Book Review > Starting Out in Shares - the ASX Way

More and more, investing in shares is suggested as one of the best long term strategies for building wealth. With a longer and healthier retirement stretching out before us maximizing our financial independence is vital. Who better to provide current information about starting to invest in shares, but the head of Investor Education at such a highly respected organization as the Australian Stock Exchange!

In his book Paul Dolan covers:

• Tools for self assessment of your financial position and goal setting
• Basic information about investing in shares and a comparison with other investment types
• Primary and Secondary Markets
• About the ASX, how the Exchange and the Share Market work
• Where to access current details of the market's movements
• Choices of how to invest - full-service or discount broker
• Fundamental analysis - top-down and bottom-up approaches
• Qualitative and Quantitative Analysis
• A look at Technical Analysis or Charting
• Taxation and record keeping
• A Glossary to explain terms used in the market

The writing style is simple and easy to read, the many ratios used in Fundamental Analysis, and the methods Paul concentrates on in Technical Analysis are explained clearly with examples.
I appreciated the realistic cautions expressed throughout the book such as the fact that no one way of analysis works all the time, being wary of tricks with figures in Technical Analysis and a warning about trading system promotions, to name but a few.
My only feeling of disappointment came when I realized the record keeping section was covered in two pages - but perhaps in 2004 this area is considered the realm of another professional or a computer software program!
Paul Dolan sums up investing in shares with the statement, "Like all other forms of endeavour, investing requires hard work, subjective thinking, a willingness to go against what is 'popular' and a fair dose of good luck".
In my opinion, Starting Out in Shares - the ASX Way would be a good reference book for the novice share investor to keep nearby.

Sandra Boyd is a member of the AIA