Upfront Investor Share Market Report 18/6/10 Share Market Scams

Over the years I have met thousands of share market traders, and the one thing that stands out is how more money can be made by trading less and over longer periods, rather than from day trading. This is why it never ceases to amaze me that when people find out I am a trader they automatically assume I am a ‘day trader’. Now I can hardly blame them for making this mistake when share trading is often talked about in the media as day trading. What is never talked about is how unprofitable this approach really is, yet so many attempt to go down this path only to find they were doomed to failure.

But why are so many who attempt to trade the share market unprofitable when there is so much information available? I put it down to human psychology and a lack of knowledge. The minute you put your hard earned cash into the market you are likely to be affected by price movements, and the more you look at the market the more emotional you are likely to become. This is ultimately why mistakes are made that cost money. The most important thing I teach traders is to trade less by considering the bigger picture, rather than being focussed on short term price action. This requires less time to manage your investments and you’ll make more money. Now that has to be a better way.

So what do we expect in the market?

Despite the general upward movement of the market over the past week, the rise hasn’t been convincing. We are now at the end of the third week of June and the All Ordinaries Index has only risen 2 percent for the month. Further to this, the rise occurred on slightly lower volume which indicates there is still uncertainty about the likelihood for the market to move forward.

Whilst I still believe the market will continue to rise over the next month through 5000 points and up to my target of around 5200 points, I would prefer to see it gather more momentum as it moves up. The longer the market stays subdued the more the rise will become unsustainable, and therefore if this continues probability suggests it could turn and fall away again. Given this, as I often suggest, it is wise to set stop losses on your shares to protect capital.

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