<< Peninsula New 12 November 2007 - Talk about the stock market >>

Talk about the stock market

Retired solicitor Mr Gordon Pelletier spoke about stock market investment at the October Pearl Beach-Patonga Chamber of Commerce meeting.

Media liaison officer Ms Rosemary Ruthven said that Mr Pelletier warned fellow chamber members that "there are no secret formulas".

Ms Ruthven said that Mr Pelletier had been investing and trading in the stock market for over 30 years and was convinced that there were no gurus or foolproof systems.

"The market is a place for greed and fear, driven by supply and demand," Mr Pelletier said.

"This makes the market, by its very nature, unpredictable.

"Many will tell you otherwise; claiming to have a system for determining the best time to buy and sell, based on monitoring the peaks and troughs of a particular stock.

Mr Pelletier said this was called "curve fitting".

"Systems such as these, at their best, only work for a short time," Mr Pelletier said.

"Long term, you cannot use the same system."

Mr Pelletier pointed out that if any individuals had truly figured out a long-term system, guaranteed to bring in large amounts of money, they would not be "foolish" enough to be divulging their secrets to others.

"In reality, the reason they're selling their so-called secrets for $2000 is because they can make more money running courses than they can investing in the stock market," Mr Pelletier said.

Mr Pelletier advised chamber members to be wary of any courses charging for information on how to negotiate the stock market.

He said that the same information could often be accessed free of charge through a not-for-profit institution like Finsia Education.

Mr Pelletier said to be particularly wary of companies that failed to wean clients off their services.

For anyone serious about investing and/or trading on the stock market, Mr Pelletier suggested "attacking it like you would any other small business".

"Firstly, you need to become familiar with chart patterns; knowing how to apply them and how to back check them," Mr Pelletier said.

"Then, you need to choose indicators that will determine when you're going to buy and sell."

Mr Pelletier also advised chamber members to "never sell short."

Ms Ruthven said the guest speaker at the November 17 meeting would be Sydney Morning Herald crime reporter Ms Jennifer Cooke.

Ms Cooke is the joint author of a new Australian crime book, "Done like a Dinner".

The meeting will be held at the Pearl Beach Café.

The cost is $10 for members and $15 for non-members.

Press release, 31 Oct 2007 Rosemary Ruthven, Pearl Beach-Patonga Chamber of Commerce