Beginner Traders Archives

Beware of Executives Selling Shares.

The daily ups and downs of the market are for the most part beyond our control. Yet the actions of a select few can have a direct effect on a share price. The few I’m talking about are executives of Australian listed companies. Beware of executives selling shares. When executives sell their shares in a […]

Using stop losses in your trading strategy

Stop Losses: It’s a Science. Nick Radge Explains

It’s easy to buy shares but when do you sell? How many times have you bought a share, cheered as the share price rose then felt confused as the price head slowly south? Have you heard of a stop loss? When should you sell? Should you wait and see if the share price will turn […]

One Simple Step to Avoid Financial Disaster

How to avoid financial disaster? There is one element that determines whether you will be a successful trader or a failure. Completion of a trade will determine your success. Exiting positions makes the world of difference. Anyone can buy a stock, and they do, but most people don’t finish. Finishing things – exiting a position […]

A Little is Never Enough

In this case a Little is Never Enough, Bigger is Better. “How much money do I need to start trading the stock market?” is generally the first question asked by new stock traders. There is a common misconception that you can start trading with a small account to ‘test the waters’. If you have $100,000 […]

5 Tips to Long Term Success in the Stock Market

Oh, the joy and excitement of being a new stock trader. You’re enthusiastic, motivated and happy to share the gospel of all things trading with anyone who’ll listen. You wake up in the morning (or during the night) and pull up Bloomberg or your online broking account on your iPad and check your trades. Those […]

I’m not a Stock Picker

I’m not a stock picker. To give you an idea, over the last six or seven years my major trend following strategy here in Australia that trades long only equities, my win rate is about 49.6%. During that time, my compounded annualised return is about 18% compared to the market 2.7%. That’s only getting it […]

How I became a Professional trader

So how did I become a Professional Trader? I was unwittingly introduced to trend following. A friend worked for a big, well established stock broking firm, and he was looking for a clerk. So it ticked all my boxes; I got to catch a train to work, carry a briefcase, and wear a suit and […]

Nick Radge How did you become a Stock Trader?

Nick Radge How did you become a stock trader? I started in the markets at eighteen, back in 1985. I am mainly a momentum and trend following trader. I (Nick Radge) was working for a stock broking company, not on the dealing side, just on the administration side and walked past the private client advisor’s […]

Why should we trade long only?

There are a couple of reasons I’d suggest only trading long. When I was trading commodities, we traded long and short. With equities it’s long only for a couple of reasons. Firstly, my strategies and system research show while trading on the short side can be quite profitable, the risk adjusted return (I’m talking on […]

The number 1 reaon people fail at trading

The #1 Reason Why People Fail at Trading

The #1 reason why people fail at trading? They are undercapitalized. It has nothing to do with a trader’s strategy. It has nothing to do with trend following, short term trading, swing trading, scalping, mean reversion, whatever. All trading has drag via commission, so you have to work backwards. Let’s assume that your trend following […]