Andrew Baxter

Emotions are the key driver of the stock market. Yes, fundamentals and economics are the “Why” prices will rise or fall, but Fear and Greed are a here and now action that causes prices to fluctuate despite the underlying factors of a company, commodity or market. Hence, the reason why Technical Analysis has become such a prized and popular method in modern day investing. It’s not a market crash that causes investors to lose their wealth. Ok, so a 30% fall in the markets within a few days wipes out tens of Billions of dollars in value, but unless you sell stock and exit the position/s, you have an unrealized loss due to the crash. And in most “Flash Crash” situations, the markets rebound very quickly, resulting in stock positions bouncing back to previous crash levels, if not within weeks, then within a couple of months. What loses wealth for stock market investors is holding onto stocks during an extended Bear market, and then selling at the bottom. Markets move in ...

Ok, so it seems wherever you look on social media these days there are people with the blue banner yelling this at you. The latest multi-level marketing pitch is all about lifestyle, best get in quick! As someone that travels a bit – just a lazy 10,000 Km’s in the past 3 days, I’ve had the opportunity to share a very straightforward message regarding cash flow generation with a great group this week. Interestingly, one of the attendees had seen this presentation back in November at another event. He had joined, stepped off the program and then came back to us this week. Human nature is a funny thing – second guessing decisions and then falling back into old behaviour;, that in some cases are largely responsible for the financial predicament that people find themselves in. Being comfortable feels like playing it safe. However, as we all know, growth only happens when you step out of your comfort zone – across all areas of life! So far this year… After the e...

Trading Strategies that work. I’ve heard numerous clients and colleagues over the last 18-months describing how the current markets are the hardest they have experienced in a decade. One of the key lesson’s I’ve learnt in nearly 15 years as an analyst is that no matter what the markets are doing, you have no control over what tomorrow will bring. Hence, Risk management and choosing the right Trading Strategy are the absolute keys to success in the markets. You might think it simple, but how I view the markets is that they can only trend in one of three directions at any one time: Up, Down or Sideways. So while most people are trying to second guess which way the markets are likely to go, I already know! Fact is, I don’t know what is going to happen in the future, I just know that the markets will either be Up, Down or Sideways. For this reason, my focus (as a professional analyst and advisor) is not on trying to choose what direction the markets will be on a day to d...

Andrew Baxter from Australian Investment Education looks at the Stock Market vs The Economy with a focus on what's happening right here in Australia. We have an economy right now that is in a lot of pain and we've got the stock market that has pushed up over 25% in just 6 weeks. How can that be? That's exactly what we are going to explore in this show, more importantly, how can you make sure you don't get caught in the risky side if things change and the stock market runs out of puff.