Analysis & Opinion

SECTOR SCAN: The Best Five Micro Caps For Your Portfolio

The micro sector generally refers to ASX-listed companies with a market capitalisation below $250 million, according to State One Stockbroking analyst John Rawicki. The sector is loaded with stocks as the market capitalisation of most companies listed on the ASX is below $250 million. The micro caps have a keen following among investors willing to…

YOUR PORTFOLIO: Hot Rare Earths On Increasing Demand

The rare earths story embraces potentially big windfalls laced with plenty of risk. Listed Australian rare earths companies aren’t for conservative investors, as explorers without earnings dominate the landscape. Nevertheless, that doesn’t stop share prices rising as the market looks forward, factoring in what tomorrow can potentially bring in an industry dominated by China. The…

Using The Share Price As a Guide To Buy And Sell

There is a difference between strategies for share market investing and strategies for picking shares, and many retail investors ignore the investing strategies in favour of share picking tactics. To stgelop a strategy for share market investing you start with defining your personal investment goals.  While a goal of making as much money as I…

Tools for Finding Safer Shares (Part 2) – The Quick Ratio

Something happened a short time ago – January 24th, 2011 – that shines a spotlight on the issue of finding safer shares.  Australia’s giant retailer, Woolworths (WOW), lowered its guidance for the first half of 2011.  Today’s earnings release cited the following conditions that led to the revised forecast: •    Consumer Confidence Levels•    Inflation•    Interest…

Options Shorting Strategies for Beginners

Before proceeding into trading any type of instruments and strategies you have to ask yourself: – What is my goal? – How much time can I dedicate to trading? – What is my risk tolerance? – What is my strategy? Option selling (writing) offers reasonable profit potential and generally requires only couple of hours a…

Developing a trend-following system

I became more interested in moving averages when I was looking into developing a trend-following system, since moving averages help identify trend reversals. Therefore, I took a closer look at the differences between the different types of moving averages and the possible benefits of using one versus another. For those of you new to trading,…

Trader’s Toolkit – Simple Moving Average (SMA)

What is a moving average and why should I care about it? Imagine that you are at the grocery store, but instead of seeing 20 varieties of beer displayed at slightly different prices, you see your favorite beer displayed at the 20 different prices it had for the last 20 sales. Naturally, you ask yourself,…

How to set up a watchlist

What progress have watchlists made! From the yellow pad and end-of-day newspaper quotes to instantaneous online watchlists that transverse a multitude of search criteria: sectors, market capitalisation, growth, moving averages or trading volume. All this could be at your fingertips, for free, in just few seconds. For decades, stocks have been the most popular investment…

Get Started Investing Today – But How?

Once upon a time, legendary investor Baron Rothschild was asked the secret of his success; to which he supposedly replied: “I never buy at the bottom and I always sell too soon.” Whether he actually said that or not, the comment speaks to the need to make use of a strategy to guide investing decisions. …

Will The Housing Bubble Pop?

As Aussie housing prices have risen dramatically in recent years and LVRs have skyrocketed, leading economists and investment advisers have weighed in on the issue of whether Australia is experiencing a “housing bubble” and, if so, whether it will eventually “pop” or quietly deflate. Today we summarise several perspectives: 1.    Steve Keen, Assoc. Prof. in…