Short Term Trading Weekend Lounge: 1-3 Sept, page-111

Hi Mick, I can understand your frustration as I was also undergoing more or less same type of situation a few months ago. My decline started December last year and I am still underwater, in overall portfolio, due to a few bad decisions and poor timing (especially stop-loss). Earlier this year I thought that I already had a sound strategy only to discover that it was not the case. I have been doing a few key things during past six months to be more knowledgeable and also to refine my strategy.

Reading STT Knowledge Library was one of the best things I have being doing since earlier this year. I had a printed version of parts of KL V1 and V2, and kept in my car so that I can read them when I have some free time, waiting in the car for kids / missus (that’s a win - win specially when missus wants more time doing shopping ).
If you have not heard about the KL before, it is here:

STT Knowledge Library
V 1.0
https://hotcopper.com.au/threads/short-term-knowledge-library-1-0-this-thread-is-read-only-no-unauthorised-posts.2634026/#.WJHZVVV96po
V 2.0
https://hotcopper.com.au/threads/short-term-knowledge-library-2-0-this-thread-is-read-only-no-unauthorised-posts.3141533/#post-21600185

I do not have the best understanding / knowledge in undertaking my own independent research on stocks, therefore I highly dependent on the information I find in HC. I look through various HC forums, including tips submitted in STT. On Mondays I go through Freehold’s first few posts in STT weekly thread that contain heaps of helpful information to start with.

There are heaps of helpful HC posters here. I read most of the conversations in here, and learn from others’ discussion. There are many regular posters who genuinely share their wealth of knowledge with others, rather than just promoting their personal agendas. I have been gauging HC members based on their trading strategies (and how they align with my STT objectives) and how they share their valuable findings. Someone might see this as weird thing to do, but that’s how I carefully choose who to follow in HC. (On another note, I have a sort of multi criteria system that I use to choose / filter best stocks, in which HC sentiment is one of four inputs. I use a selected list of HC members with different degrees of reliability as an input in my MCA.)

As someone already stated, consistent sizing of buy orders is something I have also engaged recently which resulted some improvement in my investment portfolio. I have suffered a huge loss by investing too much on two stocks late last year, and still suffering. So, whatever confidence I have on any stock, I WILL NOT invest too much money on that!

Starting with a small pilot buy is another great thing I have been experimenting recently. Thanks to a great HC heartie (I think it was either Freehold or Forrestfield, cannot remember exactly who it was), I read something called Rally Strategy, which I used to develop my own. I am currently developing a spreadsheet with some formulae in it, which helps me in increasing investment on a particular stock through growing confidence and profits. I can share this if anyone is interested in. But if you want, the original version can be still found in the Knowledge Library.

As a simple rule, I do not follow trends in the individual stock forums, and do not take buy or sell decisions based on them. Having said that, I read them on a regular basis, as another source of information. Experienced HC members have already provided heaps of helpful advice on gauging stock forum noise / sentiment in the Knowledge Library.
Finally, most important thing for me (and for most of the people here I presume) is following a strategy. No matter what everyone else says, if things do not align with my strategy, I do not buy. As I said, I have four inputs in selecting stocks to buy (TA, FA, R/R, HC) , if 3 of them say it is a good buy and the fourth does not, I do not buy! I could be proven wrong, and the stock could fly next day, but I am proud being sticking with my plan, and moving on!

Losing money at early stages of your investment life could be a blessing in disguise. In my case, I had a bag from one of first few stocks which made me over confident. Errors in early stages mean you fix them sooner before too late. I wish all the best in your investments Mick!