Trading Library

Fundamental analysis introduces the concept of intrinsic value. Intrinsic value is the "real" value of a security. This implies that market prices are not true reflections of a stock's worth. This is where fundamental analysis comes in. For example, Trader X is following stock ABC, which is trading at $25. After doing his analysis however, he finds that stock ABC has an estimated value of $30, its 'intrinsic' value.

Technical analysis may intimidating. Most often newbies get turned off by this method because it takes a lot of work and patience. Imagine having to go over multicoloured charts for days on end, trying to determine where you should make your entry and exit in future trades. However, if your the type of person who prefers to have a visual interpretation of figures then technical analysis works for you. Interpreting charts may take time, but they plot price movements that are important for trading.

Analysing Trends

CFD is an agreement between a buyer and seller, to exchange the difference in value of a share between the time that is opened and closed. CFD allows you to trade in a range of markets without actually buying the share, and profit whether the market goes up or down. Traders can benefit from the change in stock prices without havign to pay for the full price. CFDs are also leveraged financial instruments,which means you can earn big profits for a small initial outlay.

CFD Advantages:

Starting early in the stock market is a good way to take advantage of compounded interest. Its also a good opportunity to sidestepping a regular 9 to 5 job, and eventually earning money. But the thing is, making money out of the stock market is not as exciting as what the Wallstreet or Boiler Room movie portrays it to be. Sure you have the chance to earn a lot of money, but being successful at share trading takes a lot of work, and long hours in front of the computer on your own. So before you commit to trading for a living there are still some points that you have to consider.

When share trading, you earn capital gains (positive) or losses (negative) when you sells shares that you hold on to for capital growth. Holding shares for more than 12 months may entitle you to a capital gains tax (CGT) discount.

Australian capital gains tax applies to profits made on the sale of a capital asset that was acquired after 20 September 1985. Legislation defines capital gains as "any kind of property" or a "legal/equitable right that is not property."