Investing & Online Stock & Share Trading - The Stock & Share Markets are Booming But Be Warned

I had the pleasance of being invited on a friend’s racing yacht to canvas in a race on Sydney Seaport yesterday. On board, as one of our assortment crew, I met a top ranking corporate executive director from one of Australia’s largest banks, who we’ll phone call ‘Phil’ here for the intent of this article. After the race ended and after being told of my trading experience, he told me he have a large stock portfolio, many of which are bad resources stocks. He said that he’s excited by all the money he’s making and wondering how long this have been going on?

As would be expected, ‘Phil’ also asked me for some “hot tips” for more than pillory to buy. He was surprised with my answer when I told him Daryl Guppy’s criterion response of “Tips are for waiters” and that I thought he was asking the incorrect questions. (Daryl Guppy is A well known Stock Trader and International bestselling writer - see www.guppytraders.com)

Rather, Iodine explained he should be asking:

* How much longer will this last?

* When it completes how will Iodine cognize & what will I do?

* How do I happen out about Technical Analysis and Money & Hazard Management?

* What’s a Trading Plan and how make I set one together and follow it?

* How and when make I add to the pillory I already own?

* How should I construction my portfolio regarding individual stock risk, sector hazard and entire portfolio risk?

* What’s my issue strategy for each stock I own?

* What’s my issue strategy for my whole portfolio?

* How make I maintain accurate records and monitoring device my performance?

* What am I going to make to learn more than about myself and my ain psychological failings (many of which I may not even realise I have) that tin make all the difference as to whether I win or lose long term?

‘Phil’ was genuinely surprised that I had taken the wind out of his canvases – luckily it was after our seafaring race together, but hopefully before he loses his have got financial race.

In January at http://www.prweb.com/releases/2005/1/prweb193459.htm I issued a worldwide fourth estate release to admonish unprepared novitiate investors and bargainers of the possible pitfalls ahead in the market. My married woman Angela and I lost our waterfront home on Sydney Seaport in the 'Tech wreck' of 2000, so we talk from hard personal experience.

As complete novitiates in the market in 1999, we doubled on paper a large stock portfolio in lone six months. Then in less than a twelvemonth we suffered ruinous losings in the technical school stock clang of 2000 and beyond:

* We were put back more than than 15 old age financially and emotionally

* We were forced to sell our waterfront home – the very same house we had put as a end soon after arriving in Commonwealth Of Australia as new and penniless immigrants in 1979. We began renting what I called a ‘dog box’ - arsenic the lodging market then rocketed.

* Angela was working as a retail assistant

I have got a First Class Honors Degree in Civil Engineering that didn’t help. In fact I have got got since come up to understand that it actually helped to work against me. With our experience of riding some of the largest moving ridges (up and down) in the market and having lost 100s of thousands of dollars in the process, we cognize more than than most stock bargainers in the human race of the pitfalls that expect unsuspicious novitiate bargainers and investors.

We have since greatly appreciated being exposed to the successful methods taught by expert bargainers Alan Hull, Daryl Guppy, Jim Berg, Dr Avant Garde Twyla Tharp and others to merchandise profitably and with better hazard control.

The forum for serious investors www.stockmeetingplace.com is the lone chatroom where you will happen Daryl Guppy. We recently received the following response from a fellow Australian bargainer Nathan Unger on that land site (see below):

“...thank you for sharing. Your remarks on this topic are very insightful, and rightfully so considering your close trading death experience, per se. Failure is always such as a hard nickname to be branded with, for it affects us having to acknowledge that we were wrong. Of course, acknowledging our errors intends that we must swallow our pridefulness – Associate in Nursing admittedly hard deed for many traders. Wrestle with our ain motivations amidst the psychological matrix that is the stock market is, to state the least, a bewildering struggle.

In an almost self-contradictory manner the stock market can make pups out of us through both our losings as well as our victories. We are unnerved when we lose and must somehow rally the courage to tentatively re-enter the markets. Yet, potentially even more than dangerous are the unbridled successes that often falsify a trader’s perceptual experience about their ability to modulate additional success – successes that work to chide the hereafter admittance of failure.

Who would have got thought that winning could actually go a apparatus for losing – a riddle of the worst kind? I cognize of no other business that have the ability to mask as both friend and enemy and then do you believe that you can state the difference.

Your experience is, I believe, a hoarded wealth worth perhaps more than than the sum of money of your losses. It reminds me of how the most seaworthy vas have got got typically been known to be the 1s that have weathered the most annihilating storms. Yours is a leading effort, my friend. I will most certainly be buying your book.

Thanks also to Daryl and Alan for their aid and encouragement in helping to mold John’s brush into the best trading tool of all – practical experience...”

During 2001, not long after losing our home, we made contact with Daryl and I take this chance here to acknowledge and give thanks him once again for his wisdom and support since that clip and also to Alan Hull and Dr Avant Garde Twyla Tharp since then. Daryl subsequently invited me to compose a short article for his regular weekly newssheet (Tutorials in Applied Technical Analysis) which became the first of many articles as my married woman Angela and I began our search for education.

He made a strong point that by concentrating on the research needed to compose the articles we would pick up good wonts and through sharing with others, we ourselves would be more than inclined to lodge with the topic involved in the subject being covered.

We have got got recently collated the articles I have written for his newssheet and they are now available as ‘The Atkinson - Guppy Articles - Stock Market Educational Options for Investing Online & Online Trading - Opportunity for a Home Based Business’. Most of these articles deal with conceptions and trading accomplishments which are still relevant to readers today and include the following:

* CONDITIONAL halt loss ORDERS: A existent life comparison between using two brokers for monitoring stop loss orders - the true cost of slippage

* DIRECTORS DEALINGS: A snapshot survey of the Australian share market to determine, if by monitoring the purchases and sales of company directors with their ain shares, whether it is possible to obtain an penetration into the hereafter direction of the share terms and enlistment a drive in the right direction - or leap ship with them.

* anticipation - the nett net income or loss that you can anticipate over a large number of single unit of measurement trades. Type A series of articles with thanks to the work of Dr Avant Garde Tharp, writer of 'Trade Your Manner to Financial Freedom'

* TAKE-OVERS: A little overview of some of the strategies bargainers apply to take-overs.

* AVALANCHE selling and kangaroo TAILS: A series of articles on the recent phenomenon in the Australian share market caused by computerised automated conditional halt loss brokers savagely cascading sell orders into the market, with terms often rebounding respective percent within minutes

Through my authorship articles and through our site, my married woman Angela and I now take to supply a ‘Road Map of Discovery to the Stock Market' to assist new and existent online investors and bargainers happen the trading instruction information they need to initially last the pitfalls ahead, then to boom in the market.

We wish you every success in 2005 and beyond and trust that if you haven’t done so already, you will be seeking out the replies to the inquiries I offered to my seafaring squad member ‘Phil’.

This article was printed in Alan Hull’s weekly newssheet ‘ActVest’ for Active Investors in March 2005 (available from www.alanhull.com) and is reprinted here with Alan’s permission.