What if the biggest mistake most investors make is not the market itself, but the way approach it?
That was the focus of my recent conversation with my good mate Mick Hawes on The ToolShed Podcast.
We unpacked a problem I see again and again with everyday Australians – builders, tradies, farmers, business owners, and professionals who work hard, earn well, and still feel uncertain when it comes to the share market.
Not because they lack intelligence.
Not because they lack discipline.
But because they have never been taught a clear process for making sound decisions.
That matters.
Because when markets feel volatile, headlines are everywhere, and everyone seems to have an opinion, it becomes very easy to hesitate, follow the crowd, or act on the wrong information.
And when money has taken years of hard work to build, those mistakes carry real weight.
Why So Many People Feel Like the Market Is Gambling
One of the first things Mick and I discussed was why so many people feel the share market is risky in the first place.
In my experience, it usually comes back to one thing: they do not know what to look for.
When that happens, investing starts to feel like gambling.
- A friend gives you a tip.
- The media talks up the next big trend.
- A stock runs hard and you feel like you are missing out.
- Or social media makes something sound bigger and better than it really is.
That is where people get caught.
I explained that after almost 30 years of investing, one of the biggest lessons I have learned is that confidence comes from having a systemised process. A checklist. A set of rules. A way to quickly tell whether something is worth further investigation or whether the numbers simply do not make sense.
And once you have that, the pressure changes.
You do not feel like you have to chase every opportunity.
You do not panic because other people sound confident.
You can simply look at the numbers and decide whether it fits your process or not.
That is a much calmer way to invest.
Why Early Wins Can Be Dangerous
At one point in the conversation, Mick made a great point. He said it is easy to hypnotise yourself into thinking you know what you are doing, especially after a few early wins.
He is right.
I shared in the episode that when I first started investing as a teenager, I actually did very well in my first couple of years. But the truth is, it was not because I had a strong system. It was because of dumb luck.
Then a major market event hit.
Almost overnight, the profits I had made disappeared. In fact, I lost even more on top of that, which forced me to confront the reality that I did not truly understand what I was doing. That painful experience eventually led me to write about how I lost $100,000 in the stock market and the five mistakes I made, and what that experience taught me about investing properly.
That experience shaped everything that came after.
It pushed me to stop chasing wins and start learning properly. I reached out to serious investors and fund managers, including writing to Warren Buffett, and that opened the door to learning from people who were actually managing real money for a living.
That changed my thinking completely.
Because real investing is not about chasing the biggest return at any cost. It is about risk-adjusted returns. Making decent returns, yes, but doing it in a way that preserves capital and keeps risk low.
Who This Podcast Is For
This episode will resonate with people who want to make smarter investment decisions but feel unsure about what they should actually be looking at in the market.
It is especially helpful for those who are hearing constant headlines about technology, AI, global politics, and market opportunities, but want a calmer and more structured way to think about investing.
This episode is especially valuable for:
- Builders and tradies who work hard running their businesses but want a clearer plan for growing their wealth outside the job site, without relying on speculation or risky trades.
- Farmers managing unpredictable seasons and income cycles who want to build financial security beyond the farm and make investment decisions based on data rather than market hype.
- Business owners who are generating good income but feel unsure how to invest it wisely, especially when markets feel expensive or uncertain.
- Professionals and pre-retirees who want steady, long-term growth and are looking for a more disciplined approach instead of reacting to headlines, tips, or social media opinions.
- Anyone with money in superannuation or managed funds who has never really reviewed what they own, and wants to better understand how exposed their investments might be if markets pull back.
If you’ve ever felt like the share market is confusing, emotional, or driven by hype, this conversation will help you step back and start thinking about investing in a far more structured and confident way.
Why This Episode Is a Must-Listen Right Now
Right now, investors are being flooded with headlines about AI, global politics, and where the economy might be heading next.
After several strong years in the market, many shares are trading at much higher valuations than usual, and excitement around technology is pulling a lot of money into the same sectors. At the same time, global tensions and shifting economic policies are adding more uncertainty to markets.
That combination can easily lead investors to make emotional decisions.
This episode helps you step back and look at the bigger picture.
For builders, farmers, business owners, and professionals who have worked hard to build their savings, the real risk is:
- Holding overvalued investments without realising it
- Being too exposed to the same sectors everyone else is chasing
- Feeling unprepared if markets pull back
- Missing opportunities because there’s no cash ready when prices fall
In this conversation, Mick and I explain what disciplined investors focus on during times like this – data, risk management, and preparation.
Because when markets eventually shift, the people who do best are not the ones who panic.
They are the ones who were prepared.
To your success,
Terry
Topics Discussed In This Episode…
- What most investors get wrong when they enter the market without a clear process
- Why early wins can be dangerous if they come from luck, not skill
- How to assess an opportunity properly instead of relying on tips or headlines
- Why emotion ruins decision-making and how a checklist helps remove it
- What overvaluation looks like and why parts of the market now deserve caution
- Why strong returns can hide rising risk if expectations have become too stretched
- How to think about AI and tech stocks without getting pulled into hype
- Why holding more cash matters when opportunities become harder to find
- What to review inside your super fund if you want more control over long-term outcomes
- How proper investing education can help you avoid costly mistakes and build real confidence
Quotes
- “It’s not about the returns, but risk-adjusted returns where you make decent returns, but however, doing it in a way where the risk is so low.”– Terry Tran
- The reason that the share market works and goes up and down is because of all of the emotional decisions, the wrong decisions. People are making wrong decisions time after time because they’re not looking at the data there, they’re just making emotional decisions. – Mick Hawes
- “The best investor that you can be is if you can become robotic, no emotion when you make money, but also no emotion when you lose money.” – Terry Tran
- “It’s easy to hypnotise yourself by thinking that you know what you do.” – Mick Hawes
- “If the data tells me it’s still okay, we will continue cautiously though, we’ll still continue investing and trading on things that are understandable on our terms, and also they fit our criteria and they’re still low risk.” – Terry Tran
Relevant Links
Companies / Stocks that were mentioned:
- Alphabet / Google (GOOGL / GOOG)
- Meta Platforms (META)
- Apple (AAPL)
- Microsoft (MSFT)
- Taiwan Semiconductor Manufacturing Company – TSMC (TSM)
- Uber Technologies (UBER)
- Adobe (ADBE)
- Merck & Co. (MRK)
- Pfizer (PFE)
- ASML Holding (ASML)
- Berkshire Hathaway (BRK.A / BRK.B)
For Builders and Everyday Investors
- Builders Business BlackBelt (Mick’s Business Coaching for Builders)
- 🎧 Episode 143: How Builders Can Create Passive Income – The ToolShed Podcast with Mick Hawes
- 🛠️25- Page Builder/Tradie Starter Guide- Building Wealth Beyond The ToolShed
- 📘The Freedom Trader Stock Investing Checklist – Use the exact checklist Terry relies on before buying a stock
- 🎓The Freedom Trader Free Masterclass – Discover how you can invest more safely, without the guesswork.
