David Dalby's Trading and Research Journal

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Old Nov 14, 2009, 11:11pm   #1
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David Dalby's Trading and Research Journal

So I told my sister, chart looks good buy NEXT...and forgot all about it...several years later a letter arrives from beloved sister saying she just sold those shares. They are off on holiday, buying a new flat screen tv and saving the rest for a rainy day....

she didn't....she bought the shares...

Good girl, of my previous 4 share holdings I had lost money on 1 and had 3 winners.

Not bad, but I am a management accountant, I read accounts for breakfast. Surely I could make money at this share game.

The answer to that was YES and NO

With the death of arthur anderson, changes to accounting rules and out right fiddling and cooking of the books across the board, I soon came to believe that the FUNDAMENTAL APPROACH was DEAD

The death of a trading style that was once god like is not only hard to take it's difficult to change habits. You keep wanting to look at the accounts just to be sure, even if they are over cooked in the wrong direction with the chairman saying we have no problems and the sun is shining, the grass is green and we are on track....RUBBISH
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Old Nov 14, 2009, 11:31pm   #2
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There has to be a better way

daviddalby started this thread So I ditched the FUNDAMENTAL APPROACH!

And turned to Technical analysis, surely with this mass of knowledge there was a better way. Gain the answer was YES and NO! Get the picture.

After much thought I decided that the quickest way to learn was to fast track myself with spreads and signed up with a company, transfered my learning fee and was off to the races, stock index races.

Now I always ended up backing the LOSERS CHOICE in the 4.15 at Haydock Park so this was gonna be fun, fascinating, frustrating and fast.

Fast to lose money that is...well now sloooow down.

My first three trades were WINNERS, daytrades using Stochastics.

After a week observing the market through the lens of my chart, I saw a high probability trade in what turned out to be a range trading market.

Buying the Stochastic at the bottom of it's range and riding it to the top....

It worked...I was on my way to being a millionaire...

The part time trading went well for a few weeks using a simple method and morning trading with an afternoon trade when the market seemed to change direction until...

Until that one fateful day when...THE MARKET CHANGED

I LOST MONEY...

After a few weeks of scratching my head and trying to work out what the HELL happened. I realised that the market had changed from a range bound market to a TRENDING MARKET, it was more vigorous and energetic. The market would ZOOOM off the open with no retracements, it was straight up.

My strategy was DEAD or was it.

Maybe I needed TWO STRATEGIES....one for range bound and one for trending

I was starting to feel smart again. But that didn't last for LONG
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Old Nov 15, 2009, 4:44am   #3
 
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yuck
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Old Nov 15, 2009, 6:15pm   #4
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yuck
Thanks for your positive comment.

I trust you would be so HONEST ;-)
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Old Nov 15, 2009, 6:17pm   #5
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daviddalby started this thread There is a Proverb ... He who reply's to a matter before he has heard it is ... STUPID
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Old Nov 15, 2009, 6:28pm   #6
 
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Originally Posted by daviddalby View Post
There is a Proverb ... He who reply's to a matter before he has heard it is ... STUPID
Just get to the point and tell us what you are trying to sell.
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Thanks! The following members like this post: rathcoole_exile
Old Nov 15, 2009, 6:37pm   #7
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The EDUCATION of a trader

daviddalby started this thread

The next step and continuing one is the education of any investor and trader.

Everyone who embarks on this journey into the crazy world of Mr Market needs to arm himself with knowledge. You see often the thing to do is opposite are natural instincts as business men and employees.

Everyone should have their own trading LIBRARY. Start collecting them as soon as possible because many go out of print and can be next to impossible to find. When I lived in florida for instance I was able to pick up a few gems that are not only out of print but there are no second hand versions available to date. So collect like crazy especially the obscure trading books. This research library will be invaluable later on in your trading career. It's like having the collective thought of hundreds of experienced experts to consult for a very small cost.

The top books that are MUST READ are :

Reminiscences of a stock operator.
Winning on wall street.
Methods of a wall street master.
The market makers edge.
The Intelligent Investor.

Get the latest and greatest investing and trading books.

You won't agree with them all and some may seem out of date. But it's a funny thing the markets, the more things change the more they stay the same. Plus as with Glass Stegal act in USA getting changed, even 1930's books and histories suddenly take on huge significance.

The collective memory is short and new generations suddenly think they know better than them poor folks in the 1930's only to make the very SAME MISTAKES

So get reading and remember the REAL EDUCATION takes place in REAL TIME with REAL MONEY on REAL TRADES... that is PRICELESS
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Old Nov 15, 2009, 6:41pm   #8
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Just get to the point and tell us what you are trying to sell.
Claudia...why don't you write about your trading history and share your mistakes and triumphs with the trading community and give back.

There are plenty of newbies who would love to hear your story, I would.

I'd love to sell you something, unfortunately...you couldn't afford to buy it because it's PRICELESS
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