The Importance of Portfolio Diversity
What is Portfolio Diversity? Portfolio diversity is a risk management strategy where investors spread their investments across different asset classes, industries, and geographic regions so the risk of a downturn in one investment can be offset by better performance in another asset class or geographic region. Investing history has seen repeated collapses in notable industries…
Want Growth and Value Shares? – Try the GARP Investing Strategy
Combining Strategies with Growth at a Reasonable Price (GARP) Investing Newcomers to share market investing quickly learn there are two major categories of stocks around which they can build their trading strategy – Value stocks and Growth stocks. Investing in either category requires an assessment of the fundamentals of the company’s business. This fundamental analysis…
How to Use the Simple Moving Average (SMA) to Trade Australian Stocks
Trading with the Simple Moving Average (SMA) Moving averages are technical analysis indicators designed to smooth out price movements by determining an average price over a period of time. There are two major types of moving averages in use – the simple moving average (SMA) and the exponential moving average (EMA). The EMA is considered…
A Trader’s Daily Routine
A Regimen for a Daily Trader To a large extent, a trader’s daily routine is determined by the kind of trader he or she is. Some market experts claim there are eight different types of stock market traders, differentiated by the time frame of their trades. Timing is common to all traders and investors as…
CANSLIM Investing – Does It Really Work?
Does the CANSLIM Investing Strategy Live Up to its Claims? In the 1950’s, a young stock broker based in the US wondered if the high performing companies he followed shared any common attributes. In short, were the secrets of their success following the same path. After years of research, William J. Oneill uncovered seven traits…
How to Use the Relative Strength Index (RSI) to Trade Australian Stocks
Using the Relative Strength Index for Buy and Sell Signals Investors overwhelmed by the host of technical indicators they find on most stock selection graphs available on trading platforms and financial websites might be surprised to learn in 1978, there were only two technical indicators in use. Then came engineer turned real estate developer turned…
How Do You Become a Successful Trader?
What Successful Traders and Investors Do to Succeed? At the beginning of the effort to learn the rules of successful share market, forex, or commodities investing, many would-be investors are asked if they plan to be traders or investors. While both have the same goal – making a profit from buying and selling…
Value Investing 101
An Introduction to Value Investing – What is Value Investing? Australians getting ready to take the lead into share market investing are often lured there by the siren song of rewards “shooting to the moon.” They soon learn with those rewards, comes risk. The adage is the greater the rewards, the greater the risk. …
Stock Market Beta Explained
Beta – A Trading Tool for All Investors When first-time investors in stock markets set off to educate themselves on how to successfully navigate the universe of available publicly traded stocks for potential investment, they soon learn there are a wealth of analytical stools available to shape their decision making. Many are mathematical or statistical…
How Does the Course of Sales Work
Course of Sales Data as a Trading Tool While some investors might jump into a stock based on vague “tips” about a “can’t miss” opportunity, the vast majority of Aussie investors spend time researching a stock that has caught their eye before buying. Regardless of how they assess a potential buy, at some point they…
