Australian share market is the most resilient market in the world. Despite recession, it managed to move ahead keeping up with the local and global trends. The consistent efforts by the government to lower interest rates and taxes have further strengthened the stance. No wonder, more and more Australians are making a fortune in this otherwise unchartered territory. If you are interested in learning about the basics and gathering some share trading tips, the first thing to learn is that the Australian market is the biggest recipient of advantages of globalization.

With the last one and a half decade marked as the golden age, the share market can offer you lots of prospects for making money. But it is always advisable to get into the share market with all the basic preparation and analysis. Here are some share trading tips to get you started.

•    As a share market trader, you must have the knowledge about different financial institutions, risk control measures, market strategies and the best practices along with their legal implications.

•    You must have an entry and exit strategy in place so that you are well prepared for the things to come.

•    You must have an idea about all the different price levels like opening price, closing price, intra-day high and low price. This will help you in understanding the momentum indicators and hence you can perform effective daily transactions.

•    Gain expertise of various available tools and techniques to gauge the market and share trends. Using online share trading software can also prove very beneficial. Keep track of all the latest technological advancements to utilize them to your advantage.

•    Listen to expert advices, financial news and statistic studies but do not trust them blindly. Use your experience, knowledge and advice to make the right decisions.

•    Take time out to review your daily progress as it will teach you the real time implication of your decisions.

Share trading is not a very easy task to do. Many people fail but a considerable number succeed too.

Love life, not just the weekends. You only have one life, Live It! @ www.NicciAndLee.com

Recession is defined in economics as the general slowdown of economic activities over a continuous period of time, or a business cycle reduction. In the course of a recession, several macroeconomic factors vary in a comparable way. A country’s economic health is measured by a number of fundamental factors ranging from: Employment, inflation, Gross Domestic Product (GDP), per capita incomes, and business profits, all of which fall during recessions.

Most national economies usually respond to recessions by implementing expansionary economic policies such as increased government spending, money supply and reduced taxation. Recessions tend to have many traits that can arise concurrently and this could include reduction in synchronized measures of economic activities such as investment, corporate profits and employment.

Various recessions have been predicted through stock market decline, an example is the real estate market which usually tends to weaken prior to a recession. If you’re considering share trading in a recession, then it’s well advice that you consider a few measures; especially if you work for someone else. This could include putting cash into a reserve fund. The logic behind this move is that recessions usually result to layoffs, and a reserve fund comes in handy to cushion you from the adverse effect of a salary loss.

The next step should be to focus on your portfolio, prior to making investment decisions; you should take your time and answer the following questions:

a)    Will the economy improve sometime during my life?
b)    Is HP, Microsoft or any other company important to the economy; survive to be in business in the next 20 years or more?

When you answer the above 2 questions, then the best investment strategy should be clear to you. Many investors know that the economy will ultimately improve in the long haul and that massive stock price declines are only short-term, however they’re often too fearful to do anything about it!

The funny side of this is that at exactly the time when it’s best and wise to invest, most folks are often too cowardy to invest either due to lack of cash or just fear itself. Share trading in a recession and recessions overall are sometimes a blessing in disguise and most often harbor plenty of investment opportunities to those that keep an open mind.

Love life, not just the weekends. You only have one life, Live It! @ www.NicciAndLee.com

Continued from part one….

6) Blaming the Market
Blaming anyone (even if they are at fault) isn’t effective. Since the “market” isn’t a real entity, blaming “it” for any of your losses is simply unproductive. Blaming you advisers, or nameless insiders are also unproductive. But surprisingly, people still blame the markets for their losses. Remember, you are in control. You can control the level of risk you are prepared to put into the market.

7) Buying the Hype
Too many investors are still falling for hot tips and snake oil salesmen and their miracle “black box” trading systems. You should first decide if direct shares, rather than managed funds, are for them. If so, you need to know how shares fit into their financial plan. Once you make the decision to invest, ASIC recommends investors do their homework, buy shares in companies they understand, know how long they plan to hold the shares, learn the lessons of history, have realistic expectations of share market returns, understand the risk-return trade-off and your own tolerance for risk.

8 ) Chasing Yesterdays Winners
Too many traders lose money because they are simply chasing yesterday’s winners. It is your job as a professional trader (yes, even if you are working from home) to be responsible in doing your homework in finding tomorrow’s star performer by doing your fundamental and technical analysis.

9) Diversifying too Much
As a trader, it’s probably not in your best interests to diversify. Why? Because you are sacrificing focus and spreading your capital widely could possibly lower your ROI per trade. This is personal preference and depending on your trading systems and style you may choose to diversify. Some successful trading strategies do diversify, but in a sense that the traders would trade groups of equities/securities/shares/stocks which have something in common, such as an industry, a commodity or index.

10) Don’t Keep up to Date
Keep up to date and keep informed when you are actively trading. You may be a chartist and a technical trader, but you must also keep abreast of fundamentals by keeping tabs on the news, especially those relating to the economy and the specific company stocks or currency or commodity. Make it a habit to keep up to date with the financial press. Or if you are a fundamental trader, keep up to date technically, by watching your charts.

Happy Trading!

Love life, Not just the weekends. You only have one life, Live it @ www.NicciAndLee.com