Trading Software and Books Reviews

Starting Out In Shares – The ASX Way

This is the first book in a series of three that the Australian Stock Exchange (ASX) has produced to help people learn more about the sharemarket. If you’re new to shares, this book is for you.

Starting Out in Shares assumes the reader has no prior knowledge and provides a solid foundation to understanding what the sharemarket is. The book begins with a good introduction to shares and their important place within a wealth creation strategy. The book takes the reader through a comparison of shares with alternative asset classes and then explains the role of the ASX, where to find information, how to get started finding a broker and the purchase and sale settlement procedure.

Following the basics, the book provides a good introduction to that $64 question – which shares to invest in? The book gives a helpful summary of the two approaches we can use – fundamental and technical analysis.

The book gives a very good outline of fundamental analysis, which, alone, is worth the price of the book. If you’ve been wondering where the property market and interest rates may head in the future, you’ll need to buy the book and check out the investment clock on page 111! The section on fundamental analysis is followed by an introduction to technical analysis. While the discussion on fundamental analysis is more than a mere introduction, the section on technical analysis is certainly just that. However, it does give a good heads-up on what all the fuss is about with charts, lines and indicators.

The book finishes with a handy note on the taxation implications of shares, and the importance of record keeping.

The book is well written with margin notes throughout defining key terms. If you’re new to the sharemarket then this book is a must have. If you’re looking for a good introductory book for a friend or child, Starting Out in Shares won’t let you down.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

No comments yet.

Leave a comment