Knowledge Centre

How to Avoid the Next Dick Smith Holdings (DHS)

Our job at The Chartist is as much about helping our members protect their capital as it is about advising them when to enter the market and which stocks they should buy. We constantly monitor trends; the trend of the overall market, the trend of each section of the market such as small caps or […]

Let’s Talk in Percentages

I often receive emails or phone calls from people saying, “Help! My trading account is down $5000 and I don’t know what to do.” It’s usually followed by “My partner is going to kill me.” My first response is “Let’s take a step back. What’s your account size and what percentage does the $5000 represent?” […]

Pump ‘n Dump Strategy

It seems everyone has a little interest in Pump ‘n Dump trading this week. A Pump ‘n Dump is normally associated with the illegal ramping of a micro cap stock (known as penny stocks) and then selling once the stock price has risen following the surge in interest as a result of the ramp. One […]

Known Unknown or Unknown Unknown?

Is a disaster or catastrophic event a known unknown or an unknown unknown? Chatting with a client recently about the expected market reaction to the Paris tragedy I used the term ‘known unknown’. A known unknown is an event that is known to occur, we just don’t know when or where. Like a terrorist attack. […]

Is Now A Good Time To Make A Trade?

Is Now A Good Time To Make A Trade? Recently a comment came across my Twitter feed in reference to an exceptional trade that the OP (original poster) was riding. Here’s the comment: “Lesson : Don’t ignore 52 week high strength when overall market is weak.” The OP is certainly on a great trade and […]

What Should I Do If I Miss A Signal?

A common question we get when trading longer term momentum style strategies, such as the Growth Portfolio, is how to manage a missed signal. Do we chase it? Do we stand down and wait for the next signal? Do we buy it if it’s below the original entry? It’s an important question because in a […]

NIck Radge, Professional Trader, on managing losses

How Does a Professional Stock Trader Manage Losses?

Nick Radge explains how professional stock traders manage losses. An amateur trader will try to avoid losses but this is not the correct way to trade. In this video Nick mentions our new US Momentum strategy that has just been released. I want to talk about a situation; when you come home from work, you’ve […]

Momentum Investing for the Australian Market

Is longer time frame Momentum investing suitable for the Australian Stock Market or more specifically could we run a monthly Australian momentum strategy? If you missed it, we reviewed a US momentum strategy HERE. Let’s test it. We’ll use the All Ordinaries Index including all historical constituents and delisted stocks thanks to Premium Data. Commission […]

Momentum Investing

Momentum investing forms the basis of the majority of our trading strategies. Does It Pay To Tweak…? I’m a firm believer of being open to new ideas and testing their potential within the context of one’s own research and strategies. For example, I started my trading career because I happened to look over the shoulder […]

Rookie Mistakes Made by Amateur Traders

Amateur traders tent to make the same types of mistakes. “Your mind will do everything it can to make you hold a bad position yet entice you to exit a perfectly good position.” Our behavioural biases haunt us during times of heightened volatility such as we’re seeing now. Fear. Greed. Hope. It’s when we question […]