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Commsec Trading For Beginners || 2021

this video is for the ultra newbie out

there who's never bought a single share

in their life and probably doesn't even

have a COMSEC or any kind of trading

account set up now I personally use

COMSEC so what I'll be going through is

how to trade on COMSEC and how to set up

an account on COMSEC now the very first

thing you need to do before buying any

shares whatsoever is to set up an

account called a CDIA or a commonwealth

direct investment account this acts like

a bank account where you put your money

into it and the platform will deduct

money from this account every time you

buy shares and it'll credit the account

every time you sell your shares if you

want to know how to set up a CDIA

account just head off to the COMSEC

website and there'll be a simple guide

into how to register for one

and it's nothing complicated it's just a

regular bank account it's no different

than when you go into your net bank and

you've got a savings account you can

transfer money between your CDIA and

your savings account or you can send

money to this account or on let's say

st. George or Westpac it's got a BSP

number and account number so it really

is just a regular bank account it just

happens to have the money deducted from

this account every time you make a trade

before we make our very first trade

let's have a look at the costs and fees

associated with every trade that we're

going to make

it costs 10 dollars up to and including

every $10,000 worth of shares that we

trade 1995 over a thousand up to ten

thousand and at 2995 for over ten

thousand up to 25 and then 0.12% for any

trade over twenty five thousand dollars

now in the time that I've done my

trading I have never had to deal with

any of these additional fees these are

things where if you'd plan on trading

over the phone for some reason or you

plan on making one-off trades and you

don't have a CD ia account then all

these other fees are worth looking into

otherwise these are the fees that you're

really interested in looking at

here's a quick example let's say you buy

a thousand dollars worth of shares it's

gonna cost you a thousand dollars plus

ten dollars with a brokerage fee that

means you'll get deducted 1010 dolls

from your CDIA account when you make

this trade then later on let's say in a

few weeks time you sell those shares for

$1400 what will happen is you'll get

back fourteen hundred dollars less the

brokerage fee meaning in your CDIA

account you'll get one thousand three

hundred eighty dollars and five cents

back so out of that four hundred dollars

profit you end up paying $30 worth or

just under three dollars worth of

brokerage and you end up with three

hundred seventy dollars worth of profit

now in this example it sounds quite

expensive to have seven and a half

percent of your profits as trading fees

I keep in mind that the more you spend

the cheaper the fees ultimately so if

you spend one to two thousand dollars on

buying and selling shares it's gonna

take a bigger cut of your profit than if

you spend between eight to ten thousand

dollars for example

one last thing we need to understand

before making our very first trade is

the concept of the ASX settlement period

or t plus - believe it or not when you

buy shares on a Monday the money isn't

automatically deducted from your account

on Monday it's actually settled the

trade is actually settled on t plus 2

which is the trading day plus 2 business

days here's an example if you buy shares

on a Monday money will come out of your

account on the Wednesday

now this doesn't mean you have to wait

until Wednesday to sell your shares

you own the shares right away on the

Monday that you bought the shares you

can sell them five minutes later if you

wanted to let's have a look at what

happens when you actually trade the

shares within the T plus two period it's

something called contra which is an

offset so if we buy shares on Monday and

let's say the stock is called ABC so we

buy ten thousand dollars worth of shares

so we expect on t plus 2 which is on

Wednesday to be deducted ten thousand

dollars from our account but let's say

on t plus one which is Tuesday we decide

to sell an amount of shares that are

valued at seven thousand dollars from

any other company let's say a company

called XYZ if we sell seven thousand

dollars worth of shares on t plus one on

T plus two we end up paying $3,000 which

is the difference so we bought 10,000

shares ten thousand dollars worth of

shares and we sold seven thousand

dollars worth of shares so the

difference is three thousand dollars so

on t plus two we have to end up settling

that amount now keep in mind this can be

the same ABC and ABC or it can be ABC

and an entirely different company XYZ as

in in this example so you don't have to

offset through the same company that you

bought you can trade anything as long as

there's an offset it will be balanced

out on the trading day of t plus two

