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.
-
Don't
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
favour
-
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
good
-
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!
