Q. What is hedging? A: OK, hedging, basically, means it means offsetting your risks. If your company has to buy a hundred tonnes of barley next year to make beer, and you have already agreed the price you will sell the beer...
Latest Posts
Using Spread Bets to hold out Longer Term Positions
Q. Can I use spread bets to hold out longer term positions? A: Yes! Today, a lot of the rage seems to focus on everyone trying to trade every move in the market. But with spread betting because of the higher costs involved...
Tipsters and Publications
Q. Are there any tipsters or trading publications that you recommend? A: Generally the effects of promotion are arbitraged away by specialists who have bought the stock before you did and will be selling the stock on an...
Spread Betting – Sources for Investment Research and Information
Q. Any good sources of instantaneous news on equity prices and other important news? A: Two of the best sources I know for news trading are Bloomberg and Reuters news terminals. These consist of computers that run on a...
Good Value and Efficient Market Theory
Q. With so many investors looking at shares, don’t you think that most shares will be trading at a price that reflects their current balance of risk? A: God no. Indeed the longer I invest/trade the more I laugh at the...
Managing the Risks of Short Selling: Lessons from an Experienced Short Seller
Q. Do you pick shorts based on technical analysis? Or do you just use technical analysis to filter a short list and then look at fundamentals as well? A: Answer by experienced trader MTG. Nothing sophisticated. Every now and then...
Researching and Tips for Trading Penny Shares
Q.: Do you have any tips in picking penny shares? I’m considering putting in £250 into each of a number of penny shares. A: Penny shares are priced that way for a reason. Of course, there’s the 1% that are...
Spread Betting – Tips For Selecting Stocks That Guarantee High Returns
Q. How do you find the right stocks to trade at the right time? Can you explain your system of stock selection, what makes you pick a stock to research in the first place? A: Timing the buys is always difficult. Look at the...
Spread Betting – Selecting Shares: Low or High Priced? Buy One or Many?
Q. Is it best to invest in high or low priced shares? Assuming that the share is a reasonable investment, then for a given pot of money invested, is it better to concentrate on investing in a lower price share or a higher...
How Interest Rates affect the Prices of Stocks
Q. Do interest rates affect the prices of stocks? Surely it can’t be a personal investor, is it some sort of balancing act? A: In a word – Yes! If interest rates rise the value of all other investments are likely...