The Psychology Challenge of Active Investment Part 1
The reason that you need a Trading Methodology or strategy when investing in the market is to protect you from yourself. You need rules to determine when you should buy, hold, sell and how much capital to commit to a trade. If you don’t believe that human beings need rules to protect themselves then explain […]
Psychology of Active Investment
Active investing is very different from passive investing and hence requires a different mindset for decision-making. Indeed, active investing requires a completely different mindset to any other kind of buying and selling that you have done in the past, e.g. household appliances, motor cars, clothes, etc. All your life you have probably been taught to […]
Types of Investment Risk
This week we move back onto the subject of “Investment Risk” and specifically the different “Types of investment risk”. As mentioned below in my 6th October 2010 post, there are two main types of risk, market risk and specific risk. Market risk is the downside potential that relates to the entire market or the industry […]
Market Status update
For those who regularly follow my weekly Gary Stone Journal posts, you would be aware that 4 weeks ago I pointed to two important technical points on the All Ords index which, if broken, would indicate a high probability that the All Ords had finally broken out of a range bound sideways moving market. The […]
Investment Risk
When it comes to active investment in the stock market, the concept of Risk Management is about controlling the amount of capital that may be lost in the event that the market or a stock turns against your open positions. This week we will carry on from where we left last week’s post on Risk […]
What are Risk Management andMoney Management?
There are numerous risk and money management measures that can be adopted to protect capital but rather than focus on the varying methods of risk and money management, this post will look at “why you should apply risk management and money management rules to your investments”. What risk is there to manage you may ask? […]
What is your analysis paradigm?
Here is a question for you. What is your analysis paradigm? Do you conduct analysis to try to: • eliminate moves in your favour that turned into loss trades? • eliminate trades that immediately moved in the wrong direction? • ensure that you don’t get out of a trade too early? • ensure that you […]
Market status update
We’ve seen an important technical pattern emerge within the past two weeks that could mean the start of something positive for traders and investors. To provide you with further insight, since the 15th October 2009 to the 13th September 2010, the ASX All Ords has moved in two sideways patterns. The first was in a […]
Losing Streaks and optimism
Losing streaks and flat periods are a reality of trading. Just as sports teams have losing streaks, so do traders. A trader may take many trades and face loss after loss before scoring a win. Trading requires persistence in the face of seemingly constant setbacks. It takes a rare person to be able to pick […]
A Pep Talk we all need now and then
Trading can be a very lonely game. As self investors we tend to internalise our feelings and emotions without sitting back and assessing where, we’re really at. Recently I was fortunate to be interviewed on JSE Direct – a South African radio program hosted by well respected South African media analyst Simon Brown. Simon’s interview […]