This week’s journal posting is a response to a comment by ‘fastbucks’ last week when the following question was posed: “Another related rule is the 6% rule, i.e. you cannot have a total risk in your positions at any one time greater than 6%. I don’t suppose you have any comments on that?” The 6%…
The art of trading is not about winning as much as it is about not losing. Like a business needs to control its costs, a trader needs to be able to minimise and withstand losses so that they are ready and able to take advantage of profitable opportunities. This comes down to managing risk at…
The chart below is a Base Reference Comparison between 3 indices: The main weekly chart is the ASX Small Resources Index ($XSR). The green line is the ASX20 Index ($XTL). The blue line is the All Ordinaries Index ($XAO). The base reference start date is the 3rd January, 2000 meaning that all three indices start…
One of our long standing customers forwarded this article to me last year. It touches on a number of important topics that I believe are strongly related to active investing and are well worth being aware of to help put your trading endeavours into perspective. http://www.smh.com.au/executive-style/culture/luck-of-the-draw-20120829-250hc.html I’m sure that as you read this article all…
