GOLDEN RULES OF SHARES
mark on your credit report.
5. DON’T GO IT ALONE
If you’re drowning in debt or simply don’t see a way out, there is help available.
Financial counselling is a free service provided by many organisations.
Call Financial Counselling Australia on 1800 007 007 to find a counsellor near you. GIVEN the turmoil on share markets, it’s worth taking a deep breath and reminding ourselves of the golden rules of share investing. 1. Do your homework … don’t buy or sell on rumour, hunch or impulse. 2. Balance the risk and reward … look closely at past performance and future prospects and if the worry of your shares falling keeps you awake at night, don’t buy them. 3. Keep checking after you’ve bought … things can change. 4. Be patient … don’t expect to become wealthy overnight. 5. Don’t forget, shares can bring income and capital appreciation. 6. Be alert to trends … try to put political, economic and scientific events through an investment filter. 7. Be prepared for the unexpected … review the situation promptly before taking any action. 8. Don’t try to back every horse in the race … it is better to hold a smaller portfolio of shares you are comfortable with than to try and back all in the hope of a winner. 9. Check the environment. Don’t buy a share just because it looks cheap. 10. Take a loss quickly … don’t let pride or stubbornness prevent you from accepting a mistake and correcting it. 11. Consider upgrading your portfolio regularly. 12. Follow the market … don’t try to beat the trend. 13. Take a profit. It is better to make a little less profit by selling too soon than to take the greater risk.