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  • Aussie Dollar Strength and Your Portfolio: Part 7 - Stock Trading Tips for All Types of Market Environments | Online Stockmarket Trading Update
    by stockpiling foreign central banks deposits on its balance sheet However this appears to have had little effect as can be seen in Chart 1 below as the AUDUSD continues to hold above parity It is a case of central banks around the world simultaneously trying to debase their local currency in an attempt to make their economies more competitive on the world stage There appears to be a new paradigm for the Australian dollar known as the Aussie Battler sparking growing concern among exporters in recent months The Aussie Battler failed to act in its traditional role as a shock absorber in falling during times of economic weakness which tends to make Australian exports more competitive Economists have been surprised that the dollar has not fallen much given the slump in commodities we have seen in recent months Aussie Dollar versus ASX Stock Market Performance The Aussie dollar tends to be a leading indicator of what is happening in the ASX equities market as illustrated in the charts below CHART 1 Aussie Dollar Performance 2009 2012 CHART 2 Aussie Stock Market Performance 2009 2012 Key facts in the performance comparisons between the Aussie Dollar versus ASX Stock Market Aussie dollars leads the equities market Typically the Aussie strengthens in the last quarter of the year and pulls back from March through to June When the Aussie dollars gets over extended too high funds get repatriated offshore draining funds from the local equities market Aussie dollar strength translates to higher ASX equities prices eg Mid 2010 through first quarter 2011 Aussie dollar volatility translates to weaker ASX equities prices eg Last half of 2011 Aussie dollar weakness translates to lower ASX equities prices eg Second quarter 2011 Conclusion The Aussie dollar is a great barometer for the Australian equities market and should be monitored as a lead indicator for your portfolio The IMF has revealed that it is considering classifying the Australian and Canadian dollars as official reserve currencies which include those currencies held in large quantities by foreign governments through their central bank reserves If the Aussie dollar is granted reserve currency status it is likely to lift demand for the currency from foreign institutions thereby effectively putting a floor under our currency and possibly creating a new paradigm for the Aussie Battler There are concerns that a reserve currency nation also raises the risk of dramatic capital flight from the economy during a severe slump which could exacerbate economic problems 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 Also in this series Part 1 Simple Trend Finder Scanning Method

    Original URL path: http://blog.traderdealer.com.au/2012/11/23/aussie-dollar-strength-and-your-portfolio-part-7-stock-trading-tips-for-all-types-of-market-environments/ (2013-02-02)
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  • Simple Trend Finder Scanning Method: Part I Stock Trading Tips for All Types of Market Environments | Online Stockmarket Trading Update
    a list of 17 potential trading candidates that are in a downtrend in the medium and shorter term and have recently made new lows You will note that this list is dominated by stocks from the mining and energy sectors which have clearly underperformed in the Aussie market in the run up since last October Figure 5 Results of Downtrending Stocks scan run on 18 July 2012 Sample Trades To give you an idea about the types of stocks the scans highlighted I have provided a couple of sample charts for CSL and Macquarie Bank below Chart CSL CSL in a clear uptrend and moving higher Chart Macquarie Bank MQG in a clear downtrend The Trade There is no doubt that this is a challenging market for investors but using some simple tools that D2MX can provide through its IRESS Trader platform you can quickly highlight stocks that are suitable for your investment outlook This analysis can be done on a regular basis and should take you no more than five minutes If you want to try a Long Short strategy you can do that too through the use of Mini Warrants which have been discussed in earlier articles by going Long the outperforming stock s while Shorting the underperforming stock s Refer to Warrant Trading for All Types of Market Environments Series Part 1 Shorting With Limited Risk Using MINIs Part 2 Boosting Dividend Yield Using Warrants Utilise the D2MX features in the IRESS Trader platform to select your trades according to your market view You will save time and potentially increase your returns by trading with the trend 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

