David Dalby's Trading and Research Journal

[daviddalby]

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 :-0

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

 

[daviddalby]

There has to be a better way

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....:clap:

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:-0

 

[Pippy5000]

yuck

 

[daviddalby]

yuck

Thanks for your positive comment.

I trust you would be so HONEST ;-)

 

[daviddalby]

There is a Proverb ... He who reply's to a matter before he has heard it is ... STUPID

 

[Claudia123]

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.

 

[daviddalby]

The EDUCATION of a trader



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 :smart:

 

[daviddalby]

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

 

[daviddalby]

A NOTE TO READERS...ATTITUDE:

Notice the negative comments from some readers...they are losers who not happy with their own trading can only criticize their fellow traders. Those who try to tear others down are really trying to ELEVATE THEMSELVES because they know in their heart of hearts that they are small people.

Readers MINDSET in trading is EVERYTHING.

As EDISON once said "whether you CAN or whether you CANNOT, you are RIGHT"

If you think making money is impossible and you don't deserve to make money without HARD WORK.

This game ISN'T FOR YOU.

 

[Claudia123]

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

I already wrote my trading history on another thread. But that doesn't really matter. What is the point of your thread ??

 

[daviddalby]

The Markets are truly wonderful ...

You can make money with little to no effort and lots of it too.

The real enemy isn't the stock market ... come closer and please don't be offended by this but

The REAL ENEMY is .... YOURSELF!

And you will we in my future posts that my real enemy was MYSELF TOO!

 

[daviddalby]

I already wrote my trading history on another thread. But that doesn't really matter. What is the point of your thread ??

What is the point of my thread?

It's my trading journey ... if you don't like it ... don't read it!

You wrote your history good. I'm writing mine

Stick around your gonna go GREEN WITH ENVY

 

[GladiatorX]

Stick around your gonna go GREEN WITH ENVY

Hello David; I think the reason for many peoples bad responses is just the nature of your posts in comparison to your lack of introduction on the forum; In other words; Your giving trading advice before earning anyones respect.

Then comments like the above; aggrevate people more because its arrogant. So you've come on OUR forum to boast....

Furthermore; No1 will go envious... After all, anyone can make a journal and tell everyone their a billionaire - If you have no respect, you have no credability...

Right now you lack respect.
This is suppose to be constructive, not insultive.

I'd also just like to point out that everything you've written so far is generic knowledge... Things everybody has heard before time and time again; what many find is that generic opinion isn't often the best approach for themeselves, if you copy what all the generic-followers are doing; Then you are a sheep and the markets are made to make the majority lose... So following generic advice is usually not the best way to go until you've learnt specific rules from experience.
So basically; stop being patronising....
Especially after you seem to have felt 'proud' after calling a long on next to your sister; which by the sound of it is was as smart as calling black on a roulette table and being right ...

 

[Claudia123]

Hello David; I think the reason for many peoples bad responses is just the nature of your posts in comparison to your lack of introduction on the forum; In other words; Your giving trading advice before earning anyones respect.

Then comments like the above; aggrevate people more because its arrogant. So you've come on OUR forum to boast....

Furthermore; No1 will go envious... After all, anyone can make a journal and tell everyone their a billionaire - If you have no respect, you have no credability...

Right now you lack respect.
This is suppose to be constructive, not insultive.

Well said

 

[dr.blix]

Well said

yes it was gladiator...

so anyway claudia...is that you in your avatar?

do you realise there is a direct relationship with how many posts you've made and how many views of your profile there have been?

this means that every time you've made a post, people (blokes mainly i'm guessing :cheesy have checked out your profile due to your lovely avatar picture!!

 

[GladiatorX]

yes it was gladiator...

so anyway claudia...is that you in your avatar?

do you realise there is a direct relationship with how many posts you've made and how many views of your profile there have been?

this means that every time you've made a post, people (blokes mainly i'm guessing :cheesy have checked out your profile due to your lovely avatar picture!!

Do i detect Quagmire ?

 

[daviddalby]

Trouble with Indicators

Like I was saying before I was rudely interrupted ...

My early daytrading strategy was trading stochastics ...

It does work from time to time ...

But I was frustrated by FALSE SIGNALS. (SEE CHART)

After weeks of break even trading and keeping a diary of my trading I was no closer to solving the puzzle.

That's when I had my first breakthrough ... Keep a diary of CHARTS!

Each Sunday night when I analysed my trading diary, I was still having trouble.

I needed to MAKE MY TRADES VISUAL! :smart:

So I started keeping a DIARY OF CHARTS, not just of my trades but of the market EVERY DAY.

I then looked for and noted COMMON DENOMINATORS for each market I studied.

FTSE100, DAX30, SP500, GOLD, T-BONDS and USDGBP.

I noted that same things happening month after month.

Of the 20 days of trading each month only about 7 were VERY PROFITABLE!

The rest either went sideways or reversed direction and left me on the WRONG SIDE OF THE MARKET! I always managed to get out with a small loss but I wanted to eliminate those trades and just stick with the profitable ones.

So I analysed the very profitable ones more closely ...

What I discovered changed not only my daytrading but also my stock investing

This knowledge and my current trading I am sharing with newbie and beginners as a way to give back, of course you may not agree with my conclusions and trading methods, that's good it's what makes up a market! Everyone has different opinions.

EXAMPLE: As of 15th november 2009 what is the state of the current market?

We are in a bullish market and some of it has been RIGGED, I know this because a normal non rigged freely traded market has RETRACEMENTS and PULLBACKS!
SP500 went through a period with no pullbacks or retracements, so it was rigged by the BIG BOY INSTITUTIONS:-0

As you may or may not know most current markets are ELECTRONIC and are traded by SUPERCOMPUTERS that make milli-second trading decisions that leave us trading MINOS in the dust Scalping has been taken to a very fine art.

 

[daviddalby]

I don't care whether you know me or not, I don't care whether you respect me or not!

I have something very valuable to share with people ... my opinion and experience.

You can read it and agree or not. That is what makes any market, different peoples opinion.

There are any people I respect who I have never met so I don't see the problem except you don't want me to be honest or maybe I might know something that you don't!

You are know doubt standing on the shoulders of giants as I am through the books we have read and are experience.

Like I said he who reply's to a matter before he hears it is stupid.

 

[dr.blix]

Do i detect Quagmire ?

View attachment 68322

dunno mate...do you?

 

[GladiatorX]

dunno mate...do you?

Haha...
Hard to say; I'm new to the whole detective game.