Shares (Stocks) Archives

Being Proactive With Position Sizing

Published September 14th, 2021 How can we be proactive with position sizing? Drawdowns, or a decline in equity, are part and parcel of trading. How you cope with drawdowns will determines how successful you will be as a trader. I’ve written about this topic numerous times, more recently, “How to Handle Drawdowns” and “Drawdown Diagnosis“. The […]

When is the Best Time To Invest?

Published August 3rd, 2021 When is the best time to invest? A question for the ages. The facetious answer is 10-years ago, however, I digress…. With the information we have today there is an easy answer and a hard answer. Here’s the easy answer. During a drawdown. A drawdown is a peak-to-trough decline in capital during […]

Keeping Your Mental Pathways Clear

Published September 17th, 2021 Keeping Your Mental Pathways Clear I love this quote by Mark Twain: ‘I have had many troubles in my life, most of which have never happened ‘ As Traders, and in life in general, it is easy to clog our brains with concerns and worries. We’ve all met people who are […]

Trading Short with Meme Stocks

Published July 20th, 2021 We’ve discussed Meme stocks previously. This week, NEGG decided to join the party. On June 30 the stock jumped 78%. A few days later it jumped 41% at which point it became a stock of interest for short selling. The following day it rocketed 148%. Here’s the chart… That’s a 560% gain […]

Financial Year – Reflecting on H1 2021

Published July 6th, 2021 That’s a wrap for the financial year here in Australia and probably a time to reflect on where we were this time last year. As fellow traders, this time last year we’d been gob-smacked by the severity of the COVID sell-off and then dumbfounded by the “V-shaped” bounce driven by global […]

Trading and Hindsight Bias – Part 2

Published July 5th, 2021 Hindsight Bias Previously, 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 […]

Trading Holidays – To Trade or Not to Trade?

Published June 29th, 2021 I am often asked what people should do with trading positions when on holiday. I’ve avoided the question because there is no simple answer. For example, are you away for 2‐days, 2‐weeks or 2‐months? Will there be reliable and secure internet access at your destination? Do you have a hand‐held device […]

Long Only Strategies to Profit in Sustained Bear Markets

Published June 22nd, 2021 The Global Financial Crisis (GFC) was brutal for many investors. Not so for others. It was brutal because it was a slow, sustained decline rather than a collapse. This gave investors a sense of calm. Suckered them in to buy what appeared to be relative value prices, yet only to see […]

10 Minute Stock Trader Interview – watch now

Published June 3rd, 2021 I was recently interviewed by Christopher Uhl for the 10 Minute Stock Trader podcast. You can watch the video recording here. In the video we discuss how I got into trading, what I learnt from the Turtle Traders (and still do to this day), the difference between amateur and professional traders and […]

Measuring Trade Efficiency

Published June 2nd, 2021 Can your current trading strategy be enhanced without making radical changes? To understand where your strategy may be lacking, or where it could be improved, we need to break down the trades to view any developing inefficiencies. The following tools can be used for any style of trading or any instrument. […]