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  • Setting Up a Solid Trading Plan | Online Stockmarket Trading Update
    analysis and decided to buy the share because you are convinced that it will rise and you were either right or wrong about this It is vitally important to plan for both situations Most people plan for making profits and forget about what to do if things do not work out as planned 4 Risk Management Risk management is determining how much you lose if the trade goes wrong This area includes how much money to put on one trade and how much you are prepared to lose if things don t go as planned A simple approach to risk management is to divide your capital into 5 10 parcels It is however important to have enough money on each trade to make it worthwhile When trading shares a minimum parcel size of 3 000 5 000 is required dependent on the amount of brokerage that you are paying 5 Exits to Take Profits It s as important to have an exit strategy if the trade does go as planned as when it doesn t work out When are you going to take profits This could be at a set level or when the share hits a trailing stop loss or when a fundamental valuation is reached This exit must be planned before entering the trade as it is very easy to change your mind once you own the shares as the emotions come into play A trading plan can be as simple as a check list of criteria that must be in place before entering the trade or it can be a formal written document It is up to you how you create this but ensure you spend some time on it before getting into the markets This will make a huge difference to your success Tags entry signals risk management stop loss trading criteria trading plan trading shares Christmas Trading and Support Hours Weekly Market Wrap The Christmas Rally Continues This entry was posted on Friday December 21st 2012 at 11 02 am and is filed under Trading Strategies You can follow any responses to this entry through the RSS 2 0 feed You can leave a response or trackback from your own site Leave a Reply Click here to cancel reply Name required Mail will not be published required Website RSS Feed Twitter Follow Us Sign up to our free weekly e newsletter Feel inspired Start trading Recent Post Markets Cap Best January Performance for Over a Decade Weekly Market Wrap The Covered Call Collar Part 3 1 of Options Trading for All Types of Market Environments Stock Market Analysis Markets Cap Best January for Over a Decade Stock Market Analysis Traders Take Profits Stock Market Analysis Markets Reach Bull Market Territory Stock Market Analysis US Markets Ease Near All Time Highs Markets Higher As Investors Play Catch Up Weekly Market Wrap Investing in 2013 continued Part 9 Stock Trading Tips for All Types of Market Environments Stock Market Analysis Markets Higher As Investors Play Catchup Stock

    Original URL path: http://blog.traderdealer.com.au/2012/12/21/setting-up-a-solid-trading-plan/ (2013-02-02)
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  • Entry Signals | Online Stockmarket Trading Update
    as planned 4 Risk Management Risk management is determining how much you lose if the trade goes wrong This area includes how much money to put on one trade and how much you are prepared to lose if things don t go as planned A simple approach to risk management is to divide your capital into 5 10 parcels It is however important to have enough money on each trade to make it worthwhile When trading shares a minimum parcel size of 3 000 5 000 is required dependent on the amount of brokerage that you are paying 5 Exits to Take Profits It s as important to have an exit strategy if the trade does go as planned as when it doesn t work out When are you going to take profits This could be at a set level or when the share hits a trailing stop loss or when a fundamental valuation is reached This exit must be planned before entering the trade as it is very easy to change your mind once you own the shares as the emotions come into play A trading plan can be as simple as a check list of criteria that must be in place before entering the trade or it can be a formal written document It is up to you how you create this but ensure you spend some time on it before getting into the markets This will make a huge difference to your success Tags entry signals risk management stop loss trading criteria trading plan trading shares Posted in Trading Strategies No Comments Donchian Channel Trading Strategy Wednesday April 8th 2009 The Donchian Channel Breakout is a strategy made famous by the Turtle Traders who made their millions trading commodities in the 1980s In this tutorial we ll look at how the Donchian Channel Breakout works how to build the strategy and test its effectiveness and how to use the Market Analyser to find signals on a daily basis Click here to download the PDF Donchian Channel Overview A Donchian Channel is created by determining the highest and lowest point in the last X number of days The highest point during the last X number of days marks the top of the channel and the lowest point marks the bottom of the channel A long entry signal is given when the price breaks out to the upside and a short entry signal is given when a price breaks to the downside Tags charting donchian channel donchian channel breakout entry signals how to trade Market Analyser technical analysis Trading Strategies Posted in Trading Software Trading Strategies 1 Comment RSS Feed Twitter Follow Us Sign up to our free weekly e newsletter Feel inspired Start trading Recent Post Markets Cap Best January Performance for Over a Decade Weekly Market Wrap The Covered Call Collar Part 3 1 of Options Trading for All Types of Market Environments Stock Market Analysis Markets Cap Best January for Over a Decade Stock Market Analysis

