What can you tell me about share trading software?

Thursday 24th January 2002

Q: I'm very interested in day trading and have been to a few free trading seminars which sell software costing thousands of dollars (which uses charts & candlesticks to pick good companies). Are they worth the price? Can you head me in the right direction for good trading courses or books?

A: I have seen lots of technical trading packages in my time. I personally don't believe in technical trading. It is expensive to purchase the software and the ongoing charges for data can add up to another small fortune. Although many software packages come with a money-back guarantee, it is often so cleverly worded that no matter what they tell you in the seminar it is highly unlikely you will get your money back.

Technical analysis can be a good guide if you are looking for a helping hand to pick shares, however keep in mind that if there was a way for everyone to make the returns promised, it is unlikely they would want to share the secret. So, in my opinion, they are not worth the money.

The best thing you can do if you want to learn about the sharemarket and trading is to read the business section of newspapers, surf the net for information, and talk to other investors. You might want to join a share club so you can learn from more experienced investors. Check out http://www.shareclub.co.nz

I also suggest you read "Can Share Software Predict Prices?", an Investor Column article published on ShareChat, and have a look at this list of books, which features in the Learning to Invest series on ShareChat.

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