First lesson for the beginner investor: know yourself

Friday 16 July 2004

I have been asked to be educator-mentor to a newly formed share club. This week's article is the start of a series aimed at new investors wanting to answer the simple, but ultimately very complex, question: "How do you make money out of the sharemarket?".

By The Landlord

# What are you?

The first issue faced by new investors is to define their style. Do you want to just buy and hold, do you want a long-term focus, but still manage a portfolio around the edges, or do you want to actively trade?

The correct answers depend on a person's nature, the time they have available and their ability. And even if you want to be a trader, it will pay to reappraise this after some time – not everyone has the nose, the judgment and the emotional fortitude to actively manage a share portfolio.

# Brokers are your friends

There was a time after the 1987 sharemarket crash when a share broker was as popular at a dinner party as an obnoxious traffic cop.

But most brokers I have known (I worked in the industry for about 15 years) have an intense enthusiasm for the market and a genuine desire to make money for their clients. There are a few who over-trade clients to generate income for themselves, but they are the exception.

A good broker can help with information (including research) and guidance and also offer the odd allocation in new floats.

Read More - Opens in a new window
Commenting is closed

Property News

Return to market form

There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.


NZ proptech start-up scores major investor

Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.


LVR limits slow down investors

LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.

Site by PHP Developer