    Original URL path: http://blog.traderdealer.com.au/tag/entry-signals/ (2013-02-02)
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  • Risk Management | Online Stockmarket Trading Update
    people become attracted to that share but if it has been rising for some time it is likely that it will now reverse direction Trends are created by traders and investors buying or selling a share When there is no one left to buy or sell the trend reverses The longer a trend goes on the closer the share gets to a reversal More humans opt for a chance of a loss and a certain win than the other way around This means that many traders will gamble that a losing trade will turnaround and go their way They will also be inclined to take profits so as not to lose out on the trade This tendency leads to cutting profits and letting losses run the opposite of what makes for a successful trading strategy Enter the Market with Your Eyes Open By designing and testing a successful trading strategy the trader or investor knows in advance whether their strategy is likely to work or not If a strategy works based on historical data there is a high probability but not a guarantee that the strategy will work in the future If the strategy however does not work historically there is a very remote possibility that it will work well in the future Designing and testing a trading strategy also requires clarity around the rules for where to enter where to place stops how much to place on a trade and where to exit from a trade To design a complete trading strategy you must take into account the following details Setup The setup is a series of conditions that must be in place before even considering a trade This may include fundamental criteria overall market conditions economic conditions sector performance a technical trend or a history of strong performance Buying a share will not even be considered unless these conditions are first met The setup criteria helps you determine what to buy Entry The next step in the trading plan is to decide when to buy the shares that are contained in the watch list The entry criteria will normally be determined by technical analysis factors e g if the share continues to rise above resistance Some investors will look at market depth to determine buyer support or news announcements Once the criteria have been met the share is bought Exits to cut losses Once you have bought a share there are only two things that can happen You have done all your analysis and decided to buy the share because you are convinced that the share will rise Either you were right or you were wrong It is vitally important to plan for both situations Most people plan for making profits and forget about what to do if things do not work out as planned A stop loss exit allows you to minimise your losses in the event that the trade does not go as planned Using a stop loss is essential to risk management When will you

    Original URL path: http://blog.traderdealer.com.au/tag/risk-management/ (2013-02-02)
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  • Stop Loss | Online Stockmarket Trading Update
    cons of different position sizing models Fixed unit position size The amount traded is a set number of contracts regardless of the underlying security being traded This approach is widely used in the futures market due to the large contract sizes with many traders trading just one contract each time a trade signal is generated but it s not often used when trading shares The limitations of this approach should have become obvious already with position sizes varying widely depending on the share that is being traded This strategy does not work well in most cases because the price of the shares varies significantly This position sizing model is also static and you must then decide when to increase the number of contracts you are trading Fixed dollar position size A fixed dollar amount can be allocated to a trade ensuring consistent position sizing across a number of different shares This means you would trade say 5000 10 000 or 20 000 on each position and trade as many contracts as required to get close to a position size of your nominated dollar amount This is a far better approach than a fixed unit method because it does take into account the variation in share price If the price is low more shares are traded while a higher price means that fewer shares are traded As with the fixed unit approach this is a static position sizing model and you will need to implement a clear cut method that identifies when it s best to move from say 5000 to 6000 or 10 000 to 11 000 parcel sizes as well as what increments you ll move up in Fixed fraction position size When using fixed fraction position sizing you divide your capital into 10 equal parcels and place the same dollar amount onto each trade The fixed fraction approach is widely used when trading unleveraged instruments such as shares This approach allows a trader to spread the risk of any individual trade and ensures there is capital available for other trade signals as the signals are generated This is a dynamic approach to position sizing As your account balance increases your position size increases and as your account balance decreases your position size decreases It becomes much more difficult to employ this method when trading with leverage as margin requirements do not require you to allocate all of your capital to a trade It is possible to over leverage If you were to allocate say 10 per cent of your capital 5000 as initial margin on a CFD trade or an option trade you have unwittingly taken on a huge amount of risk Fixed risk position size The fixed risk model allocates a set amount to place at risk on a trade If the trade hits your stop loss you will lose the set amount As an example an entry at 50 with an exit at 49 50 on Commonwealth Bank CBA means you are risking 50 cents per

