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Investing as a Beginner in ASX Shares

Richard Hemming


Investing as a beginner in ASX shares can be hard, and it takes courage to start. At Under the Radar Report we don't only help ASX investors choose which ASX stocks to Buy, Hold and Sell but we also value educating our subscribers on how to start investing in ASX shares as a beginner. Our team of analysts have over 150 years of collective experience investing in ASX shares, and we want to help you start buying ASX shares. 

You should read this if you want to know how to start investing in the ASX sharemarket but don't know where to start or what shares to invest in. 

1. As a beginner investor, how much cash do you want to invest in ASX shares? 

If you are starting out with investing in the ASX sharemarket you need to ask yourself how much cash you want to invest in these ASX stocks. At Under the Radar Report we always recommend that you follow our portfolio structure

2. Start a share portfolio so you can start buying stock

Open your share portfolio following the basic rules of: cash (0-25%), Small Caps (20-30%), and Blue Chip ASX shares (50-75%). Blue Chip ASX Shares will always be the mainstay of your portfolio, but you need Small Cap shares for growth

3. It's important to know as a first time investors where the ASX sharemarket is trading

Under the Radar Report provides subscribers who want to start investing in the ASX stock market with weekly share Buy, Hold and Sell recommendations that our team of analysts agree are strong investment ideas right now. To start investing, you can view our Best Shares to Buy table which shows you which stock to buy.  Think about the ASX shares you are investing in and the value of the overall sharemarket. As a beginner and you think it’s expensive, don’t put all your money for stocks into the market all at once. Or if you think the share market is in a dip, it's a very good time to invest as a beginner in ASX shares. 

4. Start investing in ASX Small Cap shares 

Small Cap ASX shares give you the growth you won't get from Blue Chip ASX shares. If you are a beginner, start investing in Small Cap ASX shares now and look through our Small Caps Best Stocks to Buy table. It is worth jumping online and searching the Small Cap stock for investment ideas and find all the share research. To start investing, don't forget to consider your income needs and to choose ASX shares and ASX Small Cap shares that pay dividends if you need to generate income not just growth. 

5. As a beginner create your own investment ideas watchlist of ASX shares to invest in

If you want to start investing list five or six Small Cap shares that you like to buy and put them on a Small Cap share investment ideas watchlist, along-side another 10 Small Cap shares that you are not sure about, but that could be interesting to invest in. To start buying, look at the share charts and whether or not they pay dividends and invest in shares in the best performing Small Cap stocks. Under the Radar Report lists all the forecast dividend yields for each Small Cap stock we cover as an investment idea online under the 'All Stock Research' tab in both our Small Cap shares and Blue Chip Value ASX shares. 

6. Investment ratios and what the averages are important when you are investing as a beginner in ASX shares

When you start investing, it is good to keep in the back of your mind that the average PE of the sharemarket is about 14 times for industrial stocks and 8 times for resource producers. As a first time investor, based on the PE you can get a clear idea whether you think a stock to buy is over or undervalued. As a beginner it can be overwhelming to learn key share investment terms, but it is important if you want to buy stock and invest in shares.   

7. Start investing and contiune researching investment ideas 

As a first-time investor, you must review your ASX share investments like a hawk and keep reading and researching for updates. Under the Radar Report always review the company's results in reporting season (August and February) plus at other times during the year when there is news that will influence the share price. However, if you are a beginner this can be very time-consuming. Let us do all the work, so you don't have to, and we will give you clear Buy, Sell and Hold investment ideas you will know when to start buying shares. 

About the Author

Richard Hemming

Richard Hemming (r.hemming@undertheradarreport.com.au) is an independent analyst who edits www.undertheradarreport.com.au, which provides investment opportunities in Small Caps that you won’t get anywhere else.

Under the Radar Report is licensed to give general financial advice only (AFSL: 409518). The author does not own shares in any of the stocks mentioned.

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