The other day one of the readers of this blog asked me if I can recommend any other courses for trading and if I had done any other studies apart from the HSC. My answer was, yes I did another Advanced Trading course, which teaches more about cycle and shorter term trading than the HSC. But I haven’t done anything since.
The reason being, is that I first need to proof to myself that I can apply the new techniques successfully in the market before I spend any more money in courses. I have done exactly this after the home study course, I waited one year during which I made a considerable profit trading and then enrolled for the next stage. I found the HSC worked well with my other commitments, as it requires only about 1 hour per week to look at the charts and make any buy and sell decisions. Read more…
I have been trading now for a number of years and one of the most important things I have learned that it is important not to rely on solely one source of income. You need to diversify. This is also true when you look at trading alone. You don’t want to trade only one share or one commodity. What happens if the price collapses – you will loose your entire investment. Make sure that you have your capital invested in stocks from different companies. Ideally no more than 15 % of your trading capital in one stock. I believe the ideal number for your portfolio should be between 6 and 12. If you have too many different stocks, it is easy to loose sight of it.
But there is more to multiple sources of income. Everyone will have an income that is their primary income (or PI). Most people actually only have their primary income which is their job. If the loose their job, they loose their income. The tragic thing is that many of them are not even passionate about what they are doing. Read more…
