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How to Control Emotion While Trading

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Most people consider trading as an easy job where you just need to buy and sell and you will get tons of money by which traders buy expensive stuff. Even in Hollywood movies, they show traders like this and people often do not get to know how trading is. Trading ads what you are going to find but when you are surfing the internet is like you just need to click and you will be in profit. But if you also consider trading like this then you are still in a dream. There are lots of variables goes through in traders mind and this profession is not as easy as it looks in ads and movies. Controlling your emotion is the hardest task when you are a trader. In this article, we are going to talk about the ways how you may able to control your emotions.

The ups and down

Think out the first day when you ride on a rollercoaster and how was the feeling that time. We know it was scary so you can consider the trading market like riding a rollercoaster because you do not know when and where the next turn can take. So when you are in the trading industry you must have to be able to deal with losing as well as winning and sometime it may occur within few seconds and this is the hardest part to keep your mind focused no matter how well or worst the situation is. To become a winning trader in Australia, you must need to take this type of pressure very easily and without this, you cannot go far just with the best trading strategy in the world. So your first step of becoming a winning trader has to be mastering your own emotions so that it can’t control your decisions.

Research the market

You are going to invest your money with Saxo markets, so at first, you just need to know the market well enough so that you can make buy and sell decisions very confidently. This will also help you to control your rollercoaster trading life. For example, you may be thinking about investing in a certain company and if you have a clear view about that market then you may buy or sell that companies share confidently as you know everything about that company. So knowing about the market make you more sensible and you can make a more effective trading plan and can act accordingly. People who trade bonds online knows exactly how they should research the market data. So, develop your researching ability.

Follow some successful traders

Here following does not mean coping a successful trader rather than we are trying you to research a few successful traders. How they make their trading decisions, which indicators they prefer, how they manage their risk, and from where they collect financial news. So once you get to know these things it will help you to find your own lacking and you may work on them and which will help you to boost your trading career.

Losing money is natural

You will not find any trader in the world who has a 100% winning rate in trading and so you have to understand that losing money is ok here and it is not a bad thing. You cannot avoid it no matter how good you do your analysis and how good is your knowledge you will lose now and then in this market. But the key thing that you have to do when you are losing is that you need to find out the reason you lose and work on them so that it will not repeat. Keep in mind that even if you are winning 55% of your trades then you are doing just fine and you don’t need to be tensed.

People often get emotional no matter he is earning money or losing money and earning money can make you overconfident and losing money can make your confidence level very low. So you need to control your emotion and don’t let emotion control you.

Keep emotions at bay in trading

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It is very common for beginners to get emotional during their trading sessions. As it is the largest financial center in the world, the expectation to strike reach overnight is very intense among the investors. As a result, they will try to implement techniques that are not only harmful but incredibly rewarding as well. Only 5% of the investors make it out of currency trading but the rest loses their capital. Many flaws can contribute to this outcome but the majority of failures occur due to not being able to manage the emotions correctly. Even if the methods are correctly followed, without a proper emotional management process there is no way to make consistent profit in the long run.

From experts to beginners, all of them have to go through the same difficulties. In this article, we are going to elaborate on some techniques that will help the nervous to check their emotions and also undertake meaningful strategies that will help them to make a profit. We expect our readers will understand some basic tricks that will help them to better confirm their emotions even during the financial crisis.

Mentally prepare for losses

We cannot emphasize enough how much important is the mindset of investors. Even if the trend is appearing in a favorable direction, a smart person will always have some backup plan that will be executed in case something goes wrong. It is incredibly difficult to forecast where the price will stop let alone resuming the future result. To minimize the losses as much as possible it is highly advised to prepare mentally before every trade so that it does not have a mental shock. There are various benefits of this strategy. The first is, you will not be shocked if the order is not executed S plant. This will keep the nerves cool and you will be better prepared for the next order.

The second advantage is there will be no hasty decisions made by the people. It is commonly found that people begin to lose money as soon as they have lost the initial trade. Every attempt to recoup the forgone investment results in failure.

Ability to endure losses

Without having the strong ability to endure losses, it will be hard to become skilled at trading. Most people will lose money and struggle hard to improve. When you become skilled at analyzing the market dynamics and accept the losses, the growth of your trading accounts balance will be exponential. Before you start taking the trades, spend some time in the paper trading account and you will be able to boost up the trading performance. Forget about the quick money-making tips so that you don’t have to wait for big profits. Execute smart orders to improve your skills like a professional trader.