    Original URL path: http://blog.traderdealer.com.au/tag/stop-loss/ (2013-02-02)
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  • Trading Criteria | Online Stockmarket Trading Update
    if the trade goes wrong This area includes how much money to put on one trade and how much you are prepared to lose if things don t go as planned A simple approach to risk management is to divide your capital into 5 10 parcels It is however important to have enough money on each trade to make it worthwhile When trading shares a minimum parcel size of 3 000 5 000 is required dependent on the amount of brokerage that you are paying 5 Exits to Take Profits It s as important to have an exit strategy if the trade does go as planned as when it doesn t work out When are you going to take profits This could be at a set level or when the share hits a trailing stop loss or when a fundamental valuation is reached This exit must be planned before entering the trade as it is very easy to change your mind once you own the shares as the emotions come into play A trading plan can be as simple as a check list of criteria that must be in place before entering the trade or it can be a formal written document It is up to you how you create this but ensure you spend some time on it before getting into the markets This will make a huge difference to your success Tags entry signals risk management stop loss trading criteria trading plan trading shares Posted in Trading Strategies No Comments RSS Feed Twitter Follow Us Sign up to our free weekly e newsletter Feel inspired Start trading Recent Post Markets Cap Best January Performance for Over a Decade Weekly Market Wrap The Covered Call Collar Part 3 1 of Options Trading for All Types of Market Environments Stock

    Original URL path: http://blog.traderdealer.com.au/tag/trading-criteria/ (2013-02-02)
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  • Trading Plan | Online Stockmarket Trading Update
    for signs of capitulation More conservative investors will wait for the VIX to then cross below 30 for confirmation that the market environment is turning to risk on Traders should then be looking to build their portfolios picking up bargains and trading the market to the long side with the expectation that the volatility is likely to contract near term refer to the green dots on the chart You can see from the chart that if history repeats then we are some way off from a bottom in the markets Central Bank Intervention Central banks can short circuit market moves and can provide the catalysts for a turnaround in sentiment In 2012 however with the situation in Greece and the problems with the Spanish banking system central banks in the euro zone are unlikely to move until at least July In China there is plenty of rhetoric about the government being supportive of the Chinese economy as the domestic growth slows China has just cut rates by 25 basis points for the first time since 2008 In the US the Federal Reserve has indicated that it is not in a hurry to act to provide future stimulus as Operation Twist is not due to finish until the end of June The US growth rate is likely to remain between 2 and 2 5 in 2012 but there is the stubborn problem of a jobless recovery If the Fed has its way it will be waiting for the EU and ECB to fix the debt concern issues in the eurozone Capitulation Capitulation happens at market extremes and is often accompanied with an exhaustion gap and a huge spike in volume in the prevailing direction of the trend as stock ownership passes from weaker hands to stronger hands It will be interesting to see if this unfolds in our market given the steady grind lower by the markets since late April Trading volumes have been relatively low during in this market correction but have been picking up over the last week The Trade We are evaluating the US markets as a proxy for our market as the US has been resilient in the move to the upside in the past six months and we expect this leadership to continue for the foreseeable future at least until the end of the year The VIX offers a unique insight into the psyche of the traders driving the market at this time We suggest a plan of action as follows Bears are controlling the markets at this time especially while the markets hold below their 50 and 200 day moving averages Keep a defensive posture until the VIX confirms a turnaround in sentiment Sell the Rips in the near term Look out for capitulation where the buyers give up and step aside Be wary of a turnaround if the market falls around 16 as it has done in the past 3 years at this time of year Re evaluate if the market has consecutive closes above the 13 day moving average I trust that this information has been helpful Contact me at D2MX Trading on 1300 610 024 and I can help you trade using a number of strategies that will give you the tools to navigate this market and help you boost your returns on investment Michael Hevern Investment Adviser D2MX Trading This report was prepared by Michael Hevern It represents the views and opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot be guaranteed Any opinions expressed reflect my judgment at this date and are subject to change Contracting Hevern Pty Ltd is a Corporate Authorised Representative No 408868 of D2MX Pty Limited ABN 98 113 959 596 AFSL No 297950 D2MX and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty Ltd Opinions conclusions and other information expressed in this report are not given or endorsed by D2MX unless otherwise indicated The information contained in this Report is General Advice only as the information or advice given does not take into account your particular objectives financial situation or needs Disclaimer Using leverage to invest can be a two edged sword as it can magnify your returns when the stock price rises but will in turn magnify the losses if the trade does not perform as expected Tags S P500 trading trading plan VIX vix gauge volatility Posted in Stock Market Analysis Trading Strategies No Comments Creating A Trading Diary Friday March 30th 2012 A trading diary is a place to record your trades your thoughts and your results A well structured trading diary is essential to your development as a trader The diary allows you to first of all identify areas for improvement then set goals to improve and review your progress If your trading diary is blank then there will not be much to learn And if it is full of swear words and put downs you will not enjoy reading it This is an essential tool for your development and learning The most important trading book you will ever read is your own trading diary Observation Start your trading diary before you start to trade When you are new to the markets it is a good idea to study a range of markets time frames and trading techniques to find one that you would like to trade This may be intraday trading end of day trading or even longer term it could be commodities indices or shares There is no right answer as there is no perfect trading strategy It is essential to find what works for you A trading diary may initially only include market observations what happens when a set of circumstances arise By observing what happens if the market is down heavily or what happens at a change in trend you can learn to

