First Time Share Investors: Firstly you need to make the decision to invest in shares and understand that there will be a little bit of learning that must take place and understand the secret is to invest Surplus money and not money you need immediately #SharesInvestment
What are shares: Companies issue shares to raise money from investors. Maybe a company needs to fund groundbreaking research, open a division in a foreign country, or hire talented engineers. They are intangible assets that give you ownership in a company #SharesInvestment
That’s why they’re also known as equities or equity investments. Owning a share entitles you to part of a company’s earnings and assets. So Buying a Vodacom share for instance means you own part of the company and you have two important rights #SharesInvestment
You have the right to attend the annual general meeting and vote according to your shares for certain decisions including the board of directors and secondly you have every right to share in the company's profits. #SharesInvestment
You don't go to the companies themselves to buy shares which are listed on the JSE, you must look for a stockbroker like PSG or Thebe or a stockbroking platform Like SGB securities or EasyEquities #SharesInvestment
The basics of investing are quite simple in theory – buy low and sell high. This is interpreted different in practice as there are two broad classes of shares traders. #SharesInvestment
When buying shares, you need to decide which company's shares you want to buy, how many shares you want and at what price. There are two types of shares traders. Those who use basic approach and those who are speculators #SharesInvestment
The difference is how they both see the price of the stock. The basic investor isn’t too stressed about the price of the share but rather the reputation and the strength of the company whereas the speculator tries to speculate prices. I am this kind of investor #SharesInvestment
I would say once you have decided to start investing in shares, start familiarising yourself with news about the markets and what causes changes in markets. Currency changes, company changes, economic and political changes #SharesInvestment
Places where you can get information include mobile apps, Bloomberg app and sites, Moneyweb Sens, JSE sens, SGB, EasyEquities. There is a lot of information. How you choose the companies is up to the type of trader you are #SharesInvestment
Warren Buffet is often quoted as saying the best company is one which will still be here 20 years to come. But there is no guarantee although thats great approach. E.g banks their needed in every economy #SharesInvestment
Avoid the sheep mentality, the I do because Nicolette or another person is doing. This is evident in people who all invested in Capitec or Naspers because everyone around them is too. Nothing wrong with these two shares but when the tide turns u will need to hold on to why
Timing the stock Market is the worst thing ever. No one has ever correctly timed the stock market. Today’s price is usually the best price. Yes sometimes people speculate correctly but there is no guarantee. #SharesInvestment
Understand the companies you invest in, that’s usually the strategy that works. Study the company and its future plans and the currency of the home country of the stock and everywhere else where its listed. #SharesInvestment
Emotions are dangerous when you invest in shares, emotions tend to dictate most people’s moves. A change in share price is not a loss nor win until its realised after a sale. Thw two most common emotions to be aware of are fear and greed #SharesInvestment
Don't put all your money in shares or one share in fact. If you do enough research then your expectations of those shares will be realistic. Diversification of asset classes and sectors is IMPORTANT #SharesInvestment
I would say start off with a Demo Account. But be serious about it, check it as if its real money and research even those companies. Also check your emotions and learn to manage them #SharesInvestment
Ok Ill leave it there tonight. Two ways to make money through shares, Appreciation of share price from purchase price or a payout of dividends when the company does well. #SharesInvestment
