Trading and Investing for a Living.

Original RRP was $49.50.

2009 Edition is our current edition and whilst some of the examples may be older the strategies explained are still relevant today.

This best-selling title is the definitive book to explain share market investment. There is more to just buying stocks to make your fortune on the stock market. You need a plan, proven strategies and the best stock-picking techniques. You need to be able to find value and growth potential. This book will reveal exactly how you do it and its methods are suitable for stock markets all over the world.

The Australian Share Market Guide explains exactly how to pick winning stocks with minimised risk using our proven criteria. 

Billionaire, Warren Buffett has always enjoyed lulls in the market as he feels they are a great opportunity to buy some good companies inexpensively…. and you should too, but you must be cautious in your approach.  

If you charge in and buy any old “cheap” share you will more than likely lose your shirt, so to speak. You have to be able to identify real value. You need to be able to find value and growth potential.
 
This is where I can help you. I have a system that has served me well now for over ten years and I have a very high success rate of picking “winners”.
 
Think about it for a second, if you could pick shares that went up most of the time, and by a larger percentage than the rest of the market, and you could keep your losers to a minimum and I even showed you how to handle the losers so their effect was minimal….. You’d end up pretty rich pretty quickly, wouldn’t you?
 
There are no magic formulas, weird charts, software, “black boxes”, seminars, secret handshakes - just common sense and a due diligence process that I will take you through step by step.
 
It is really simple stuff, but you have to know how and where to start. Of course you can work it out yourself, anybody can, but it might take you as many years as it took me and the thousands of hours of research, but you can do it.
 
My methods are based on those used by Warren Buffett, one of the most successful stock market investors in history. Now, you have to take notice of a man with that reputation!
 
His methods, as well as some adjustments of my own have been fully disclosed and explained in my latest edition of The Australian Share Market Guide. 
 

Here’s some of what you will find in The Australian Share Market Guide:

  • The Five Biggest Stock Market Myths
  • Understanding Share Market terms
  • Understanding Market Forces & Market Mentality
  • Fear and Greed – The Stock Market Drivers
  • The Media….. Indicator or Agitator?              
  • The Chartists and their Strategies
  • The Fundamentalists and their Strategies
  • Chartist or Fundamentalist - Which philosophy will work? I explain fully.        
  • Tax Implications of Share Investing
  • Brokers - What you should know, but they won’t tell you
  • Understanding dishonest broker tactics and how to avoid them
  • Online Brokers and how to use them effectively
  • 10 Tips to Keep Track of Your Investments
  • Dividend Reinvestment Plans
  • How To Understand the Financial Pages of Annual Reports   
  • The Most Common Mistakes made by Novice Investors
  • Analysis Method 1 – Basic Fundamentals
  • Analysis Method 2 – Value Investing Fundamentals
  • Analysis Method 3 - Qualitative Analysis
  • The Next Steps to take 
  • “Tax effective” Share Schemes
  • Margin Lending  
  • Floats, are they a sure way to make money?
  • Understanding The Time Value Of Money
  • Overtrading  
  • “Averaging Up” and Down  
  • “Insiders” and Institutions….What are they up to?
  • Diversify your Portfolio  
  • If I want to buy 'Penny Dreadfuls', How do I go about it?
  • OK, I've bought the shares…When Do I Sell?
  • When Trades go “Wrong” A Strategy that works!
  • The Stop Loss can be used for other things other than preventing losses  
  • Portfolio Protection Strategies  
  • What you should do in a falling market  
  • The Crash Survival Guide  
  • What happens if I buy shares in a company and the company goes bust?  
  • Investing Mistakes to Avoid  
  • Corporate Disaster Approaching .... Beware! 
  • Options, Derivatives and Other Types of Investment Vehicles  
  • How to trade in Options - and make money, not lose it!
  • Options Trading
  • Warrants Explained 
  • Rights Issues  Explained
  • Convertible Preferred Shares Explained  
  • Resources Directory plus Much More!
The Australian Share Market Guide is a definitive guide to everything you need to know about stock market investing.
 

Testimonials for the Australian Share Market Guide

"If you follow my procedures and this book doesn’t make you money…. I’ll refund your money and you can keep the book….. There is no risk to you at all!" - Lance Spicer

I enjoy your knowledge and vision..... Keep it up, we need this type of work being done by gutsy people! - MO, Auburn NSW

Lance Spicer's articles and books are both incredibly informative and helpful as well as eye opening - DB, Rosebery NSW 

Common Sense Investing

"Doesn't everybody use common sense when they invest?" The simple answer is few people do in reality. In fact many novice investors do the exact opposite. They use their emotions or gut feeling to decide which investment to put money in. Some, even experienced investors, get caught up in hearsay, or "hot tips". Unfortunately, greed and anxiety run off with their common sense and it rarely makes a re-appearance... until all their money is gone anyway. 

