Who Picked the Top Stocks? Stock Pickers’ Showdown
Twelve months ago we asked four stock pickers to select a portfolio of 10 stocks to hold for one year. At the time the sharemarket was languishing at 3353 points – so with the market awash with value, each stock picker had ample opportunity to find the low-hanging fruit that would help deliver strong returns….
How to make extra income on your shares
Question: They tell me that I can earn extra income from dividends when buying warrants rather than shares, how does this work? Answer: Instalment warrants gives holders the ability to gain exposure to price movements in underlying shares by making an initial payment and an optional second payment on expiry. There are a number of…
Are You Investing Or Gambling?
Merriam-Webster dictionary defines gambling as: 1. a: to play a game for money or property b: to bet on an uncertain outcome 2. to stake something on a contingency : take a chance. When trading is looked at, gambling takes on a much more complex dynamic than what is presented in the definition. Many traders…
Protect your portfolio from market wobbles
Trading derivatives can conjure up images of overnight wealth or wealth destruction. A reason is leverage, where speculating on an asset class can quickly magnify profits and losses for a small up-front outlay. Contracts for difference, a popular financial instrument among speculators, are also an effective weapon in preserving wealth when acting as a hedge….
What happens if I hold a put option on a stock that’s suspended from trade?
Question: If I hold a put options contract on a stock that is suspended from trade on the ASX, and is subsequently wound up, do I receive any return? Response: The buyer of a put option has the right to sell the underlying stock at a particular price on or before a specified date. A…
Why is return on equity such an important measure for a company?
Why is return on equity such an important measure for a company? How does a good ROE help prove that the company is performing well? Response: One of the most important profitability metrics is Return on Equity, or ROE for short. ROE reveals how much profit a company earned in comparison to the total amount…
What happens to a CFD short position during a capital rising like a rights issue or placement?
We will use a hypothetical example to illustrate. Ronnie undertook research on the Australian market and following his research he took a negative view of XYZ Department Stores Ltd. He believed the future for XYZ was quite bleak because their buildings were run down, staff were currently striking due to a pay dispute, and to…
How do I calculate the Average True Range on stocks to set a stop loss position?
Any successful trader will tell you that stop losses are essential to a good trading strategy, but knowing where to place your stop loss is less obvious. Average True Range (ATR) can be an effective way to set stop loss positions and profit targets, and avoids the problem of being stopped out early. What is…
Which is better – range trading or trend trading forex markets?
Many traders come over to the 24-hour and deeply liquid currency market from other asset classes. The reasons for market such a shift are varied; but one thing is the same for those that wade into the new arena: they bring their methods and biases for trading with them. In many ways, the Forex market…
Global trading contest starts today
The GFT trading challenge – a global trading contest for new and existing clients with a $50,000 cash first prize – starts today. And the succesful trader who scores the biggest percentage gain over the coming three months, wins. GFT says that the trading challenge aims to do two things; firstly, bring traders across the globe…
