Share Trading Blogs

Why Invest in Shares?

Shares are yet another vehicle by which you can invest your money. Like any investment, shares are not so much about making money for money’s sake as they are about helping you to realize your dreams, achieve your aspirations and secure your future. They could help you pay off your mortgage, enable you to take that long-awaited family holiday, ease the burden of retirement or help the kids secure their first home. Once shares start working for you the choice is yours.

Why Invest

Why invest? Why does anyone bother moving money around? Well because by investing your money you can have your money work for you. There are three main reasons to invest: to beat the inflation rate, to reach your financial goals and for retirement. This website is all about share trading, but trading is only a part of the whole investing game. To invest your cash in a way that is aligned to your personal goals and risk appetite will keep you financially ahead of the rest.

What is the True Value of Trading to Society?

When I first started trading during my university days, I remember pondering about the true value of trading to society. I was studying engineering at the time and I saw my friends graduating to become engineers, bankers and lawyers. I personally saw that engineering was possibly one of the most noble of careers, since of course there is a direct contributor to the improvement of living standards of society (think computers, roads, bridges, plumbing, electricity, gadgets, cars and so on). Each and every occupation out there has a purpose for society. But what about trading?

Utility Calculations in Your Trading

I suffered a major trading loss recently and I was pondering about my profit and loss calculations. For example, a trading account can start at $500 and be traded up to something like $2000. So that’s a 300% profit on your initial investment. However, what if you have traded your account all the way up to $4000 (or have started your account at that figure) and found you’ve literally burned that trading account down to zero – in your books that would account for a 100% loss.

How to Defeat Negative Trading Psychology

I am confident that many traders go through negative thought cycles while trading. Negative thoughts such as the fear of losing money and the thoughts of greed and being a money glutton may haunt you in your trading career. So how do you defeat your negative trading psychology? You have two choices: to face your negative thoughts or to simply ignore it.

Risk and the Trading Game

Every time you initiate a trade you start a new game in which you assume all risks for playing the game. By choosing to be an active share trader (or forex or CFD trader) you are seeking risk for a larger return on your cash. One of the most important elements of your trading game is managing risk. Smart traders are always on the lookout to reduce their trading risk and watching the risk currently in play on their trades.

How to Make Money Trading the Reporting Season

How can share traders and stockmarket investors make money trading the reporting season? For companies listed on the Australian sharemarket, they must report their earnings, profits and losses to the market within two months of the end of half year and end of year financial periods. The reporting season results can vary, it can be highly predictable or may be very surprising.