Share Trading Blogs

Insider Trading

The world of insider trading was brought to light recently with the court case of John Hartman, an ex-Orion equities dealer. Hartman had been sentenced 4 and a half years jail and a non-parole period through to December 2013. The sentencing judge Justice Peter McClellan had said that, "Paying $350,000 to a … graduate in his early 20s carrying out a task of modest responsibility underlines the extent to which the values which underpin our society can be compromised".

The Psychology of a Rogue Trader

There have been quite a few rogue traders who have made the news over the past few years. There's a list of rogue traders below which includes well known names like Nick Leeson and Jerome Kerviel, along with the millions or billions of dollars which they’ve lost their companies as well as their penalties. A rogue trader is a professional traders executing unapproved or ill-advised financial transactions. But why do traders go rogue? What turns a trader to the dark side?

Alessio Rastani

Meet 34 year old Alessio Rastani. He made headlines overnight when he claimed on the BBC that "Governments don't rule the world, Goldman Sachs rules the world [and] Goldman Sachs does not care about the rescue package." Was this a stunt or a hoax? Was he simply voicing the truth?

Other notable quotes from the interview included:

Shareholder Benefits Schemes

Some Australian publicly listed companies provide incentives for their shareholders in the form of a shareholder benefits scheme or shareholder benefits package or shareholder discount schemes. Here is a list of benefits you may be entitled to when you purchase a share of a public company.

Shareholder Benefits List

Psychology of Trading: Personality Traits

Trading is not just about numbers, trading systems and having a trading edge. Since we’re human (and we aren't using mechanical high frequency algorithmic trading) we have to contend with our psychology while we are trading. You've probably heard or been told many times that it is important to trade the markets as emotionless as possible - just like a robot. Trading must be a boring process of executing your trades.

Desperation Trading Desperate Trading, Desperate Measures

I'm sure that we've all been desperate at some point in time. Sitting in front of your trading screen, with a series of losses, you'd be tempted to try and claw back some of your losses. Unless you've totally perfected trading like a robot and are totally and utterly emotionless, you would have felt this emotion at some point in your trading career.

Cognitive Bias for Share Trading

Much of share trading is about making decisions: the decision to enter a trade, to buy now, to wait and hold or to sell. The professional share trader or any professional investor would check facts, analyse them and attempt to make a wise decision from the data while keeping an objective mind. However, being human, we aren't perfect and, fallible and can be easily influenced from time to time. What is a cognitive bias?