First Steps - A Sharemarket Guide for New Zealand Investors
Two of the basic goals of the ShareChat website are to inform and educate. This means giving timely information to seasoned share traders as well as helping those who have never owned a share before.
Our First Steps educational series takes would-be investors on a sharemarket journey, explaining in simple terms such things as the difference between private and public companies, why the sharemarket exists, and how people can begin to invest in shares.
The knowledge that is gained through reading the First Steps series will give you a strong overview of financial markets and will also point you in the right direction to learn even more.
By taking the time to read each of the First Steps articles you will help build a solid foundation to begin making informed investment decisions.
'First Steps' Articles:
Step One - From Private to Public Understanding how the market works from the ground up is essential knowledge for all types of investors. This article looks at the process involved in taking a private company, and listing it on the stock exchange. It also explains how shares are offered.
Step Three - The Local Markets This article takes a look at the practical workings of the New Zealand and Australian stock exchanges and explains some of the opportunities available to the individual investor. Step Four - Planning an Investment Strategy Have you ever wondered why some people appear to be good investors while others seem to always lose money in the market? It's a question asked by many investors - both those who are new to buying shares and those who have been investing for some time.
Step Five - Short-term Trading for Profit The most important characteristic of short-term trading is that you are buying a share with the exclusive intention to profit almost immediately. Short-term trading requires discipline and ongoing analysis to know when to buy and when to sell.
Step Six - In for the Long-term? Long-term investment is the most widely accepted and practised method of share investment for New Zealanders and Australians. Unfortunately, the same long-term investment strategies are also deeply misunderstood and often incorrectly applied.
Step Seven - Looking for a Bargain Buying shares because they are cheap can be a dangerous investment strategy. People love a bargain and too often this can lead novice investors to buy a share they consider cheap, only to see the price drop even further.
Step Eight - Hands-off Investing Giving responsibility for your share investments to someone else can seem like a good idea. Hands-off investing through funds can be less labour intensive, but is it possible to make good returns in the market without having to make any effort?
Step Nine -Trading the Plan After becoming familiar with the investment plans, it's time to move onto the next step - trading that plan. This article shows how to apply some of the concepts discussed in previous steps for a short-term trade.
Step Ten - Settling in for the Long-term Fundamental analysts tend to separate companies into two distinct groups. To be considered as a potential investment, companies must be either showing potential for growth or currently undervalue