    Original URL path: http://blog.traderdealer.com.au/tag/trading-plan/ (2013-02-02)
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  • Stocks for the Christmas Hamper | Online Stockmarket Trading Update
    This worked fantastically this year so here are some suggestions for 2013 We have done a quick review using the d2mxIRESS software searching the S P ASX200 stocks that have consistent fundamentals that reward shareholders through a strong dividend stream The shortlist of stocks is summarised in the table and chart below Note we have sorted these stocks by year to date performance There are a number of ways to utilise this information for your investing in 2013 including Choose the stocks that have performed the best in terms of YTD return and Yield such as Telstra Corporation Spark Infrastructure Westpac Bank and Tatts Group This method assumes that these stocks will continue to outperform into 2013 Choose the stocks that offer the best in terms of Dividend Yield such as Tabcorp Holdings Tatts Group Myer Holdings Metcash and National Bank Choose the stocks that have performed the best in terms of Return on Equity and Yield such as Tabcorp Holdings Tatts Group Myer Holding Metcash and National Bank Choose the stocks on a contrarian basis that is those stocks that have been sold off in the past year and are trading on single digit PE on the hope of a recovery into 2012 such as Tabcorp Holdings Metcash and National Bank Note this is a similar methodology to the Dogs of the Dow methodology used by traders in the Untied States to select high yielding underperforming stocks So decide on your selection criteria and add some of these stocks to your Christmas hamper Additionally keep a watchlist of these stocks so that you can start accumulating if there is a pullback in the first quarter of the New Year Wishing you all a Merry Christmas from the D2MX Advisory Team and we trust that Santa Claus delivers you exactly what you want for Christmas and we will return in the New Year Bonus For trade ideas and recommendations on how to trade in this market sign up for a free trial of the D2MX Daily Trading Report which provides a daily serving of insightful market analysis from the D2MX Advisory team including Trade ideas and strategies Dividend enhancement strategies Market scans to watch International market analysis and Highlights from the S P ASX 200 To request an obligation free trial call 1300 610 024 or email advisory d2mx com au Michael Hevern Investment Adviser D2MX This report was prepared by Michael Hevern It represents the views and opinions of the author It is not intended for use by any third party without the approval of Michael Hevern While this report is based on information from sources which are considered reliable its accuracy and completeness cannot be guaranteed Any opinions expressed reflect my judgment at this date and are subject to change Contracting Hevern Pty Ltd is a Corporate Authorised Representative No 408868 of D2MX Pty Limited ABN 98 113 959 596 AFSL No 297950 D2MX and Michael Hevern has been appointed as an Authorised Representative of Contracting Hevern Pty

    Original URL path: http://blog.traderdealer.com.au/2012/12/14/stocks-for-the-christmas-hamper-2012/ (2013-02-02)
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  • Stocks for the Christmas Hamper | Online Stockmarket Trading Update
    Bank Myer Holdings and David Jones Note this is a similar methodology to the Dogs of the Dow methodology used by traders in the United States to select high yielding underperforming stocks So decide on your selection criteria and add some of these stocks to your Christmas hamper Additionally keep a watchlist of these stocks so that you can start accumulating if there is another sell off in the first quarter of the New Year While trading in high yielding stocks is not guaranteed to deliver strong returns to investors or traders dividends do offer a margin of safety which can in turn boost any capital return on the company s shares Dividends also offer Super Funds the additional benefit of franking credits which can boost the portfolio s annual performance Wishing you all a Merry Christmas from the Research Team and we trust that Santa Claus delivers exactly what you want for Christmas We will return in the New Year Michael Hevern Investment Adviser For Buy and Sell recommendations on ASX listed companies register for a FREE trial of MDS Financial Research Tags ASX asx stocks dividend yield Dividends retail stocks trading Stock Market Analysis Modest Gains From Relief Rally Weekly Market Wrap Prospects For A Christmas Rally Wane This entry was posted on Friday December 16th 2011 at 1 10 pm and is filed under ASX Trading News Trading Strategies You can follow any responses to this entry through the RSS 2 0 feed You can leave a response or trackback from your own site Leave a Reply Click here to cancel reply Name required Mail will not be published required Website RSS Feed Twitter Follow Us Sign up to our free weekly e newsletter Feel inspired Start trading Recent Post Markets Cap Best January Performance for Over

    Original URL path: http://blog.traderdealer.com.au/2011/12/16/stocks-for-the-christmas-hamper/ (2013-02-02)
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