orangetrader
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Basically my background is as follows. I bought my first share and realised my first loss when lastminute floated. I then became a reasonably active investor (not trader) in 2005 and went on to see some gains and but also some serious losses after holding on to some real dogs for far too long (having formed a very sentimental attachment). Anyway 6 months ago I found myself looking for something to occupy my time and decided to pursue trading (for many reasons + long standing fascination) Since then I have gone through numerous books covering technical analysis, trading psychology, money management, trading systems/styles, fundamental analysis/value investing etc…. I then started trading end of Oct/early Nov. So far I’m happy with how things are going. I had a bad break with ROK (I held shares prior to them going into administration) which wiped some of my profits but since then I have got back to a cash positive position (some losers but up by around 10% in 2mths after all losses). So that’s the background.
I would describe my trading style as perhaps swing trading but really it’s fairly broad and discretional e.g. I look for shares which are trending and are at a point where the price movement suggests value from a technical perspective. But then I also apply some fundamental checks i.e. is there a good story and are there any major early warning signals e.g. being over-valued or having too much debt and too little cash.
Anyway to date I am only using TD Waterhouse and a spread bet account for the occasional trade which requires a guaranteed stop. I only place market and stop-loss orders. I have taken the view that at this stage it is better to identify the right share at approx the right time rather than analyse intra-day price movement for the “optimum” price as if I have read the market correctly I will make a profit anyway. I tend to hold for a few weeks on average. Am I missing a trick here – should I spend more time getting the entry point and transaction cost spot-on? Td waterhouse isn’t too expensive (£8.95 per trade at present)
I am very strict about limiting losses and once a threshold has been reached (and my original reason for trading dis-credited) the holding is sold without question. However as time goes by I find myself with shares which are neither making a profit nor realising a loss. Should I hold and give them the benefit of time to see if they turn good? or should I call time and find a more worthy hard working home?
My approach of mixing technical and fundamental analysis – any thoughts? recipe for disaster or the next Warren Buffet with charts? Any opinions/advice would be greatly appreciated.
I would describe my trading style as perhaps swing trading but really it’s fairly broad and discretional e.g. I look for shares which are trending and are at a point where the price movement suggests value from a technical perspective. But then I also apply some fundamental checks i.e. is there a good story and are there any major early warning signals e.g. being over-valued or having too much debt and too little cash.
Anyway to date I am only using TD Waterhouse and a spread bet account for the occasional trade which requires a guaranteed stop. I only place market and stop-loss orders. I have taken the view that at this stage it is better to identify the right share at approx the right time rather than analyse intra-day price movement for the “optimum” price as if I have read the market correctly I will make a profit anyway. I tend to hold for a few weeks on average. Am I missing a trick here – should I spend more time getting the entry point and transaction cost spot-on? Td waterhouse isn’t too expensive (£8.95 per trade at present)
I am very strict about limiting losses and once a threshold has been reached (and my original reason for trading dis-credited) the holding is sold without question. However as time goes by I find myself with shares which are neither making a profit nor realising a loss. Should I hold and give them the benefit of time to see if they turn good? or should I call time and find a more worthy hard working home?
My approach of mixing technical and fundamental analysis – any thoughts? recipe for disaster or the next Warren Buffet with charts? Any opinions/advice would be greatly appreciated.
