The First Trade

Remembering back to my first Shareholding trade, really, I knew nothing.

Jumping in with both feet

With hesitation we placed our first order with the minimum amount possible and sat back and watched. Within moments the trade matched and completed.

We bought our first shares in a company.

Then we were hooked. We went looking for more. We spent a couple of thousand ($) that day.

What company was first and why?

Since this first trade I have learned so much more! We were in Queensland, Australia at this time so we bought companies that we could see:

Of course I’m simplifying the descriptions of these companies, at the time we bought them we really didn’t know what we needed to know.

It is important that you do your own research, this list is not a suggestion or investment advice.

Do I still own these companies? No. Why? Ask me.

Minimum Shareholding

There are different rules around minimum holdings, depending if you’re buying directly on market with a full-service broker, or if you’re buying through a custodian broker.

When we started we used CommSec, a full-service broker. This meant that we were directly subject to the ASX rules. We actually were personally entered into the Shareholder Register of the companies we purchased. On the ASX the minimum shareholding and first purchase was AUD$500.00.

But doesn’t the shareprice change often? What if you buy AUD$500 minimum and the price falls?

Companies don’t want thousands of micro-shareholders, each shareholder costs the company money to maintain the Registry. Every now and then when a company recognises they are collecting too many small holders they may force-sell the shareholders stock and return the money. This is done with plenty of notice allowing shareholders time to buy enough stock to raise back above the minimum AUD$500 holding, or to sell out themselves and avoid the official Share Sale Facility. There are pros and cons to every decision here.

Ask me about forced “Share Sale Facilities”, there is a lot more to know.

Do I still trade in minimums?

Oh, no, not at all. It is very unusual for me to trade in the $hundreds anymore. As you grow, there really is no point.

If you have done your own research and forecasting then you will know how much you can spend.