    Original URL path: http://blog.traderdealer.com.au/2012/07/20/simple-trend-finder-scanning-method/ (2013-02-02)
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  • Going For Gold: Part 2 - Stock Trading Tips for All Types of Market Environments | Online Stockmarket Trading Update
    month The gold producers will be set up for a re rating too if gold s fortunes turnaround So today we re going to show you how to review the gold mining sector using the D2MX Trade Tool features available in the Market Analyser and Bourse platforms Start by setting up a User Watchlist under the Pricing Quote menu and either nominating specific stocks or selecting from the GICS sector of interest To create a sector specific watchlist open a watchlist and select the N button to open the Navigator window Select the Industry tab and drill down into the Materials Metals Gold sector and then highlight the stocks of interest hold down the CTRL key for multiple selections Then save the list by selecting Save As and nominate the watchlist name say ASX Gold GICS If you like you may reduce the list by taking advantage of our Special Golden Report which provides an abridged list deduced from some additional filters including fundamentals of the stocks Menu 1 Setting up Gold Stocks Watchlist Once you have set up the watchlist you can quickly review the stock charts by with the push of a button Chart 2 Weekly Chart of Northern Star Here is a sample chart of Northern Star In the D2MX chart you can nominate your watchlist to scroll through using right click menu then use the Watchlist arrow button on the chart toolbar to skip to the next chart in your watchlist Some simple indicators will assist in your assessment of the stocks such as the 13 and 50 day moving averages volume stochastics and the parabolic SAR which should keep you on the right side of the market trend Investors also need to be mindful of the liquidity of the stock The Trade Gold has been in the doldrums ever since the mid 2011 peak but if the central banks manage to orchestrate a coordinated global move on monetary easing gold will return to favour The US Federal Reserve is not likely to move until September but gold and gold stocks may start to move in anticipation of central bank easing Keep the stocks that have been highlighted here on your watchlist ready for the trade setups or request our free Golden Stock Opportunities Special Report providing a more detailed on analysis of gold stocks that are earning money with low gearing levels and some that are even paying dividend Utilise the features in the Market Analyser and Bourse platforms to select and track your trades You will save time and potentially increase your returns by trading with the trend in sectors that are in favour 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

    Original URL path: http://blog.traderdealer.com.au/2012/08/03/going-for-gold-part-2-stock-trading-tips-for-all-types-of-market-environments/ (2013-02-02)
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  • Gap Trading Method - Part 2 of Stock Trading Tips for All Types of Market Environments | Online Stockmarket Trading Update
    reporting 15 August would have closed out at a slight loss Lessons Learned Only trade liquid stock I would recommend sticking to ASX Top 20 but you may expand your trading universe to the ASX Top 50 depending on your leverage and risk tolerance Use the Analyser tool in the IRESS Trader platform to scan for potential trades Use compounding of profits to adjust your trade size once you are comfortable with the 3MBO Trading System Take advantage of the MINI trading warrants Subscribe to the D2MX Daily Trading Report for trading ideas and contact us on 1300 610 024 if you want to trade these ideas It is best to trade this system when there is a catalyst for the stock such as earnings or corporate news which adds to the liquidity of the stock Always know when you are wrong before you enter the trade Use profit objectives to take part profits as the trade progresses Place your initial STOP at the bottom of the first 30 minutes trading range or if that is too far from the entry price use 50 of the 30 minute trading range Use a 20 minute chart to fine tune your trade The system can be fine tuned by introducing a Stop and Reverse feature to the system The Trade There are plenty of ways to make money in the market and with the way many stocks move around earnings or corporate news events the market gives nimble traders opportunities to make money through day trading The 30MBO Trading System is just one of a number of trading systems that can be used for this type of trading We have presented this system in its simplest form and if you would like to know more refer to Jake Bernstein s book The Compleat Day Trader on the subject In future articles we will discuss other day trading methods which can revolve around the previous close the day s open and or low for 30 to 60 minutes Utilise the features in the IRESS Trader platform to select your trades according to your market view You will save time and potentially increase your returns by trading with the trend 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 To subscribe to the D2MX Daily Trading Report or call 1300 610 024 Also see Warrant Trading for All Types of Market Environments Series Part 1 Shorting With Limited Risk Using MINIs Part 2 Boosting Dividend Yield Using Warrants 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

