Articles

There are always a few common mistakes that are made when implementing a trading system. These range from excessive positive expectation leading to over leverage all the way to a lack of preparation and system testing. Indeed, often the actual system itself leaves a lot to be desired in terms of the logic that supports it and the market conditions it is implemented through. In this article we will look at a method of back testing and some important components to be considered in developing a trading method.

Forbes recently conducted interviews with a number of billionaires to get their views on the year ahead. When asked about his view on Gold, the owner of the Dallas Mavericks, Mark Cuban said, "Gold is a religion; it's not an asset class. It is always a bubble, so I am a sell."

The strong Australian Dollar seems to be common knowledge wherever I go. Everyone is talking about the magic word “parity” and wondering when the value of the Australian Dollar will exceed the value of the US Dollar.

As I search to fathom out the melee of the last couple of weeks I try and contemplate likely scenarios. I say likely as to talk of just possible scenarios is really just sitting on the fence and I am not good at that. Nor can I say I am good at picking short term moves. I say ‘moves’ as I am inclined to think a short term ‘trend’ is almost a contradiction of terms. I do not aspire to pick the short term moves but only to understand them as a foundation to at least the medium term move ahead.

2009 was a year of recoveries – for the economy, the financial system and battered stocks. Reading varied financial research over the past few months, there have been a number of themes that are consistent. These being firstly that after the ‘economic sweet spot’ in the third quarter of 2009, the speed of the recovery will slow in 2010. Flowing on from this is the idea that 2010 will see more a stock picker’s market compared to 2009 where almost all ships were lifted with the tide.