Book Review -- Introducing the Australian Stockmarket

Introducing the Australian Stockmarket
Adam Steen and Keith Kendall
Wrightbooks

Rating : 5*
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This book was clearly the pick of the bunch for an intelligent introduction to the ASX, and trading in general. I say intelligent, because it doesn't bamboozle you with terminology, but introduces things clearly, describing their role in share trading, their history and their meaning. The bulk of the common ASX traded products are covered, and so is the terminology.

The book is split into two sections -- "Shares and the ASX" and "Analysing the ASX". The first part describes the ASX, what a share is, how they may be bought and sold, the sectors and indices of the ASX, leverage and derivitive products, tax, and law. This gives an understanding of how a share is tied to a real company, what a sharemarket is, and what trading comprises.

The second section begins to give an insight into the information surrounding trading decisions. It covers fundamental analysis, financial statements, macroeconomic issues, technical analysis, charting tools and a summary of the usefullness of the various sources of information.

While not enough to formulate a trading system in its own right, it is a useful introduction to what may be done, how, and a little of why. An excellent basis for further learning.

Cheers,
-MP

Financial Review Review

I thought I'd include a segment about once a week based on my reactions to the day's publication of the Australian Financial Review. Today, the articles which caught my attention were:

* China heading for a tight spot in iron ore game. This article discusses the possibility of China being unable to secure fixed-price iron ore supply. While many of China's competitors have secured fixed prices, the market remains open to manipulation. Secured fixed prices are at a discount of around 35% to the current 'spot' or market prices. Impacts for major suppliers are obvious.

* Netting sales. This article discusses the potentially undervalued company Clean Seas Tuna. They have established a fishery and are experiencing a strong demand for their stock. The new agriculture?

* ASX backflip on index sparks a fear of foreigners. This article is talking down the benefits of listing more foreign companies on the ASX, but that would seem to me to be a positive step. The downside is said to be that the competition for capital would harm capital raising by Australian companies. However, such protectionist attitudes seem to be a bit 1950s. I would have thought that having a more diverse market could only advantage the buyer, and having global competition would allow the market to more strongly direct specialisation.

Cheers,
-MP
(This is not financial advice. I'm just this guy, you know?)

ASX Expo and Seminar Program

First post with investment content... yay.

I've just registered for http://www.tradersexpo.com.au/traders&investors/index.html. I'm going to Loise Bedford's "share trading 101" and another called "Trading System Design" by Christopher Tate. At other times, I will be attending the ASX sponsored seminars and/or blogging. Look forward to full coverage here!

Cheers,
-MP

Repurposing this Blog

MelbournePhilosopher

I'm giving serious thought to re-purposing this blog. I have now completed my Diploma of Philosophy, and my involvement with the Australian philosophy scene has become one of contented observer rather than trying to stimulate online involvement with philosophy.

Personally, my interests have swung around more to investing and software development. I'm a programmer by trade, and I'm also currently trying to learn about share trading and building wealth. I still maintain a healthy interest in philosophy, but I no longer feel the need to add content to the blogosphere on the topic.

As such, I am going to convert this blog to an investment blog. It will cover my thoughts on the Australian sharemarket, cover topics as I learn them and as such hopefully provide a learner's view of investment, which will naturally become increasingly sophisticated moving forward.

I will not attempt to cover what I have already learned in order, but my reading list has been:

* Benoit Mandelbrot
* Daryl Guppy
* Much email contact with more experienced friends
* Trading shares the ASX way and other similar books.

I will start with a review of each book I have read, to recap and summarise the salient aspects.

Thanks for all your attention over the years. I have enjoyed being a philosophical blogger and appreciated each and every comment left on this site. Perhaps some of you will also be interested in coming on my journey of investment.

I remain,
-MP