How can I start buying shares in Australia?
I want to buy shares.
How do I start?
My friend has already bought some shares but she had help doing it, how do I start buying shares?
Don't I need to find a stock broker?
Trading on the internet is quite convenient and also more cost effective.
Importantly, you need to have a plan.
You should never invest any money in the stock market that you cannot afford to lose. Right now there are a great number of companies whose shares have been oversold. Hence this creates a buying opportunity for the astute investor. This is a serious business and not for the faint hearted. If you bought $100,000.00 worth of shares six months ago and during that time the value of your portfolio kept dropping until today it was worth only $50,000.00, would you have been able to sleep at night, or would you have been worrying yourself into an early grave? Would you have panicked long ago and sold at a loss earlier?
This is why you need to have a plan. Buy shares in companies which fit into that plan and hold your shares for the duration or purpose set by your plan. Do not let the market fluctuations worry you too much. If you have researched the company thoroughly and it measures up to your expectations then why let the market change your mind? When investors are in panic and are selling down the price of shares that creates a buying opportunity in those shares. Never never buy shares because somebody told you they believe that you will make a "mint' on them. Do your own research and then only buy if it looks OK to you based upon your knowledge. Any fool can make money on the stock market when it is rising. All you do is buy today and sell tomorrow at a profit. Very few investors are able to profit from a falling market.
When the price of gold went up to over $800.00 per ounce in the 1980's and the average mum and dad investors were drawn into the market they came in when the price had already nearly reached its peak. Soon after the price dropped below $400.00 an ounce. Many then sold out at a huge loss. It has taken over twenty years for the price of gold to go above $800.00 an ounce. The smart investors sold gold at $800.00 and later bought back at $400.00. Where do you see yourself as an investor in the stock market?
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