Over the past decade women in Australia have realised the opportunities that are opening up for them to make a living from the share market. It is true that this is an area which has been pursued more strongly by men than women, but this is changing. The problem has been that many misconceptions have been created about the market, putting up barriers to entry for many women.
Last month you got to eaves drop on my conversation with Terrie Farrell, a lady inspired by her husband John, to pursue her dreams. That’s enough from me, let’s continue where we left off last month with Terrie’s journey into the share market.
Janine Cox: How long did it take you to actually start buying shares for yourself?
Terrie Farrell: At first I was very apprehensive about buying shares because I had little knowledge about the market, but I became more and more confident as I began to understand how it works. It took a couple of years for me to be game enough to start placing trades myself.
Janine Cox: Can you recall the first stock you traded yourself? And knowing that most people find it harder to sell than to buy a share, how did you manage the trade?
Terrie Farrell: One of the first companies I bought into was Ansell. I recall nervously watching the share price move up until I had made 10% on my capital and then I decided to sell and take my profit. After I sold the stock I decided that selling at 10% above the buy price was a strategy I was comfortable with and so this became my sell rule.
Janine Cox: Did you have any other rules?
Terrie Farrell: The other rule was to only buy companies with a market capitalisation within the top 150 stocks on the Australian market, until I had enough confidence to trade more speculative stocks.
Janine Cox: Why did you get the impression that this was the right progression for you, and how did you pick the first speculative type stock?
Terrie Farrell: My first experience was with a stock that my son had heard about so I thought that I’d give it a go. I later found out taking tips from family and friends tend to rank pretty highly with the most common mistakes people make. I guess in hindsight it was an experience I needed to have. The trade went okay but it was very volatile and so I decided that speculative stocks can be too risky for me.
Janine Cox: That’s a very wise decision. So how else have you been able to learn and educate yourself about the share market?
Terrie Farrell: I studied the ASX website thoroughly. I would search mostly the top 100 stocks by market capitalisation and research company announcements, dividend yields and upcoming floats. I also read investor magazine to locate stocks that had been researched and were presented as being ‘good value’, with high projected levels of growth. But the highlight for me was discovering the Business Channel and ‘Your Money, Your Call’ on Tuesday, Wednesday and Thursday Nights where people ring in to ask questions about different stocks.
Janine Cox: How did you find out about the show?
Terrie Farrell: I found out about it in 2008 after a major back operation, while I was laid up in bed for over six months. I recall searching through the pay TV channels one day and discovered the ‘Your Money, Your Call,’ from the first time I watched the show I was addicted.
Janine Cox: Did the show help you to better understand the market?
Terrie Farrell: At first I felt that I was getting a lot of contradicting advice from the different analysts that appeared on the show, but after watching yourself and Dale Gillham I began to understand the way of the market more clearly. The two of you stood out for me because you were always able to explain things in laymen’s terms and so I continued to watch the show religiously.
Janine Cox: Is this why you chose Wealth Within and the Diploma course to get an education?
Terrie Farrell: When I saw The Diploma of Share Trading and Investment profiled on Channel 9 I decided that was for me. However, I chose to shelve this idea temporarily while I focussed on the family issues that I had to deal with at the time. But when I discovered that Janine and Dale from the Business Channel were from the Wealth Within Institute, I decided that it had to be a sign, and when I discovered that I was eligible for assistance called VET FEE-HELP I signed up.
In Part 3 Terrie will share with you the next step along in her journey in the share market and how her family have influenced her goals for the future.
To find out more on how to be successful in the share market visit our website to listen to the free podcasts such as ‘Dale Gillham’s recent recording titled ‘Understanding the Share Market Post GFC Update’ https://www.wealthwithin.com.au/education/trading-room/talking-wealth/
Janine is the Senior Analyst at Wealth Within, a private investment company specialising in managing direct share portfolios through their Individual Managed Account Service. The company is also a government accredited specialist share market educator, where Janine is one of only two lead trainers educating people how to invest and trade the share market. Janine can be contacted at info@wealthwithin.com.au
