Upfront Investor | Always Do Your Research…

Political campaigns have always been waged in the press and right now the situation is no different, we are seeing the battle lines being drawn. Kevin Rudd is accusing Rupert Murdoch’s News Ltd of unfairly representing his own agenda and siding with the Liberal Party. If you want to be sure to hear both sides of the political debate simply follow one of my Golden Rules, which is to always do your own research. But unfortunately doing research is something a lot of people fail to do well when it comes to making any important decision.

Whether you are weighing up a choice to vote for one of the major political parties, buying a car; choosing a school for your children, or making a financial investment decision to secure your financial future, doing your research is so important if you want to make well informed decisions. In this information age where you have so many resources at your fingertips there really is no excuse not to be informed.

Having been an educator and fund manager in the share market for many years I find that despite the opportunities to learn how to make better decisions many investors tend to do what is easy rather they what is right. This is why my number one rule for investors is to always spend the same amount of time researching your investments before you buy, regardless of the amount being invested. Sadly, many people make decisions based on the opinions of others which often results in costly mistakes. So how much research do you plan to do before you make your next decision?

So what do we expect in the market?

Mid last week our market had pulled back by around 100 points from the previous week’s high of 5099.5 points. This is simply a sign of profit taking from the short term traders, drawing money off the table following some strong gains made since the low in June. Such an event is common, particularly when a market or stock passes through a significant resistance level, the current one being 5000 points. This level is also a whole number, and commonly whole numbers create psychological resistance on the part of the buyers or sellers as the market rises and falls.

In my opinion the way the market is likely to unfold from here hasn’t changed from my previous forecasts. I still believe that ultimately the All Ordinaries will continue to rise steadily in the coming weeks and last week’s slowing of market momentum provides more confidence as overheated markets tend to become too volatile and fall away just as fast as they rise.


To your profitable trading,

Dale Gillham
Chief Analyst
Wealth Within

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’. Dale has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment adviceto traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.