Newbie Lessons - All your questions answered

[grehar]

Not sure if this question has previously been asked? I'm feeling my way around and still too much to learn.
From my observations the best time of the day to acquire shares is between 10am and 3pm where it appears less price movement. But I wonder if there is a certain time of the year which is better to purchase shares? Or does it not matter?

 

[ROE]

Not sure if this question has previously been asked? I'm feeling my way around and still too much to learn.
From my observations the best time of the day to acquire shares is between 10am and 3pm where it appears less price movement. But I wonder if there is a certain time of the year which is better to purchase shares? Or does it not matter?

There is no such thing , stock market price move with many wheels in motions, could be rumors, bad press, earning down grade, scandal, fund managers exiting/entering position, competition and hundred of other reasons.

your job is to work out which news is relevant, there is no easy way you just have to learn the art before you can make good judgement and make money.

 

[g-topa-g]

I have a few questions;

1. How do I pick and choose certain parts of a post instead of including the whole post?

2. There are different coloured envelopes that I see from time to time...what do the colours represent?

3. When I post something what is the best way to see if my post has been replied to?

Thanks

GTG

 

[burglar]

... 1. How do I pick certain parts instead of the whole post? ...

If you mean when you reply with quote,
then you can highlight the unwanted bits and delete them.

... 3. ... what is the best way to see if my post has been replied to? ...

Suscribe to the thread.
Your subscription list will update with each new post.

 

[g-topa-g]

If you mean when you reply with quote,
then you can highlight the unwanted bits and delete them.




Suscribe to the thread.
Your subscription list will update with each new post.

Thanks burglar...I'll give it go.
GTG

 

[scub]

Can any one direct me to index charts comparing PE ratios with historical concurrent interest rates?

I am looking to buy local and over seas "whole market ETFs" but keep putting it off because the markets are persistently rated as overvalued.

If the PE ratio is linked to interest rates then perhaps I should reconsider what now is a reasonable PE ratio rather than a median "ideal " PE ratio historically tilted by prolonged periods of higher interest rates

Scub

 

[goponcho]

Ughhh what does this mean?!: What is happening to equity and is it in the interest of shareholders?

Shareholders approved a proposal to reconstruct the capital of the company whereby consolidating every 10 fully paid ordinary shares into 9.827 fully paid ordinary share. Fractions rounded up. The return of capital and the share consolidation are interdependent. Accordingly, approval of each item is conditional on the approval of the other. Shareholder approval is not required for the Board to determine and pay the fully-franked dividend of 25 cents per share that forms part of the capital management initiative. However, the Board has decided that declaration and payment of the fully-franked dividend is conditional on shareholders passing Item 6 (Return of Capital to Shareholders) and Item 7 (Share Consolidation). Accordingly, if either or both of these items are not passed, no funds will be paid to shareholders. 28/10/2014 - The company proposes a capital management initiative of $1.00 per share made up of a return of capital of 75 cents per share; and a fully-franked dividend of 25 cents per share. If approved, the return of capital of 75 cents per share will be accompanied by an equal and proportionate consolidation of share capital through the conversion of each share into 0.9827 shares. Entitlements for the return of capital and dividend will be determined by reference to Wesfarmers' pre-consolidation capital. Trading in post-consolidated shares commences on a deferred settlement basis on Wednesday, 26 November 2014.

 

[StockTrader010]

I'm looking for an excel template that correctly applies the XIRR calculation to calculate the internal rate of return. I've found an example excel file here (external link).

Can someone quickly verify whether it's correct (see bottom page)? Thanks

 

[goponcho]

Hi,

Is there a website i can get 52 week rolling lows from?

I guess i could create a filter alternatively, but an easy accessible one would be nice


On further search foudn this one:
http://asxiq.com/performance-data/end-of-day/year-low/1/

Another would be handy as not much detail on this one on first glance

 

[Wysiwyg]

Easy.

Hi,

Is there a website i can get 52 week rolling lows from?

30 day free trial -- http://www.amibroker.com/download.html

I guess i could create a filter alternatively, but an easy accessible one would be nice

Low250 = L <= Ref(LLV(L, 250), -1);

Filter = Low250;
AddColumn(IIf(Low250, L, 0), "52 Week Low", 1.2, colorBlue);

XAO from 4th. to today.

