Articles

As we close on the end to the current financial year many are asking are the recent sell offs in the equity markets the sign of more to come. It has to be said since the early May we have travelled predominately sideways and this last climb to yearly highs has been very weak with volumes and average ranges shrinking. The fundamental news in the market has also been negative against a rising prices, this combined with the need for many stocks to go into capital raising by issuing more shares may have finally weighed the market enough for it to take a break.

When is the best time to make decisions? When you are squeezed in a corner or when you have choices? Let’s say the Global Financial Crisis has got your business to the point of collapse. Would that be a place to make the best decisions from? Would it be better to make the decisions from a place of having choices?

Welcome from me to all our Safety in the Market traders to this month’s dedicated newsletter. I’ve just got back from the Adelaide Interactive Trading Workshop yesterday that was conducted with my mate Tim Walker. It is the second one in a row for us and really gave us a chance to build upon the current market action we had been following for the past couple of weeks. It’s personally given my stock CFD trading a boost as we have come across so many great set-ups that were just too good to pass up. I want to share a potential beauty with you on Seven Network (SEV).

In trading there are times when everything seems easy. Most of our trades are winners, our morale is up, our bank balance is overflowing and life is good! Then, there are times when the volume drops out of the market, trends aren’t as long or strong and money is harder to make. Sometimes we need to sit out of the market altogether if it is too volatile, or not volatile enough.

The market myths that many people seem to hold as truth often amaze me. One from an Australian perspective is that if the US Market has a down day (overnight in Australia) the Aussie market will finish lower the next day. No doubt a similar belief may be held in the States regarding Australian and Asian markets, though I am sure their movements are far less publicized.