleum Exploration for Non-Geologists" by R Stonley

 

Both are available via Amazon. There are plenty more but these two have been good for me.

 

Indexes: Get in the habit of looking at leader indexes like the SP500/Dow etc everyday

 

Simarly use a site like Bloombergs and see what oil/gas is up to, what current trends are and current and expected influences. Do this everyday.

 

I start my day looking at these two things before I give any thought to a country or individual stock.

 

Charts: I am a fundamentalist by nature but I would never leave charts out of my analysis. A little picture tells you alot and if you look at enough of them you can become very intuitive about interpreting them. You don't have to go overboard on T/A, the basic tools are enough.

 

Hard Yards: The market is easy to beat if you put the hard yards into research, charting and risk management. Try to get yourself to a point where you are an expert in your chosen area. Treat it as a 3 year degree, be a sponge and absorb info, fine tune your analytical techniques. Measure your progress against the subs above andd broker reports. When you can critique them you have come along way. Use chat rooms to develop your skills and confidence, especially quality ones like SS.

 

Most importantly, believe in yourself, believe in what you are doing and perhaps the hardest bit, eradicate emotion from your decisions. Fear and Greed exhibited by you are your enemies, fear and greed exhibited by players in the market is your opportunity.

 

Do these things and you will have a major competitive advantage that will make you a lot of money over time.

 

If the current melt down is giving you a fright go and learn as much as you can about market corrections. Use the web, type in tech crash, 1929 crash, 911 crash etc. When you understand the markets rationale in these different circumstances you will no longer fear them. Quite the opposite you will look forward to the opportunity they provide.

 

Hope that helps.

 

 

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Wow, great points by everyone here so far, especially Wolve and Anna.

 

QUOTE
Try to get yourself to a point where you are an expert in your chosen area

 

This is a great point. I think especially for a beginner (I was there once not long ago) its important to get a view of each of the different styles of trading, and then you can decide for yourself which is going to suit you better.

 

Im going to suggest some books, all of which I have read and do highly recommend.

 

Fundamental Analysis

One up on Wall St. - Peter Lynch

 

Technical Analysis

Secrets to profiting in bullmarkets and bearmarkets - Stan Weinstein

 

General trading, risk management, money management, psychology

Trade your way to financial freedom - Van Tharp

Trading for a living - Alexander Elder

 

Mechanical systems trading

Trend following - Michael Covel

Way of the turtle - Curtis Faith

 

You may get lucky and find them at a university library.

 

If not, just buy them. They're not cheap but if your a serious trader you wont be cheap either.

 

All the best on your journey. It will be well worth it.

 

 

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In reply to: annaliese on Thursday 16/08/07 11:47am

Hi annaliese,

 

Thanks for your guidance.

A newbie to oil/gas stocks, I'm seeking to accumulate an investment portfolio in this sector.

Would you be able to steer me in the direction of junior/emerging companies which represent good value at the moment; a track to begin my journey from.

I understand the requirements regarding my own due dilligence and follow up research.

Reply via PM or this board at your discretion.

 

frankmal

 

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In reply to: nizar on Thursday 16/08/07 06:51pm

Absolutely agree with you Nizar. Books are (relatively) cheap, can be taken at your own pace, and returned to as often as you wish.

 

From a technical trading perspective I would suggest that a newcomer also investigate

 

Louise Bedford - Trading Secrets.

Chris Tate - The Art of Trading

 

and the Darryl Guppy books directed toward the inexperienced player.

 

I hasten to add that I have no connection with any of the above.

 

They relate to the Australian market, I found them to be very straigtforward and readable, and should enable a newcomer to develop a trading plan that will avoid an early wipe-out. This can be refined with experience and further reading.

 

Just my opinion, of course. However, whenever I read anything related to the markets I ask myself 'what is this person trying to sell me, and do I really need it" ?

 

I remind the newcomer that the market will be here for a while (despite recent events) so take your time, and keep your position size small until you gain a little confidence.

 

Always remember that while losses are inevitable an essential rule of investing or trading is to preserve your capital, so keep them small as well.

 

Regards,

Monteverdi.

 

 

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In reply to: frankmal on Saturday 18/08/07 01:15pm

Frank,

 

Koko has started an interesting thread titled "cheapest oil producer on the asx". I just put in my 2c, which is mainly strategy but I mention a couple of companies.

 

If you want my thoughts on exploration plays just see where my name pops up and that should give you some useful ideas.

 

 

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