Forum Archive Index - August 2002

[Sam and Jerry <samjer@xtra.co.nz>]

The best place to start is your local library which should have heaps of
books on investing in the sharemarket (the Central City Library in Christchurch
has a splendid selection). Safe Haven by George Kerr and Aaron Hing
is a great primer  (and it's about the NZ market) .... start with
the ones with big print and lots of headings and white speace, and as you
start to get a grasp of the big picture, move on to the more complex ones,
like The Art of Investing by John Train, or Contrarian Investment
Strategies by David Dremain.

Visit websites like Sharechat and make sure you get onto their Newsalerts emails and their daily news summaries (pick of articles both local and around the world about the daily market).  SHARES magazine is excellent for learning about the Australian marekt, and they have great articles on investment strategies, and technical analysis.

The sharemarket is much more like a soap opera than an exercise in mathematics. Read financial pages in the newspaper, listen to the business news on the radio (Nat Rad at 6:45 am and 7:40 am weekdays), and get to know the personalities and stories of the the players (ie, the publicly listed companies who comprise  the market ).

learn how to read a sharechart, esp trend lines, volumes.

Learn how to read market depth (ie, how many buyers and sellers at what prices)  (you'll probably need to sign up with an online broker for that, which you'll have to do anyway, if you're going to trade.)  ASB Securities have real time online depth and they offer a great service generally.

Paper trade for a wee while, and  when you feel you are ready, take only small positions in a company. Diversify across sectors. Don't buy lots all at once, ie, you should drip feed your money into the market.  Don't buy on up days, and don't panic and sell when the market is all red arrows.

Hope this helps.
 

Jerrr

Holden Glova wrote:

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Hi all,

Having been a lurker here for a week, I have decided to go out on a limb and
ask those that are far more knowledgeable then myself. I am not sure if this
is the correct forum to post such questions, if it is not I apologize for the
extra noise.

SUMMARY
Any direction on where I can learn more about the sharemarket is appreciated.
Specifically, where can I find out what to look for in a possible investment?
Where can i learn how to know when to get out?

BACKGROUND
I've been a student most of my life. My background is in the aviation industry
studying to be a commercial pilot, then making a sharp turn toward software
development. I have finished my software development degree 2 years ago and
only now am starting to be able to save enough money for investments.

CURRENT SITUATION
I have made an investment in managed funds (which has taken a sharp loss), but
I feel somewhat bored with this investment as I was just basically taking
what the financial manager told me as gospel. I would like to learn more
about what to look for so I can make educated decisions on my own. I would
like to trade on the NZSE and ASX.

QUESTIONS
I would be really appreciative to anyone that can point me in the direction of
learning some things about the sharemarket:
- - What do you look for in a possible investment? Obviously you look for
something that you think will go up, but how does one have any idea that it
will rise?
- - What are signs that it will possibly drop?
- - Does anyone recommend those 'learn the sharemarket' CDROMs on the sharechat
homepage?

Many thanks in advance for any direction provided.

- --
Signed,
Holden Glova
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