| Author |
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     Snifter
Rating: 
Votes: 4
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| | Tuesday, February 05, 2002 - 02:28 pm: |  
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Hari, my two bob's worth, for what its worth, to add to the advice of the other guys. I've attended courses, some costing as much as $2250, read heaps of books, taken the advice of brokers (never again) traded on tips (DEFINITELY never again), tried speccies and blue chips and everything in between. Tried longer term investing, (years) medium term trading (months) and short term trading (weeks, days, even intraday. Didn't make much money out of any of them, except perhaps for NAB which I bought about 6 years ago at a bit over $11 and still hold today.Anyway, the conclusions I reached were that blue chips are not everything they're cracked up to be, because they can go more or less sideways for years at a time, speccies will make you big money sometimes and you get creamed at other times, mainly because the illiquidity makes it hard to bail out when you want to. Intraday trading, forgetit unless you want to make the brokers rich.
OK, so what have I found that does work?
About 18 months ago a mate lent me a book. I'd just about had enough of reading trading books at that time, so it sat on my desk untouched for 3 or 4 months before I got around to looking at it. After reading the first couple of chapters I was so impressed that I went to Dymock's book shop, handed over $38, and bought my own copy. This one book has taught me more about trading and making money than all the other books, courses, and workshops I attended/read. The book is 'Secrets For Profiting in Bull And Bear Markets' by Stan Weinstein. Weinsteins system is simple, easy to understand, and easy to apply, and very very effective. Its a breakout/breakdown system that gets you in near the beginning of a new trend, cuts losing trades quickly and lets profits run so that you capture the really big trends that can sometimes run to hundreds of percent profit. It doesn't aim to hold trades for any particular time length, but aims instead to keep you in as long as the trend continues, no matter whether thats 2 months or 2 years. It trades only with the trend, and doesn't try to second guess the market, it reacts only to what the market is doing. It teaches you how to make money no matter whether the market is falling or rising. The book doens't get bogged down with complex descriptions and formulaes for indicators, or most of the other useless rubbish that is found in many technical analysis books.It gets straight down to a couple of simple strategies that work. The system uses weekly charts, and requires just 1 to 3 hours to be spent on analysis each weekend.
Back in September last year I introduced a mate to the Weinstein system, he spent 3 weeks studying the book, and running the system over charts of past data to familiarise himself with it, then began trading in October. He's made 6 trades, lost one, the ohter 5 are well and truly in profit between 25% and 100%. His study of the Weinstein system for 3 weeks prior to beginning trading is the only training in technical analysis he's ever had. The 6 trades he's made since October last year are the only trading he's ever done. His analysis is done in 3 hours each Saturday morning, and he never reads any newsletters, brokers, reports, financial pages,or in any way seeks the opinions of others. Neither do I.
Hari, beg borrow or steal the 40 odd bucks to buy that book, get your parents to give it to you for your birthday....whatever....just make sure you read it. You won't be disappointed.
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mozza
Rating: N/A
Votes: 0
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| | Sunday, February 17, 2002 - 03:38 pm: |
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hi snifter
have you heard of the siroc indicator as used by sharefinder
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