Never act in the spur of the moment

This is an inevitable role that must not be broken. No matter the outcome, make sure there are no inconsistent techniques that are being implemented immediately. Human beings begin to lose their concentration whenever there is an unprecedented outcome. The industry knows it better therefore some scammers are trying to convince people to buy some crap formulas that are supposed to help them to make their dream come true. Imagine if a person has lost $10, it would be logical for him to invest $2 for an amazing eBook that will shed light on techniques used by the professionals. This example of an individual who is lost in his thoughts.

In every situation, try to stay calm and think of a solution rather than complicating the circumstances. Take a small break after every trade whether the result is a profitable outcome or financial fail as it will help to clear the mind. This is a long-term business where the right action can determine the outcome.

What do you need to become a profitable trader?

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Many traders are concerned about the required timeframe to become a profitable trader. They try to get a basic idea of how much time it takes to become a proper trader. It must not be the main concern of the rookie trader. Instead of thinking of the timeframe to ensure a decent profit, you need to think of the trading quality. It is necessary to think of the trading plans. If not you, someone else will take your place with an improved trading mindset. He or she would work with a proper trading plan. There can be a good risk management plan for the trades. With the two important things for the trading business, it is possible to manage a decent profit from the trades easily.

All of it is not possible unless you ask the right question related to becoming a profitable trader. In this article, we will discuss the necessary aspects of trading properly. You will get the idea of preparing a proper plan for the trades. Besides, you also will get a decent idea of risk management.

Take care of the risk exposure properly

To become a profitable trader, you will need a proper risk management plan first of all. It will improve a proper trade setup for the executions of the trades. The risk management plan helps you to create a proper order for the trades. Being concerned about the safety and security of the trading business, the traders think of the least investment into the trades. Then they also decrease the investment with simple leverage. You need to know a decent risk management plan so that the risk exposures get a consistent setup every time of executions.

If you use a 1% risk management policy and leverage it with a 1:10 ratio, it will be good for your business. It helps to work with a proper position sizing. From the influence of decent risk management, you will also think of decent profit potential. So, the market analysis will be easy for you to handle. With all things covered for quality execution of a trade, it is possible to expect a decent profit. Make sure you use the best SaxoTraderPro trading platform to filter the best trades. Keep things simple in trading to reduce the risk exposure.

Use an effective trading plan

From the risk management plan, the pro AU traders will hold the trading money properly. But, the actual execution of the trades will need a proper plan. That is why the position sizing and market analysis needs a proper plan. The traders need to be consistent with every single procedure of trading. Along with the risk per trade, it is also necessary to trade with profit target. When you have a decent profit target like 2R as compared to the risks, use the other strategies for the position sizing. Try to find a proper signal which can satisfy the pip count necessary for your profit target. Also, try to use the fundamental analysis to understand the market condition properly.

After every necessary element is being used for a quality trading approach, you can expect profits. Even if the market behaves the opposite of your assessment, you can handle the losses with proper stop-loss. For a rookie trader, it is the first duty to learn to be safe in Forex trading.

The position sizing is very important

If the traders can define a position sizing for the trades, it is possible to set the stop-loss and take-profit. They are both useful to keep your trading business safe from losses. The stop-loss helps to protect a trading position from losing too much. On the other hand, the take profit helps to be safe when sudden price movement tries to turn your profit into a loss. Both of the tools are good with the executions of the trades but traders need to learn using proper position sizing. If they can learn the best market analysis strategies, it will help them to set proper entry and exit points for the trades. Thus you can use the stop-loss and take-profit properly.

How to Stay Competitive in the Forex Market

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The forex markets have changed a lot in the past few decades, becoming ever more competitive for individual traders and brokerages alike. In order to be successful when exchanging currencies these days it is important that traders maintain a competitive edge. There are many ways in which this can be done for both traders and brokers.

Who is the Competition?

Firstly, it is important that you know who the competition is. For forex brokers this is simple, it will just be all the other forex brokers on the market. Working out their strengths and weaknesses can help you to fine tune your own forex brokerage, by building on their successes and finding solutions to their weaknesses.

For individual traders, working out the competition can be a little trickier, but it does exist. High priced brokers charging a high spread are the obvious ones, wanting to ensure that you plough as much money into their firm through losses. The other competition can be yourself. Blaming yourself for failed trades, letting emotions get involved and risking large losses are all down to yourself.

