Qualitative Analysis of Shares – Looking Beyond the Numbers
Drilling Underneath the Numbers with Qualitative Analysis The most widely used approach to identifying investment opportunities for those investors committed to picking stocks on their own is fundamental analysis. The goal of fundamental analysis is to identify the “holy grail” sought by investors of all stripes – a company’s intrinsic value. Company fundamentals begin –…
Market Neutral Investment Strategies
Controlling Volatility through Market Neutral Investing Newcomers to share market investing can be surprised to learn there are more ways to turning a profit on a stock trade than taking a long position and waiting for the price to go up or by taking a short position and waiting for the price to go down….
The Mysterious World of Stock Forums
Connecting With Other Investors on Stock Forums One of the multitude of advantages the digital age affords people of all kinds around the world is the ability to connect with others who share the same interests. One of the most popular social media platforms in the world — Meta/Facebook—began as a means for students at…
When to Sell Shares
Stocks Trending Downward – Hold, Buy More, or Sell? The COVID 19 Pandemic poured fuel on a pre-existing fire – the rush of newcomers to share market investing, many of them from younger generations. The influx led many financial analysts and market experts to express concern for how this new crowd would learn the rules…
How to Use the MACD to Trade Australian Stocks
Trading with the MACD (Moving Average Convergence/Divergence) Indicator Fundamental analysis is the most common entry point for first-time investors in the stock market. This approach involves a study of a company’s business model, financial statements, and placement within the economy in which the company operates. Early on in the search for determining what stocks to…
ASX Stock Valuation Methods
Valuing Stocks on the ASX “Value” is one of those words that has multiple meanings –from the monetary worth of something to the importance, worth, or usefulness of something. When you invest in a stock you are buying an ownership stake in the company, no matter how small it may seem. What is that worth…
The Most Important Indicators for Trading ASX Stocks
Best Technical Indicators for Identifying Entry and Exit Points Getting prepared to take that first plunge into trading stocks on the ASX requires a significant amount of time spent learning the rules of the game. At the onset, most newcomers to share market investing learn there are two broad approaches to evaluating specific stocks for…
Why Volume is an Important Clue for Traders
Volume and Price Action Go Hand in Hand The first time a newcomer to share market investing checks a price movement chart for a potential stock to buy it is likely they concentrate on the price action and ignore the volume bar chart at the bottom of the chart. Most people who have never bought…
Pairs Trading: A Guide for Australian Investors
Pairs trading involves first identifying the correlation of the price action of two stocks in similar sectors with similar business models. When the stock price of two highly correlated stocks begins to go in opposite directions, investors can take a long position on the stock dropping in price and a short position on the stock…
Buy Low, Sell High – But What is Low?
How Low is Low Enough in Buy Low/Sell High Investing? Buy Low/Sell High is one of the most cited adages in the world of share market investing. Newcomers to stock investing coming across Buy Low/Sell High learn it is a catch phrase for an investing strategy that seems obvious. When newbies actually think about using…
