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This topic has been created for free and open discussion of "Share Investing For Dummies" (scroll down for book covers).

 

I invite any member to please feel free to post any comments or questions you have about this book. Even if you havn't read the book, feel welcome to discuss the general topic of the book.

 

WIN FREE BOOKS: Each week, members who make quality and interesting posts about this book or any other book in the ShareScene Book Club will be offered a free copy of a John Wiley investment book of their choice.

 

These book prizes are given to members who support and encourage intelligent discussion in the book club. Simply make a post in any of the Book Club topics to be in the running for a free book. So give it a shot!

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  • 3 weeks later...

Good to see ShareScene.com mentioned as one of the reccomended internet websites to check out if you are starting trading!

 

I've always loved the style of the "for dummies" range. Really, theres nothing "low level" about it, it has real solid top level concepts. The key difference with these books is its set out so well.

 

I love the tips, and the definitions, and the examples. Its like being back at school (only less whispering and messing around). The book really takes you through the concepts nice and easy and makes sure you get the points. Very little "expert academic" language.

 

Share Investing for dummies covers practically every topic you could ask for. At 490 pages, its not a small book, but then again the font size is a bit bigger than normal, which is easy on the eyes.

 

My only negative comment is that it spends too much time on derivatives (I dont think people new to investing should even try to think about these) and not enough time on tax.

 

 

I just love this book.... Share Investing for Dummies and "Bullseye top trader thinking" are the perfect combination to give to any investor with 3 years or less experience, or anyone willing to make sure their education and life goals are on the mark.

 

On the cover it says "your plain english guide to success on the sharemarket" and this book is just that. Its great content (some things ive never read or heard of before, completely new) in a great format.

 

Well done James Dunn! Keep up the good work.

 

 

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  • 7 years later...

Didn't know where else to post this implied warning gleaned from today's West Australian on probably what NOT to invest/trade in , especially following the 2014 Q1 reports which exposes many "bare bones"

-----------------------------------------------------------------------------.

 

503 out of the 684 ASX listed commodity explorers have a market cap of less than $A10 m, according to a Perth broker.

 

They have an average of $A1.5m in their bank accounts.

 

The bottom 300 have less than $600,000 in their bank accounts.

 

Confidence in the sector is already at multi year lows.

 

Only 181 ASX listed explorers therefore remain as "possibilities" with sufficient capital to keep going.(IMHO)

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Flower

 

Perhaps a better terminology would be what NOT to "Invest" in due to the company's state of affairs or viability.

 

As for Trading, does it really matter in what state the particular stocks finance's are in ?. As most would be Scapling or agile Trades anyway. Most would be traded on the usual Hype, Pump N Dump types. EG: NEN comes to mind.

 

Just a thought.

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Perhaps a better terminology would be what NOT to "Invest" in due to the company's state of affairs or viability.

Agreed, thought it unwise to start another thread heading, so used this one.

 

As for Trading, does it really matter in what state the particular stocks finance's are in ?. As most would be Scapling or agile Trades anyway. Most would be traded on the usual Hype, Pump N Dump types. EG: NEN comes to mind.

This is where we probably differ, IMO (taking the investing/trading public as a whole). Its doubtful if more than 20% of all investors/traders are of the scalping or/and ultra short term traders mindset and will use explorers as a medium in which they hope may graduate into a producer, probably trading that stock along the way over a number of years, plenty of examples on this site.

My overall point is that there is little point in even considering the bulk of ASX explorers currently since there is only a remote chance they will even exist next year, so why get yourself into a position where the inevitable outcome will be locking your capital into a non tradeable ASX shell company.

There are however several excellent examples of companies that have made all those transitions and today produce yet have exciting upside potential through their current and planned exploration programmes, surely it is those exploration companies that have to be a better "bet" than one of the possibly 503 who seem headed for financial disaster.

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  • 3 years later...

Wasn't sure under which thread to post this, but "Dummies" seemed to be the right word. This is a "doozy" about an overseas company....couldn't happen here, or could it?

 

Carlsbad man claimed his mines were worth $30 billion

 

But they weren't worth anything, says SEC

By Don Bauder, Aug. 1, 2017

 

Long before Mark Twain defined a gold mine as a hole in the ground with a liar on the top, slippery salesmen have tried to peddle highly inflated mining claims to naive investors.

 

Document

SEC suit against Wilson

 

On Friday (July 28), the Securities and Exchange Commission filed a doozy of a case in federal court. Defendants are long-time Carlsbad pitchman Robert W. Wilson and two Wyoming companies he owns. Wilson said he was going to resuscitate a mining project in Yuma that could produce graphite. He initially said the claim was worth $18 billion, then escalated the value to $30 billion.

 

Investors would get a 20 percent profit in 18 months, said Wilson. But in truth, Wilson's companies had "no significant assets" other than an option to purchase the claims on federal land, says the securities commission. Wilson estimated the size of a deposit by taking readings from his car's odometer as he drove around the land, and then made an estimate based on the price of the material. Wilson "has no education or training in mine valuation techniques, "says the securities agency.

 

In 2015 he told investors that the graphite deposit "may be upwards of 4 billion tons!" and the material was then selling for $2,500 per ton. He brought in $2 million in the graphite project, and used the money on a massage spa, residential rent, restaurants and payments to participants in previous investment offerings. Thus, he was also running a Ponzi scheme. He brought in $2 million on the Yuma project.