Build a Successful Trading Plan

As a trader you should have a quality trading plan already to hand, and it should be developed to be as competitive as possible. Still, it is important to factor risk into this strategy, as if things do go wrong then you will need to maintain enough capital to continue trading forex in a competitive manner.

Seeking out expert financial advice can help in this respect. Forex brokers need a successful business plan themselves, to ensure that they aren’t losing out when helping traders. Put this together with your aims in mind and building on the strengths of competitors.

Use Efficient Trading Platforms

Competent forex trading platforms allow for competitive trading, as currency can be exchanged quickly and accurately. They also provide the most up to date information, news and analysis to keep traders well informed. If you’re a trader, then investing in a flexible forex platform is essential to stay competitive.

For forex brokers, developing and offering such platforms is a necessity to stay ahead of the competition. Mobile and tablet trading apps are now offered by almost every brokerage firm, so to keep up with the competition your company must have developed these as well. To stay ahead of the competition, it will need to be using the latest technology in its products.

Forex Broker Offerings

As well as staying up to date with the latest forex trading technology, brokers need to be offering attractive rates to traders that still fit in with their business model. This will help them draw in more traders.

The days of charging large brokerage fees are going, as more and more traders exchange currencies independently thanks to the advancements in technology. This is making it harder for brokers to survive and remain competitive, so they are having to look at new and innovative approaches. Whether you’re a trader or work for a brokerage firm, staying competitive in the forex game is essential.

Failing to predict 2015’s financial stories

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By Patrick Foot, financial markets writer at IG

For a year still in its infancy, 2015 has seen a lot of action across global financial markets thus far.

forex trading vs investment in australia

So much so, that many of the blockbuster stories at the end of last year – some of them still ongoing – have to an extent been overshadowed. The Russian rouble has continued to toil – Standard & Poor’s recently cut Russian debt to ‘junk’ status. Oil shows no sign of returning to strength anytime soon.

Perhaps the most notable feature of 2015 so far has been the unpredictable nature of market volatility. The status quo that many were predicting for the next 12 months is already being pulled seriously into question.

In the USA, another strong non-farm payrolls figure kicked off the year much as many were expecting. 252,000 jobs were added in December, against an anticipated 240,000. Unemployment fell faster than economists were estimating and with the previous figure being rounded up considerably, the US dollar went on the rise again. In the US, at least, the world had a leading light that wouldn’t fail.

Then came a durable goods figure that was stunningly off the pace, as orders declined 3.4% when the markets were expecting a narrow increase. Previous figures were also revised down amidst a substantial refresh of America’s economic outlook. As Chris Beauchamp, analyst at forex trading platform IG, noted: ‘The World Bank’s warning from just two weeks ago looks very prescient now, as a hitherto strong performance from the US begins to weaken. The world can ill afford Uncle Sam catching a cold.’

The bad news was only compounded by an earnings season that was seeing major companies miss expectations with alarming regularity. Microsoft and Caterpillar announced earnings either side of the durable goods report, with both companies missing the mark on several key figures.

Apple’s amazing iPhone sales aside, US earnings pointed to several major weaknesses in the US economy. All told, the US’s biggest three banks missed revenue expectations by a collective $3.19 billion.

But the biggest shock to the markets came not from the US but from Switzerland. The Swiss currency crisis caught the markets unawares, and sent shockwaves through equities, currencies and commodities. Its effect was such that it is still extremely difficult to pick apart exactly how a suddenly-valuable Swiss franc will play out across global economies.

The Swiss franc had been pegged to €0.83 since September 2011, and the Swiss National Bank had shown little regard towards scrapping the peg. Despite many noting since how damaging artificially holding a currency pair’s value can be – by 2014, Swiss currency holdings were equivalent to around 75% of GDP, and were on the rise – a drastic move from a famously conservative central bank was predicted by no one. As many have pointed out, the problems associated with pegging currencies may not have even applied to the Swiss franc against the euro.

However, the problems of suddenly unpegging currencies are now well known, as traders found out on January 15. The Swiss franc suddenly returned to its former high valuation, instigating one of the biggest moves in a major currency ever seen. Swiss business, banks around the world, and financial traders all lost millions.

If anything, the first few weeks of 2015 demonstrated that predicting the next 12 months of financial movements is a task beyond human comprehension. Whatever the rest of the year brings, though, it looks set to be a rocky ride.

