Archive for the 'Stock Trading' Category

How Pathetic Returns Can Bring You Joy (or, Why I Don’t Listen to My Wife)

Wednesday, October 21st, 2009

So I’m talking to my wife the other day about this new trading system I’m working on and, feeling pretty pleased with myself, mention that it shows a historical return on the total trading account balance of 4% a month.
You know what she says?
“Four percent?!… that’s pathetic!”
Always ready with a snappy comeback, I reply, “Huh?!”
“Four […]

Sink or Float?

Monday, March 26th, 2007

For those who are new to share investing, let’s take a look at some basics…
The most commonly traded share is called (surprise!) an Ordinary Share. When you buy a share in a company you own a portion of that company - and as a part owner (albeit a small one) you are entitled to a […]

Blue Chip Blues

Thursday, March 22nd, 2007

Most long term investors favour Blue Chip shares. “Blue chip” companies are large, well established companies that are considered to be strong and dependable, including such household names as Telstra, BHP, Woolworths and the ANZ, Commonwealth, National and Westpac Banks.
Such companies are generally perceived as reliable investments. But unfortunately, it ain’t necessarily so…
Consider again, Telstra. […]

Volatility is not a Dirty Word

Wednesday, March 21st, 2007

Another approach to the sharemarket is the short term trading approach. Traders monitor prices and actively buy and sell shares to profit from short term market movements.
As we have seen, this type of investing has been made accessible to the ordinary individual thanks to the Internet and the availability of share charting software for the […]

The Long and the Short of it

Monday, March 12th, 2007

If you decide that direct share investment is for you, there are essentially two main approaches to investing in stocks. One is the approach of the long term investor, the second that of the short term trader.
The long term investor seeks out companies whose share price is likely to increase over the long term, purchases […]

How will you manage?

Friday, March 9th, 2007

If you’re a working Australian, you’re almost certainly a share investor whether you know it or not. The reason is compulsory Superannuation. Your super fund very likely invests in shares on your behalf (as well as cash and property).
Unfortunately, for most Australians, superannuation is unlikely to provide, in retirement, the same level of income you’ve […]

If you think education is expensive - try ignorance

Saturday, March 3rd, 2007

The key to successful investing and achieving high interest rates of return is to educate yourself. It’s a trite saying, but true: No-one will take care of your money as well as you will. If you feel you lack the confidence and knowledge to manage your own investments - try a trip to the finance […]