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Share Investing and Trading

We are not financial advisers or sharebrokers and consequently you must undertake your own research into investing in shares. Any information outlined here is general in nature and you should satisfy yourself that your investments are sound.

The decision about which shares to invest in comes down to you so make sure you do the right research and invest in companies that you understand. Well managed companies that represent good value in relation to their share price can sometimes offer good long term returns. Avoid companies that have less than professional management.

As you reach retirement always be careful about your exposure to shares, in particular volatile shares as you could loose a large portion of your nest egg when you can least afford it, should the share market undergo a correction.

Younger investors may invest heavily in Australian and International shares as these investments traditionally perform well over a long period of time, however older workers and retirees generally gravitate their funds to more stable investments to try to reduce the short term volatility of share investing. It can be difficult in your latter years to regain losses caused by share price drops.

During the latest sharemarket boom, many people invested in the mining sector due to the unsatiable apetite of China for our resources. Whilst large resource companies such as BHP have been very profitable and should continue to be so, they do sell a large quantity of their resources to China, so be aware of the possibility of the mining companies being less profitable in the short term.

Share Indexes
There are a number of Australian share market indices. The indices comprise a list of the securities are broadly known as the ASX S&P 50, 100, 200 and 300. Each index represents the number of stocks included on it. For example, the S&P 50 includes the top 50 companies traded on the stock exchange.

The most generally quoted index of the Australian equity market is the ASX 200.