Education —
Weekly Ramblings of an Australian Stock Trader - incorporating
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Category — Education

An Alternative to High-Price Trading Courses…

Hi fellow Traders,. As I’m sure you have picked up on, I am constantly striving to quench my thirst for trading knowledge and passing it on to you. I recently took advantage of a great educational service, INO TV. This service offers on-demand trading seminars from professional traders like John Murphy at no cost.

If you’ve ever wanted to attend one of those pricey seminars, but just didn’t have the time, money, or desire to go through all the hassle - like me - but want to learn more from the pros, you’ll love this just as much as I do.

I’ve just finished Murphy’s seminar, “Applying Technical Methods To Today’s Trading,” and was blown away. Here is an excerpt:

“For those of you that trade the futures markets, there are a lot of other things outside the future markets that you should be following. But, I guess my bigger message is… for those of you that aren’t in the futures markets, whether you trade them or not, the futures markets have a tremendous impact on what happens in the other markets.”

The message in this excerpt is that whether you trade very specific markets, currencies, futures, bonds, etc., everything has an impact on the other pieces of the market puzzle. That’s why I soak up every piece of good trading knowledge like a sponge in a quest to clearly see the bigger picture.

Rarely have I come across a better way to be a student of the market than INO TV Free. This complimentary service is offered by Adam Hewison and the good folks at INO has been an industry leader in investment education since 1995. INO is constantly striving improve its students trading and ultimately help you to become a well rounded, calculated trading machine.

This service is a free version of their highly acclaimed INO TV Premium. You will have unlimited access to 4 trading seminars taught by industry legends Dan Gramza, Jack Schwager, Ron Ianieri, and of course John Murphy.

So why wait? Get started learning from market greats in the comfort of your own home, on your schedule at no cost today.A great win-win situation.

January 31, 2012   No Comments

A Useful Way To Scan For Stocks That Are Uptrending.

There are literally thousands of stocks listed in the various stock markets which are quite suitable for trading profitably, but how does a trader go about choosing his/her stock selection successfully?

In this particular instance I am not referring to the commonly used basic fundamental approach. This where the trader analyses the various fundamentals of the company, which also includes researching the performance results and checking its price-earnings ratios and other basics fundamentals.

Overall, many successful traders who genuinely make their living off by trading professionally in the stock markets, quite often their preferred method seems to be the technical analysis approach.

This means of course that they are using charting methods, and the other various technical indicators which pertains to their selected stock. What these traders are actually trying to do is to scan for stocks that will meet some of their preselected indicators or criteria. The ultimate aim of course is to show the trader which stocks are beginning to move or have already begun to move in the desired direction. [Read more →]

January 29, 2012   No Comments

16 Guaranteed Ways to do Your Dough on the Stock Market.

1. Don’t Plan. You won’t have the worry of setting goals.

2. Do not do any research at all. Think of the time you will save?

3. Jump in the market any time you like. You don’t have to worry if the market is going up or down.

4. No need to worry about entry or exit prices. Always pay top dollar for all your stocks.

5. Listen to your emotions you can’t go wrong.

6. Leave the market when you like. Be greedy. [Read more →]

January 21, 2012   No Comments

Are You Holding Onto Unworthy Stocks?

I recently sold nearly all of my entire share portfolio. Amongst them were two stocks that I should have got rid of a lot earlier than I did.

What were my reasons (excuses) for hanging on to these two stocks?

Looking back in hindsight the reasons were hope that they would go upwards again and the unwillingness to accept a loss which had got out of control. Plus also I would not admit that I was wrong in hanging on to them for as long as I did. To make matters worse I was also emotionally attached to them.

I had bought both stocks at nearly their all time highs, only to see them slide backwards just as fast. This was before I used “stop losses.” I held onto them hoping and believing that there would be a turnaround but there wasn’t.

The loss when I sold was around 50% but I was very fortunate that my other stocks I sold made up some of the loss to a more acceptable level. [Read more →]

January 15, 2012   No Comments

How Much Research Do You Do?

I was glancing through the local newspaper this morning and came across a thought provoking article. It stated that more share traders/investors need to do more research before they buy a stock.

At least a half of all Australians now invest directly in the share market in one form or another. But as to what motivates them to buy and sell is an elusive mystery. Apparently less than one half do their own research when ever they make a buying or selling decision. And only one third actually do it consistently most of the time.

Of those that do their own research the most popular method used is searching amongst the various chat rooms and forums that are available on the net.

They predominately look for comments made about the various companies in the media’s eye at the moment; plus any analyst’s reports and other annual reports that are also available at that time. [Read more →]

January 13, 2012   No Comments

What Affects Share Prices?

Share prices go upwards or downwards during a typical trading day.

