Preparing for an Avalanche
Nature has many cycles that are not controlled by mankind. But man’s response to these events can differ greatly in degree and that intensity of degree is determined by how it may or does affect us as individuals. People have difficulty keeping a neutral perspective on an event, regardless of what it is, and hence […]
10 Trading Tips for a new financial year
Active investment in the stock market is very different to passive investing and hence requires a different mindset and different skill set for decision making. Successful active investment requires patience, knowledge, objectiveness, consistency and amongst other things trust in your investment approach. So with a new financial year upon us, I have identified my ‘10 […]
Thinking you ‘know’ what will happen vs understanding probability
Let’s imagine you have just opened and read an email from the stock picking newsletter you subscribe to and see a buy alert for your “favourite” stock. The company is planning to announce its earnings to the market within the next 10 days, and it now has a ‘buy’ recommendation based on a potential positive […]
Active Investor e-Newsletter
Gary’s Comments The world is once again abound with negative economic news in both the USA and in Europe. These factors are obviously weighing heavily on equity markets which have seen falls around the world from 6% to 14% since early to mid April. Equity indices around the world are stretched on the downside in […]
Basketball Study #2
The last journal post spoke about 2 psychologists, Amos Tversky and Thomas Gilovich who in the 1980’s began sifting through shooting statistics from the Philadelphia 76ers – a US basketball team. The psychologists looked at every single shot taken by every single player, and recorded whether or not that shot had been preceded by a […]
Gary on SKY News YMYC – 31st May 2011
Earlier last week Gary joined Julia Lee from Bell Direct on Sky Business Channel’s ‘Your Money Your Call’. Julia and Gary opened the show by analyzing the Australian market’s direction following the recent 7.7% decline, which has occurred over the last seven weeks, and the 78.6% retracement of the gains since the last high on […]
Basketball Study #1
Let me tell you about a classic psychological study that I found online and has important insight for us as traders and investors. In the early 1980s, two psychologists Amos Tversky and Thomas Gilovich began sifting through years of statistics from the Philadelphia 76ers – a US basketball team. (Amos Tversky is well known for […]
Active Investor e-Newsletter
Gary’s Comments Plenty of red in the international equities indices but lots of green in the commodities table over the last week. All major equities indices around the world are in short term downtrends. The S&P500 and DJI indices are holding their major support levels of 1320 and 12400, respectively, but only just. I know that […]
Trading is a journey – not a destination
As soon as one can accept that trading is a business of accepting losses, the sooner consistent success will come. Losing trades are like breathing, you have to have them in order to stay alive. None of us can ever hope to be right all the time in anything that we take on. This is […]
Time is on your side
People from all walks of life are drawn to trading for many different reasons – a desire to do something for their financial future, to work for themselves, to build an investment portfolio for future generations, to generate cash flow, and a host of other valid reasons which are personal for each and every one […]