How To Buy Shares

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

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

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