How To Buy Shares

The Mind Matters

Most people that get into the market have the idea that “traders” are in and out of the market every minute, making millions of dollars. In fact, this is what attracts most people to the market in the first place. They think it’s all about getting rich quick. The truth is that your success in

The Definition of (Trading) Success

If you hang around traders talking shop very long (and being honest), you will hear this story repeated endlessly. Many people who have devoted themselves to becoming a professional trader have experienced success in other fields before they came to trading. They know how to trade when the pressure of risking capital is not part

Technical Analysis – Is it Failsafe?

Technical analysis is an invaluable tool when it comes to trading the market. Charts tell us a lot about past history and the likelihood of future events taking place. Charts are especially useful in identifying trends, which we know usually signal a certain future for the stock. In this respect, they are a fantastic tool

Relative Strength Index

RSI stands for “Relative Strength Index” and is an extremely popular momentum oscillator. It attempts to gauge whether a stock is moving too fast in one direction, and whether the stock is likely to pause after a recent run. The index was developed by J Welles Wilder and introduced in his book, “New Concepts in Technical

Your own worst enemy

If you’re not careful, you can be your own worst enemy. There are many different ways to sabotage your trading results. Some of them are at the forefront of your mind, such as the perennial favourite of mine of not planning your trade or not trading your plan. Others seem to lurk at the back

Why Not to Average Down

The human mind is a funny thing. Once it’s programmed to do one thing, it’s tricky for it to do anything else. This can cause problems when your mind in trained to do something in one arena, but also finds itself doing the same thing in an environment in which this action becomes damaging. This

Three Levels of Diversification

If you hate volatility, then you could either do one of two things to combat it. Either, deposit your money into the bank and earn a fixed rate per annum virtually risk free, or you could invest in riskier assets and take action to reduce portfolio risk through diversification. Without taking risk, you would not

Trading and Discipline

Trading sounds easy and plenty of money can be made from trading successfully. How hard can it be to buy low and sell high? Do not be fooled, there are a million and one stumbling blocks which catch all types of traders off guard and most of it is related to controlling your emotions. Subtracting

Stop Loss Mechanics

Stop losses can be a little tricky, so today might be a good idea to clarify the mechanics of how stop losses for Australian shares actually operate. Stop losses play a key role in helping you to reduce your losses; they also help eliminate the emotional component of trading. Setting the right stop is as simple as

Self-Efficacy In Trading

What is self-efficacy? It’s the trait we all wish we possessed – and often do – but then often overlook owing to emotion, bad luck, and a few other factors. Self-efficacy is the belief that we can perform in a certain manner to achieve specific goals. Now, most long-term traders when asked if they had

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