Colin Nicholson: Building Wealth Through Shares — Ask Colin

Ask Colin

Investors and speculators are invited to ask me questions they have about investing, speculating, technical analysis and fundamental analysis. I will answer them as soon as practicable, bearing in mind my work and travel commitments.

Please avoid asking me for financial advice. Advice is defined in law as:

... a recommendation, a statement of opinion, or a report of either of those things, which is intended to influence, or which could be reasonably regarded as being intended to influence, a person in making a decision in relation to a particular financial product, a class of products or an interest in such products

 

Please try to avoid missing the point of what I am trying to do. I do not want to be an investment adviser. Instead I want to help you learn to be a good investor. So, my case studies in Building Wealth in the Stock Market and on the members website are meant as educational examples for you to use in the learning process and may usually be read after the event in order for me to stay within the law on advising without a licence to do so.

 

Rather than asking me for my analysis conclusions, you will learn far more from trying to do the analysis yourself. It is the thinking/doing process, not the answer, that is important.

  

So, I request that anyone who is looking for an answer to an analysis question might like to send me their own analysis and I will look at it and comment to the extent that I am allowed by Australian law. This is separate from questions seeking facts about the way markets operate and methods of fundamental or technical analysis. Facts, by definition are not advice. Therefore, my new rules for questions are:

 

1.    You are free to ask for facts about anything affecting stock market investing in the areas of fundamental and technical analysis and the way in which markets operate. Please try, though, to do your own research first - Google is a wonderful resource.

 

2.   However, if you seek an opinion about the market or a stock, which are questions that I cannot legally answer, I will guide you to the extent that I can, but first you need to send me your analysis. I will then answer in such a way that prompts the further development of your ability to think properly and well as an analyst.

 

In learning to be a good investor, it is the thinking journey that polishes your analysis skills, not being simply told my conclusion. This is the case even when I write an analysis as a case study. This is a guide for you, but real progress is made by you trying to practise and improve your thinking skills. As a teacher I can demonstrate the techniques to show you the roadmap and itinerary for your intellectual journey. After that, my best contribution to your progress is as a coach who reviews your work and asks more questions for you to think about on your way to a higher plane.

 

There are many truths of which full meaning cannot be realised until personal experience has brought it home. John Stuart Mill

To send me a question, please email me by clicking on the following link: Contact Colin

To access the questions and answers already posted, click on the keywords below:

