How to get a headstart. (advice for a n00b)

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throwaway420

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Hello MyBroadband,

I'm an 18 year old, have R15 000 (of which I can FULLY let go of without worry) I want to invest and I'd like to get your opinion on it. I have an FNB account, an easyequities account and have been a justonelap, /r/investing and general economics reader for a year. I don't have all the time to dedicate to this as I am studying but would like to get the best chance I can possibly have at succeeding.

I have been following the ZAR->USD/GBP and I'm worried about the rand losing so much value so quickly, I'd like to get some opinions on what the best course of action to hedge against this is, with what I have availible to me.

I'd also like some guidance on ETFs/Passive investments and possibly Forex. What are the best places to get decent rates and low charges without having to invest a lot of time into it. In the future (after University) I will have more time to put into it, but for now I just want to get a feel and gain some experience.

Your advice will be greatly appreciated and I apologise if threads like these are spammy.

Kind regards,
Mike
 
Put it in your TFSA in EasyEquities.

Since you've got a lump sum, you can spread it around a few ETF's.

Get some local, foreign and property exposure.

That would be the best advice I can give you.
 
Could you please explain how the TFSA works? If I put all of it into that, and then get an ETF, am I not wasting my R30k lifetime deposit by effectively adding and immediately removing R15k? Or am I thinking of this incorrectly?
 
The lifetime allowance is R 500,000 the yearly allowance is R 30,000

I would rather just do a bit more research, ask questions, before putting it into anything if I was you,
maybe rather even talk to a professional...but I know your not going to listen to me anyways.
 
bchip your handle sounds familiar.

I'm definitely going to listen to any advice I received and ask questions. Thanks for your input and I'll definitely be doing more research!
 
Glad to hear it!

Not sure where you wouldve heard the handle, maybe because I post often about my trading club.
Anyways maybe I can start pointing you in the right direction at least.

To start off with your 2 choices,
1) play it safe, put that money into a high interest bearing account, top it up every month and keeping
learning while you earning

2) play it risky...considering you will make more money in the future as your salary increases over time buy whatever you think and read up on, or read in forums and lose all that money,
but you gain experience

What I can tell you is that you will ONLY be profitable once you find yourself a methodology and an asset class you enjoy.
For example Buffet likes stocks and uses value investing, George Soros like stocks and forex and uses economics
Personally I like systematic trading systems with futures, and then I invest on economics.
Economics and Balance sheets have become a joke though with the constant intervention from central banks.
 
bchip said:
Glad to hear it!

Not sure where you wouldve heard the handle, maybe because I post often about my trading club.
Anyways maybe I can start pointing you in the right direction at least.

To start off with your 2 choices,
1) play it safe, put that money into a high interest bearing account, top it up every month and keeping
learning while you earning

2) play it risky...considering you will make more money in the future as your salary increases over time buy whatever you think and read up on, or read in forums and lose all that money,
but you gain experience

What I can tell you is that you will ONLY be profitable once you find yourself a methodology and an asset class you enjoy.
For example Buffet likes stocks and uses value investing, George Soros like stocks and forex and uses economics
Personally I like systematic trading systems with futures, and then I invest on economics.
Economics and Balance sheets have become a joke though with the constant intervention from central banks.
Click to expand...

Great, thanks! :)
 
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