Newbie Lessons - All your questions answered

[rayb10]

Yes, volume profiling seems to be something to learn to get an idea of what price has a lot of interest. Besides finding out relevant support and resistance zones through Volume Profiling is there anything else useful to get from it? I've been trying to get around watching some youtube vids and Udemy courses on it.

 

[peter2]

Besides finding out relevant support and resistance zones through Volume Profiling is there anything else useful to get from it?

Is profit useful?
If volume profile indicates price levels that provide high probability for future price movement, a prepared trader would find them extremely useful. Very few wannabe traders do enough work to find out if they can profit consistently from the levels indicated by vol profile.

 

[rayb10]

Haha . . . When I started looking at it recently (didn't have Vol Profile 10 years ago) it did seem like something I need to focus on & learn about. You just confirmed it so thanks for putting me in the right direction. Bought a Kindle book on the subject so will add it to the reading list.

Sorry about asking twice, I didn't realise it went to the next page. I will try and delete one.

Thanks for your comments Peter2

 

[pozindustrial]

Shares III

OK so the standard secondary market in Australia is made up of 2195 different listed entities that are classified according to a GICS rating (Global Industry Classification Standard). New shares are entered through listings (IPO's) and some shares drop off through de-listing. (This doesn't include futures market, derivatives or CFD markets. It also doesn't include small regional exchanges which have their own listings).

GICS is an industry classifications system that has been developed by Standard and Poors and Morgan Stanley Capital International (MSCI). It is these entities that are responsible for the publication of indicies data., Such as the ASX 200, All Accumulation Index etc etc. More information on Australian Indicies can be found here.
http://www2.standardandpoors.com/po...es_ei_au/2,3,2,8,0,0,0,0,0,0,0,0,0,0,0,0.html

There is a lot of useful information to be found at the Standard and Poors website about what goes into an index. The index used by industry professionals is the ASX200 rather than the All Ords. As the name suggests the ASX 200 is made up of the 200 Largest Stocks by market cap on our exchange. (Market Cap is simply the number of shares on issue times price of those shares) There are 10 main sectors of the market according to GICS classification.

Energy
Materials
Industrials
Consumer Discretionary
Consumer Staples
Health Care
Financials
Information Technology
Telecommunication Services
Utilities

(You also tend to see Financials broken into Fins-x-Reit and A-Reit which is that sector of the market minus Real Estate Investment Trusts, and REIT's on their own).

Certain global characteristics are going to influence sectors of the market differently. There are a great many influences over our market, which can rapidly influence prices on our exchange. This is why so much attention is given to major economies that have the capacity to influence the world economic conditions.

There is so much data out there that even if you gave up sleeping altogether, you wouldn't have enough time to read everything. So it becomes a matter of experience to know what is important and to understand what these influences are and how they work to influence our market. Use whatever you feel comfortable with. Personally I look at the following: -

Bond Yields
Interest Rates (Local and International)
International Reserves
Commodity Prices
ASX200 Index

To give me a general sense of how our market is tracking at any particular point in time.

Ok I've got lot's more to say about shares (LOTS more trust me) - but It's time to move onto property or I'm never getting this finished.

Cheers
Sir O

Several years later it is still good information, thanks.

 

[pozindustrial]

"Look it's simple you just need to use a wave analysis Gann, Fibonacci, EW approach, Candlestick with a stochastic oscillator and a MACD, Bollinger Bands, and look for H&S, Double Tops, Resistance Levels, Flags, Pennants, Triangles, and Dodecahedons (that last one is a joke BTW) - they are full of it.

Love it haha

 

[pozindustrial]

Nine o'clock (or there abouts) is when the market reaches the old high, so we aren't there yet by a long stretch. I'd have to say we are closer to eight than seven at the moment.

I'm focussing on the share market rather than the broader economy itself. If you want to look for the start of the Property market...it occurs very near the 12 o'clock position, not the six o'clock position. It also tends to start at the highest population density areas before moving into less populated areas. So depending on where you are looking it could have occurred (and is still occuring as it moves away from higher density areas) a couple of years ago.

Clear?

Cheers

Sir O

Would be so interesting to know where you think we are now March 27, 2021?

 

[pozindustrial]

Sir O, or anyone else, I am a newbie just learning to trade and I feel a big crunch coming very soon. After the crunch I would like to have a portfolio (not leveraged because I am too old to use debt again) of quality stocks to sit on which I can probably select, and an opinion of the way I can anticipate and amplify returns from a fall for which I would allocate a small amount of resources. I believe futures is a way to profit from falls. Is there a link to understanding futures here? Is there anything else I could consider - generally speaking?

