Market Pulse


Trading And Your Moods

Can you think of a time when you’ve been in the same mood all day? If you can, this was probably an abnormal day. Over the course of most days, our moods go up and down. We may wake up feeling refreshed or tired; we may go into lunch feeling hungry or distracted; we may


Guide To Investing Beware Of Groupthink

In today’s guide to investing we discuss Groupthink, a concept developed by social psychologist Irving Janis in 1972. The term refers to the phenomenon whereby a group will make faulty decisions, because group pressures lead to declines in mental efficiency, reality testing and moral judgments. In other words, groupthink occurs when groups tend to make


Improving Your Trades Through Rational Choice

Modern economics makes an assumption for both social and economic behaviour, and that is that all individuals will choose the best course of action based on the stable preferences and limitations facing them. This is known as “rational choice theory”. Individuals will choose as rationally as possible based on the information made available to them.


Creativity And Trading

Though it’s important to use logic when setting up a trade, it may surprise some that creativity also has its place in trading. Creativity is generally considered to be the ability to combine novelty and usefulness, hopefully to obtain an innovative result. It is also considered to be the ability for a person to restructure


Price And Volume Are All You Need

It’s tempting to think that we can use technical indicators, like the MACD, RSI, and stochastics, to guide our trading, but we should never place too much emphasis on any particular indicator. If we want to focus on anything, it should always be the same thing: price and volume. For all the wealth of tools


Herd Behaviour And The Markets

We’ve all heard the term “herd behaviour”, but before explaining how it relates to investors, its best to provide some background into the term. Herd behaviour describes how a group acts together without any planning or logic behind their actions.  Animals tend to exhibit herd behaviour when under attack from a predator. If a group


Trading Is A Business – Not A Hobby

The world is made up of a lot of casual traders. You may know a few friends who don’t know a lot about the market, but occasionally buy shares anyway, usually because someone else has told them this trade is a “get rich quick” surety. Anyone who has friends like this knows that hardly anyone


How to Build A Trading System Part 6

Welcome to MarketPulse, Australia’s most insightful look into the markets and trading! Over the last few MarketPulse articles, we have discussed the various steps which traders need to go through to design a robust trading system. For those who may have missed those articles, a trading system contains a series of conditions which need to


How to Build A Trading System Part 5

Over a number of previous MarketPulse articles, we have discussed the various steps which traders need to go through to design a robust trading system. As a recap, a trading system contains a series of conditions which need to be met before we enter a trade. When these conditions are met we are said to


How To Build A Trading System Part 4

Welcome to MarketPulse, Australia’s most insightful look into the markets and trading! In previous MarketPulse articles we have been discussing in detail the steps required to create a robust and effective trading system. As a recap, a trading system is a significant part of a broader trading plan which defines the conditions through which we


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