Traders Manage Risk, Investors Hold and Hope

In today’s Closing Bell, markets are volatile, so you need to invest with a clear set of rules, so you have the best chance of success. In today’s Closing Bell, Murray shows you how he chooses stocks to invest in.

My goal in these Closing Bell videos is to analyse markets for you in real-time, so you can make your own mind up over time about whether or not I know what I’m talking about.

Markets are incredibly volatile and there’s not one person on the planet who can consistently predict what is about to happen in the market’s day in and day out.

The fact is you don’t need to know what is about to happen in all markets from one second to the next to benefit from investing.

What you do need is a method that ensures you manage risk effectively and only trade when the odds are in your favour.

My own method involves analysing how other market players are positioned based on where prices have been in the past. Then you can work out where stop losses are usually placed and when prices are in and out of balance.

Prices spend a lot of time mean-reverting, or in other words, heading back to the middle of the range or wave that prices have been in.

I use this fact to help my members enter positions that are often in the money quite quickly, and then we take part profits when prices return to the middle of the range.

From that point on members will either break-even or make money which is a powerful position to be in.

By focusing on key sectors that have buy signals on my trading model, I then zero in on stocks within the sector that have the best fundamental and technical set ups.

I have no interest in trading markets for the fun of it. They are a dangerous place to look for entertainment.

That’s why I call one of my trading services Retirement Trader. Because it is for people who take the task of investing seriously and want to build wealth for the long-term.

My trading model only acts on situations that have good odds of succeeding and they only pop up every now and again.

I used this method to jump on uranium and gold stocks over the past year before they took off. There is a similar set-up unfolding in another commodity now.

So if you take your investing seriously and would like a deeper understanding about how I go about things, please check out this presentation, which will be taken down on Monday evening at midnight.

In today’s Closing Bell video, I look at the commodity I think will take off in more detail so you can understand when the buy alert could be triggered.


Murray Dawes Signature

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.

He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader…and then applies the same system to the ultra-speculative end of the Australian market in Fat Tail Microcaps (this service is strictly limited and via invitation only).

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