 

[frugal.rock]

Sir O, or anyone else, I am a newbie just learning to trade and I feel a big crunch coming very soon. After the crunch I would like to have a portfolio (not leveraged because I am too old to use debt again) of quality stocks to sit on which I can probably select, and an opinion of the way I can anticipate and amplify returns from a fall for which I would allocate a small amount of resources. I believe futures is a way to profit from falls. Is there a link to understanding futures here? Is there anything else I could consider - generally speaking?

Hopefully someone else answers you re futures, I can't help there.
Have asked about it myself in the OOO thread with no answers this far....

In relation to your delayed ASX 200 index charting question elsewhere, generally only "paid for" charts may/will provide a live chart.
"Paid for" may actually be free to you via brokers EG; West- slack, Comm-suck etc
(Note, these are fictional brokers and don't represent the names of any actual brokers that may or may not provide the service they claim to provide, but don't)

They pay for the data and the live charts are provided as a courtesy, as theoretically you trade with them.
Some brokers will charge a fee if you don't trade.
XJO is the ticker for ASX 200
XKO is the ticker for ASX 300

The ASX has a strangle hold on live data unlike the U.S. and charge for it.
Thus, whoever provides live data is paying for it and need to recoup costs somehow.

Just like @Joe Blow needs to recoup costs associated with providing this wonderful forum.
In my opinion, he does this with modern, un-invasive and generally accepted means.
Cheers

 

[pozindustrial]

haha, thanks

 

[DaveTrade]

Hi everyone
It is a mine field out there.
Can anyone tell me the best trading pattform for trading CFD's of the ASX stocks
I was using CMC many years ago and ready to re-active the system I have.

Hi Timejumper,
I would google CFD's to find out more, I remember hearing somewhere that CFD's are no good to trade anymore. Sorry I don't remember any details why. As an alternative you could learn options basics and use them instead.

 

[divs4ever]

6 trading pitfalls new investors should avoid when starting out​

6 trading pitfalls new investors should avoid when starting out

Many Aussies have turned to trading while stuck in lockdown but there are some common mistakes made by many. Here is what you should avoid.

au.finance.yahoo.com

ridiculously basic , but still stuff the raw novice should learn quickly ( before they start losing that precious cash )

 

[dyna]

Yeah, especially the emphasis on having the right psychology for trading. I'm convinced most people just don't have it. Certainly not me. Having admitted that ,if I was starting out, all over again, on the road to serious wealth creation, I'd not begin as an investor. That takes a long, long time and you need the gift of patience, waiting for the magic of compounding to finally kick in. Instead, I'd take the time to trawl though the miles of text on this forum's trading threads and learn how the experts, here, do it. There are a handful of truly talented people here who have, over many years now, contributed a lot of their experience and learning to helping others. And they've done it ,all for free.

 

[frugal.rock]

can someone explain to me if the recent notice for the proposal to list options that will mature in 2022 will have any bearing on the share price?
I noticed the other day the listing in the afternoon after the market had closed and that my little alarm icon on commbank didn't show it the next day.....it seemed a little sneaky. Any ideas?

I'm also interested to understand any SP implications by this, I don't claim to understand options apart from the bare basics.

Quoted over from RMX thread so hopefully might get a response here or in the RMX thread?
Thanks.

 

[frugal.rock]

Hi Guys, options don't have any bearing on the share price, in actual fact it's the share price, the volatility and time that determine the option price. Some traders want to use long dated options for their trading strategy so this will only help those traders.

Thanks for that. Much obliged.
Dropped here also from RMX thread for future reference.

 

[DaveTrade]

Breakouts vs Pullbacks; here's a video

>> Click here to discover the answer

 

[frugal.rock]

Can anyone explain what AXEXE as a ticker is, or could be?

I have apparently got a holding of 6842 volume of AXEXE as of this week.
I originally had thought they were the free ITM in specie shares from AXE ownership, but are not.

 

[KevinBB]

All I can think of is that you purchased AXE shares after the ex date for the recent SPP, or purchased them in some way in which you weren't entitled to participate in the SPP. AXE ex entitlement.
Did you purchase any after 4 October?
KH

 

[willfairfax89]

Could you please recommend me on a cryptocurrency trading platform? The necessary conditions:
1) The minimum percentage for withdrawing money;
2) Possibility of financial transactions without verification;
3) Reliable protection from hackers;
4) Possibility of margin trading and fiat money;

 

[Garpal Gumnut]

Hello everyone, I wanted to ask experts a question about the platform. Want to start here, tell me if you know anything about her and her conditions. Both in terms of conclusions and currencies. Is it worth starting there or choosing another platform.

More than likely a scam/spam.

Don't click on it.

gg

 

[SneakyOne]

Hi, please forgive my noobness and perhaps naivety...

Can simplywall.st be relied on for stock assessments?
Seems yahoo and others link to this site, makes me think it's more of a promo site than a research tool?

Thanks