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 […]
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 […]
Discipline in trading – Physical discipline
This week we look at a trading discipline that is a bit more ‘out there’ than the mental and technical discipline we have discussed in the previous two posts, that of physical discipline. The trading environment can be a stressful and tense place for some traders and investors – perhaps more for the short term […]
Discipline in trading – Technical discipline
This week we take a look at the second core component of trading discipline – the area I call technical discipline. Trading and investing approaches vary but at the very least you need a process for choosing what stocks to buy and when to sell. Because you have accepted that “no-one knows with 100% certainty […]
Discipline in trading – mental discipline
When it comes to trading, discipline comprises of three core components: Mental, Technical and Physical discipline. The trading fraternity often talks about discipline being a requirement to be a successful trader so over the next 3 weeks I am going to examine discipline in each of these areas and discuss what is involved with each […]
Lessons that go far beyond money
Something that is a given when trading the markets is loss trades. But it’s the lessons learnt from these losses that go far beyond the money lost during unfriendly market periods. How well traders and investors put steps in place to ensure that their long term performance can be enhanced is dependent on the degree […]
Know your trading term
A lot has been written about an investor ‘knowing the term’ of any position that they take in the market. For example, when a long term ‘buy and hold’ position is taken, the investor must be prepared to ride the ups and downs of the market but must also be prepared to accept a lower […]
The benefits of using a Trading System
The main benefits of using a Trading System are to: • Remove emotion from the buy/sell/hold decision. • Remove personal ego from the buy/sell/hold equation. • Exclude outside influences and ‘noise’ from the buy/sell/hold decision. • Achieve objectivity & consistency, trust and confidence, in the buy/hold/sell decision process. • Overcome personal expectations of the market. […]
How much capital is required?
It is ironic that generally the less capital novice investors have the more risk they take. They focus on higher risk trading instruments or higher risk trades seeking the large quick returns. Besides the additional volatility risk, they then magnify that risk by allocating too much capital to these high risk trades and in many […]