Colin Nicholson: Building Wealth Through Shares — Ask Colin

Ask Colin

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

The questions and answers are intended to be a forum for discussion of interesting ideas about technical analysis, trading and investment. They are educational in nature. They are not intended to be recommendations to trade or invest in any stock. Nor are they intended to be recommendations to use any particular trading or investment method. Readers who do not have the ability to assess the relevance to them of any matter discussed in the questions and answers should consult a competent and licensed adviser before acting upon them.

Please do not ask me about the current chart of a specific stock or market index. I am not a licensed adviser. This means that I am not allowed by law to give advice of any kind. 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

I know that in asking about a chart you may have no intention of seeking advice. However, you will see from the above definition, that your motives are not the point at issue. It is the nature of what I say that may constitute advice. The law leaves it to me to decide where the line is between teaching and advice. If I am asked to express any kind of view about a current chart, that view could be seen as an opinion about that stock. I have therefore decided that I will not comment about a current chart.

The basis on which I will answer questions is that the question and answer may be published on this web site or used in my newsletter, or both. Naturally, the identity of the person who sends the question will not be disclosed. My answer will be emailed to the questioner.

To send me a question, please email me by clicking on the following link: colin@bwts.com.au

Rules for Questions
  • I cannot and will not give advice about specific trading and investment decisions.
  • I will generally not answer a question where the answer is already available on the web site, so please scrutinise what is there first. Follow up questions are welcome however.
  • I reserve the right to decline to answer what I deem to be unsuitable questions, but I will advise you of my decision in these situations.
Additional Input

I do not pretend to know everything, but am willing to try to answer most questions. Sometimes I will have to say I do not know something, or I may inadvertently give an incorrect reply. I welcome emails from anyone correcting any errors in my answers or providing additional information in the spirit that sharing what we know makes our lives richer in many ways.

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

Total: 1061 record(s).
ADVANCE - DECLINE LINE (34) ARMS INDEX (1) ASSET ALLOCATION (6)
ATAA (6) AVERAGE TRUE RANGE (1) BEAR MARKET STRATEGY (5)
BETA (1) BOLLINGER BANDS (5) BOOKS (67)
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 (56) DATA SUPPLIER (2)
DATA VENDOR (7) DATABASE MANAGEMENT (2) DAYTRADING (4)
DEFENSIVE STOCK (2) DEMERGER (1) DERIVATIVE (16)
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) 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 (9) FOREIGN MARKETS (4) FUNDAMENTAL ANALYSIS (36)
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 (56) 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 (29) PEG RATIO (3)
PERIODICAL PUBLICATIONS (9) POINT AND FIGURE CHARTING (15) PORTFOLIO (1)
POSITION SIZE (18) PROFIT PROTECTION (6) PSYCHOLOGY (11)
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 ISSUE (8)
SHARE PRICE ADJUSTMENT (5) SHARE SPLIT (2) 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 (45)

Recent Questions:

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?

27 February 2008

How do I convert the Coppock spreadsheet from the Data Files page of your web site into a chart?

20 February 2008

For the first time in 15 years, the ANZ bank monthly RSI has dipped below 50 (Question sent in February 2008). Although oversold, is it common for stocks to go beyond these oversold indicators before they stabilise?

10 February 2008
Should a beginner buy MetaStock, Insight Trader or something else?

9 February 2008
Can you recommend charting software to chart Relative Strength Index (RSI) for stocks?




Design — Yakhnov Studio
Information about site