Total: 1054 record(s).
10 YEAR BONDS (1) 90 DAY BILLS (1) ADVANCE - DECLINE LINE (23)
ARMS INDEX (1) ASSET ALLOCATION (6) ATAA (6)
AVERAGE TRUE RANGE (1) BEAR MARKET STRATEGY (5) BETA (1)
BOLLINGER BANDS (5) BOOKS (68) BREADTH INDICATOR (1)
BREAKOUT (11) BROKER (1) BUY SIGNAL (7)
CANDLESTICK CHARTING (6) CAPITAL RESTRUCTURE (12) CHANNEL LINE (1)
CHART ADJUSTMENT (6) CLOSING PRICE (1) COLIN'S INVESTMENT METHOD (10)
COMMODITY PRICES (1) COMPANY (4) COMPANY VALUATION (3)
COMPUTERISED TRADING SYSTEM (21) COPPOCK INDICATOR (38) COURSE (21)
CRISIS STRATEGY (2) CROWD BEHAVIOUR (1) CYCLICAL STOCK (2)
DATA (52) DATA SUPPLIER (2) DATA VENDOR (7)
DATABASE MANAGEMENT (2) DAYTRADING (4) DEFENSIVE STOCK (2)
DEMERGER (1) DERIVATIVES (17) DIPLOMA IN TECHNICAL ANALYSIS (3)
DIRECTIONAL MOVEMENT (2) DIVERGENCE (6) DIVIDEND (18)
DIVIDEND REINVESTMENT SCHEME (1) DIVIDEND YIELD (10) DOGS OF THE DOW (4)
DOW THEORY (9) E114 AND E171 (27) EARNINGS PER SHARE (4)
EARNINGS YIELD (1) EDUCATION (13) ELDER RAY (1)
ELLIOT WAVE (2) END OF THE FINANCIAL YEAR (1) ENTRY RULES (1)
ENTRY SIGNAL (3) ENTRY STRATEGY (31) EQUITY CURVE (1)
EQUIVOLUME (2) EQUIVOLUME CHART (1) ETHICAL INVESTING (1)
EXIT STRATEGY (24) EXPLOSIVE MOVEMENT (5) EXPLOSIVE TREND (1)
FIBONACCI RATIO (3) FILTER (3) FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA (FINSIA) (2)
FLOAT (1) FORCE INDEX (1) FORECASTS (1)
FOREIGN MARKET (8) FOREIGN MARKETS (3) FUNDAMENTAL ANALYSIS (37)
FUNDAMENTAL ANALYSIS VS TECHNICAL ANALYSIS (6) GANN (1) GAPS (1)
GENERAL (28) GROWTH METHOD (3) GROWTH STOCK (9)
IFTA (1) INDEX (11) INDEX WEIGHTING (2)
INDICATOR GENERAL (15) INSIGHT TRADER (55) INTEREST RATE (3)
INTRINSIC VALUE (1) INVESTMENT CAMP (1) INVESTMENT STRATEGY (9)
INVESTOR (1) LEVERAGE (1) LIQUIDITY (4)
LISTED PROPERTY TRUST (2) MACD (19) MANAGED FUND (13)
MARGIN OF SAFETY (4) MARGIN OF SAFETY ANALYSIS (6) MARKET CYCLE (21)
MARKET DEPTH (3) MARKET OPENING PROCEDURE (1) METASTOCK (20)
MOMENTUM OSCILLATOR (4) MONEY/RISK MANAGEMENT (1) MOVING AVERAGE (41)
NEW HIGH - NEW LOW INDICATOR (24) NEWSLETTER (1) OBV (1)
ON - BALANCE - VOLUME (2) OPEN INTEREST (1) OPTION (6)
OVERBOUGHT/OVERSOLD (1) PARABOLIC (7) PATTERN (15)
PAYOUT RATIO (1) PE RATIO (30) PEG RATIO (3)
PERIODICAL PUBLICATIONS (9) POINT AND FIGURE CHARTING (15) PORTFOLIO (1)
POSITION SIZE (18) PROFIT PROTECTION (6) PSYCHOLOGY (12)
PUBLICATIONS (2) PYRAMIDING (3) RATE OF RETURN (1)
REBASING (2) RELATIVE STRENGTH (11) RELATIVE STRENGTH INDEX (RSI) (9)
REPORTING SEASON (2) RETURN FROM TRADING (11) REVERSAL SIGNAL (5)
RISK/MONEY MANAGEMENT (52) SEATS (2) SECTOR ANALYSIS (9)
SECTOR ROTATION (1) SELL SIGNAL (3) SEMI - LOG CHART (6)
SEMINAR (2) SHARE BUYBACK (1) SHARE CONSOLIDATION (1)
SHARE ISSUE (8) SHARE PRICE ADJUSTMENT (5) SHARE SPLIT (3)
SHARE VALUATION (1) SHAREMARKET GENERAL (1) SHORT - TERM TRADING (9)
SHORT SELLING (7) SIROC (1) SLIPPAGE (2)
SMALL TRADING CAPITAL (4) SOFTWARE (28) STEIDLMAYER DISTRIBUTION (2)
STOCHASTIC (2) STOCK SELECTION (69) STOCKBROKER (14)
STOP - LOSS OR SELL STOP (44) STOP - LOSS ORDER (10) SUBSCRIPTION WEB SITE (1)
SUPPORT/RESISTANCE (9) SWING CHART (2) SWING TRADING (1)
TAKEOVER (2) TAXATION ISSUES (3) TECHNICAL ANALYSIS (9)
TECHNICAL ANALYSIS VS FUNDAMENTAL ANALYSIS (2) TIME FRAME (29) TRADER (32)
TRADING CAPITAL (1) TRADING HALT (1) TRADING METHOD (11)
TRADING PLAN (31) TRADING RANGE (4) TRADING ROUTINE (2)
TRADING STRATEGY (41) TRADING SYSTEM (18) TRADING VS INVESTING (2)
TREND (14) TRENDLINE (9) TRIPLE MOVING AVERAGE (7)
TRUE RANGE (1) TURTLES TRADING SYSTEM (2) VALUE METHOD (34)
VALUE STOCK (3) VIDEO (1) VIDEOTAPES AND DVDS (2)
VOLATILITY (3) VOLUME (7) VOLUME WEIGHTED AVERAGE PRICE (1)
WEB SITE (42)

Recent Questions:

10 February 2010

Do you know of a good book on derivatives?

8 January 2010

What is the typical process for a share split and how does it affect the price of the shares?

2 July 2009

How can I deal with fear of buying, even though I know we are in the distress selling phase?

2 July 2009

Why is there no price earnings ratio (PER) for some companies?

30 June 2008

Why do your moving averages never seem to touch the price bars?

28 April 2008

Do you have a view on the significance of the Coppock turning up without having first been in negative territory?

9 April 2008

Is your sell stop triggered by an intraday violation of your stop level or by a close below your stop level?

31 March 2008

Could you give an example of your analysis of peaks and troughs?

31 March 2008

Can I still get the videotapes and/or DVDs of your investment plan?

17 March 2008

What is your view of the effectiveness of mechanical trading systems in general and the Sharefinder SPA 3 system in particular?




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