Letters to Toni - Jan/Feb 2011

Q: How do you know when to stay out of any given market?
A: This is one of the shortest questions I’ve received this year, but it’s an extremely good one. We spend so much of our time watching and waiting for opportunities to develop in the markets that it’s easy to forget how crucial the ‘waiting game’ is. The best times to act are few compared to the time spent on the sidelines. Too many traders fall into the trap of thinking that being a trader means pushing that buy or sell button. Often, showing restraint is the best position to have...

Excerpted from an article originally published in the Jan/Feb 2011 issue of YourTradingEdge magazine. All rights reserved. © Copyright 2011, Your Media Edge Pty Ltd.
If you are a subscriber to YourTradingEdge magazine, you will receive this article in your Jan/Feb 2011 issue of YTE. If you are not a subscriber, click here to subscribe, or to purchase this issue as a single back issue, click here.

» I borrowed to buy shares and have sold them last financial year but did not apply the proceeds to interest bearing debt. Is the interest I pay after I sold the shares deductible? I am not a share trader and reported a small capital gain on sale last year

You would be able to claim a deduction for the interest expense in relation to money borrowed for the purchase of shares but only during the period/s in which it is expected that you will derive an income. Once the shares were sold, it is quite clear that your original loan to purchase the shares...

» How long can the euro remain resilient to the Eurozone’s sovereign debt crisis?

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» Cash on the sidelines no longer rising

Finally, some good news for the Australian share market!

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» I am thinking about setting up a self-managed super fund. If I do, can I use my super monies to trade?

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» I borrowed to buy shares and have sold them last financial year but did not apply the proceeds to interest bearing debt. Is the interest I pay after I sold the shares deductible? I am not a share trader and reported a small capital gain on sale last year

» How long can the euro remain resilient to the Eurozone’s sovereign debt crisis?

» How much do you recommend new forex traders to begin with and what size lots (eg standard, mini and or micro)?

» Cash on the sidelines no longer rising

» eToro Launches Mobile HTML 5 App

» I am thinking about setting up a self-managed super fund. If I do, can I use my super monies to trade?

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