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Is share trading training worthwhile?

A friend of mine has been to a stock market trading course and is now going full on into trading in a big way, including using margin loans and things called stop losses and options. I intend to go to the course as well but I would be interested in what you think about these training courses?

I have mixed feelings about them but I do think they have the potential to really improve your knowledge of trading and investing.

However, be careful about signing up for an expensive program that encourages you to overcommit to trading at levels you don’t feel comfortable about. When I read about your friend, it slightly worried me but I don’t know about his level of sophistication when it comes to investing.

Warren Buffett always argues that if you don’t understand it then don’t invest in it and that should be your rule of thumb. The ASX actually has education programs and they might be a better starting point, but once you become very comfortable with trading then it might be safe to hang out with the big claim merchants who say you can make a fortune following their systems and rules.

As you can see I’m wary of these businesses and I always wonder, if the systems are so foolproof, why do the teachers waste time teaching others? They should simply play the market with their faultless system! Of course, some of these teaching programs are better than others but simply be careful and remember what Buffett warns.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Published on: Tuesday, May 31, 2011

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