Here are some useful tips on how to get into the share market, the importance of stock picking and pitfalls in trying to 'do it yourself'.

• An efficient share market is a myth. Complex human emotions, such as fear and greed, lead to investors buying into stocks at very high prices and later selling those same stocks at very low prices. Irrational human behaviour also means that investors pay too much, or too little, attention to public information about listed companies.

• There is no such thing as reward without risk.

• Don't follow the herd. Inevitably you will end up paying too much for a stock or selling a stock for too little.

• Don't be the greater fool. You might think someone else, a greater fool, will buy you out of an over-priced market before it collapses. But unless you can 'pick' the market peak and know exactly when to sell, you might end up being the fool.

• Practise dollar cost averaging and diversify. Invest a small amount of money on a regular basis instead of investing a larger amount at one time. Also spread your money across several different sectors and stocks.

• Don't try to time the market. Trying to guess which asset class will outperform next, and exactly when, is problematic at best.

• Don't chase yesterday's returns in the hope that this time, it's different.

• Leave investing up to the experts - that's what they are paid to do.

• Get financial advice - investing should be viewed as part of your financial situation.

  Geoff O'Neil - Director Advantage One
  Strategic Financial Coach