New to Investing - Need some Opinions on Strategy with my PDN stocks, page-33

AY

I tend to agree with Markie Mills a bit on this. Im a bit worried you might blow dough you cant afford to lose.

Its why so many investors end up just buying the banks and a few other dividend payers and sitting on them for the dividends.

That said, its ultimately up to you.

The most important things in technicals need nothing more than Google Finance and an understanding of Commodity Channel Index, Slow Stochastic and MACD charts.

And this - stocks are boats that rise and fall with a tide - which is the market they sit in.

The key to making money safely for me has been to buy stocks when the 'tide' for the market I am looking at is low - and also for the stock i am looking at.

The Commodity Channel Index and Slow Stochastic are excellent pointers to where the tide is at for both the index and the stock.

FYI right now global markets are 'overbought' but the Aussie market is 'oversold' - which makes this a tough market to play right now.

Hence a lot of investors will just be on sideline at the moment till there is a decisive break one way or the other.

Also - Australia is a horribly technical market with zero guts and is pretty contemptible really - in part because its pushed around a lot buy hedge funds out of Asia.

For eg - our stocks are actually decently priced at the moment. The banks are 10-20% cheaper than 2 years ago for eg. But because the iron ore price fell again yesterday, foreign investors are dumping Aussie banks today because they are worried the Aussie dollar will fall below 85c - which in turn reduces the attraction of any future dividend yield.

Thats why this market is so hard on people trying to make a living from it

too much fast moving, foreign cash that makes market moves counter intuitive.

and because we're so sophisticated IT and settlement wise, its an easy market to move in and out of.