Upfront Investor | What Do You Want From the Markets?

It’s a question I ask a lot of people who tell me they want to become a full or part-time trader – “what do you want from the markets?”

It’s also a question that stumps most people yet knowing the answer for yourself has a huge impact not only on your own bottom line as a trader but also the timeframe of your educational journey to becoming the trader you want to be. Let me explain.

Those who are regular readers of my column will have heard me mention many times the saying “if you fail to plan you plan to fail”. This is a statement I believe whole-heartedly and when it comes to learning how to trade you need to plan exactly what it is that you want from the markets. In defining exactly what you want from trading or the markets makes it far easier to achieve. For example, someone with a low aversion to risk looking to receive a regular income from trading would obviously be wise to take a more active approach and learn how to trade markets that are most likely to create this outcome such as CFD’s, Forex and other leveraged instruments. Whereas the same approach may not be the best decision for a retiree looking for low-risk, dividend type income.

And yet even with this simple approach I still find so may new traders and investors focusing on markets that are not suited to their specific needs. Generally, such an endeavor leads to frustration, overwhelm and lost profits. So before you look to start on your own investment journey ask yourself what is it that you want from the markets?

So what do we expect in the market?

This week the All Ordinaries has continued to pull back, with the partially closed government situation in the United States no doubt putting further downward pressure on sentiment. For those of you who may be a little worried about the current state of the market – don’t. As I have discussed previously, markets ebb and flow from periods of excitement to pessimism and right now we are simply seeing s short term decline.

From here I believe our market is likely to fall for another week or so. There is a huge level of support around 5050 points that may prove to be the conclusion for bearish momentum and the beginning of reinvigorated bullish sentiment. With this most recent pull back traders and investors alike would be wise to look for suitable opportunities to re-enter stocks that have come back to levels of value and overall remain bullish.

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To your profitable trading,

Dale Gillham
Chief Analyst
Wealth Within

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’. Dale has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment adviceto traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.