The Current Eurozone Crisis
The current crisis of the Eurozone is a result of the imbalance of economic power between the core and the periphery but once one understands the non-economic and completely political strategy that is occurring, comprehending the at-times-incredible decision-making (or lack thereof) is at least easier to digest. Stratfor’s Adriano Bosoni provides a very succinct description of everything you wanted to know about Europe’s ‘situation’ but were afraid to ask in under 240 seconds.
“At the center of the debate lies the question of national sovereignty, the core and periphery of Europe will then have to decide how much (or how little) they are willing to compromise in order to find a way out of the crisis. The answer to this question will not be the result of an economic analysis – it will be the result of a political calculation.”
Current examples
First up we take a look at the NZX Gross Index which we can see is in an up trend which over the past week as pulled back to the trend line. We have a ‘narrowing’ of the trading range where we will either see a move towards the over head resistance or a break below the upward trend line, either way I’m picking this will dictate the near term price action so watch those levels.
Why money management is crucial to long-term success – Part 2
Continuing from last week here is part 2 of my money management introduction.
Allocation is critical
In the same spirit of “staying in the game,” we now turn our attention to allocations per trade. We will not attempt to tell you a minimum dollar amount to trade. This is a decision best left to each individual investor that takes into account their overall profit goals and costs of trading (e.g., commissions). Rather, our goal in this report is to discuss the percentage allocation to each trade.
In an excellent chapter on money management in New Thinking in Technical Analysis: Trading Models from the Masters (Bloomberg Press), Courtney Smith discusses how to “play the game long enough to master the skills and information needed to become a profitable trader” using a system he calls the fixed fractional bet. Simply stated, every trade should represent a set percentage of your total account.
Why money management is crucial to long-term success – Part 1
I have been working with some material that I am composing for a complete money management program for release at a latter date. This week I would like to share part 1 of a 2-part introduction to why money management is crucial to long-term success. Correct money management was probably the most influential aspect of my trading that has seen me successfully trade profitably long term. I do hope that you get something out of the following material as I do frequently get asked, “how much do I need to get started and how many shares should I buy?”
Money Management:
Crucial in Determining Ultimate Profitability
With all the talk about how the market is doing or where it’s headed, it’s easy to get caught up in identifying the hot stock or sector. What stock to pick, what strategy to use, what time frame to look at, etc. But amid all this analysis is a factor that many believe is the most important (I certainly do) – and most ignored – consideration to investment success…proper money management.
The principles of money management in share market trading cannot be mastered without a firm grasp of the statistical probabilities involved. In his esteemed book, Trading for a Living, Dr. Alexander Elder sums up the importance of this concept in a word – innumeracy. According to Dr. Elder, “Innumeracy – not knowing the basic notions of probability, chance, and randomness – is a fatal intellectual weakness in traders.”
You should be very afraid
Well here’s a light hearted view of what could be a very serious privacy issue…
The greek crisis for dummies
Here’s a clip that paints a perspective on the Greek / Euro problems presented by the Greeks….
This weeks Scan
The following is a capture of the completed Scan, with two selected Filters we have created a short list of qualifiers that have both the DMI /ADX and MACD in a positive phase as indicated by the green lights. Click on the Image below for a full size view.
Lets take a look at a few candidates from the list.
Austra United Communications (AUN.ASX) looks to have a breakout underway, 13th Feb AUN popped higher on good volume and has been support through to this week where there looks to be some renewed demand in this stock. Check out the short term and long term Indicator lights across the top of the chart window where they’re mostly green and only a few are neutral.
Intoducing The New tradingwireless.com!
Here we are with revamped Trading Wireless, this new blog will be the home of INVESTigate where i will share with you some tips, tricks and running examples from this great simple application.
INVESTigate only needs end of day (EOD) data there’s no need for intraday day data with this application which also means you not needing to be shackled to a computer during the day chasing scalp trades and at best giving the bulk of it back with commissions and slippage. This application was born from a belief of position trades that may last from several days to several months where capturing good trend trades and sound money management can return a good profit over time.
I certainly plan to show you how this can be achieved using the features in INVESTigate to realize some great opportunities as they present themselves. This is not a “get rich quick scheme”, it’ll require a degree of focus and diligence with a little luck along the way.
If you have any particular requests or if there anything I can do for you that will see you get the most out of INVESTigate then just let me know.
AIX is Breaking Out
So I’m filtering the ASX-200 using the short term ADX and MACD, one standout was AIX, The Australian Infrastructure Fund.
We can see a nice trend less period that has been holding support for a good number of weeks and now appears to be getting some renewed strength. With support appearing to be around $1.98, any close below $1.88 would certainly be considered bearish and would possibly be signaled earlier with a crossover of the DMI.
