How To Buy Shares


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


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


The danger of overconfidence

Famed trading psychologist Bret Steenbarger has written countless articles on the most common emotions traders feel that causes damage: panic. However, there is an emotion that exists right up at the other end of the scale that can cause just as much damage to your trading portfolio, and that is overconfidence. Overconfidence overview Overconfidence is


An introduction to regressive trading

An introduction to regressive trading The word “regressive” can be defined as “reverting to an earlier condition or way of behaving”. When we are trading in a regressive manner, we are looking to take advantage of a counter-move in an already defined trend in the hope that price action will soon revert back to this


Beware being an early bear

As we’ve seen, stockmarkets seldom go up or down in a straight line. There are inevitable “bumps” along the road which investors need to contend with. The great trader, Jesse Livermore, once said “You’ll always find lots of early bulls in bull markets and early bears in bear markets.” We contend that you’ll often also find lots


The key to your survival in the market

The market can be a terrifying beast at times, sending the heart rates of investors soaring as happened only recently during the GFC. Learning to survive the market with all of its uncertainty is crucial to becoming a successful trader. One of the most important rules of trading is, don’t put all your eggs in


Getting your trading consistency back

  Renowned trading psychologist, Brett Steenbarger, gave some advice to those who seem to have fallen out of their trading groove. One trader wrote to Steenbarger about this very problem. He was once a successful, consistent trader who had 48 winning months in a row – without one losing month. Then, one day, the trader


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