Hi all
A lot happening for me this week, as the numbers of my positions and holdings have increased, consequently there has been an increase in the amount of trading also.....i make errors in judgement in taking up positions, and sometimes the price direction just goes against me for no good reason, so i have become reasonably quick to close out ...but despite all of this i feel that that things are now going a bit better and that my trading abilities have improved..... Some improvements to the strategy over the last six months with CFD’S – Stop losses – i am now employing them regularly after much hounding by Mower and Jongo,(which is appreciated), and more recently they have saved me probably a few thousand dollars...... Trading with the trend – if you do the other you are committing financial suicide.....forget what you or somebody thinks or says, face the day on what you see, and the available info for the day.... The use of trading bands and trading within them - i am aware and have looked and tried most of the other indicators, but i find this simple strategy works well for me..... i use “my linear retracement band “ LRB which applies the band automatically....... i do not think of the trading band as the” be all and end all” of the strategy though, there are other considerations like the intrinsic value of the stock.... and as whether an extension beyond the band may present an opportunity for a position for an overvalued or an undervalued stock...... Live data - i recently purchased a year supply of streaming live data from Partech for $1,400.00 and this has been absolutely fantastic if you are trading in shorter range time frames as i am doing now... that i am retired and able to look in on how a stock is moving is a great advantage for this type of trading ...... sometimes you can actually see the price moving and perhaps make some timely decisions as i did today –with a significant financial advantage ..... Financial news - i have been regularly refering to Bloomberg each morning, macrobusiness, most days and the weekend fin review..... also i have recently purchased a discounted 3 month on line subscription for the fin review which i think i will be able to use to take some timely decision making - don’t have to read the whole paper just skim the headings first... Books - i am sure most have read a quite few books on the subject, i have read heaps over the years – on the companie’s intrinsic values, charting , and also on likely future economic trends.....Some recent books that i think are appropriate in this arena are “taming the lion” by Richard Farleigh and mower’s trading in the zone by mark douglas..... plenty of others equally helpful i am sure. Jongo’s trading rules are worth a mention - while most would nod and agree with them we don’t always abide by them.... he might publish them again with some persuasion ?
So where am i after six months of trading ?.... you would think that i would be miles in front with all this talk – not so, just breaking even - but improving with practice and continued observations - i think. My thoughts are the more you practice the better you get.... i don’t mean just trade blindly, but reading widely on the subject and about what is happening in the business world and with world economies and trends .
