How To Invest In The Australian Stock Market
We are lucky here in that it’s actually quite easy to invest in the Australian Stock Market since there is so much information about our companies posted through our online brokers and on the company websites. Having all that information at our finger tips actually makes it a lot easier to find great companies to invest in.
Having said that, you still need to know what you are looking for which is why I’ve started to build this guide that will help to choose the best stocks to invest in.
We might as well start at the beginning and look at what you need to have before you invest.
Obviously you need some money and a brokerage account, but is there anything else? And are you better suited to investing for the long term or the short term?
1 – How Do You Get Started Investing in the Stock Market?
In this article I go over all you need before you get started investing in shares. It covers the basics which is good for beginners (but you can skip this if you already have been investing already).
2 – Should You Invest for the Short or Long Term?
I invest for BOTH the long and short term. Many people however prefer one style over the other. In this post I talk about whether you’d be best suited for long term investing or short term. Both require different strategies so its worth knowing up front which style you are going to choose.
Prefer to take a longer term approach? Good decision. That’s how I started. OK then you should learn how to read the companies financials so that you can choose those business with sound fundamentals. Don’t worry it won’t be too boring – fundamentals has the word ‘fun’ in it after all.
1 – The Rules for Long Term Investing
The RULES. Yes in this post I go over my top five rules for investing in the stock market for the long term. The key here is to choose strong stable companies (like blue chips) that will grow over time making you lovely profits as they grow.
The first rule is to choose Market Leaders – the blue chips, the kings of the kingdom (or something like that). The reason why I stick with these companies is that they are *usually* more stable and not likely to fold overnight taking your money with it.
3 – The Best Long Term Investments for 2012
What you can’t be bothered doing the research? No problem I’ve done it for you! These 7 companies fit ALL of my Shopping for Shares rules and will make great investment choices for 2012. I’ve even included an extra company that I like.
4 – Investing for the Dividend – It’s Money In The Mail
Lately one of my long term strategies has been to invest purely for the dividend yield. Some companies play pretty decent dividend yields so it makes a good option especially when markets are flat like they are now.
If you’ve decided that you want to invest for the short term and take advantage of the volatility of the stock market then it’s a good idea to know how to quickly and easily find those companies that are rising in price so that you can take advantage of their movements.
The Rules for Short Term Investing
So far this is the only article I’ve written on this blog on short term investment. It covers the RULES for short term investing as outlined in my book.
I’ll be adding more short term investment articles soon.
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I’ll be adding more guides and resources to help you to become a successful investor in the Australian Stock Market to this page over time so check back often.
Tracey xx
2 Comments
Recently I bought CCL 1000 units at $12.36 then another 1000 units at $12.00 and now they are at $11.60 and bought 1000 units QBE today at $10.98 and now wonder whether I was stupid to do it. Can you please advise me what shares to buy and what price, please.
Thank you.
Regards
Seemawathie
I’ll be doing research soon to determine which are my picks for 2014.