    Original URL path: http://blog.traderdealer.com.au/2012/08/17/the-gap-trading-method-part-3-of-stock-trading-tips-for-all-types-of-market-environments/ (2013-02-02)
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  • The Power of Compounding: Part 4 - Stock Trading Tips for All Types of Market Environments | Online Stockmarket Trading Update
    on larger and larger amounts The formula used to calculate compound return is M P 1 i N M is the final amount including the principal P is the principal amount i is the rate of return per year N is the number of years invested Let s say you had 10 000 to invest for 3 years at rate of 5 compound interest Using the above formula your 10 000 would be worth 11 576 after 3 years Using a Microsoft Excel spreadsheet you could simply enter 10 000 1 05 3 and Excel will return the answer Practical Application of Compounding Returns We have done some analysis of how you can use compounding returns to improve your trading performance Active traders can use this in their Trading Plan to increase their capital invested by reinvesting their winnings In the chart below we have started with a 10 000 initial investment and calculated possible returns at varying investment returns We have calculated the returns weekly with investment returns of between 2 and 10 per week These returns would be your net returns after any costs For example if we had a 10 000 initial investment and reinvested monies earned at 2 per week after 10 weeks you would have 12 190 to invest If your investment return improved to 4 per week after 10 weeks you would have 14 802 to invest After 20 weeks of consistently earning 2 and 4 per week you would have 14 859 and 21 911 respectively From the chart you can see the returns are magnified if you can consistently grow your investments at a steady rate of return Returns generated on an initial investment of 10 000 compounding weekly on various rates of returns Note the lognormal chart axis The secret is consistency time and the power of compounding I have also supplied the table used for this chart for your reference Keys To Success For compounding to work you need to generate consistent returns Be realistic about your goals for investment returns Requires a systematic approach to your trading We have used 30 weeks in the chart example provided because there will be weeks when your trading produces a loss There are 222 trading days for the year which equates to 44 4 trading weeks So you can improve your results if your are consistently profitable Manage your losses and keep them small We will discuss how to accomplish this in later articles Conclusion The power of compounding is one of the greatest wonders of the world It works especially well for wealth generation and investing icons like Warren Buffett have used it to dramatic effect on the growth rate of portfolio returns The example given in this article clearly highlights the magic that the process of compounding works on one s trading By generating consistent returns and letting your money compound over time you have the potential to improve your returns Investment returns over a long period are not so

    Original URL path: http://blog.traderdealer.com.au/2012/09/14/the-power-of-compounding-part-4-stock-trading-tips-for-all-types-of-market-environments/ (2013-02-02)
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  • Measuring Your Trading Performance | Online Stockmarket Trading Update
    for the trade can enhance your confidence in the trade improve your ability to trade and give you the confidence to adjust your position size according to your profitability Risk or R In Dollar Terms We ve provided an example of calculating risk according to the share price but you may like to think about it in a slightly different way through dollar terms If your minimum unit of investment is 10 000 and you decide that you will sell if the value of your investment dropped to 9000 then your initial risk is 1000 and 1R is 1000 R is simply the initial risk per share of stock or per minimum investment unit Trade Example Using Risk or R A trade in CSL demonstrates how to you can use Risk to measure and manage a trade In mid February CSL broke to a new trading range above 32 90 For this trade setup we entered the trade at 32 90 with initial stop at 29 90 The initial risk 1R was 3 00 1R 32 90 29 90 If you were trading on a weekly system the trade would be still active with a 4 1R open profit i e 45 20 32 90 3 00 where 1R 3 00 So if you initially risked 1 000 you would be in profit to the tune of 4 100 at this time Managing Risk or R Investors and traders tend to be overly optimistic about the trades that they make particularly in the early days They often don t understand their worst case risk or even think about such factors as slippage gapping and the like Using initial risk or R to measure your trading performance can help build your confidence and improve your trading In subsequent articles we will use IRESS Trader to demonstrate how to determine position sizing and discuss measuring portfolio performance using R multiples Investment returns over a long period are not so much dependent on the amount of money you have to invest but rather they are more a function of managing your trade risk and letting compounding work its magic by starting to invest as early as possible refer to the article on The Power of Compounding For more trade ideas and recommendations 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 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 Also in This Series Part 1 Simple Trend Finder Scanning Method Part 2 Going For Gold Part 3 The Gap Trading Method Part 4 The Power of Compounding 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

    Original URL path: http://blog.traderdealer.com.au/2012/09/28/measuring-your-trading-performance-part-5-stock-trading-tips-for-all-types-of-market-environments/ (2013-02-02)
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  • Aud Usd | Online Stockmarket Trading Update
    productivity efficiencies and cut costs they may unable to shield themselves from the higher Aussie dollars impacts New Paradigm for the Aussie Battler In recent times the Reserve Bank has been attempting to take some of the heat out of the dollar by stockpiling foreign central banks deposits on its balance sheet However this appears to have had little effect as can be seen in Chart 1 below as the AUDUSD continues to hold above parity It is a case of central banks around the world simultaneously trying to debase their local currency in an attempt to make their economies more competitive on the world stage There appears to be a new paradigm for the Australian dollar known as the Aussie Battler sparking growing concern among exporters in recent months The Aussie Battler failed to act in its traditional role as a shock absorber in falling during times of economic weakness which tends to make Australian exports more competitive Economists have been surprised that the dollar has not fallen much given the slump in commodities we have seen in recent months Aussie Dollar versus ASX Stock Market Performance The Aussie dollar tends to be a leading indicator of what is happening in the ASX equities market as illustrated in the charts below CHART 1 Aussie Dollar Performance 2009 2012 CHART 2 Aussie Stock Market Performance 2009 2012 Key facts in the performance comparisons between the Aussie Dollar versus ASX Stock Market Aussie dollars leads the equities market Typically the Aussie strengthens in the last quarter of the year and pulls back from March through to June When the Aussie dollars gets over extended too high funds get repatriated offshore draining funds from the local equities market Aussie dollar strength translates to higher ASX equities prices eg Mid 2010 through first quarter 2011 Aussie dollar volatility translates to weaker ASX equities prices eg Last half of 2011 Aussie dollar weakness translates to lower ASX equities prices eg Second quarter 2011 Conclusion The Aussie dollar is a great barometer for the Australian equities market and should be monitored as a lead indicator for your portfolio The IMF has revealed that it is considering classifying the Australian and Canadian dollars as official reserve currencies which include those currencies held in large quantities by foreign governments through their central bank reserves If the Aussie dollar is granted reserve currency status it is likely to lift demand for the currency from foreign institutions thereby effectively putting a floor under our currency and possibly creating a new paradigm for the Aussie Battler There are concerns that a reserve currency nation also raises the risk of dramatic capital flight from the economy during a severe slump which could exacerbate economic problems 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

