When it comes to the share market there are two ways you can take part. You can invest or you can trade.

While day trading can generate great returns, it is worth remembering that statistically it creates far more losers than winners.

According to Cory Michael from Vantage Point Trading, the majority of people that day trade lose money. And those that succeed, only a very small portion are winning enough to make it worthwhile.

He told Forbes: “The success rate for day traders is estimated to be around only 10%, so …90% are losing money. Only 1% of [day] traders really make money.”

In light of this, I think readers interested in building their wealth should forget day trading and focus on investing with a long term view.

With that in mind, here are three ASX shares that I believe investors should consider:

Appen Ltd (ASX: APX)

Appen is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. Thanks to the explosive growth of these markets, I expect demand for its services to continue to grow in the coming years and support strong earnings growth. This could make it a great buy and hold option.

Nearmap Ltd (ASX: NEA)

Nearmap is a leading aerial imagery technology and location data company. While FY 2020 looks set to be a tricky year for the company, I believe its long term outlook remains extremely positive. This year the company is aiming to deliver annualised contract value of $102 million to $110 million. This is only a fraction of the global aerial imagery market which is estimated to be worth US$10.1 billion in 2020.

Xero Limited (ASX: XRO)

A final option to consider is Xero. It is a leading cloud-based business and accounting software provider. I think it is a great option due to the quality of its product and the continued shift to online accounting. At the end of FY 2020 the company had ~2.3 million subscribers. This is still only a small portion of a massive global market opportunity. 

More reading

• 3 easy rules for building a massive ASX share portfolio
• Why Appen and these ASX shares just hit record highs
• Why these 3 ASX 200 tech shares offer great value
• 3 timeless investing lessons from 2020 (so far!)
• Up over 100% in 2 months. Are Nearmap shares still a buy at current prices?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Forget day trading: Get rich with these top ASX shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2X2uYfy

The Blackmores Limited (ASX: BKL) share price won’t be going anywhere on Wednesday.

This morning the health supplements company requested that its shares be placed into a trading halt.

Why are Blackmores’ shares in a trading halt?

Blackmores requested a trading halt this morning while it undertakes a capital raising which aims to raise up to $127 million.

According to the release, Blackmores’ capital raising comprises a fully underwritten $92 million institutional placement and non-underwritten share purchase plan of up to $25 million.

Blackmores Chief Executive Officer, Alastair Symington, expects the capital raising to support its activities in the Asia market.

He explained: “The Equity Raise will strengthen Blackmores’ balance sheet and liquidity position and provide the flexibility to pursue our key strategic priorities. It will enable us to accelerate our growth initiatives in Asia and invest in our efficiency program which will help us to achieve our objective of returning Blackmores to sustainable, profitable growth.”

Trading update.

The company also provided the market with an update on how it is performing during the pandemic.

Blackmores advised that it has experienced a material increase in demand for its immunity products. However, as immunity products constitute only a small part of its portfolio, it isn’t having a major impact on its performance.

Furthermore, any of the benefits it is experiencing from the surge in demand for immunity products, is being offset elsewhere in the business.

Management notes that there has been a lag in non-immunity products, which has been partly driven by lower shopping traffic.

Also weighing on its performance has been issues gaining access to some overseas sourced materials and capacity constraints at some contract manufacturers. These have prevented the company from being able to fully meet demand in some products.

In light of this, the company expects to deliver underlying net profit after tax of $17 million to $21 million in FY 2020. This is in-line with the guidance it provided with its first half results in February.

More reading

• 2 quality ASX shares to buy for long-term growth
• ASX shares and investing trends that could boom post COVID-19
• Will coronavirus make Blackmores a market darling again?
• ASX 200 Weekly Wrap: ASX starts May with a slide

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Blackmores share price is in a trading halt appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2M2YjQY

Building a massive portfolio of ASX shares from scratch is no easy feat. Creating real wealth through the share market takes time, dedication and discipline. But it can be done, nonetheless. One thing I’ve learned over time is that sometimes it’s simple rules executed consistently that can really give your returns a boost. So, with that in mind, here are 3 rules for building a massive ASX share portfolio.

1) Set aside money for regular investing

I often hear would-be investors say something like ‘I want to invest, but there’s never any money left over from my pay packet’. Our brains have a funny ability to work with the cash we think is available. Whether you have $100 or $500 sitting in your account, there’s a high chance it will be gone by the time your next pay cheque comes in.

That’s why setting aside your investing cash when you get paid is vital for building wealth with ASX shares. If you make this a habit every time you get paid, and invest the money regularly, your chances of building a massive ASX share portfolio will balloon.

2) Don’t just buy ASX blue chips

There’s nothing wrong with having an ASX portfolio consisting of the big 4 banks, Woolworths Group Ltd (ASX: WOW), Wesfarmers Ltd (ASX: WES) and Telstra Corporation Ltd (ASX: TLS). But these companies are likely to give you a nice stream of dividend income and little else over the coming years. If you really want to make your ASX share portfolio massive, you’ll need some help from your shares too.

That’s why I think investors in the ‘wealth accumulation’ phase should mix blue chips with at least some growth shares. Whether it’s Afterpay Ltd (ASX: APT), Altium Limited (ASX: ALU), Xero Limited (ASX: XRO), Polynovo Ltd (ASX: PNV) or any other growth share, you want to have at least some portion of your portfolio dedicated to companies that have long runways in front of them.

3) Don’t act with emotion

Keeping a cool head is one of the best ways you can outperform the S&P/ASX 200 Index (ASX: XJO) over time. Most investors who underperform the index do so because they make silly decisions based on what ‘the crowd’ is doing.

This might involve buying an overvalued company in the hope it will make you a quick buck, or otherwise selling a perfectly good company at a terrible price because the market is crashing. Both of these decisions are emotional and have no place in the creation of a massive ASX share portfolio. The best investors in the world buy businesses, not ticker symbols, and any ambitious disciple would do well to follow by example.

More reading

• Where to invest $5,000 in ASX 200 shares today
• Where will the Coles share price be in 1 year?
• Tax planning for ASX 200 investors
• Is the BHP share price a buy?
• 3 top ASX dividend shares I would buy for income right now

Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, Wesfarmers Limited, and Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 easy rules for building a massive ASX share portfolio appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3gnyI2V