(TRADING/INVESTING FROM AUSTRALIA)
July 26, 2023
Hello everyone,
If you are an investor and trader, living in Australia can have some downsides.
The most obvious is the time difference between Australia and the U.S.
Many people attempt to stay up late at night and trade the market when it opens.
My suggestion is always the same. Don’t stay up at night.
You will simply burn out from doing this. Go to bed and get up early, so you can catch the period of time before the markets close. If you get up at 5 am, you will have time to see if there has been a trade alert sent and time to enter the trade on your platform.
And if your first entry order does not get taken straight away, change the price of your next order a little, so you can find where the market is.
If you are still having trouble getting your orders taken you can always change the strike price or the expiration time. This can make things a little easier.
If you are entering a LEAPS trade, you have the luxury of time here. From the time an alert goes out on a LEAPS trade you have a few weeks to enter the trade. This is because the movement on these trades day to day is usually quite small. The only exception to this would be a large movement in the stock market that lifted all sectors.
When building a portfolio of stocks, the rule is simple. Buy small parcels at regular intervals. So, for example, you could put aside $1000 to buy stocks every month. If you have more disposable capital to play with that’s great. Just be consistent and don’t let market movements or the news sway your decision-making. Buy small parcels of your chosen stocks or what I recommend near the close of the market. That’s usually when you get the better price because the high-frequency traders are dumping their stock/trades at the end of the day.
The Fed, Bank of Japan, and ECB run the markets this week. I would not be surprised to see a .25% interest rate rise by the Fed (but that’s just how I see it).
Going forward, we could see the NASDAQ move up another 1000 points or so to make a double top at around 16000 or thereabouts. Please see the chart below.
As I’m traveling this month, I won’t be able to hold my monthly Zoom meeting. However, I will be back on deck in August and look forward to seeing you then.
Wishing you all a great week.
Cheers,
Jacquie
