It’s quite funny, really, the extent people go to to make themselves feel certain and ‘safe’ in the market environment – an environment that is characterised by uncertainty and risk.
It’s not only private traders like myself, either; this desire to create certainty extends to money managers and ...
YTE Blog Viewing entries tagged investment This week's top trading blogs...
Commodity Trader
Fed meeting this week as well as any new developments out of Europe. My suggestion is to always look one-two weeks in advance for upcoming economic events when initiating trades. Just when it appears Crude was destined to move lower prices rever... In times past, decisions were based, more often than not, on much less information than we now use to arrive at our decisions. This is, of course, due to the huge amount of information that is now available to us electronically via the Internet and other electronic communication media including mobi... As human beings we are often faced with a mind-numbing array of choices when making decisions that can leave us paralysed by the consequences of information overload. This can vary from making decisions about which new car to buy, which personal banking product to use, or which variety of jam to... Following on from last week's blog, I have continued to dissect the statements made by Mr Kerr Nelson in the Australian Financial Review article, “Wizards of the game”. I hope you enjoy my commentary.
“Loss aversion is an irrational approach sadly evident in the stockmarket. Many investors keep han... For those that know me, you know that I am an avid reader of market related books and newspaper articles.
Recently, I came across an article in the Australian Financial Review called “Wizards of the Game”. The AFR interviewed some of Australia’s most respected and high profile fund managers and the... Trading and investing using a methodology or system that outperforms the market over the long term is a wonderful feeling and one that contributes greatly to the elimination of fear. Knowing that you have an edge over the market and that probability is on your side allows you to focus on the trading... To conclude the three-part discipline series, this week we look at a trading discipline that is a bit more ‘out there’ than the mental and technical discipline we have discussed in the previous two posts, that of physical discipline.
The trading environment can be a stressful and tense place for so... This week we take a look at the second core component of trading discipline – the area I call technical discipline.
Trading and investing approaches vary but at the very least you need a process for choosing what stocks to buy and when to sell. Because you have accepted that “no-one knows with 100%... When it comes to trading, discipline comprises of three core components: mental, technical and physical discipline. The trading fraternity often talks about discipline being a requirement to be a successful trader so over a three-part series, I am going to examine discipline in each of these areas a... A lot has been written about an investor ‘knowing the term’ of any position that they take in the market. For example, when a long term ‘buy and hold’ position is taken, the investor must be prepared to ride the ups and downs of the market but must also be prepared to accept a lower compounded annua... Financial markets have ups and downs, sometimes extreme, which cause market participants to experience emotional roller coaster rides in line with the market’s price swings.
If you are investing according to a consistent method then all trades are potentially “good” trades. Don’t fret about which one is the best of the “good” trades or which one will be a loss trade. Just do the trade according to the rules of the methodology! The rules are your edge in the market with loss trades built into the edge
The reason that you need a Trading Methodology or strategy when investing in the market is to protect you from yourself. Active investing is very different from passive investing and hence requires a different mindset for decision-making. This post we move back onto the subject of “Investment Risk” and specifically the different “Types of investment risk”. When it comes to active investment in the stock market, the concept of Risk Management is about controlling the amount of capital that may be lost in the event that the market or a stock turns against your open positions. This post we will carry on from where we left the last post on Risk Management and Money Management to take a look closer at general Investment Risk in the market. This material has been extracted from the SPA3 reference manual for your learning.
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