Brainy's Share Market GEMs Share Market GEMs? or Wall Street Words of Wisdom? Those share market pearls of wisdom that many people take years to learn. Here they are - all in one place. But are they all for real (or furphies)? You are here: Share Market Toolbox > Share Market > Share Market GEMs Related links: Robert's Philosophy; Share Market Indexes; Share-Market-Ready; Paper Trading; Stop Loss; Support and Resistance;  Trend-spotting; Funda-Technical Analysis; Sensible Investing; Contrarian Investing Redefined; Technical Analysis;

Introduction It can take many years of reading text books and newspapers, attending lectures and seminars, and watching news reports, to hear a number of those very useful “tips” and observations about the share market. We can call them Share Market GEMs, or pearls of wisdom. They might be very useful cliches, adages, proverbs, axioms or Wall Street sayings.  Many experienced market-watchers wish that someone could have told them all these things early in their investing/trading career - it would have given them a huge head start. But, a word of caution - some of the Wall Street pearls of wisdom are furphies!  Toolbox Members can download the 40+ page GEMs document here (a pdf file). This information is just one of the many tools in Brainy's Share Market Toolbox. “May your losses be small, and may your profits run like blazes.” Please note: There is no guarantee that there is any truth in any of these “gems” (watch out for the furphies). You should not take any action on anything that you read here without consulting a properly licensed, qualified and trustworthy professional. Robert has lots of Free Stuff available... And Robert is happy to keep you informed of new information as it becomes available, on a range of topics. Simply register here to receive updated news and information:- Click here to register interest

GEMs - Summary List Important considerations First off in Robert's list of share market gems are some important considerations. The share market is like an elephant The best time to prepare for the next bull market is before the bulls have bolted The 3-Ways Rule - Trends Only invest in something that you understand Understanding the market past Buy low, sell high Company performance Blue chips - Are they really "blue chip"? Blue chips can disappoint Don't fall in love with the company Today's darling can be tomorrow's dog Up by the stairs and down by the elevator Public Floats and IPOs Financial returns Past performance is no guarantee... What's most important? - Dividends or capital or TSR? The Rule of 72 Never bet the house Investing and trading facts The dangers of rushing in Psychology, fear and greed For every seller, there needs to be a buyer The greater fool theory Emotions and psychology Hope, fear and greed Calmness Profits and losses You can't win them all! The win-loss ratio Be prepared to sell! Stop Loss = How to minimise losses Consecutive losses Cut losses early The first loss is the cheapest and the best A stop is a stop! The markets and more... Know your market indexes (XJO, XAO, DJIA...) GICS Codes (Global Industry Classification Standard) can be useful Key world indexes - Dow Jones and more Research and education Education Fundamental analysis How much research is enough? Watch the news? Key concepts for investing and trading The trend is your friend Time in the market is more important than timing — NOT! Technical analysis (charting) Funda-technical analysis A rising tide lifts all boats - not? Investing and trading - TIPS Keep your eye on the ball A routine is critical Risk analysis is vital In order to change the outcome you need to change the actions A long journey starts with a single step Maintain perspective Remember your Investment Plan Beware the value trap of cheap stocks Beware the greater fool principle. Strategies for investing and trading Buy on weakness The price is running Beware the “up-chase” Buy on rumour, sell on fact Trade on index adjustments Wouldn't buy the index? — Don't buy a stock Watch for illiquidity Pyramid your buys Dollar cost averaging? — maybe not! Market tops and bottoms The market leads the economy 3-6 months Bull market top Bear market bottom Accumulation and distribution Volume behaviour Market indices diverging Advance Decline indexes New Highs and Lows Time-of-Year observations Bad-news Friday January Barometer — As goes January, so goes the year Sell in May and go away The weekend and holiday sell-off June tax-loss selling Europe & US summer vacation (August) Confessional season profit warnings (May-June and Nov-Dec) Reporting season opportunities (February and August) Reporting season tardiness September (and October) — a bad month? September (and October) — a good month? Christmas rally = Santa Claus rally Federal elections - go nowhere Cycles and Seasons The 18-year property cycle The 4-year US Presidential Cycle Lunar effects Brokers, fund managers and the big boys Fund Manager returns “Smart money” Big end of town How to invest a large amount without anyone noticing Broker & analyst valuations and recommendations Who can you trust? General observations When Wall Street sneezes, other markets catch a cold The world's largest economies P/E – Price/Earnings Ratio Profit takers – they do exist Bull and Bear market durations Bulls and bears on the 200day MA Money is made in a bear market The market abhors a vacuum Learn from the past Black Monday 1987 Shares and other financial instruments Shares are dangerous Shares might not be shares Derivative products Leveraged products Leveraged finances Commodities Supply and demand equation Global prices impact local stocks Volatility Index - VIX and XVI  Gold and $US Australian iTraxx index Libor Baltic Dry Index (BDI) In summary Self-fulfilling prophecy? How old is Technical Analysis?   Toolbox Members can download the Share Market GEMS pdf booklet.   And "watch out for the sharks in the ocean!".