Looking for advice on an ASX Top company's shares (or CFD^{^}) to make you money?

A quick lesson from Australian Trader and Trainer, Jason Davis.

Total returns on shares have risen by 40 per cent over the past year – the largest annual gain in 12 years. Over the past 15 years, total returns on Australian shares have averaged 13 per cent per annum with real returns around 9 per cent.
Comsec Economic Insights Federal Budget 2006/07: Implications for Investors MAY 9 2006

 

There is no doubt you can make money from the Australian stock market - thousands of people have in the past. However, if you haven’t done it yourself before, I bet you have heard from a brother, friend, neighbour or colleague, who has “cashed in” on a great share buy.

But if you want to make money in shares and CFDs^{^}, where do you start?

If you are trying to decide what to buy or sell by looking at the internet, you may be taking a huge risk.

The internet is a great source of information, but what do you believe and what do you ignore? On a search on Google the day this was written (11 October 2006), a search on the phrase "Telstra shares" brought 138,000 results. That is 138,000 pages where the subject is covered in some way. Where do you start?

To quote Warren Buffett (arguably the world’s best investor and 2nd wealthiest man):

"Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well".

 

So what do you do to make money? The newspaper and thousands of stock market articles are rife with speculation on one company after another, day after day. What you are looking at may only be hot for now.

There are no surprises that thousands of Australians make money from shares, CFDs^{^} and other financial products, every day. The issue is that if YOU do what everyone else does, chances are you will get what everyone else gets.

What you need to do is understand a few simple things:

1. You can make money from shares and CFDs^{^} traded on Australian markets. The share you were researching when you found this web page is just one of nearly 2,000 shares. People profit from them every day.
2. Many still feel very emotional about buying or selling decisions, this can be enormously dangerous.
3. There are plenty of places you can go for advice but if you don’t want to trust other people, you can find out how to make these choices yourself, without having to ask anyone else.
4. Plenty of Australians make great returns every day and they can do this whether the stock market rises or falls. Unlike so many places you can put your money, shares and CFDs^{^} provide the benefit of making money even when prices are falling. 
5. With some part time education and less than an hour a day you could know how much of which shares you should buy and sell, at what price and never have to make a guess again.
6. There are HomeTrader training centres in most Australian capital cities that teach Australians to make money in shares and CFDs^{^} all year round. 50,000 people have been to these training centres since they opened.

Start off the easy way. Spend two hours in a training centre and let a Trading trainer teach you the basics of how to make money in shares and CFDs^{^}, and learn the 5 essential elements of an expert stock market approach.

If you think you might benefit from an education to help you make more money for your future, give us a call on 1300-654-564 or click here to book into a FREE Introductory Class at a HomeTrader centre near you.

Otherwise maybe you want to toss a coin to see if you are going to buy or sell shares to make money. If that is your choice, here's the 10 most dangerous habits to have as a trader or investor.:

1. Buying based on media tips – most of Australia’s newspapers and newsletters have 1,000s, even hundreds of thousands of readers, so tips, for many, aren’t very hot. 
2. Buying on emotion – a sure bet for failure. Buying because you feel something is right in your gut is not a good reason. 
3. Getting advice from those who may not be qualified to give it. 
4. Only knowing how to make money in rising markets. If property prices fall you can lose money but if share prices fall, traders can make money.
5. Not using a stop loss to help you prevent possible BIG losses. 
6. Not understanding position sizing and how to calculate exactly how much of each share or other financial products to buy. 
7. Not knowing exactly when it's time to buy – Trading system entry rules explain when and why to buy a share.
8. Not knowing when it's time to sell – Trading system exit rules show when to exit a position.
9. Buying a stock when it's trending down. Stocks are usually down in price for a reason.
10. Buying low priced stocks. These stocks are usually cheap due to problems.

If you rely on any of the above, please be aware that share trading or investing probably won't work for you.

The Australian stock market has been in record territory this year and some people have been cashing in on it and making great returns.

Need Help Deciding What To Do With Shares?

Come along to a HomeTrader Free Introductory Class, and learn the basics of how to become a successful trader. Then, you'll be able to better decide what to do about trading. 

Click here to book into a FREE Introductory Class in your area

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