Australian Investment Education

Investing is often seen as being all about return. However, all returns are not the same! All too often, investors make the big mistake – the rookie error of selecting their investment strategy or approach based solely on return. How can looking at the return be a mistake? Looking at the return is not the mistake, ONLY looking at return is the mistake. For example, rather than just the percentage return, how volatile a return was it. You see, a strategy may have the capacity to generate a 30 or even 40% return for a month, but in achieving that, may have a very high volatility of return. You may make 30% but you could lose everything. This type of strategy would be typically speculative and one to avoid, unless you enjoy higher risks. Also important is the probability of return. In other words, how often are you right, versus how often are you wrong. While past performance is no guarantee of future performance, it can help in stress testing your strategy ...

 I’ve seen clients makes thousands of percent on single trades. I’ve also seen clients wipe their accounts out on a single trade. The stock market is where dreams are made, and it is the hope of making money that continually drives investors to put their hard earned cash into the markets. A quote I heard a long time ago sums it up: “The stock market is the hardest way to make an easy dollar”.   Stock Market Beginners Expectations Unfortunately, most beginners have an unrealistic expectation of what is achievable. My approach is to establish a realistic expectation based on historical market performance, the amount of capital intended to be used, and the frequency the trader expects to buy and sell. From this point, I can create a benchmark of performance, and from there my goal is to outperform my expectations. Take Control of your Financial Future If you want to take control of your financial future, then you will most definitely want to consider investing in...

Over the hundreds if not now, thousands of presentations I have done around the World, the understanding of what is risk, versus what people think it is, has been a central theme to almost each and every one and in particular when it comes to Options Trading Strategies. Earlier today, I did an interview with a finance journalist from the Straits Times, the major newspaper in Singapore and Malaysia. I have got to know the journalist quite well, over the past few years, as we have been busy in Asia and as I type, I am flying up there to host an Options trading Strategies event. One of the central themes to the interview was the common misperception out there that “Options are Risky!” and over the course of the interview, I set out the case for what proved to be the actual opposite. Options are flexible One of my senior traders was quoted not so long back as saying “options are the thinking man’s derivative” and this is a great truism. Options offer more flexibilit...

This week I have had the opportunity to spend some time in Southern California and man it has been an eye opener. Technology and the use of it is so mainstream and so far ahead that it really shines a light on several investment themes – themes that we have been using to bank profits and themes that will continue to play out in the year or two ahead. Whether you profit from them or not is up to you, but at least you can’t say “I wish I’d known about that”. I know one thing for sure, I will be banking profits from this weeks research. A three minute chapter of activity would sum it up. I was in Starbucks (not for me, for my wife, as I drink coffee) and the lady in front of me ordered her drink, paid for it and acquired all of her loyalty points on the mobile app conveniently operated from her iPhone. Amazingly 11% of Starbucks sales are now conducted in this way more than any other single retailer – more than 4m transactions a week, I have subsequently researche...

Australian Investment Education is an industry leader, who since the late 1990's, have been helping people just like you gain greater control over their investments. At AIE we don't simply teach people how to trade, we actually teach people how they can make money from trading. Which is very different... With our services your time input is truly minimal, allowing your money to work harder while you work smarter! Better yet, you can keep all the control and outsource all of the hard work. Andrew Baxter is the CEO of Australian Investment Education. Recognising the immediate need for the average Australian, investment education, Andrew embarked on his mission to empower 100,000 everyday people to have a better financial future by teaching them how to invest more successfully and becoming elite traders. This was the birth of what is now Australian Investment Education. Based on his real life, hands on experience from years in the London and internat...

Imagine if you blindly held Woolworth shares Health and wealth can sometimes be closely linked. In fact there are many parallels between the two things most people wish for. To be on the front foot, health wise, as we get older, regular check ups ensure if there is a problem, it is found early and is able to be treated effectively. Burry your head in the sand, and think “it will go away” is proven to be a quicker way to the cemetery than you would probably want! The same can be said of your investments Often, when working with clients that own shares, they have typically held them for many years, and intend to continue doing the same. Words like “Long Term Holding”, “Quality Stock”, “Blue Chip”, “Great Dividends” and “Safe Haven” tend to send a shiver down my spine, particularly in today’s ever changing market place. If there is something sick in your portfolio, wouldn’t you want to know about it right now? If you find out something is not right, you can fix...

Trading and investing are often used interchangeably; however, there is a vast difference between the two. While trading involves short-term and more frequent buying and selling of financial instruments to generate faster returns, investing is the process of buying and holding the securities for a longer period to build wealth gradually. Differences between Trading and Investing •     Duration : Trading is often done for a short period, mostly a day or a week. Traders buy the security and keep it till it reaches its high performance, and then sell it to capitalize on the short-term price movement. On the other hand, investing works on the buying and holding principle. Investors buy security, hold it for years or even decades, and then sell it to gain from the long-term price changes. Short-term price fluctuations rarely affect investors while they are highly significant for traders. •     Goal : The ultimate goal of trading is...

Trading is a profession with continuous learning and skills enhancement. Aspiring traders begin by learning the fundamentals of trading, trading strategies, and risk management and move on to more advanced learning. Online trading courses support traders in their trading education and help to shorten the learning curve to a large extent. They equip traders with the essential know-how about the markets, their dynamics, techniques of fundamental and technical analysis, in addition to advanced skills including how to use futures, options, and automated trading processes. Components of a Good Online Trading Course A substantial number of trading courses are available online. It becomes confusing and critical for traders to pick a good and efficient online trading course, suitable for their trading goals, needs, and level of experience. •     Comprehensiveness : A good online trading course should cover all the basics of trading, including the ...

Trading is a challenging domain. It requires a perfect balance of science and art to become a successful trader. It is, indeed, true that only about 5% of the traders end up being profitable and successful; however, what segregates successful traders from the unsuccessful ones is the attitude and passion for learning. A successful trader must learn how to trade and keep learning the science of numbers, use of technical indicators and technical analysis, chart reading skills. However, science is incomplete without the art of adaptability, flexibility, creativity, and clarity of thoughts. To become a successful trader, one must exhibit sheer determination, hard work, discipline, and remain unaffected by emotions. Resources to Learn How to Trade There is a vast array of opportunities available to learn how to trade. Individuals can choose the option that suits them the best depending on the personal requirement, costs involved, past trading experience, and their physi...