Whether Or Not to Invest in the Share Market

As you see the Sensex racing towards higher marks, you suddenly realise that you also can be a part of the action and earn good money by investing in shares.

But wait! Shares trading can bring you big returns and can also put you into deep financial troubles if not done properly.

Deciding whether you should invest in shares or not, and how much; depends upon your ability to survive even if you suffer losses.

The basic thumb-rule applies here i.e., ‘you can afford to bet as big as you can afford to lose’. But if you need greater clarity, you need to understand whether you are a risk-averse, risk-neutral or risk-friendly person. Here are a few tips to find out:

Australian Investment Education’s CEO Andrew Baxter is currently offering a free Investor Personality test on their website, to see what type of investment is best suited to you.

Age: The younger you are, and the less commitment you have, your risk tolerance is greater. You can always start back from scratch.

Personal status: A married person should take fewer risks, if you have young children and old parents, then also you must take fewer risks.

Career status: If you are at the peak your career, and retirement is more than ten years away, you can afford to take risks.

Tenure: A lot of things depend on how long you want to invest. Industry expert and speaker of motivational seminar Andrew Baxter suggests that your investment period will decide the type and amount of investment you can do.

Saving ratio: Your monthly saving ability decides how much risk you can take. The more you save the more you can invest.

Financial back-up: Having financial back-up assists in enhancing your risk-taking capacities. One should also consider his current standard of living.

Expectations: If you aim to have higher gains, you must be ready to lose more too. Just ask yourself, if you gain handsomely next month, will you invest more?

Other than analysing the preceding factors you can gain more knowledge about succeeding in the share trading market by getting trained at a renowned trading and investing advisory and coaching organisation such as Australian Investment Education.

Getting Started With Your Trading and Investing

 It seems that we are approaching a society that making it so easy to be criticising people on blogs and forums. Every now and then we get to hear about scams. Very often, people haven’t done their research, and know what they are signing up for. Usually the blame can be on the hyped up pitch, overly pushy people that create this expectation about the product that is far more glossy than reality. Having the right expectation is important. Someone who is telling you that they will make you a millionaire with $500 in a week,….. too good to be true.

The wealth seminar industry has most definitely gone through some tough and important times. Getting rid of the rubbish that have been hanging around. If you keep yourself updated with the news, for a period you would have noticed how ASIC was closing companies after companies. For most of them for false promises, in their advertising for the others, they just couldn’t hold their business together and went down. Wealth creation companies, going broke…something to think about.

I was watching a webinar with Andrew Baxter (look for Australian Investment Education), and realised something. You, yourself are the best person to be responsible of your own wealth creation and financial freedom. So many people claim to be investors, signing up with X, Y, Z and never actually do the education.

They want the whole passive, recurring income stream, but don’t want to put the effort into it. Andrew was talking about how they have a trading coach helping clients to achieve their financial goals. I have learnt so much about trading on my own, but I’ve had to pay for my education by giving away a lot of cash back to the market. Probably was more punting than trading at the time, no trading strategy, no directions, just really going with the gut feeling about the company or the market. I wish I had someone to coach me or guide me at the time. At least AIE is setting up the right expectation when it came to trading outcomes and the need for investors to get educated, compared to others in the market place.

There are many ways to make money. The more money you have, the easier it is to make more! But all of them require sound advice, a little bit of work to get the wheel rolling and the initial investment into getting educated.