This information has been prepared by IG Markets Limited. The material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

What You Need to Know About Binary Options Trading

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Trading in binary options

Binary options are one of the simplest forms of trading. Using ‘all or nothing’ strategies, ‘cash settled’ options are finalized on the date they expire. At the expiry point, they are either resolved with a profit ‘in-the-money,’ or ‘out-of-the-money’ where the buyer or seller doesn’t receive a pay-out. Binary options are also commonly referred to as ‘digit option trading.’

What is Binary Options Trading?

Classified as ‘exotic options,’ binary options are relatively simple to understand. The most basic form is a ‘high-low’ option. These are also referred to as fixed-return options when the high-low binary involves commodities, stocks, foreign exchange, and indexes. The expiration date is called the ‘strike price.’ When a trading wager is on the right side of the strike price at the moment of expiry, the trader will receive a fixed return no matter how marginal the movement of the instrument. Conversely, when the wager does not correctly identify the direction of the market, the trader stands to lose the outlay.

Binary Options – ‘Put’ and ‘Call’

Almost all platforms refer to the two binaries as ‘put’ and ‘call’ options. The ‘put’ refers to a decline in price whereas the ‘call’ indicates an increase. Binary trading options differ from traditional trading because it isn’t necessary for traders to recognize the degree of movement. What is required is the ability to accurately predict if the expiry price will have risen above or fallen below the starting price.

How Binary Option Trading Works

It’s easy to see that binary option trading is not complex. The skill is in being able to accurately predict the movement of an asset. When the trader believes that the basic asset will increase in value, he or she will purchase a ‘call.’ If the value is predicted to fall, the trader will select the ‘put.’ When trading binary options, the pay-out, price, risk, and expiry will be revealed at the beginning of the trade. Generally, trades that take place outside of the U.S. will include a strike price that reflects the present rate or price of a financial asset. Hence the binary options trader will place a wager based on whether or not the predicted price will be above or below the existing price at the time of expiry.

How to Make a Trade

Trade are made in three simple steps. First the trader will choose which asset to trade: stocks, currency, indexes, or commodities. Next the trader will either ‘call’ or ‘put’ depending on the prediction for that asset. Finally, the amount of the trade will be determined and applied.

Different Types of Binary Options

The standard high-low type of binary option is described above and it’s helpful to understand that this is the most common form for binary option trading. Most international brokers, aside from the United States, provide a variety of other binary options. ‘One touch’ and ‘range’ binaries are examples of different kinds of binary options that you may want to learn about.

An Introduction to Forex Trading

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The Forex market has some of the highest potential for profit in the world. It’s also easily accessible – anyone can trade Forex from their laptop or smartphone.

australian forex trading strategy

Photo courtesy of Epsos.de

But there is a steep learning curve: on average, private traders lose money for the first two years at least.

What is Forex?

Forex is short for Foreign Exchange. Forex trading is the speculative buying and selling of national currency for profit.

Since 1971 currencies have floating values, i.e. their value is relative to other currencies rather than pegged to a tangible asset – how much gold is in the central bank’s vault. This means their values go up and down, and these movements can be exploited for profit.

At its simplest, this means trading £65 for $100 and waiting until either the dollar strengthens or the pound weakens, and trading your $100 for £70 at the new rate. The trick is watching economies and predicting whether currencies will strengthen or weaken.

Currency pairs

Since currencies are all relative, every trade involves buying one currency and selling another. As such, all currencies are quoted in pairs. For example USD/GBP (US Dollars and British Sterling) and EUR/JPY (Euros and Japanese Yen). These express the value of any given currency.

The first currency in the pair is the ‘base currency’ or ‘long’, and is the currency you’re buying, and the second is the ‘quote currency’ or ‘short’, against which the base is valued, and is what you’re selling. So in the USD/GBP example, you’re buying US Dollars and selling British Sterling at a rate of £0.65 to the dollar (at the time of writing).

Forward trades

A forward trade is buying currency at a pre-agreed rate on a future date, regardless of what the rate on that day is. By speculating on the future rate, profit can be made. If the currency is worth more on the day of the trade, the buyer wins. If it’s worth less, the seller wins.

For example, I agree to buy $100 from you for £65 next Tuesday. On Tuesday the rate is £0.70 to the dollar. I can now sell my $100 that I just bought for £65 elsewhere on the market for the current rate of £70. I made a profit of £5, you made a loss of £5.