now that we have all that covered let's

look at getting our very first trade

every stock in every company listed on

the ASX has a three-letter code or

something called a stock ticker with

that stock ticker you enter it in this

search box up here let's say we want to

look at a company called fmg or

Fortescue Metals Group so we click on

that and we end up with this screen over

here

now this screen can look overwhelming

the very first time you look at it

because there's just so much information

on it I'll just point out the things

that you really need to know when you

first start out investing and trading on

COMSEC

we need a look at the last price which

is the price that's been traded at the

moment this shows today's change so how

much the prices actually moved today and

in this case its opens at the exact same

price as it is today so the stock price

actually hasn't moved for this stock

we can look at this summary chart here

is also very important we can see the

list of prices on the buy side and the

sell side we can see the orders which

breaks down this table or this graph

here into a more detailed version so we

can see there's 18 people that are

wanting to buy 9500 shares at this price

here at 11 dollars and 11 cents so this

order book will break that down and we

can see every single individual order

that is buying at 11 dollars and 11

cents it was just a more of a break down

view so you can see exactly what kind of

orders are going through and then we

have course of sales cause the sales is

exactly as it sounds

what people have purchased and when

let's say we want to buy fmg or

Fortescue Metals all you need to

understand is the concept of the order

book now the price might be eleven

dollars and eleven cents right now but

that's not the price that we can get it

at if we wanted the shares immediately

if we wanted the shares right now we'd

have to pay eleven dollars and twelve

cents because there's that many people

selling these shares on the market now

if you want it to be patience and you

want to put in an order for eleven

dollars and eight cents you can do that

you'd be the very bottom of this queue

there are currently 27 people in queue

to buy this stock at eleven dollars and

eight cents you would be the 28th person

and then everyone above you would get

priority until the stock gets sold down

into your order now let's have a look at

actually buying Fortescue Metals we

click on buy and we end up on this

screen here we can choose to purchase a

certain amount of shares let's say five

hundred five hundred shares and we can

set a price and we can see the listed

price here there are 23,000 shares at

eleven dollars on the buy side or we can

opt to buy these shares here and get

them right away at eleven dollars and

twelve cents because there's fifty

thousand shares on queue to sell we can

set our price of eleven dollars and

twelve cents and we can see the total

price here is automatically set for us

so we end up paying five thousand five

hundred and sixty dollars with twenty

dollars brokerage fee and this is how

much will be deducted from our CDIA

account or if you prefer particularly

for newer traders you can just put in

the five thousand eight hundred dollars

as a value and it'll tell you exactly

how many shares you can purchase with

this amount of money and then of course

the breakdown is provided for you

automatically and just simply hit and

then hit submit order

now that we've made our very first

purchase of shares on COMSEC let's have

a look at what our portfolio looks like

so we bought fmg shares and we've got

521 shares at eleven dollars and twelve

cents purchase price the latest price of

fmg is eleven dollars and thirteen cents

which for today is a change of one cents

and happens to be a change of 0.01

percent now this these numbers relate to

the price of the actual stock for today

so this is today's change in today's

change percentage when we look at the

profit and loss we're sitting at

eighteen dollars and thirteen cents lost

and the reason for that the reason we're

sitting at a loss and not a profit is

because this this price here this number

here factors in that we paid brokerage

so we're currently sitting at a loss

until we cover our brokerage fees from

profits but the entire trade that we

have here we're sitting at 0.01 percent

profit and loss or in this case a loss

at the moment

we've got a market value just under five

thousand eight hundred dollars this

happens to be a hundred percent of our

portfolio and we've made a change today

of five dollars and 21 cents now this

factors now this value change here is

the change for today so we've made five

dollars and twenty one today on the

basis that we've have got five hundred

twenty one shares and it's moved up your

point zero one percent or the fact that

it's moved up one cent for today that

just about covers our guys and

congratulations you've just made your

first share purchase or at least you've

watched me make one