Ticker Date 52 Week Low
ADO 7/03/2016 0.06
ADO 8/03/2016 0.06
CAJ 7/03/2016 0.13
CLX 4/03/2016 0.89
CLX 7/03/2016 0.86
DVN 7/03/2016 0.42
DVN 8/03/2016 0.42
HIL 8/03/2016 0.20
KPL 3/03/2016 0.10
KPL 4/03/2016 0.10
PAC 7/03/2016 4.99
PAC 8/03/2016 4.88
SAI 7/03/2016 3.53
SLM 4/03/2016 0.56
SLM 7/03/2016 0.55

 

[goponcho]

Easy.


XAO from 4th. to today.

Ticker Date 52 Week Low
ADO 7/03/2016 0.06
ADO 8/03/2016 0.06
CAJ 7/03/2016 0.13
CLX 4/03/2016 0.89
CLX 7/03/2016 0.86
DVN 7/03/2016 0.42
DVN 8/03/2016 0.42
HIL 8/03/2016 0.20
KPL 3/03/2016 0.10
KPL 4/03/2016 0.10
PAC 7/03/2016 4.99
PAC 8/03/2016 4.88
SAI 7/03/2016 3.53
SLM 4/03/2016 0.56
SLM 7/03/2016 0.55

Thanks, will try that out if there's no easier option!! Not an amibroker user, yet

 

[Telamelo]

Thanks, will try that out if there's no easier option!! Not an amibroker user, yet

Thought I'd share some timely trading/investing advice applicable to both newbie's as well as us a little more experienced one's alike - as we never stop learning during our trading journey.... Enjoy and Good Luck!

TRADER PSYCHOLOGY

1. Be flexible and go with the flow of the markets price action, stubbornness, egos, and emotions are the worst indicators for entries and exits.

2. Understand that the trader only chooses their entries, exits, position size, and risk and the market chooses whether they are profitable or not.

3. You must have a trading plan before you start to trade, that has to be your anchor in decision making.

4. You have to let go of wanting to always be right about your trade and exchange it for wanting to make money. The first step of making money is to cut a 'losing trade' short the moment it is confirmed that you are wrong.

5. Never trade position sizes so big that your emotions take over from your trading plan.

6. "If it feels good, don't do it." – Richard Weissman

7. Trade your biggest position sizes during winning streaks and your smallest position sizes during losing streaks. Not too big and trade your smallest when in a losing streak.

8. Do not worry about losing money that can be made back worry about losing your trading discipline.

9. A losing trade costs you money but letting a big losing trade get too far out of hand can cause you to lose your nerve. Cut losses for the sake o your nerves as much as for the sake of capital preservation.

10. A trader can only go on to success after they have faith in themselves as a trader, their trading system as a winner, and know that they will stay disciplined in their trading journey.

--Bring your risk of ruin down to almost zero.

RISK MANAGEMENT

1. Never enter a trade before you know where you will exit if proven wrong.

2. First find the right stop loss level that will show you that you’re wrong about a trade then set your positions size based on that price level.

3. Focus like a laser on how much capital can be lost on any trade first before you enter not on how much profit you could make.

4. Structure your trades through position sizing and stop losses so you never lose more than 1% of your trading capital on one losing trade.

5. Never expose your trading account to more than 5% total risk at any one time.

6. Understand the nature of volatility and adjust your position size for the increased risk with volatility spikes.

7. Never, ever, ever, add to a losing trade. Eventually that will destroy your trading account when you eventually fight the wrong trend.

8. All your trades should end in one of four ways: a small win, a big win, a small loss, or break even, but never a big loss. If you can get rid of big losses you have a great chance of eventually trading success.

9. Be incredibly stubborn in your risk management rules don’t give up an inch. Defense wins championships in sports and profits in trading.

10. Most of the time trailing stops are more profitable than profit targets. We need the big wins to pay for the losing trades. Trends tend to go farther than anyone anticipates.

--Develop a winning trading system that fits your personality.