 

In 2015, he claimed that a gold project he was peddling was worth $375 billion. In 2011, he was slapped with a desist and refrain order from the State of California barring him from making any oral or written untrue statements in a securities offering.

 

https://media.sandiegoreader.com/news/docum...1/comp23890.pdf

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  • 1 year later...

Infographic from Visual Capitalist - http://www.visualcapitalist.com/6-biggest-...investors-make/

 

The 6 Biggest Mistakes Ordinary Investors Make

In many areas of life, we are often our own worst enemies. The realm of personal finance is no different.

 

WhatÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s the biggest threat to achieving financial independence?

 

Unfortunately, itÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s your own brain.

 

You can invest in all the right things, minimize fees and taxes, and even diversify your holdings. But if you fail to master your own psychology, itÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s still possible to fall victim to financial self-sabotage.

 

THE BRAINÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢S DESIGN

TodayÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s infographic is from Tony Robbins, and it uses data and talking points from his #1 Best Selling book Unshakeable: Your Financial Freedom Playbook, which is now available on paperback.

 

The graphic is based on a chapter in the book that reveals the key psychological limitations of the human brain. It turns out that these fallible survival instincts have been hardwired into our brains over millions of years, and they become very troublesome when we try to make rational financial decisions.

 

To overcome these instincts, investors need to adopt simple systems, rules, and procedures that can ensure the decisions around money we make are in our best long-term interest.

 

SIX PSYCHOLOGICAL PITFALLS TO AVOID

Remember these six pitfalls ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ and how to counteract them ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ and youÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢ll be able to avoid the biggest mistakes often made by investors.

 

MISTAKE #1:

Seeking confirmation of your own beliefs

 

Your brain is wired to seek and believe information that validates your existing beliefs. Our minds love ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“proofÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ of how smart and right we are.

 

Even worse, this is magnified by the online echo chambers of the modern world.

 

News media (MSNBC, Fox News, etc.) tend to favor one point of view

Google and Facebook filter our search results

Unsubstantiated rumors can run unchecked, as long as they reinforce existing points of view

This can be exceptionally detrimental in investing.

 

Convincing yourself that a particular stock or strategy is correct, without taking into account contradicting evidence, can be the nail in the coffin of financial freedom.

 

The Solution: Welcome opinions that contradict your own

 

The best investors know they are vulnerable to confirmation bias, and actively ask questions and seek qualified opinions that disagree with their own.

 

Ray Dalio, for example, seeks the smartest detractor of his idea, and then tries to find out their full reasoning behind their contrary opinion.

 

read the rest - http://www.visualcapitalist.com/6-biggest-...investors-make/

 

Rule #1 - Welcome opinions that contradict your own - rarely works on stock discussion forums :sadsmiley02:

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  • 11 months later...

extract from recent Motely Fool article.

 

Beware of other share market practices

On a different lesson for retail investors some of the oldest tricks in the share market book are still the commonest scams to avoid.

 

These include Ponzi or Pyramid-type schemes where newer investorsâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ money is used to pay off older investors to create the impression of a legitimate business offering excellent returns, while management pull out funds for their own enrichment.

 

There are many variants on Ponzi schemes, but on share markets they tend to involve companies raising a lot of capital and debt to pay off older investors and management. They will also tend to involve complex or opaque underlying investments and ownership structures that can help pull the wool over auditorsâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ eyes.

 

Recent examples include agricultural businesses Quintis Ltd (ASX: QIN) and Blue Sky Limited (ASX: BLA). Both collapsed after being exposed as scams and in hindsight showed some of the classic symptoms of Ponzi-itis.

 

These include opaque underlying assets in terms of valuation, unrealistic returns, conflicted management remuneration structures, undisclosed or complex related party transactions, excess capital raisings, and use of debt.

 

Pyramid schemes have operated for thousands of years in one form or another and regularly suck unknowing investors in.

 

A second classic mistake is to buy shares in companies that have great stories spun by numerous positive announcements, but no revenue or profit to show for it.

 

These companies tend to take advantage of less-sophisticated investors in story spaces such as pot stocks, blockbuster medical breakthroughs, huge mining deposits, or unprecedented industrial technology breakthroughs.

 

The share market trick of playing on investor âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‹Ã…“greedâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ or fear of missing out (FOMO) goes back 300 years to the South Sea Co. Bubble of 1720, where every public investor lost all their money after being sucked in by the false promises of insiders running the business.

 

There are plenty of businesses operating on the local market that fall into the story stock category sucking in unknowing investors every day.

 

As a a word of warning if you want to make money speculating on these kind of story stocks you must be on the inside track with brokers and capital markets advisers to obtain shares at the IPO stage or earlier. You can then take advantage as the businessesâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s stories are pumped onto local markets.

 

Otherwise you might end up a patsy after all the early shareholders have dumped stock.

 

The sometimes scary world of micro-caps is why serious investors tend to favour the blue-chip end of the marketâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¦..

https://www.fool.com.au/2019/10/09/isignthi...takes-to-avoid/

 

Just for the record, while MF cites BLA above, they also wrote articles like this one, suggesting it was a BUY - Why I rate Blue Sky Alternative Investments Ltd a buy at this share price

Stewart Vella | February 27, 2018 https://www.fool.com.au/2018/02/27/why-i-ra...is-share-price/

 

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