Category Archives: Share Trading

Are You Selling Winning Trades & Keeping Losing Trades? Welcome to the Disposition Effect…

The disposition effect was discovered in the field of behavioural finance.

Wait, before your eyes glaze over this is important!

It demonstrates the tendency of investors to sell assets that have increased in value, while keeping assets that have dropped in value. Or in plain terms, why you sell your profitable trades and hold onto your losing trades.

Surely that goes against everything you believe? Surprisingly not…

Hersh Shefrin and Meir Statman identified and named this effect, which found that people dislike losing significantly more than they enjoy winning.  Let’s put it a slightly different way, the emotional strength of losing is so much more powerful than the joy of winning. It has a much deeper effect on an individual to the point where they can subconsciously prefer the challenge of enduring losing trades!  

This is the Disposition Effect.

The disposition effect has been described as “one of the most robust facts about the trading of individual investors” because investors will hold stocks that have lost value yet sell stocks that have gained value, over and over again.

It’s important to be aware of it, because you can change the outcome. But when do you sell your winners?

This is what we have Dave for, enjoy the video!

Why more than 90% of active share traders lose money in 5 years

We are interested in more than just understanding shares, it is equally important that we understand the public perception of share trading.

These insights are invaluable when you understand what the average investor deals with, emotionally and financially.

So how effective are your peers when it comes to maintaining an active share portfolio?

Unfortunately, a large study by The University of California Berkeley on active trader performance showed that more than 90% of active traders lose money in the long run.

This study also showed that less than 2% of traders were profitable net of all fees!

In fact:

  • 40% of traders quit within a month
  • 87% of traders quit within 3 years
  • 93% of traders quit within 5 years

Why do more than 90% of active home traders lose money and inevitably quit in the long run?

The answer is pretty simple:

Limited Capital

Just a few bad investment decisions and it’s all over.

More often than not trading decisions are not based on sound research or tested trading methods, but on emotions, the need for entertainment and the hope of making a million dollars in your underwear.

What these traders nearly always forget is that this is a profession that requires dedication, a good network and analytical skills developed over many years.

And EVEN THEN, 77% of “paid professionals” can’t beat a flat market!

What hope does the individual investor actually have?

How can you protect your capital and trade with confidence for years to come?

We can only tell you what we have ACTUALLY ACCOMPLISHED over the last two years.

  • 256 closed trades
  • 95.4% of our closed trades in the past two years profitable
  • Average of 18%+ PER TRADE PROFIT

We are so confident you’ll love this we offer a full 21 Day Trial (try before you buy), 30 Day Money Back Guarantee and in most cases you can claim 50% of a membership back against your tax (talk to your adviser about this)!

All this to make you feel more comfortable about buying and this is before you’ve taken your profits sometimes in the first month!

So what does the $500 left over from your tax deduction get you these days?:

  • Gym membership (only good if you go)
  • A trip to a ladies hair salon
  • 2,500 Chicken McNuggets
  • A coffee machine
  • A new suit

While some of the above are great, sadly, none of them will improve your financial position!

Equity Story works because we take the guesswork and emotion out of investing for every member.

As a member of Equity Story you are emailed clear buy and sell recommendations handpicked by Australia’s leading investment team – straight to your pocket.

It couldn’t be easier, we tell you what to trade and you make the trade.

If you love research great, you just make the trade. If you don’t have the time to do the research, great you just make the trade! Either way, you are trading regularly and profitably.

We do the in depth fundamental analysis and LIVE IN THE MARKET, but most of all we are on your side.

Finally, and just as important, you’re not doing this on your own.

We have a system that we use to pick enough profitable trades to make it worth your while in the first month alone.

If not ask for your money back!

It’s important to keep this as simple as possible for you. Isn’t it time to take action?

Discover exactly how it works…

How To Save $7953 In Brokerage Fees & Double Your Portfolio Value

The share market can be complex and on top of that ANY decision you make can make OR lose you money…

Share trading is an emotional can of worms, especially when you know 77% of professional Fund Managers can’t pick a good stock to save their life!

Before we developed our trending process, we put it to the test with OUR OWN MONEY, so we understand EXACTLY how you feel.

Over the last two and a half years we’ve been analysing more than just shares. We’ve been understanding some of the problems our members have with trading, here are just a few at the very tip of the iceberg:

  1. Information overload
  2. Opinion and fact confusion
  3. Lack of system or process
  4. Too many options (share, bonds, forex… which one?!!)
  5. No one invested in YOUR success (only theirs)
  6. Isolation (you’re on your own!)

Believe it or not, we’ve solved these issues for our members. We then felt that the Big Banks were making enough money without charging $20 a trade on their platforms!

That is why we decided to save our members $7,953 over 2 years…

By taking advantage of our discounted brokerage though Open Markets – Starting at $5 per trade (up to $10,000) or 0.05%!

Here’s how:

  • The big banks/ brokers charge around $19.95 per trade.
  • Since opening our doors we have put out 266x recommendations (266x buy & 266x sell) That’s a total of 532 trades.
  • 532 x $19.95 (big bank brokerage) = $10,613.40
  • 532 x $5 (Open Markets/ Equity Story brokerage) = $2,660.00

The potential savings from this one partner offer alone are HUGE at $7,953.40!

We are approached by many companies looking to offer our members exciting savings, most are turned away as they are not financially beneficial.

Discover how the Equity Story puts thousands of dollars back into your investments instead of brokerage fees, where they belong.

If you think this is good just wait till you see what we have planned for you in our upcoming announcements!