Share investing strategies, topics and specialtiesShare investing people, pitfalls, tips and ideas
In this section, you’ll find a lot of resources and strategies about share (otherwise known as ‘equities’) investing.
Explore shares, hybrids, options, bonds and others and how to invest in them. Shares have been traded on markets for decades. You can buy them directly and if you’ve got superannuation, your fund probably owns some.
Before you invest in shares, here’s some guidance
MoneySmart (ASIC) guides | Buying and Selling Shares, Finding a Broker
How to Buy and Sell Shares
On a share exchange
There are five public share exchanges in Australia. Four of them directly supervise the companies that issue the shares that trade on their markets. The fifth exchange, Chi-X, currently only provides the infrastructure for trading shares already quoted on the ASX.
The five exchanges:
- Australian Securities Exchange (ASX) – the main securities exchange in Australia
- Chi-X – an exchange that trades company shares already quoted on the ASX, but does not list or supervise the companies
- National Stock Exchange of Australia (NSXA) – a securities exchange that lists about 70 small to medium sized companies
- SIM Venture Securities Exchange (SIM VSE) – an exchange for innovative companies involved in the clean technology, renewable energy and bio science field
- Sydney Stock Exchange (SSE) (previously) Asia Pacific Stock Exchange (APX) – a securities exchange with a focus on growth oriented companies from the Asia-Pacific region”
Using a broker
Important considerations by ASX
2 types of brokers:
- online or phone broking service or ‘discount’ or ‘execution only’ broker – make your own investment decisions, or
- full service broker – they provide advice and recommendations
Find a broker
The Australian Securities Exchange (ASX) find a broker tool
Check if the broker uses dark pools or internalisation to execute trades, as this may have an impact on the price you pay for shares.
Australian Stock Exchange (ASX) | Online Education Centre - Courses, Blueprints and more
The ASX (Australian Stock Exchange) has an online Education Centre with a lot of FREE material for both beginners and experienced investors:
Get started in shares
Share market basics
Getting into the share market (You Tube)
Marcus Padley’s blueprint for sharemarket beginners
Your investment strategy
ASX Investor Newsletter
Online courses are free, you can start anytime:
- Shares – Our most popular course. Covers shares, analysis techniques and strategies.
- Bonds and hybrids – Learn about securing a regular income stream from bonds and hybrid
- Australian Government Bonds – Find out about one of the lowest-risk investments available
- Exchange-traded funds and exchange-traded products – Learn how to build a portfolio with a single trade. Updated course now covers fixed income ETFs
- Warrants and instalments – Learn about using leverage to boost returns and dividends
- Options – Discover how to magnify profits or protect your portfolio
- Advancing in options Explore multi-legged strategies (for investors with experience in options)
- Futures Learn about leveraged trading over a range of assets
Australian Investors Association (AIA) | Education & Resources
Understanding shares – Before you jump in and buy your first share it is important to understand the basics – different types, pros and cons, franking credits and ASX sectors.
Mechanics of share investing – gain a practical understanding of the mechanics of share investing including how to buy and sell, choosing a broker, initial public offerings and corporate actions.
Fundamental analysis – learn more about fundamental analysis including fundamental investing strategies that might be right for you.
Combining fundamental & technical analysis – learn more about the practicalities of combining fundamental and technical analysis in your investment strategy.
Getting started with shares – use this section as a ‘check list’ to help you get started, including investment plans, paper trading and sources of information.
Exchange traded funds – find out what ETFs are and how they might be used in an investment portfolio.
Listed investment companies – find out how LICs are a great way to gain market exposure when you are first starting out or as part of your long-term investment strategy.
Derivatives – gain an understanding of how derivatives may be used as an investment on their own or as a mechanism to strategically protect your portfolio.”
Beware | Share and forex trading software, bogus claims| Review sites eg Trading Schools (USA)
Trading Schools (USA) they say: “was founded in 2013 as a review website that provides unbiased and honest reviews about all sorts of investment products. We write about trading educators, newsletter providers, trading software, live trading rooms, brokers, etc. We dig up the dirt and relentlessly search for the truth. We have nothing to sell. The entire site runs on income from Google Adsense advertising. We won’t write fake reviews about fraudulent products hoping to make a quick affiliate commission. We will also give you the inside scoop on the best and brightest trading products available.”
Investment trading software – MoneySmart (ASIC) says:
“Some investment trading software programs suggest you can make lots of money through active share trading. Be careful about believing such claims.
Here are some home truths about these programs that are often sold in investment seminars.
Shares and the stock market| Various 'experts' - Podcasts, websites, blogs...
Lessons from an analyst Jonathan Wilson, Analyst, StocksInValue March 2016
Understanding the All Ordinaries shares index gives an investment edge by Anthony Keane Daily Telegraph
- Fundamental and Technical analysis
Introduction To Fundamental Analysis Investopedia
- Company analysis
Four classic mistakes in company analysis by Michael Kemp
Online stockbroking scams by MoneySmart (ASIC)
How to find good growth stocks – Elite Wealth
How many stocks should you hold? Dale Gilham
- Managed Funds (not listed on ASX) – retail, wholesale, superannuation
Managed Funds and ETFs and Choosing a managed fund by MoneySmart (ASIC)
- Exchange Traded Funds (ETFs)
ASX: “A Listed Investment Company (LIC) is similar to a Managed Fund. The main difference is that investors can buy and sell shares in a LIC on the Australian Securities Exchange (ASX) just like ordinary shares.Unlike ETFs that track a benchmark, LIC managers are responsible for setting the funds objectives and selecting the investments. Often managers will set investment guidelines (i.e. only invest in companies in the S&P/ASX 200) and will aim to outperform the index by using active investment strategies.
LICs are “closed” investments, so unlike managed funds they don’t issue or cancel new shares as investors come and go. There’s a set number of securities issued and ASX investors transact LIC shares through their stockbroker just like ordinary shares.
Fees are varied but usually higher than ETFs (~1.0% -1.5% of net assets) and it’s common to have a performance fee (~20% of any returns above the specified benchmark).”
- Index Funds
How to invest in Index Funds in Australia – Finder
Why is Warren Buffett making the argument for Passive Investing? Silverlight Asset Management (USA)
4 Investing Lessons to learn from Warren Buffet – The Motley Fool
- Listed Investment Companies (LICs)
MoneySmart (ASIC) Listed Investment Companies “Decide whether a listed investment company or trust is right for you”
- Property Trusts – Listed (REITs)
MoneySmart (ASIC) REITs
Australian REITs ASX A-REITs
- CFDs MoneySmart (ASIC)
- Futures and Options MoneySmart (ASIC)
Foreign exchange ‘Forex’
- What is forex trading?
- Risks of forex trading.
- Dealing with forex providers.
- Is forex trading right for you?
- Forex trading software programs, seminars and courses.
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Disclaimer: The information and comments in this site are general in nature, opinion only and don’t take your personal financial circumstances into account. Our aim is purely to educate you and show you people and organisations in the finance and investing industries you may, or may not, choose to contact for personal financial advice. Any claims or comments of others are strictly those of the cited individual and not endorsed by Andrea or Best investment Gurus. Before you take any financial or investing action or buy any service or product - get your own independent financial advice, tailored to your specific needs.