This depends on the current emotion which is affecting that particular stock at that time. It will most likely be either Fear or Greed.

Fear is usually prevalent in one or two forms.

You have the type of fear the share price is going up and they are frightened that they will miss out on the profits. So traders will chase the price which of course only pushes the share price up further still.

Or alternatively there is the Fear that the share price will be heading downwards and they will be losing what profit they have achieved or that the value of the stock will recede to a level where they will realize a substantial loss. Therefore they panic and sell in droves which only succeed in escalating the downward trend in the share price because of the selling volume which is unleashed suddenly on the market.

Greed comes into play when the price is heading upwards. Not being content with a moderate profit of 10 - 20 % a trader will hang on and hang on hoping for larger gains. Invariably the share price will fall dramatically and as always goes down at twice as fast as it originally went up, if not faster. [Read more →]

January 12, 2012   No Comments

What Really Controls the Stock Market?

Apart from the big financiers and institutions you will find that in reality it is “Fear and Greed” that drives the market along. Of course traders’ reactions also play a part. Here is an example:

You have selected your next profitable stock and have decided to buy. It looks great. It is currently priced nicely at a nice affordable $1.00 per share. Unfortunately quite a few other traders think it is great as well and the share price is starting to rise upwards.

So suddenly instead of one choice (buying) you now have several.

1. Stay with the original price and wait for the market to hopefully slow and reverse back to your price.

2. Chase the price and collect the number of shares you have already decided on previously.

3. Or chase the price but keep to your dollar limit thus buying a smaller parcel of shares.

A few traders and investors will wait for the market to recede, but they are in the minority as the majority of traders will chase the price. [Read more →]

January 11, 2012   No Comments

Top Nine Tips To Find The Right Stock Broker Before You Start Trading.

One of the most important decisions you will have to make before you even start to trade on the stock market is which stock broker are you going to use. For choosing the wrong one could cost you dearly, not only in brokerage but in other vital areas as well such as time and profits.

So what is the criteria to look for in choosing a stock broker? So what questions should you be asking them?

Here are some key questions you should be asking your broker.

1. Do they hold an Australian Financial Services License (AFSL 309743), which has being issued to them by the Australian Securities & Investments Commission (ASIC). If the answer is NO then you would be well advised to steer clear of them.

2. What trading tools are readily available from your prospective broker? Do they have up to date Stock quotes, tthe very latest news, charting facilities, level II data and advanced order types are one of the many vital tools that traders will require for informed,decisive trading. So make sure that the broker offers a suitable range of trading tools. [Read more →]

January 9, 2012   No Comments

10 Golden Rules for Making Regular Profits Trading Stocks.

It is really very simple and basic, When you follow your rules you make money. Yet if you consistently break your own stock trading rules then the most probable outcome will be that you will end up losing your money.It is as simple as that.

So once you have a reliable proven set of stock trading rules in place it is very important to keep them in mind at all time when you are trading.

Here is one discipline that if it is cultivated and employed on a daily basis will reap you great rewards. All you have to do is read these rules before your trading day commences and also read the rules again when your trading day closes.

Here below you will see some examples of the types of rules you will need to use if you want to be consistently trading profitably. These are not hard and fast rules,they are just to give you an idea of what is required.So feel free to amend them to suit your style of trading.The most important thing is to have a set of trading rules set up in the first instance..

Rule 1: I must always follow my rules when trading.

It goes without saying, that if you have developed a set of rules then they are meant to be followed. Unfortunately it is only basic human nature to want to vary or break rules and take short cuts. Therefore it will take discipline to act in accordance with your established set of rules. [Read more →]

January 6, 2012   No Comments

How To Understand Technical Analysis and Some Indicators When Trading.

It has been said before that all profitable traders use technical analysis, but again not all technical analysis traders are necessarily wealthy. It is also of value to note that basic fundamentals also play their part in indicating whether a stock price will either moving up or down. Technical analysis basically just gives you a distinct edge over other traders who don’t.

Technical Analysis is extremely handy  because of a couple of reasons.

1)   It  comprises of numbers. So all information and its impact on the market is represented in a currency’s current price.

2)   It also helps to predict future trends.

3)   Various chart patterns are very consistent, extremely reliable and continually repeat themselves. T.A. helps us to locate  them.

We all know that share prices move in trends.Past research has shown that those that trade ‘with the trend’ greatly increase their chances of making a more profitable trade.

These trends will assist you to become more aware of which direction the market is heading. So by you learning the ‘tools of the trade’ these technical indicators and their correct practical application will  most definitely help you to understand what the market is actually doing and what its current behavior is .

So stay with the trend, and follow the price. [Read more →]

December 31, 2011   No Comments