The ASX as the Australian Securities Exchange is known, is the main stock exchange in the country.
In the beginning of its history, the stock exchange consisted of a number of independent, smaller exchanges. Then in the late 19th century, they began to merge together.
In recent years, the final merger, the Australian Securities Exchange, was formed by the merging of the Australian Stock Exchange and the Sydney Futures Exchange in 2006.
Today it is known as the ASX Group. It operates the stock market and acts as a clearing house. It facilitates payment systems. It also oversees acceptable practices and rules.
About 500,000 trades go through the stock exchange each day.
If you are a beginner with money to invest, you need to know that there are many pitfalls. To negotiate the share market is a tricky business. You need to seriously educate yourself as to how it works, and then you need to work out a viable business plan.
This business plan is called a Share Trading System. It is all too easy to make mistakes even when you know the market, let alone when you are just a beginner.
What you need to do is to get the right advice, and to find a trading system that as far as possible leaves no room for human error. Human error comes in only too easily when you try to figure out what shares to buy and what to sell, and most importantly, when.
If you have a good share trading system it will work scientifically rather than subjectively and emotionally for you, so that you make the right choices in all circumstances.
All too often people tend to get caught up in rumours, general confidence or general unease. You need something that is not swayed by these transitory feelings.
Some people believe that the most important starting point for share trading is not to go all out to make as much money as soon as possible, but rather to get to know your way around your share trading system and how it works optimally. When you do things right, the money will naturally follow.
There are different opinions as to the best type of systems, but for a beginner, it is probably best to go for a mechanical system with fixed rules that should perform well over a long period.
The most important criteria are whether you can test the system regularly to see whether the strategy works; another is to have rules in place to prevent excessive losses; then you need strict rules and conditions for both entry into trade and exit from trade.
If you have a mechanical system you will be able to trade with tried and tested methods that have worked in the past and can be reasonably predicted to work just as well in the future.
When you look for a share trading system package, you need to discuss it with the provider of the package to be sure that it is suited to your own unique needs. Your package should meet your available financial resources, your financial objectives and your life style.
You need to have definite objectives when you work out your business plan. You have to ask yourself, do you want cash flow or do you want capital growth?
Some people want fast growth and are prepared to take risks, others want to rather play safe with a sound, if slow, investment style. It is very important that to a great extent your system matches your personality, but without the vagaries that come and go and can lead you astray.
You need to discuss all these needs with the provider who puts together your share trading system package.