Starting a share portfolio from scratch
Many newcomers to share investing spend a couple of agonising months tossing up which stocks to buy, and after taking the plunge into their first share purchase begin snatching up stocks at an increasing rate. Stock picking is where the action is, and the consumer in us is compelled to buy up big and fast….
$65,000 in a week trading CFDs
Will Kraa recently enjoyed a stellar run trading CFDs – pulling in $65,000 in just one week. Kraa, a former teacher and avid trader for the past six years, isn’t new to the sensation of multiplying his money trading CFDs. Back in 2003 when Kraa first tried his hand at the highly leveraged derivative, he…
Guide to analysing stocks – part 1
Academics and researchers have spent considerable time searching for the secret to making it rich on the sharemarket. The trouble for investors is that – when every supposed ‘expert’ yells from the rooftops proclaiming the secret to successful stock investing – it’s almost impossible to separate the researched theory from the pure sales pitch. For…
Measuring the strength of the Australian sharemarket
Most agree that the major ingredients required to herald a sharemarket crash are investor euphoria combined with an overvalued sharemarket; like a pressure cooker, as prices for stocks soar upwards, a market becomes overheated and the likelihood of a market crash is ever more present. Last week we looked at the fundamental reasons for why…
Top 5 technical indicators to trade commodities
What are the most popular technical indicators used to trade commodities over the short term (1-3 months), and do they differ depending upon the commodity traded? Response: The technical analyst will use a number of methods when reviewing commodity markets. These methods typically include such things as Price Action (pattern recognition, candle stick charts, Elliott…
The impact of commodities prices on mining companies
I have been reading that iron ore and coal export prices are due to be negotiated in the near future? Can you tell me how the process works and where I can find the results of the negotiations and final pricing outcome? Also what short term impact does this have on mining company’s share price?…
What factors determine how much we pay for petrol at the pump?
Petroleum pricing has become a factor of concern to consumers, refiners and producers across the world, and price determination has come under the microscope, especially as crude oil prices were reaching record highs earlier in 2008 and prices at the bowser were sky-rocketing. There is a lot of discussion surrounding petroleum pricing, and the primary…
What does it mean to be positively or negatively geared with margin lending?
What does it mean to be positively or negatively geared with margin lending, and what circumstances would you use each? Response: An investor has a positively geared margin loan when the dividends payments exceed the interest costs. In such a case the income stream from the investment is (more than) self-funding. If the investor is…
Should I take out a fixed or variable margin loan?
I’m not sure whether I should take out a fixed or variable rate margin loan. What are the advantages and disadvantages of each, and what type of investor do they suit? Your choice of interest rate on a margin loan (variable or fixed) depends on your financial and tax circumstances, your opinion as to the…
I am tossing up between a DIY super fund or opening a wrap account
I would like more control over my superannuation savings and am considering starting either a self-managed super fund or doing it via a super wrap account such as that offered by [ABC] Investment Management. I found out the fees for a [ABC] Direct Wrap and calculated it would be an average of 0.57% pa of…