Carry trades

Carry trades are one of the most popular Forex trading strategies. In a carry trade, the trader seeks to exploit the interest difference between the two currencies in a pair (the ‘yield spread’) as well as capital accumulation.

Every currency is pegged to an interest rate set by the national central bank. At the time of writing, the Bank of England base rate is 0.5%. When buying currency, you receive interest payments, when selling, you pay interest. The first goal in a carry trade is to invest in a currency pair with a positive yield spread i.e. buy currency with a higher interest rate, and sell with a lower.

Currently the USD rate is 0.25%. So, if buying GBP/USD, you would have a positive yield of 0.25% – the difference between the two rates. If you were buying USD/GBP you would have a negative yield of 0.25% – you’re paying out more interest than you’re making.

The second goal is to buy a pair where the yield spread is set to increase. Pick a currency pair where you buy currency with an interest rise, sell an interest rate fall, or ideally both.

The third goal in a carry trade is to successfully predict a rally, so you also experience a capital gain.

For example, between 2003 and 2004, the AUD/USD currency pair offered a positive yield of 2.5%. In the same period, the value of the Australian Dollar rose 56 cents, closing at 80 cents. This represented a 42% appreciation in the currency pair, and meant that traders and hedge funds who were in this currency pair made huge capital gains, as well as profiting from the interest rate differential.

Leverage

One of the chief reasons Forex trading can be so profitable is that it’s a highly leveraged market: ratios of 100:1 are not uncommon i.e. you buy $100 for $1 of capital.

Broadly speaking, leverage is betting against future profits. In its simplest form, you borrow money to make a trade based on your prediction of how that trade will go. If it goes in your favour, you make a much higher return than if you only invest your own capital. If it goes against you, you make a much higher loss. Every transaction is amplified when leveraging.

The returns in Forex trading can be very small without leveraging. Caution should be exercised, but leveraging should be used. Set a rule for how much capital you’re willing to risk with each trade. A good rule of thumb is never to risk more than 3% on a single trade.

Forex trading is fast moving and complex. There is a steep learning curve, but the rewards can be enormous.

Penny Atkinson writes about various financial topics including saving money, debt issues and forex education. For more information about forex trading visit http://gomarketsaus.com/.

Stock market Picks : Toxfree

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A 33 % jump in net profit definitely signifies  a positive outlook for a company and tox free ( waste management and industrial solutions ) should be happy in the direction  they are going.

Toxfree Solutions Ltd (Toxfree) is  a integrated waste management and industrial service provider,  who provides sustainable waste management solutions for all types of waste including commercial, household, industrial, construction and hazardous waste..

“Tox free” has reported a jump in profit of $10.5 million for the first half of the financial year and its shareholders  are pleased with the results.

tox free solutions waste management

Website:www.toxfree.com.au

Toxfree share price:  $3.450
(Updates every 20 minutes)
Click here for full details

Tox free is a WA owned company and it revenue has risen to 43 percent  to 131.6 million with earnings  before interest, tax ,depreciation and amortisation up 39 % to 28 million

They have over 30 facilities nationally and employing a team of over 800 people and service over 20,000 customers nationally

Tox free has also been lucky with expansion into  the coal seam gas industry in Queensland  as a result of its acquisition  of Absolute Liquid Waste services  earlier which is based in towoomba, which has also added to its rapid growth.

The company has performed very well this year and is in great shape to extend its winning run of earnings growth into the current financial year.

Links

31 December 2012
Toxfree Half Year Results – period ending 31 December 2012

12 December 2012
ASX Announcement Acquisition Absolute Waste – 10-12-2012

http://www.asx.com.au/smalltomidcaps/asx.pdf

More midcap stocks and penny stock picks can be found at  australianpennystocks.com

Liability disclaimer : Advice received via the Australian business times web Site should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice tailored to your situation.

Is Silver Surpassing Gold?

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Some long-term silver analysts are predicting a huge run on silver over the next few years. They also believe that the gap between the price of gold and the price of silver will be narrowed significantly. These silver bulls base their projections on historical data as well as current trends. This is good news to those of us that are fond of buying silver. After all, considering the price of gold, silver is one of the few remaining commodities that the average investor can physically hold in any large quantity. So why are these silver bulls so optimistic? Most likely it’s related to the driving force of all commodities: supply and demand.

