Welcome to this newsletter for Easy Share Trading.

The goal of Easy Share Trading is to provide the trading and investing community methods that are simple and safe that won't make you go crazy with stress, worry and frustration.

One of my favourite sayings is “trading can be easy, but we make it hard”.

Why don’t people find trading or investing in the stockmarket easier?

Well it can be….but we make it a lot harder than it has to be, often because people dont have a simple method to stick to.

Thats the key to profits: Keep it simple and stick to it.

Keeping it simple means less time spent analysing, less trades, less costs, less stress, better results.

I trade weekly trading systems, not daily. My experience of trading (this is my 12th year full time trading) is that traders either don’t want to or can’t trade frequently.

I don’t blame them, and I reckon neither do you, as it’s not mentally or physically practical for most people.

On my website www.easysharetradingsystems.com.au I talk about the most simple of systems. Divide your capital into ten stocks, buy the 1 year high of a stock and sell it if it falls more than 25% from its last high. After selling a stock that has stopped performing you buy into another that is.

Below is a graph of the ASX 300 over the last 5 years and how a simple method like this has performed.

So what did you do with 20K five years ago?  This method doing just 73 trades (on average 15 a year) turned 20k into over a 100k (about 95k to date); it cashes you up and keeps you out of the market during the worst of times, a time when you don’t want to be trying to trade anyway. The dark green flat line areas on the graph show where the portfolio was in cash during the Global Financial Crisis in 08, and recently the currency crisis in Europe. The heartening point about this system is that it's telling us to buy back into the market. No cash is held back as this method buys shares again. So...its "all in", and if things turn bad again it simply sells you out.

This is the idea of trading, to buy, sell at a profit, keep the cash when the market falls and then re-buy to compound your portfolio, the trick is not too often. Most traders try to trade far too often.

Keep it simple and stick to it.

A little trading psychology about sticking it out:

Money is a creation beginning with a thought; in fact your life is a creation beginning with a thought, so how are YOU thinking about the markets, money, your investments, etc? I will take a punt and presume you are feeling very uncertain, and I don’t blame you with what’s on the news every night. But the above graph goes to show what can be achieved by ignoring all the gloom and doomers and follow a good simple method that doesn’t trade too much (a very important strategy…don’t over trade)

Speaking of doom and gloom, the markets are looking a lot better. Below is a recent chart of the ASX500 over 3 years, (the All Ords is the top 500 companies on the stock exchange) you can see it has stopped falling and starting to rise above a longer term moving average.

If you want to know more about these types of trading methods there is more on my website.

Until next time…good luck with your trading and I hope you found this newsletter interesting.

Regards,

Peter Castle

Note: the results in the graph above does not include brokerage costs, however it does not take into account income from dividends. All profits have been reinvested except dividends received. The graph is a simulation of results, however similar results have been achieved with my own trading accounts.