YOUR ROBUST METHOD

1. “Trade What's Happening...Not What You Think Is Gonna Happen.” – Doug Gregory

2. Go long strength; sell weakness short in your time frame.

3. Find your edge over other traders.

4. Your trading system must be built on quantifiable facts not opinions.

5. Trade the chart not the news.

6. A robust trading system must either be designed to have a large winning percentage of trades or big wins and small losses.

7. Only take trades that have a skewed risk reward in your favor.

8. The answer to the question, “What’s the trend?” is the question, “What’s your timeframe?” – Richard Weissman. Trade primarily in the direction that a market is trending in on your time frame until the end when it bends.

9. Only take real entries that have an edge, avoid being caught up in the meaningless noise.

10. Place your stop losses outside the range of noise so you are only stopped out when you are likely wrong.

www.traderplanet.com/articles/view/165953-30-great-trading-rules/

======

ASSAD'S RULES OF TRADING

Trading rule No 1. Never chase. Forget about the Dollar loss for a moment as the real damage comes from the distraction it creates.

Trading rule No 2. Wait for the break. Most traders buy inside the range, get impatient and as a result they sell on first sign of strength which ends up being the breakout.

Trading rule No 3. Don't ride the ticks and Dollar profits. It creates emotional turmoil and is draining. Prevention is best cure. Takes the fun out of the game.

Trading rule No 4. Price action trumps everything. Management lie or mislead but price action (money flow) never lies.

Trading rule No 5. Sell the news or a least sell partials. Markets discount everything and over the long run you will be better off.

Trading rule No 6. Always stay in control. Do NOT put yourself in news related coin toss trades, where the risk cannot be managed.

Trading rule No 7. Mind your own business, avoid conflict. If you take offence because someone has disagreed with your trade, then you are such a precious little petal.

Trading rule No 8. Do NOT set targets as all this creates is a premature EXIT. Run a trailer and let that take you out.

Trading rule No 9. Minimise whipsaw at all costs. It's a trader killer. The root cause of trading failure more often than not, starts with whipsaw.

Trading rule No 10. Do NOT buy stretched breakouts. More often than not they recoil back into the range to flush traders out.

Trading rule No 11. Start with long term charts and look to catch major breaks/moves. These tend to follow through and it makes it easier to run with winners.

Trading rule No 12. DO NOT trades Forex short-term. It is a mugs game, news driven by central banks. It is like betting on the greyhounds.

Trading rule No 13. Turn trading rules into habit. There is no point in having trading rules if you dont apply them!

Trading rule No 14. And the most important; only tell your wife about your losers.

Trading rule No 15. Hit those stops, no questions asked. Hitting your stop and watching a stock rally hurts but not htting your stop and watching the stock fall hurts a hell of alot more.

www.asenna.com.au/asenna/node/34842

--------------------------------------------------


Cheers tela

 

[bowfinger]

Hi there,

I am to investing and new to the Aussie Stock Forums. This thread seems a great place to start.

I am quite baffled by Chapter 2, which asserts that " by choosing to pay fortnightly (AND NOT AMORTISING THE PAYMENTS) you are in effect making 13 months of payments in a year"...

I understand the benefit of making 26 half-monthly payments (as compared to 12 monthly payments); I don't understand what's meant by "not amortising the payments".

Is amortising the process whereby the percentages of principle and interest repayments change over time (more interest and less principal at the start, less interest and more principle at the end of the loan term)?

I have an interest-only loan (and keep the offset account topped-up to minimise interest repayments); is it possible to not amortise my fortnightly repayments with this loan ?

Thanks in advance for your advice

Cheers,

Bowfinger

 

[Alpaca5]

What is the best place for getting a full listing of All Ords or ASX200 and filter/rank them by things like p/e or dividend yield? Sorry if this is a dumb question. I can search them on Yahoo but I don't see how to list or sort.

Is there somewhere free for this or do I need a trading account at e.g. Commsec?

 

[mcgrath111]

Where can I get broker report like the one produced by Morgans or the big brokers etc.
Like the one in the link below:
https://www.google.com.au/url?sa=t&...HXzxMnQKDLnIHdG-g&sig2=YlSR6diNyjtRs9x8FxT_RA

I realise that for the most part such things would require subscription, os there any round about ways to accessing such information?