When it comes to the stock market, being fooled into parting with your hard earned money can be almost as easy as being lured into some elaborate scam. The worst offenders here are inexperienced brokers and the venerable "hot tips" from friends and associates. You shouldn't depend on your broker for all the answers, they will all too often let you down. If your broker was such an "all-seeing genius", what's he or she doing turning up for work each day - they should be lounging around on their yacht. True?
 
The truth is there are no "gurus", there are only people with good information and common sense. This is all the world's greatest investor, Warren Buffett uses. Good old-fashioned common sense, a commodity not often used in the hustle and bustle of share trading and investing. For instance, look at your portfolio; do you know why you own shares in each of these companies? What compelled you to buy these particular shares? Do you know what they do? What is their compound earnings growth for the last 5 years? What is their estimated earnings growth for the next 5? You need to have answers to these questions, before you buy the company, not after.
 
The major and only real reason to invest in a company is for it's earnings - current and future. Without earnings or the 100% guaranteed prospect of future earnings, the company is worth nothing, that simple. Would you really want to invest in a company that has very little chance of making a profit in the future? So, why do some investors invest in "penny dreadful" mining shares or those "dot com" companies? Many of these companies will never make a profit. The reason they invested is because they have probably been swept away by emotion, greed to be exact - no common sense there. This is my point, common sense dictates that you would probably be a fool to invest in these companies, but people still do.
 
My philosophy is simple, look for earnings growth. Where earnings growth goes, the share price will always follow. Sure, the market will have its ups and downs, but at the end of the day, growth in earnings will always win out, it always has and always will.
 
So, how do you identify these companies with strong earnings growth? Sometimes it's not easy. While some brokers are often (my opinion only) a poor judge of picking stocks, some do have pretty good research departments and analysts who, based on what the particular company's executives tell them and also reflecting on recent history, can often come pretty close to predicting the earnings not only for next year, but up to five years out with uncanny certainty. The best I've seen are the New York analysts. These guys are good, they can predict a company's quarterly earnings within a cent or so.
 
However, this doesn't make them good "pickers" of stocks, you need also to apply your common sense to this information. For instance, the company might be showing good earnings prospects according to the analysts, but will it last? What I mean is, are the company's products or services in great demand? Are they always innovating and coming up with new products? Does management appear to be good? Are they consistent with their growth? Is the future profit growth compounding at 10% or more, past and future? Does the future prediction of growth sit comfortably with the past? Bottom line - Does the prediction make sense? If the answer is yes to all these questions.. You better buy some shares in that company! 
 
Now reflect back on your own portfolio again...... "Hmmmm..oops", could be your reaction here. Common sense has kicked in hasn't it?
 
There are many great companies out there, it's just a matter of finding them. This takes time and effort, however it's well worth it, just don't forget to use common sense.
 

For more information on this subject - please read The Australian Share Market Guide

Investing In The Stock Market....Isn't That Risky? 

I had some tradesmen doing work around the house and as people do, they asked me what I did for a living. I told them I invested in the stock market and traded shares as well as wrote a few books on the subject.
 
They seemed to ignore the "writing of books bit" and concentrated on the "stock market bit". One of the tradesmen showed an interest and said he was worried about the future and needed to start saving for his kids and his retirement but putting savings in the banks seemed to be a lost cause. I told him he shouldn't be putting his money in the bank. He should be buying it! The returns were better. I think he thought I was mucking around. I explained to him if he put his money in the bank he would earn about 4% on his money, but if he bought bank shares instead, he'd earn almost double that. I had his attention.
 
He wanted to know more about the stock market but he said he didn't have a clue. I said "no worries" and gave him a copy of The Australian Share Market Guide. He then realised what I wrote about. I said "take it home and read it and when you're finished we'll have a chat about what you can do".
 
A few days later he approached me and said the book was great and had a newspaper in his hand with 5 companies circled. They were Qantas, Orica, Walker Corp, Amcor and St George Bank (not necessarily what I would recommend now!). I thought this was interesting, he's really serious. He said to me he had read the book and did what I said and came back with a set of companies he had picked out of the paper using the selection criteria I had outlined in my book. I had a look at his selections and thought to myself he's done a good job picking these companies. At the time all the research I had on these companies had indicated they were "strong buys". I told him to go ahead and I gave him the name of my broker. He bought the shares and made some pretty good profits, in some cases, substantial profit.
 
The reason for the story? To show that anybody, from any background can get involved in the share market. You don't need to be a genius or finance wiz, you just need common sense and fundamental ground rules to work with. If someone can show you the simple rules and techniques to use in buying and selling shares you can easily make good money investing in shares.
 
I learnt by reading books by Warren Buffet and Benjamin Graham and by actually trading for 15 years. It's amazing what experience does for you. I have put my tried and proven methods into one easy to read and understand book, The Australian Share Market Guide. In fact, I quite often refer to it myself, to keep myself on track, and it works.
 
Lance Spicer, written Sydney, 2002