Analysis & Opinion

An Investors Guide to Active ETFs

An Investors Guide to Active ETFs

The Upside and Downside of Actively Managed ETFs Virtually all financial analysts and market experts advise investors that the key to lowering the risk of stock market investments is diversification. Companies diversify by expanding geographical markets and product offerings, with a variety of products appealing to multiple consumer and commercial segments. Diversifying a stock portfolio…

How to Use the MACD to Trade Australian Stocks

How to Use the MACD to Trade Australian Stocks

Trading with the MACD (Moving Average Convergence/Divergence) Indicator Fundamental analysis is the most common entry point for first-time investors in the stock market. This approach involves a study of a company’s business model, financial statements, and placement within the economy in which the company operates. Early on in the search for determining what stocks to…

ASX Stock Valuation Methods

ASX Stock Valuation Methods

Valuing Stocks on the ASX “Value” is one of those words that has multiple meanings –from the monetary worth of something to the importance, worth, or usefulness of something. When you invest in a stock you are buying an ownership stake in the company, no matter how small it may seem. What is that worth…

The Most Important Indicators for Trading ASX Stocks

The Most Important Indicators for Trading ASX Stocks

Best Technical Indicators for Identifying Entry and Exit Points Getting prepared to take that first plunge into trading stocks on the ASX requires a significant amount of time spent learning the rules of the game. At the onset, most newcomers to share market investing learn there are two broad approaches to evaluating specific stocks for…

Why Volume is an Important Clue for Traders

Why Volume is an Important Clue for Traders

Volume and Price Action Go Hand in Hand The first time a newcomer to share market investing checks a price movement chart for a potential stock to buy it is likely they concentrate on the price action and ignore the volume bar chart at the bottom of the chart. Most people who have never bought…

Pairs Trading A Guide for Australian Investors

Pairs Trading: A Guide for Australian Investors

Pairs trading involves first identifying the correlation of the price action of two stocks in similar sectors with similar business models. When the stock price of two highly correlated stocks begins to go in opposite directions, investors can take a long position on the stock dropping in price and a short position on the stock…

Buy Low, Sell High - But What is Low?

Buy Low, Sell High – But What is Low?

How Low is Low Enough in Buy Low/Sell High Investing? Buy Low/Sell High is one of the most cited adages in the world of share market investing. Newcomers to stock investing coming across Buy Low/Sell High learn it is a catch phrase for an investing strategy that seems obvious. When newbies actually think about using…

Trading ASX Stocks with Elliott Wave Theory

Trading ASX Stocks with Elliott Wave Theory

Elliot Wave Theory – Stock Market History Repeats Itself In the 1930’s a professional accountant named Ralph Nelson Elliot relied on both the psychology and sentiment of stock market investors to develop a theory of stock price movements that contradicted the prevailing opinion of the day that markets were inherently random and chaotic. Elliot believed…

How To Break Bad Trading Habits

How To Break Bad Trading Habits

Do Investors Really Need a Trading Plan Planning is said to be the most important of all management functions. One of many planning definitions states a plan specifies what is to be done, when is it to be done, how it is to be done, and who is going to do it. Planning is forward…

Capital Gains Tax: A Guide For Australian Traders

Capital Gains Tax: A Guide For Australian Traders

What To Do When the Taxman Cometh Of all the issues confronting newcomers in their search for learning the rules of the game, it is quite possible that the last one that comes to mind is taxes. After all, selling stocks usually comes much later in the investment process, especially for those investors attracted to…