I was watching local Australian TV the other day and I cringed when I heard saw an advertisement for investment properties and this voice over stated:
xxx returned 109% over three years for their investors – try to match that with a bank.
Read the rest of "Unrealistic Returns and Benchmarks"...
A future competitor analysis for Google
Dot Coms are having their second boom according to this CNN article. Of course - this is an article for INVESTORS so in the article it notes that "... you still have to follow the basic rules of sound investing. Don't buy a "story" stock if you don't understand the story. Don't invest just because you heard a pick on TV--or, dare we say, read it in a magazine. Look for profits, sound financials, and reasonable prospects for growth. Pay attention to valuation. Make sure you know the bear case--the arguments against buying the stock. And most important of all, devote only a small portion of the cash you're investing to a hot area like Internet stocks." We're traders (although a portion of our portfolio is in investment mode, this blog is about trading), so we'll ignore a lot of those maxims and place our trust in technical indicators and charting.
Who looks after whose interests? Greed and fear runs the markets, do they operate on the CEO too? Mark Cuban, a self made billionaire - rarely heard about in Australia, but nonetheless, being a billionaire has earned a little of my respect revealed some of his views recently about the disconnect between the CEO and shareholders. Can shareholders safely assume that the company CEO is working towards the shareholders' interests? In the view of the billionaire who made his cash on the back of dot com success and now owns the Mavericks NBA basketball team, there is a conflict in today's CEOs intentions that may harm the shareholder's bottom line.
I received an offer to join the Capital Japan Fund from CommSec. The promotional sheet says: "Japan is not only the world's second-largest economy - it's also home to leading global companies like Toyota, Canon, Sony and Nissan. But it hasn't always been easy for Australian investors to take advantage of Japan's growth opportunities. Which stocks should I choose? What about foreign exchange? And is my investment capital safe? These are some of the doubts that have stopped Australians from investing in Japan." I'm not an investor, so I don't know if this would be a good place to park your cash. I'm not - but for others it may be an opportunity to consider. But there is an indication that the Japanese market is on the path to recovery. This recovery path may uncover new trading opportunities.
I like trading, because I can make a decent living out of it. But although money can come easy through trading after some hard work learning how to trade and planning and executing your trading plans you hear the odd story of how investment is way better than trading actively. There was a stock that in the last three years that would have allowed you to grow an initial $1000 investment into $131,666 or alternatively if you picked the "other stock" you would have earned $107,432 in three years by simply sitting on your hands. No trading plans, no time going in and out of trades as well as analysing them. the two stocks? Uranium explorer Paladin and Fortescue Metals. Rise in price had been fuelled by sheer growth as neither pays dividends.
Buffet is arguably the best investor in the world. His investment style ("Buffet Style Investing) is revered and many books and other media worship his techniques and way of thinking. We have a six question quiz to check if you are billionaire material, and have a similar way of thinking in your style of investing.
But remember - you are on a share trading website - so basically the quiz answers are aimed for an investors mind. However, there are answers in there that a trader would typically answer in those situations. Investing is itself a skill, just like trading and the answers may surprise most people.
Quite a few people have asked me why the public can't buy stock direct from the issuing company? Why does it have to be done through a stock broker?
Basically companies create stock to raise capital for their business to reinvest into a project or plan. So the shares they create exist in the market for the public to trade - buy and sell. When the company wishes to raise more capital it may decide to issue more shares. So the number of shares on issue are limited in number.
- Free Tickets to Trading & Investing Seminar & Expo ($18) Brisbane 2013
- Stock Calc App
- All About Warrants
- Introduction to Exchange Traded Funds
- Introduction to Exchange Traded Funds: Features
- Introduction to Exchange Traded Funds: Domestic ETFs
- Introduction to Exchange Traded Funds: International ETFs
- Exchange Traded Commodities
- Exchange Traded Commodities: In Summary
- How much Should I Pay for an Option?
- Options Trading: Time Value
- Options Pricing
- Why You Should Trade Index Options
- How to Weather out Flat Markets Using Options
- Protect your Shares
- Australian Stock Scan
- Australian Online Share Trading
- List of Trading Books
- Interesting Thoughts about the Australian Dollar
- What's the Meaning of Hawkish?
- Do You Know How To Use the P/E Ratio
- Trading, Religion and Politics - Do They Have Anything in Common?
- Shares that are Volatile that Double and Half in the Short Term
- Telstra (TLS) T3
- Margin Call by E-mail
- The Cost of Holding a Position
- Lack of Disclosure: Compensation from ASX Listed Company
- Unrealistic Returns and Benchmarks
- CMC Markets Down
- Quality versus Quantity Forex Trading
- Woolworths 1H Sales $30.7bn up 3.2%
Date added 31-01-2013
- ASIC Fines CommBank's CommSec
Date added 25-09-2012
- Industry Super Network Calls to Ban High Frequency Trading (HFT)
Date added 22-09-2012
- NAB Launches Online Share Trading Platform
Date added 19-09-2012
- Reserve Bank of Australia Says 23 Countries Holding AUD
Date added 18-09-2012
- Australia Post Digital Mailbox
Date added 10-09-2012
- Winners and Losers of Trading for Week 2
Date added 16-01-2012
- 2012's First Week of the Best and Worst Traded Stocks
Date added 09-01-2012
- 2011's Last Best and Worst Traded Stocks
Date added 05-01-2012
- Best and Worst Pre-Christmas Traded Stocks
Date added 30-12-2011
- Trading Winners and Losers for Dec. 12-16
Date added 19-12-2011
- Best and Worst Traded Stocks for Dec. 5-9
Date added 13-12-2011
- Top 3 Best and Worst Traded Stocks
Date added 05-12-2011
- ASX Glitch Trading Halt
Date added 27-10-2011
- Worst Trade Stocks (and the Best)
Date added 06-08-2011
Top 150 Public Companies Listed on the Australian Stockmarket as at 29/05/2009
- BHP Billiton
- Westpac Banking Corporation (WBC)
- Commonwealth Bank of Australia (CBA)
- National Australia Bank (NAB)
- Telstra (TLS)
- News Corporation (NWS)
- Woolworths Limited(WOW)
- Woodside Petroleum Limited (WPL)
- Rio Tinto
- Westfield Group (WDC)
- Westfarmers Limited (WES)
- QBE Insurance
- Newcrest Mining Limited (NCM)
- Origin Energy Limited (ORG)
- Santos Limited (STO)
- AMP Limited (AMP)
- Macquarie Group (MQG)
- Foster’s Group Limited (FGL)