Category — Recommended Newsletters

This informative newsletter was contributed with the kind permission of Louise Bedford who is one of Australia’s most recognised private traders. Louise is also the best-selling author of The Secret of Writing Options, The Secret of Candlestick Charting, Trading Secrets and Charting Secrets.

I highly recommend them to you as they are invaluable in locating those profitable stocks.  You will find this article plus a host of other invaluable information by clicking on this link or why not subscribe to their free newsletter. Click Here.

The Time Bomb

Louise Bedford

I SEE A LOT OF traders take the emotion of fear and let it wreck their lives. Not fear about the markets, or their own skill levels. Fear about what other people think of them – especially those they live with. Their type of power is insidious because it’s prefaced by the words “I love you… but…”

Fear is a crippling emotion. It’s a time bomb ready to explode and send your trading results into oblivion.

Fear of being judged, disapproved of, criticised or gossiped about has been known to stop grown men in their tracks. People often build themselves prisons, where the bars are their own emotional reactions to others disapproval. [Read more →]

My weekend was going well – calm and peaceful, I was sifting through the weekend papers whilst sipping my morning coffee. Then I read an article that nearly made me spit my coffee right out again. The Times really made my blood boil and has been simmering ever since. It takes a lot to rile me, but this article really vexed me.

What utter, utter rubbish

The Times tackled the matter of DIY investing. ‘Is it worth a shot?’ it asks.
DIY investing means investing directly into shares and making your own choices. To help answer its question The Times called upon some financial advisers. Here is what they said.

‘Direct investment‘, says one, ‘is for people who can afford to lose most of their initial investment.’

‘We very much see the element of a client’s portfolio in individual stocks as that part of their portfolio which they manage themselves for enjoyment… and that any potential losses will have a negligible impact on their overall finances.’ [Read more →]

Humans have two common failings.

One is the belief that the time you’re living through is the most important period in the entire history of mankind.

The second is the failure to grasp and predict change. Or, put another way, your tendency to believe that things have always been “this” way, and always will be this way.
It’s only when you look back at history that you can see just how much things change. And when you do look back, it all seems so obvious. How could anyone not see what was going to happen?

Yet, at the time, it’s not so obvious.

For instance, if we look far back into history, in 239BC the Carthaginian Empire controlled much of the Mediterranean coast…

But just 139 years later, things had changed. The Romans controlled the Mediterranean… [Read more →]

Australia has had quite a few crises fly past our economic windscreen since ‘the recession we had to have’ in the 1990s. The East-Asian crisis, the tech wreck, September 11, the global financial crisis, the European sovereign debt crisis and any we’ve forgotten. But Australia chugs on as ever.

So is it safe to invest your money and to keep what’s already committed working hard for your retirement? And what are the risks?

Do we, for example, have resource curse and Dutch Disease? Both those terms refer to what your local newspaper editor might call a ‘two speed economy’. Resources can dominate all other parts of the economy and cause the exchange rate to appreciate beyond what the rest of the economy can handle.

This happened to the Netherlands in 1959, hence the name Dutch Disease, when they discovered a vast natural gas field. Just like Australia has in the Cooper basin, for example. [Read more →]

It’s very rarely that we comment about the articles that are contributed by Money Morning. But today Kris Sayce hits the nail right on the head. We at Asxnewbie are very much biased towards Natural gas ourselves. Enjoy another great article from Money Morning.

Why Natural Gas Is Still My Favourite Resource Opportunity.

The old investment saying is, “buy low and sell high”.

If you do that with every investment you make, you won’t go far wrong.

But what if the investment you like, keeps getting cheaper? In fact, what if the price had nearly halved since the start of the year?

We’d say that makes it even more of a buy.
Because while the commodity price has dropped like a stone, the stocks that are searching for this falling commodity have gone up… some have more than doubled.

And as we’ll show you today, as long as there’s a demand for it, it almost doesn’t matter what the commodity price does…

The lucky investors who bought shares on the Cambodian stock exchange’s first trading day racked up a tasty 47% gain.

This follows the opening of a stock exchange in Laos last year. And news that Myanmar (Burma, to old timers like your editor) also plans to open an exchange.

These markets are what investors call, “developing markets.”
They’re typically high-risk. And in countries that have a limited capital and financial market.

Despite that, big investment firms (especially hedge funds) like these markets. Why? Because they can place big bets on stocks where they could make a big return. [Read more →]

“Be it or be it not true that man is shapen in iniquity and conceived in sin, it is unquestionably true that Government is begotten of aggression, and by aggression.”– Herbert Spencer, 1850“This is the gravest danger that today threatens civilisation: State intervention, the absorption of all spontaneous social effort by the State…” – Jose Ortega y Gasset, 1922

“It [the State] has taken on a vast mass of new duties and responsibilities; it has spread out its powers until they penetrate to every act of the citizen, however secret; it has begun to throw around its operations the high dignity and impeccability of a State religion; its agents become a separate and superior caste, with authority to bind and loose, and their thumbs in every pot.

But it still remains, as it was in the beginning, the common enemy of all well-disposed, industrious and decent men.” – Henry L. Menken, 1926

We wish we’d seen those quotes on government intervention before the ‘After America’ conference. We would have added them to our presentation.
[Read more →]

It is…. but not for the reasons you might think.

Dismal returns actually have very little to do with super computers, research, insider information or access to the trading floor. The real issue comes down to something very simple – the difference between how individuals and professionals approach stock market volatility.
Most investors head for the hills when volatility rises.

Successful traders, on the other hand, embrace it because they know stock market volatility represents an opportunity. I find this especially ironic considering how often I hear individuals tell me they invest because they want the “big gains.”

Because most of the time they choke at the very moment when the upside potential is highest. Instead of buying when prices are low, they head for the exits. [Read more →]

I didn’t want to write too much about central bankers today. As tempting as it is to discuss liquidity-driven markets and poor economic fundamentals in Europe, I’m starting to sound like a broken record.

What I really wanted to discuss was long-term wealth creation. There are always problems and risks in the market. Our job is to manage those risks. But our whole aim is wealth creation.

Unfortunately, as an Aussie (or Kiwi) investor, you’re on the back foot in this quest. That’s because our market has a lamentable number of options to buy quality, well-run companies. The Aussie share market has very few world-class companies. I’m talking about companies that have enduring competitive advantages…companies that generate high rates of return and compound those returns through reinvesting earnings.