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Supply Gold & Silver

For the first time in the history of modern mining, many of the world’s leading mines are coming up empty. It is estimated that 95% of all silver ever produced has already been consumed and unfortunately most of it ends up in our landfills. If the current supply of silver were evenly distributed among everyone on earth, there would only be enough for each of us to have 1/3 of one ounce. For many years now, the world has been using more silver than it has been producing, yet many people continue to assume that silver is abundant. That hasn’t been the case since the industrial revolution. Major government stockpiles from the past have slowly been sold off for industrial use. For years now the annual global mining production has not been able to keep pace with consumption, both investment and industrial.

Industrial Demand

As opposed to gold’s limited industrial applications, there are literally ten thousand industrial applications for silver.

It is essential to the production of medical, telecommunications, computer and automotive equipment, to name just a few. Silver has many useful qualities; the most valuable to the manufacturing sector is its unsurpassed qualities as a conductor of electricity. As electrical power continues its growing dominance around the globe, the industrial demand for silver is expected to continue to grow dramatically as well. Also, considering China’s mammoth appetite for precious metals that are essential to its continued dominance of product manufacturing, many insiders are projecting an even steeper rise in demand in the short term.

Investment Demand

Just like industrial demand, investment demand for silver is also at record levels and growing steadily. As more and more investors continue to embrace precious metals, many of them are seeing the incredible potential of silver. According to Bloomberg News, investors currently hold over 18,000 tons of silver-backed exchange-traded products, which is the equivalent of over eight months of global mining output. Morgan Stanley and Barclays PLC are predicting that investors will likely buy another 500 tons in 2013. Another sign of growing investment demand is the incredible popularity of the U.S. Mint’s silver Eagle coin. The mint is barely able to keep up with demand and there have been several occasions recently when the mint had to ration sales.

Even though gold continues to perform well and will likely remain the dominant precious metal for investment purposes, silver is likely to close the gap considerably in the very near future. When you consider the dwindling supply and growing demands from investors and manufacturers, you can begin to understand why the silver bulls are so optimistic.

Author Bio:

Jacob Harrison is a precious metals investment specialist from Australian Bullion Company, Australia’s oldest privately-run precious metals wholesaler and retailer.

Beginner ASX Share Trading Tips

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For someone new to changing on the Australian Stock Exchange market, or “ASX”, the process can be a bit overwhelming. Not only is there a seemingly huge learning curve, but you’re actually risking your own money – meaning the stakes are much higher than they are in practice sessions.

asx trading and brokers for australia

No matter how large or small your share trading goals, this guide will help you understand the ASX market, how shares are exchanged, and how you can get started without losing your shirt in the process.

“Trading”: Buying and Selling Shares

To facilitate share transactions, you need an account through some sort of a broker or internet trading platform.

If you want to avoid the hassle of dealing with commissioned brokers, you’ll probably want to use a trading platform such as E*trade Australia . Sites like this allow you to easily manage your portfolio without paying an excessive commission or dealing with anyone in person.

What to Buy?

Once your account is active, this is probably the most difficult part. The entire ends and outs of the share trading game is obviously beyond the scope of this one article, so you’ll want to do plenty of research to understand the market before laying any of your own money down on the line.

As a quick overview of your options, you have two primary options. You can choose to invest in blue chip companies, which are corporate in nature, stable, and consist of large companies who are ideal for long term investments.
On the other side of the board, you have startups, which are somewhat more risky, but much more likely to yield a fast return. This profile makes them better suited for making a quick buck.

If you’re new to trading on the ASX market, you can probably see the advantage of blue chip investments. The long history of stability in these companies makes your investment much more solid. It’s best to save the startup investments for when you have a bit more experience.

Tips for Success

To make the most of your trading experience, there are a few hints to keep in mind. First, before you make any trades, get a thorough feel for the market. Learn the terminology, the structure of the market, and understand basic cause-and-effect behind price jumps.

Second, always formulate a strategy before you start trading. You want to have a clear plan, and follow it closely at all times. Many new traders jump in without clear goals or strategies, and quickly end up in over their head.

Finally, clearly specify your entry and exit rules. Define exactly when you will buy a share, and precisely when you will sell. Doing this removes the newbie trader’s number one enemy, which is the emotional factor. Planned systems produce much greater returns than gut feelings.

Trading on the ASX market is no piece of cake, but with these tips, you’ll be off to a great start!