EDIT: 10/July/2017
Like everything, this page is out of date now by a few years and my views on the stock market have changed a lot. I ended up throwing away the trading courses I did, moved away from trading and eventually came back to take it up again after a few years.
Currently signed up with IG Markets and messing with CFD trading, FX and a bit of this and a bit of that. If things work out I might post more. I'm never on here much these days.
Read if bored only. Cheers.
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This is a blog for Aussies and the few followers I have. I get asked the same questions and this will act as an update to previous blogs. Take it all with 'a grain of salt'. I'm not making millions but the info is free. <wink>
1. How do I start to learn trading (USD) from Australia?
Understand learning to trade is a long process. Try to accept that and enjoy the ride. Don't rush into trading like I did spending thousands on an out-of-date, badly designed, overpriced course. I stopped trading end of 2015, have been paper trading, learning new trade skills, reading a lot and have found it has helped a ton.
There are many ways to trade for a new person. Overall buying and selling (going long) stocks is the most popular and a great start.
I don't recommend the trend on Profit.ly in which you short penny stocks. It's an advanced and stressful start for noobs and can get you into some major debt. No one really tells you that in enough detail, they just take your money. Yes, many do well with this strat but many, many people don't. Stay away from shorting stocks until you understand trading better. It's also harder to Short over here due to lack of good brokers we have access too.
I recommend Trend Trading for new people, especially for Aussies or anyone on our side of the planet. You can study charts in your own time, any time, place down your orders anytime and check once a day on how you're going. Its far more stress free and a good way to learn.
http://www.investopedia.com/
This is your dictionary for trading. Use it a lot.
Start reading books on trading. I recommend Kindle on a tablet or phone so you can read on the way to work, on holiday, walking about and on the loo! What books? Just do some Google searches and ask around. I havn't read anything that really blew me away as yet. Search key words such as "trending" and "top 10" etc. Just be aware many sites related to stocks are full of B.S. and their reviews might be fake. If you're having issues let me know.
GURU's (an influential teacher or popular expert)
Be aware there are many fake and terrible trade "teachers" out there. Beware of the services they offer! I was very disappointed with the Tims Challenge course and the Investors Underground DVD's were very good but very overpriced and lacking in important details.
Many willing to teach you trading will charge you a lot and it doesn't seem worth it. Yes, these people are great traders but it doesn't mean they're great teachers.
Lastly GURU's tend to focus on the actual trades but lack details on finding the trades. This makes them useless IMO. If you can't find a chart to trade, the part on actual trading is useless! You need to read a book from the start, not skip to the end! GURU's can also have a lot of out-of-date material going back years which will really ruin your day and pocket.
Monthly subscriptions are the best way to learn if you're willing to spend some cash. It will give you access to the GURU's website and you can suss them out.
- Dont bother with "Alerts".
- Dont bother with DVD's unless affordable. $2000 or a dvd is fkn stupid.
- Dont believe the marketing BS. "Its expensive because it can make you rish". Trading can also make you poor.
- Dont belive in "SALES"!! A product from $1000 to $500 is not a sale. Pay what YOU think its worth or not at all.
- Dont trust anyone. Dont trust reviews. Dont trust period. Suss everyone out that wants your money.
2. What broker\platform can I use?
I'm a little out of date here so do your research. Brokers change their rules all the time but at the time of trading this is what I knew:
I have access to OptionsXpress as I couldn't find another broker at the time to short US stocks. There should be other options available by now.
Australian stock brokers - Overall, our brokers are expensive. Very expensive. Look for brokers overseas for far cheaper rates.
1. OptionsXpress
No monthly fee
+++ Far, far cheaper trade fees than Aussie brokers (10-15 for basic trade).
++ Trades seem to go through pretty smoothly
+ Can have many trade windows at one time
++ Market Simulator. Very popular and unlike phone apps has a multitude of options to play with.
+ Phone App
-- Platform is weird to use (see my blog on using it)
- 2nd level isnt that great
--- Need $25k to remove PDT rule (more than 3 trades a week)*
-- Can't short under $6 (don't bother shorting under $7).
- Large fees for stock under $1
- Recommend 3 monitors as some windows cant be configured smaller. Min 2 monitors!
*I personally don't trust the US currency due to their debt levels so I no longer use OX (for now) unless you don't mind the PDT rule. It might be worth using Suretrader as they have no PDT rule thus you can use far less AUD converted to USD.
2. Suretrader
From what I've heard its not the best platform for trades and they have fee's on top of fee's but with no PDT rule it's worth trying. I'd say they're the best start for new traders due to their flexibility.
+++No PDT rule
--Multiple fees
-Not the most friendly platform (lost trades, platform crashing, extra charges on trades)
3. Interactive Brokers
Note: This was my first broker. Everyone (Sykes, forums, IB support) said to use it for USD trading from Aus so I did. I signed up, they took a large fee for processing my money transfers then stopped me from trading with a big, fat, red error. Calling support they advised me they had stopped anyone non-American from trading. Apparently this isnt the case with others but I was unable to trade with them. Even with $30k. Stay away, they're dodgy, greedy aholes. Their support is terrible.
4. RobinHood
This is a phone app with no fee's. I want it but they have been saying its coming to Australia for a very, very long time. Recently it went to China and overall seems to be very popular. Keep an eye out for it. Should be great for Trend Trading.
5. E-trade
For shorting, they have become a lot better. Still expensive though. During my time trading they stopped new Australian accounts and I'm not sure if you can sign up again with them.
~~If anyone knows of more brokers Aussies can access let me know with their fees and restrictions! Cheers.
3. So you have a broker now!
If trading feels scary or you find yourself asking others "what ticker do I trade?" then DONT trade. Do paper trading. Be sure you're not paying fee's though. Some brokers will charge 'inactive' fees after 6-12 months or a monthly fee.
I've heard many, many people say they won't paper trade. Frankly I find this insane after saying the same thing. Take it seriously and actually try to make a profit. Research, trade and learn. Unfortunately there are no good apps for the phone that I have used. Best for me so far is "game of stocks" but only because it lets me use any ticker. Other apps will have issues finding a lot of tickers. Its not perfect though and pales in comparison to OX's simulator. Every simulator I have tried has been terrible and only good for going long, trend trading.
Create a Watchlist daily. Find stocks, write down details on what they're doing and what you think they will do. If you decide to trade put down how much and why and what your plan is. Did it work? Write down why. Learn.
Never stop reading and looking at charts.
Use apps that save your list of tickers such as "Stocks": Allows you to quickly go through a watchlist or tickers you just like to keep an eye on.
Thats it. Hope it helps a little. Cheers.
the time diff sucks big time haha. i'm still trying to figure how i can trade, sleep and get up for work and do that on a consistent day to day basis
$15 a trade isn't too bad. You want good charts to play which should net you $200 to $2000 profit. Don't settle for any chart.
A chart like WLKR is under $1. OX isnt good with low cost shares. Plus, they charge you a lot. Move to Suretrader if they're the charts you want. OX is better for $2 stocks and above.
@bennos Consider Trend Trading if sleep is an issue. I've been playing with it and although not something I want to do 100% its a good way to learn how to play stocks longer term. Think I mentioned this in the blog?
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