Thanks,

 

[galumay]

I realise that for the most part such things would require subscription, os there any round about ways to accessing such information?

Well there is really 2 separate types of info in there, firstly all the financial stuff is obviously freely available just through the standard reporting by the business. Then there is broker analysis, which to be honest is notoriously inaccurate anyway!

So the first part you can, and should gather yourself for businesses that interest you, the second part you can get a bit of a window into from places like Commsec, but honestly you may as well take a strawpoll on HC!

I think you can learn as much about understanding and analysing a business from following the share specific threads here on ASF, there are some very knowledgable and skilled people that share their analysis and research here and I have always found that if you ask questions to further your understanding, they are more than happy to help.

 

[mcgrath111]

Well there is really 2 separate types of info in
I think you can learn as much about understanding and analysing a business from following the share specific threads here on ASF, there are some very knowledgable and skilled people that share their analysis and research here and I have always found that if you ask questions to further your understanding, they are more than happy to help.

Definitely agree, particularly in regards to financials, however I like the comprehensive summaries that they provide.
As to HC, it can get muddled between conspiracy theories and actual content haha

 

[OmegaTrader]

Thought I'd share some timely trading/investing advice applicable to both newbie's as well as us a little more experienced one's alike - as we never stop learning during our trading journey.... Enjoy and Good Luck!

TRADER PSYCHOLOGY

1. Be flexible and go with the flow of the markets price action, stubbornness, egos, and emotions are the worst indicators for entries and exits.

2. Understand that the trader only chooses their entries, exits, position size, and risk and the market chooses whether they are profitable or not.

3. You must have a trading plan before you start to trade, that has to be your anchor in decision making.

4. You have to let go of wanting to always be right about your trade and exchange it for wanting to make money. The first step of making money is to cut a 'losing trade' short the moment it is confirmed that you are wrong.

5. Never trade position sizes so big that your emotions take over from your trading plan.

6. "If it feels good, don't do it." – Richard Weissman

7. Trade your biggest position sizes during winning streaks and your smallest position sizes during losing streaks. Not too big and trade your smallest when in a losing streak.

8. Do not worry about losing money that can be made back worry about losing your trading discipline.

9. A losing trade costs you money but letting a big losing trade get too far out of hand can cause you to lose your nerve. Cut losses for the sake o your nerves as much as for the sake of capital preservation.

10. A trader can only go on to success after they have faith in themselves as a trader, their trading system as a winner, and know that they will stay disciplined in their trading journey.

--Bring your risk of ruin down to almost zero.

RISK MANAGEMENT

1. Never enter a trade before you know where you will exit if proven wrong.

2. First find the right stop loss level that will show you that you’re wrong about a trade then set your positions size based on that price level.

3. Focus like a laser on how much capital can be lost on any trade first before you enter not on how much profit you could make.

4. Structure your trades through position sizing and stop losses so you never lose more than 1% of your trading capital on one losing trade.

5. Never expose your trading account to more than 5% total risk at any one time.

6. Understand the nature of volatility and adjust your position size for the increased risk with volatility spikes.

7. Never, ever, ever, add to a losing trade. Eventually that will destroy your trading account when you eventually fight the wrong trend.

8. All your trades should end in one of four ways: a small win, a big win, a small loss, or break even, but never a big loss. If you can get rid of big losses you have a great chance of eventually trading success.

9. Be incredibly stubborn in your risk management rules don’t give up an inch. Defense wins championships in sports and profits in trading.

10. Most of the time trailing stops are more profitable than profit targets. We need the big wins to pay for the losing trades. Trends tend to go farther than anyone anticipates.

--Develop a winning trading system that fits your personality.

YOUR ROBUST METHOD

1. “Trade What's Happening...Not What You Think Is Gonna Happen.” – Doug Gregory

2. Go long strength; sell weakness short in your time frame.

3. Find your edge over other traders.

4. Your trading system must be built on quantifiable facts not opinions.

5. Trade the chart not the news.

6. A robust trading system must either be designed to have a large winning percentage of trades or big wins and small losses.