    Original URL path: http://blog.traderdealer.com.au/tag/aud-usd/ (2013-02-02)
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  • Australian Dollar | Online Stockmarket Trading Update
    concerns that a reserve currency nation also raises the risk of dramatic capital flight from the economy during a severe slump which could exacerbate economic problems 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 Also in this series Part 1 Simple Trend Finder Scanning Method Part 2 Going For Gold Part 3 The Gap Trading Method Part 4 The Power of Compounding Part 5 Measuring Your Trading Performance Part 6 Insuring Your Portfolio 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 aud usd Australian Dollar currency IMF RBA stock market tips Posted in Stock Market Analysis Trading Strategies No Comments Intra Market Relationships the S P ASX 200 Aussie Dollar and US Treasury Bonds Friday September 2nd 2011 I had a nice trade this week in the Aussie 200 trading contracts for difference I ll show you how I made the decisions to enter the trade but first of all a quick lesson in intra market relationships The US Treasury bond is seen as one of the safest places in the world to invest money It is backed by the US government and despite the recent downgrade in its credit rating the US has never defaulted on a payment The market perceives that it is so safe that in the financial crisis of 2008 bonds were pushed up to a level that meant interest rates went negative This means the US government was being paid to borrow by the investors A bond pays interest and the price of the bond changes as the market s expectations of interest rates rise and fall If interest rates rise bonds fall in value and if interest rates fall then bonds rise in value The higher the price is the lower the return on the bond When investors perceive that the market environment is risky money flows into bonds When people are scared by stock market falls they will buy US Treasury bonds and when people are prepared to take on more risk they will sell bonds and buy shares So the normal relationship between Treasury bonds and the stock market is bonds up stock market down bonds down stock market up Adding in another independent variable we can follow the relationship between the Aussie dollar and the stock market If money is flowing into the Aussie dollar then some of it will find its way into the Aussie stock market and if money is moving out of the Aussie dollar then the Aussie market is likely to fall The Australian market and dollar are perceived to be more risky than the US markets so when investors are scared they sell Aussie dollars and Aussie shares and when they are prepared to take on risk they become buyers The normal relationship between the Aussie dollar and stock market is AUD up stock market up AUD down stock market down Now back to the trade from Wednesday morning I was watching the last hour of trading in the US markets and the setup highlighted in the charts below unfolded The charts are hourly charts of Aussie dollar AUD Treasury Bonds Dec Expiry ZBZ1 and the S P ASX 200 AXJO The highlighted setup occurred The Treasury bonds fell sharply and at the same time the Aussie dollar and Aussie 200 both fell away as well This is not normal behaviour remember if bonds are falling then Aussie 200 should be going up The sharp fall in the bond market had me believe that a turnaround in the Aussie 200 was likely I watched the market closely for signs that the Aussie 200 had stopped falling and made my first entry around 4325 as it began to climb higher Instead of rocketing to the upside as I would have liked the market broke to a new low It was still above my stop loss but I was losing a small amount at this stage The bonds were still lower and the AUD now turned up this gave me the conviction to add to the trade near 4315 once the Aussie market began to climb again The trade was supported by simple technical analysis with the market bouncing off an up trend line My first exit came about very quickly as the market climbed to the down trend line There was no guarantee that a breakout would occur so I chose to take some profits early with a gain of about 15 points on the second entry The remainder of

    Original URL path: http://blog.traderdealer.com.au/tag/australian-dollar/ (2013-02-02)
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