tag:blogger.com,1999:blog-60734226377384027832011-11-27T15:54:58.014-08:00Investment PhilosophyThe purpose of this blog is to outline my investment philosophy for the benefit of aspiring traders.About Andrew Sheldonhttp://www.blogger.com/profile/15469120006156639030noreply@blogger.comBlogger61100tag:blogger.com,1999:blog-6073422637738402783.post-75691689002959292552010-07-22T14:11:00.000-07:002010-07-22T14:17:36.721-07:00CFD investors need to manage leverageThe Australian regulator ASIC is finally investigating the disclosure of Contract for Difference (CFD) market makers. This action is well due because customers are not being adequately prepared for trading CFDs. It is really a form of high-stakes gambling. Unless you know what you are doing there is a strong chance of losing a lot of money.My advice to clients investing in CFDs is to use them as About Andrew Sheldonhttp://www.blogger.com/profile/15469120006156639030noreply@blogger.com0tag:blogger.com,1999:blog-6073422637738402783.post-69255304810426168792009-09-12T22:41:00.000-07:002009-09-12T22:59:16.234-07:00An inflation-fighting investment strategyYou might be asking yourself what your strategy should be in these times given the prospect of inflation. Clearly inflation makes it harder to make profits, so if we are concerned about inflation, then there are certain types of investment we should be consider over others. I would make the following points:1. Bonds: People like to place money in bonds because they are considered safe. I would About Andrew Sheldonhttp://www.blogger.com/profile/15469120006156639030noreply@blogger.com0tag:blogger.com,1999:blog-6073422637738402783.post-36232969161809970212008-02-04T05:19:00.001-08:002008-07-12T07:29:09.483-07:00Investment StrategiesThere are 2 ways you can look at investment1. Big picture perspective: This is where you look at the macro-economic setting, the state of global capital markets and develop a micro-economic framework that reconciles with your global perspective. This is otherwise referred to as a top-down analysis.2. Specific investment focus: This is where you reflect more on the merits of a range of particular About Andrew Sheldonhttp://www.blogger.com/profile/15469120006156639030noreply@blogger.com0tag:blogger.com,1999:blog-6073422637738402783.post-63154772869080577872008-02-04T05:17:00.000-08:002008-07-12T07:29:26.224-07:00Misconceptions - Risk vs ReturnOne of the misconceptions I learned in university economics courses was that there was an inverse relationship between risk and return. The assertion was made on the premise that people would demand a higher level of return to offset a higher 'perceived' risk. There is some merit in this statement, but another factor strikes me as pertinent - the quality of the perceptions assessing market value.About Andrew Sheldonhttp://www.blogger.com/profile/15469120006156639030noreply@blogger.com0tag:blogger.com,1999:blog-6073422637738402783.post-74983320565208948902008-01-09T12:46:00.000-08:002008-07-12T07:29:49.873-07:00Trading systems - Are they any good?Several years ago I looked at trading systems. For the uninitiated, trading systems or so-called 'black box' solutions are software packages that include algorithms to analyse market trends with the intent of spitting out stock recommendations. Most such systems use daily end-of-day trading data from the stock exchange to give you those signals. They might even give you the tools to help manage About Andrew Sheldonhttp://www.blogger.com/profile/15469120006156639030noreply@blogger.com0tag:blogger.com,1999:blog-6073422637738402783.post-69719528995729568772007-10-10T14:39:00.000-07:002008-07-12T07:30:13.913-07:00Why the 'buy & hold' strategy is flawedI was having a discussion with a guy on a Japanese bulletin board www.gaijinpot.com - a useful reference if you are going to Japan. His argument was:[QUOTE=Gaijin 06] I disagree with your assertion that the buy and hold strategy has had it's day. I fundamentally disagree with this as no amount of technical analysis nor fundamental analysis can accurately predict market highs or lows.My response About Andrew Sheldonhttp://www.blogger.com/profile/15469120006156639030noreply@blogger.com0