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