Part 2 Trading Tips
share investment rules
I shall now endeavour to lead
you around some of the nasty quicksands you will encounter
on any odyssey through the Australian sharemarket.
Let us start with a handy list of trading principles
that will stand you in good stead in most cases.
buy into companies unless you know the debt level
Don't buy into companies with high debt levels
Give your selection a reasonable amount of time in which to perform
Never allow your bids or offers to be affected by fear of upsetting
a broker or looking stupid
Try to usually buy stocks near historically low
levels in spite of market sentiment
Try and buy in sectors of the market that seem undervalued or out of
Don't overreact to blind panic - Be prepared to sometimes be brave
Never stray too far from the fundamentals - There are lots of stocks
to choose from
When considering fundamentals, believe the bad but double-check the
When deciding where to put your eggs, the quality of the basket is more
important than the number of baskets
Be prepared to quit the market altogether sometimes
Don't rely on formulaic rules or systems from
other traders, books, or indeed websites such as this!