The ASX released the September edition of its free newsletter. We were lucky enought to supply the lead article titled 10 top share tips. The global financial crisis of 2008 and recent sharemarket woes have left many investors wondering what they need to do to be successful. In this article, I discuss 10 things you need to do to be successful in the sharemarket, and bust some myths that I am sure many believe to be true.

Dale Gillham

Chief Analyst, Wealth Within

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’, has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment advice to traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.For more information please visit www.wealthwithin.com.au

The reality is that if you learn some of the stock market basics, particularly related to the preservation of capital, your investments may come out in front of a ‘buy and hold’ strategy over the longer term. The sad reality is that many investors miss out on this opportunity as they don’t stop to get a good understanding about how to invest in shares and instead they react to the market blindly.

I thought you might like to hear a podcast I recorded recently to get an insight into some share market research I have done and how the timing of your investment decisions can have a dramatic impact on long term returns. 

To listen click here.

Dale Gillham

Chief Analyst, Wealth Within

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’, has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment advice to traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.For more information please visit www.wealthwithin.com.au

The financial industry, in an attempt to stem the steady outflow of funds, have been promoting to investors that investing is for the long term and to properly diversify by moving money out of cash and into investments like bonds, shares and other managed investments. Regardless of what the industry tells you to do, why invest in something you don’t understand?

Over many years of helping people to achieve their financial goals, one of the things I try to impress on them is to trust themselves. After all, the person who has the most to gain or lose in any financial decision is not your accountant, your financial planner or your broker, it is you. GFC or not, there is a way through the investment maze for everyone.

Sadly, most investors divorce their responsibility and want someone to hand them the Holy Grail to make them wealthy. This in my opinion is part of the reason why a lot of people never achieve the wealth they deserve. The GFC demonstrated how people invested in products they don’t understand, and further, they make emotional decisions based on fear and greed. Right now decisions are being made based on fear, and therefore are a repeat of the sins of the past. In the case of pre the GFC, the motivation was clearly greed, with investors going with companies like Storm Financial and others chasing high returns.  

What do we expect in the market?

After initially reversing strongly last week, the Australian share market has continued cautiously higher to achieve 4,390 points this week. However, the realities of the depressed economic situation in the US and Europe were too much for the risk appetite of short term traders who started taking profits at the end of the week across world markets. As a reaction to this selling pressure around the globe the All Ordinaries Index has come off its recent highs to test previous levels of support below.

Global markets are very reactive right now to any news that emerges, and investor sentiment is quite low, therefore I believe we are unlikely to see a solid commitment to any further rises in the short term. A rise is likely to be a test by market players and could be followed by further selling to test recent lows. These moves on the market are what we call false rallies that often catch investors out. Therefore I believe now is the time for investors to remain cautious while waiting for the big money to show commitment before attempting to look for opportunities.

Dale Gillham

Chief Analyst, Wealth Within

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’, has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment advice to traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.For more information please visit www.wealthwithin.com.au

Reports indicating a slump in finance for new dwellings, has confirmed cracks are starting to appear in the property market and sparking concerns for both developers and investors. This news follows predictions of a housing bubble being on the horizon for Australia, so does this signal that Australia may now be heading for a property meltdown as seen in the USA?

I believe calling a property bubble in Australia is a bit premature given the current resources boom and low unemployment in this country. Especially since we also have news that Australians are now saving more than they have in a long time, suggesting we are being cautious rather than speculating. I see the current period as being more likely a time when we are seeing a softening of house prices because we are being more cautious, which is exactly how investors should be in the face of a possible bubble.

Just as share markets rise and fall so too does property, and the number one mistake made by investors, is not acknowledging this. Albert Einstein once said that ‘Education is the progressive realisation of our ignorance’ and never a truer word has been said especially when you consider the education we have received during the past 4 years with the GFC.

What do we expect in the market?

The Australian share market has been quite buoyant over the last 16 days seeing it trading back above the all-important 5,000 point level. This indicates the market may have the wind back in its sails following the March decline, but a word of caution the wind is currently running at gale force. Normal markets generally fall faster than they rise, however during the rise over the past two weeks the opposite has occurred. The market has risen back up in price over 14 days in what took 20 days for it to fall and this is concerning me a little.

Right now I would like to see buyer momentum slow down for one or two weeks so that the market doesn’t move too far ahead of itself. Remember a market that continues unabated can quickly become unstable, as seen in early 2010. Looking ahead, I believe the All Ordinaries Index is likely to continue above the 5,000 point mark in the short term to achieve around 5,200 points.

Dale Gillham

Chief Analyst, Wealth Within

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’, has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well asindependent investment advice to traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.For more information please visit www.wealthwithin.com.au

I was asked last year by the editor of a women’s website called RESCU to put together a series of articles to assist women who want to become financially independent. The concepts discussed are not gender specific and therefore are useful for anyone who has the same goal. This particular article uncovers a practical framework to investing that I know you are likely to find useful so I suggest that you take a look.

Direct share investment is an important part of any wealth creation plan and the great thing is that technology has made it even easier for you to learn how to run your own portfolio.

I found out long ago that women want a practical framework that will allow them to select the stocks for their portfolio that have a higher chance of ensuring they are consistently profitable. Once women have the knowledge, they have the confidence to make decisions, and ultimately they take control their financial futures.

To read the article on the Money Management website Click here

Dale Gillham