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World Stockmarket Rotation Strategy

ETFI've been asked my opinion on people trying to avoid paying capital gains tax by not buying and selling within a 12-month window.

My personal view is twofold.

Firstly, tax can be minimised to some degree using company structures, family trusts or investing through a SMSF.

Secondly, I liken tax to advertising. If advertising adds value to the bottom line then it's beneficial to the business. If it doesn't, then don't advertise

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Why Being Consistent is Difficult

consistencyTrading consistently is more difficult than it looks.

One of the key reasons for this is that in real life, for the most part, we have routine and logic.

We get up. Eat breakfast. Get ready for work. Tend to the kids. Go to work and so on. It’s a routine that we could do with our eyes closed. Most of us often do!

Yet the markets are not so logical.

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Trading and Hindsight Bias - Part 2

Trading Hindsight Bias Part 2Last week I discussed Hindsight Bias. You can read that article HERE.

The conclusion?

We can't know what the future holds for a single stock. Basing a complete strategy on an individual stock that has been cherry-picked from past performance may be risky.

The solution is to better understand the robustness of the strategy itself. To do that it should be tested over a larger universe of symbols.

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Trading and Hindsight Bias - Part 1

Trading and Hindsight Bias"Had you invested $1 in XYZ in 1943 it would now be worth $1.9 billion".

I knew it was a good investment!

The problem is we actually didn’t know it all along, we only feel as though we did.

That's hindsight bias.

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Jekyll and Hyde Trading

Jekyll and HydeI have come to a conclusion; no matter how great your method is it’s next to useless without the right mindset.

When trading you must get used to mixed emotions.

As a discretionary trader, have you ever tuned into your feelings when looking for setups? Especially when you find one that looks to be low risk and fits with your strategy. I bet you feel relaxed, upbeat and possibly excited.

The emotions aligned to the planning stage are like those that come with paper trading. There is no money on the table. Everything is chilled.

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