Part 2 Trading Tips

Smartgambler 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.

  1. Don't buy into companies unless you know the debt level

  2. Don't buy into companies with high debt levels

  3. Give your selection a reasonable amount of time in which to perform

  4. Never allow your bids or offers to be affected by fear of upsetting a broker or looking stupid

  5. Try to usually buy stocks near historically low levels in spite of market sentiment

  6. Try and buy in sectors of the market that seem undervalued or out of favour

  7. Don't overreact to blind panic - Be prepared to sometimes be brave

  8. Never stray too far from the fundamentals - There are lots of stocks to choose from

  9. When considering fundamentals, believe the bad but double-check the good

  10. When deciding where to put your eggs, the quality of the basket is more important than the number of baskets

  11. Be prepared to quit the market altogether sometimes

  12. Don't rely on formulaic rules or systems from other traders, books, or indeed websites such as this!

Next...Dissecting the Smartgambler share investment rules



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