How to Buy Shares - Stock Market Education

At Australian Stock Report we provide you with free information on how to buy shares, how to sell shares, when to do it and why. If you have been looking for stock market education or australian shares information then you have come to the right place. Read our blog posts on the basics of investing in the stock market, along with information on stock market education, share market training, ASX courses and more. Don't forget to check out our share tips and our FOREX trading blogs for more information.

Double-tops and double-bottoms

There is an old rule in trading that is tried and true – “Never short the first top”. The principle applies equally to stocks that have fallen significantly, and can be considered as “Never buy the first bottom”. Today we will look at the analysis for tops, but it is equally applicable to bottoms – just turn everything upside down.

Head and Shoulders Pattern

One of the most widely recognised patterns in technical analysis is the bearish ‘head -and-shoulders’ pattern. As the pattern is a reversal pattern, the first requirement of the formation is that a valid uptrend is in place. This pattern tells us that, initially, the market was moving in the usual way during an uptrend with higher

Pin-bars and Pinocchio’s Nose

This week’s focus is on the use of ‘bullish confirming price bars’ to give traders reliable signals to buy into up-trending stocks or indices. While there are a plethora of ‘bullish key reversal bars patterns’ with various uses and definitions, here we focus primarily a favourite price bar reversal signal – the ‘Pinocchio Nose Candle.’ Some argue that a simple

Steep trends and trend climaxes

The market’s sharp pullback in September left many traders burnt as they tried to latch onto the momentum too late, with the ASX 200 rebounding last month in equally dramatic fashion. This lesson may help those who wonder whether it’s worth trying to catch such a ‘runaway train. Slope-a-dope So how steep is steep? If

Coping with volatility

When in a bull market or a bear market, it is relatively easy – the key word is relatively, here – to predict the general direction of a stock: up or down. However, in today’s current market volatility, it seems as though guesstimates for a stock movement (or even the whole market!) may as well be

Why trust charts

Any security containing price data over a period of time can be demonstrated in a chart, and this is why charts are the weapons of choice for technical analysts. When certain trends are identified, specific names are given to them. For example, the “head and shoulders” is a name given to a chart pattern that

Japanese Candlesticks – An introduction

Line charts and bar charts are common methods of displaying price information on a chart. However oHowevJapanese Candlesticks are another popular way to interpret charts due to their superior ability to convey crucial information about the price action. There are many Japanese candlestick patterns around, so we will simply introduce the concept of Japanese Candlesticks

Top-down vs bottom-up investing

When deciding what shares to invest in next, many investors select one of two popular types of investing – the top-down or the bottom-up techniques. The approaches are both at stark odds to each other and investors usually heavily favour one approach to the other. But what do these techniques involve – and is one

Confidence and paranoia in the market

One of the most fundamental aspects of investing has nothing to do with charts, prices, financial data or economic news. As most market psychologists will tell you, our emotions can play just as a big role in our investing decisions. It’s ridiculous to think that every investor works without emotion, because emotions are part of

Making Your Exits Easier

There are two schools of thought when it comes to exiting losing trades. The first says you should never make the decision yourself – for any trade! This school says that once you’ve entered a position, you should only let the market take you out. This holds for both directions: a losing trade should see