Property bubble? That’s the theory, anyway
By Philip Soos, Deakin University As Australian housing prices have boomed over the last decade and a half, there has been much discussion over whether a bubble exists in the residential property market. More recently, the concern is the record-low interest rate of 2.5% may cause a housing bubble. Conspicuously absent in the debate over…
A Trader’s Daily Routine
“I have a full-time job and rarely sit in front of the computer when the markets are open. All my trading decisions are done when the market is closed, but I am having problems deciding exactly where to place my entry orders, with the current market being so volatile. Can you please give someadvice on…
Professional Trader: Never Lose Sleep On A Trading Loss Again
By Dr Alexander Elder, SpikeTrade.com Most traders focus only on winning, on making the big trade. It is much safer to think first about losing and how to manage and control losses. When you learn to ski, one of the first things your instructor will teach you is how to fall safely. Not knowing how…
The Case of Indicator Overload – How Many Are Too Many?
By Expert Panel | By Vito Henjoto, Technical Analyst, GFT When it comes to technical analysis, the range of indicators available means there’s bound to be one to suit every trader. While this is true, most traders unfortunately take this to mean that more is better, which is not often the case. Technical traders are generally divided into two…
The Big Movers – Why Index CFDs Are Proving Their Worth
At the height of the global financial crisis, CFD traders made a big migration. From individual stock CFDs, they moved to index CFDs; and later, to currency CFDs. The move to index CFDs came because “people could see that the indices traded 24 hours, instead of 10 am-4 pm for shares,” says Kara Ordway, senior…
Dividend imputation and super funds: debunking the myth
By Wealth Foundations Many investment advisers and accountants who provide advice to self managed super fund clients insist on investing in shares that pay fully franked dividends. We’re not sure why. Perhaps they believe in some magical additional benefit that dividend imputation credits offer super funds. It’s a pretty simplistic approach to investing which has…
Is it more risky to short a CFD than go long?
Question: Is it more risky to short a CFD than go long? And how do you trade a CFD short, for example, what happens to interest charges, dividends etc? Thomas Roberts, Financial Writer, IG Markets Answer: There are some traders who are bound to feel slightly insecure about going short on a financial asset…
Randomness and the Stochastic Indicator
Trivia question: who said “If you visualise a rocket going up in the air – before it can turn down, it must slow down.’ I agree, it doesn’t sound extremely profound, mostly just common sense. However, the same person added: “Stochastic measures the momentum of price. Momentum always changes direction before price.” The author is…
Technical analysis: MACD
Today’s indicator of choice is moving average convergence divergence, or in short MACD. If you are currently trading or considering trading your own account, no matter the instrument of choice: stocks, futures or Forex, you have probably heard about technical analysis and some of its well known concepts: moving averages, Elliot waves, relative strength index…
Go With the Flow Using Elliott Wave
Elliott Wave (EW) principle has a tarnished reputation among traders because it has been misunderstood and misused. Unlike a simple moving average (SMA) generated using charting software-for example SMA is calculated by summing the closing prices and dividing the sum by the number of periods-Elliott Waves cannot be reliably plotted by a computer. Therefore, the…
