Learning to Invest

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  Munificent on 19/10/2014 - 00:40

  In my experience, the best way to learn more is to read the business news and books and speak to friends that already invest in the share market. Shares can be risky, so only invest money that you can afford to lose. Shares can also be extremely volatile in the short term (<1 year).

  Ultimately you need to do your own research and use judgement when selecting stocks, don't just rely on the selection of others, unless they have a proven track history with above average returns. One strategy that has worked for me has been looking for businesses that have a competitive advantage of some sort (or as some people call it - a 'business moat' which prevents competitors from taking away profits) and buying them when their shares has gone down temporarily . eg you could say that Woolworths has an edge due to their dominant size and purchasing power, thereby allowing them to generate consistent extra profits, and prevents new entrants into the industry.

  I wrote a bit on this topic in my blog, if you wanted to check it out: http://smarterwithmoney.blogspot.com.au/2013/12/introduction…

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  [Deactivated] on 19/10/2014 - 07:26

  +1

  I think the ASX has a "game" or simulator call it what you like, where you buy and sell shares theoretically. So not using your real money. Could be good to try it out to get a feel for how it works, the process etc before doing it for real.
  Good luck.

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  jaackyy on 19/10/2014 - 11:55

  thanks for the help guys ! @Kaizer, your blog post is great btw ! have you got any other sources that you'd recommend me?
  @Faithless, yeah I've heard about that too, it's based on current changes in the sharemarket etc

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  SBOB on 19/10/2014 - 17:57

  Vanguard etf… Perfect start.. Open up one of their direct funds and transfer $1k a month.. Slightly higher fees but the ability to add funds whenever via bpay (as opposed to paying a shares purchase fee by buying the etf directly on the asx)

  Get in the habit of saving the $1k a month in that, while learning about other possibilities… You might end up just sticking with etf based investments (either directly on the asx or via an external fund)

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  Munificent on 19/10/2014 - 20:07

  The ASX has quite a bit of information for new investors. They also have some trading games from time to time

  http://www.asx.com.au/education/get-the-basics.htm