7. Only take trades that have a skewed risk reward in your favor.

8. The answer to the question, “What’s the trend?” is the question, “What’s your timeframe?” – Richard Weissman. Trade primarily in the direction that a market is trending in on your time frame until the end when it bends.

9. Only take real entries that have an edge, avoid being caught up in the meaningless noise.

10. Place your stop losses outside the range of noise so you are only stopped out when you are likely wrong.

www.traderplanet.com/articles/view/165953-30-great-trading-rules/

======

ASSAD'S RULES OF TRADING

Trading rule No 1. Never chase. Forget about the Dollar loss for a moment as the real damage comes from the distraction it creates.

Trading rule No 2. Wait for the break. Most traders buy inside the range, get impatient and as a result they sell on first sign of strength which ends up being the breakout.

Trading rule No 3. Don't ride the ticks and Dollar profits. It creates emotional turmoil and is draining. Prevention is best cure. Takes the fun out of the game.

Trading rule No 4. Price action trumps everything. Management lie or mislead but price action (money flow) never lies.

Trading rule No 5. Sell the news or a least sell partials. Markets discount everything and over the long run you will be better off.

Trading rule No 6. Always stay in control. Do NOT put yourself in news related coin toss trades, where the risk cannot be managed.

Trading rule No 7. Mind your own business, avoid conflict. If you take offence because someone has disagreed with your trade, then you are such a precious little petal.

Trading rule No 8. Do NOT set targets as all this creates is a premature EXIT. Run a trailer and let that take you out.

Trading rule No 9. Minimise whipsaw at all costs. It's a trader killer. The root cause of trading failure more often than not, starts with whipsaw.

Trading rule No 10. Do NOT buy stretched breakouts. More often than not they recoil back into the range to flush traders out.

Trading rule No 11. Start with long term charts and look to catch major breaks/moves. These tend to follow through and it makes it easier to run with winners.

Trading rule No 12. DO NOT trades Forex short-term. It is a mugs game, news driven by central banks. It is like betting on the greyhounds.

Trading rule No 13. Turn trading rules into habit. There is no point in having trading rules if you dont apply them!

Trading rule No 14. And the most important; only tell your wife about your losers.

Trading rule No 15. Hit those stops, no questions asked. Hitting your stop and watching a stock rally hurts but not htting your stop and watching the stock fall hurts a hell of alot more.

www.asenna.com.au/asenna/node/34842

--------------------------------------------------


Cheers tela

Rule 1: Be the devil's advocate
Rule 2: Be the devil's advocate

Trade your biggest position sizes during winning streaks and your smallest position sizes during losing streaks. Not too big and trade your smallest when in a losing streak.

How do I know when I am going to win or lose??
If I knew that I would just not trade when I am going to lose.

Never expose your trading account to more than 5% total risk at any one time.

Structure your trades through position sizing and stop losses so you never lose more than 1% of your trading capital on one losing trade.

Depends on the strategy. Some strategies 5-10% position size might be the optimum.

for others it might be 1%.

DO NOT trades Forex short-term. It is a mugs game, news driven by central banks. It is like betting on the greyhounds.

There are professional Forex traders as there are professional gamblers as well

Sell the news or a least sell partials. Markets discount everything and over the long run you will be better off.

The market discounts everything???
Then how do you make money???

--Bring your risk of ruin down to almost zero.

Please explain?

And the most important; only tell your wife about your losers.

I don't have a wife so who do I tell?
hahaha

Only take real entries that have an edge, avoid being caught up in the meaningless noise.

How do you do this?


I think you get the point I am trying to make..........

 

[goponcho]

Question - if value investing, when calculating return on equity, do we use stockholder equity excluding goodwill/tangibles??

 

[luutzu]

Question - if value investing, when calculating return on equity, do we use stockholder equity excluding goodwill/tangibles??

Top of my head stuff here, but I don't think goodwill/intangibles are anywhere in the ROE equation.

I suppose if you break down DuPont's ROE to its components and there's that asset turnover component. In that case, I think you would have to use gw/intangibles as they are the company's assets and it would indicate how well they return in earnings.