Articles

In the coming weeks I am going to write about the seven deadly sins in investing – according to Scollon. Not because it will fill seven weeks of editorial – in fact I am always wary about serial articles – but rather I see these sins being committed regularly. In fact daily before my very eyes. And it is easy to avoid them.

It’s been a very interesting time in the currency markets. Mind you, I can’t remember too many boring times since I started trading these markets!

What do you think of when you see ABC Points on a chart? Very probably, you look at it as a potential trade, and then proceed to evaluate its strength or weakness. However, there is another very powerful use for ABC Points, and that is to give potential prices where moves may end and the trend may turn. As usual we will illustrate by looking at Santos (STO:ASX).

There are but two certainties in this life: death and taxes. Neither are particularly attractive prospects, but the fact is they are both inevitable. In regard to tax, we must at least acknowledge it as a necessary evil. It provides the money Governments need to pay for essential services such as schools, hospitals, roads and a host of other things that are absolutely essential for a healthy and functional society.

Back in March when the markets took off there were many reasons to believe markets globally could have fallen much further. So few investors got on board as risks were still high. Many traders – short term players – may have taken some positions but few would have been fully invested. Well done if you picked the low.