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Bobby :


There isn't a great deal to add.

I've said it all before on this forum in various threads.


What amazes me it the difficulty people seem to have with trading now

with --- real time prices , real time volume ,market depth (up to L3) , instant transaction , top of the line charting software, multitude of books & courses,etc etc ------ the only thing I seem to be able to put it down to is information overload !


When I started out in the early 80s the only book readily advailble in Oz was small paperback put out by the Financial Review based on trend lines and POG.


Used a Lotus 123 SpreadSheet , TeleText for prices and a Phone Broker for trades (only gave the current Sell/Buy) @ around a days wage for brokerage

and that would probably be after a 20min wait on hold !



Went on to Purchase the Top line Software of the time MetaStock , done the courses , read the books and joined the sevices ----- 90% of it was a waste of time and trading capital.


Gann --- never left details of his method and ended up a pauper anyhow !


Elliott Waves ---- O/K where does the 1st Wave start ? -- every practitoner has their own subjective starting point .


Fibonacci --- have nothing against the mysteries , but get real --- this only works because a sizeable crowd believe it works .



But despite all the above disadvantages , the small trading group I was with managed to make better returns than the "buy & hold " F/A investors at the time --- Charting as T/A was called was looked on as being for weirdos.



Then along came Guppy , I had already read Edward's work , but this is not a "how to trade" in the sense that Guppy's " Share Trading " is .


At the time Money Manegment (stops, position size and targets) were only vague concepts ---- Guppy cleared all this up in detail ---- this was the turning point for T/A in Oz.



But now the real problems came to the surface ---- Exercising the Stop.

It was after reading Guppy that it dawned on me that the TRADE is the "2% of Capital" and nothing to do with the POSITION size.



The whole profit/loss calulations must be swung around that 2% --- which would be old hat now but not at the time.


But this was the turning point for me and I suspect a lot of other traders at the time --- mediocre profits turned to small but persistant & sustianable  compounding profits over the long term.




As to stocks :


I have stayed with the Gold sector over the years along with the base metals, by doing this over time the sector becomes second nature to you --- far easier than trying to nut out a whole market .



OXR would have to be one of the easiest stocks I've ever traded , if you bring up a LOG chart the trading channels are just so obvious --- this is a stock that appears to be  traded on  LOG Trend Lines and Candle Rejection Tails --- MAs , Bollinger Bands are not really suitable .




PSV is one stock I follow but can not Short


excellent stock to learn from, with plenty of volitillity , heaps of patterns, Trending, Breakouts , reversals and retracements.


A log chart of PSV reveals a UP Trend Line going back over 3yrs BUT the key to this stock is the 20 d EMA  , notice every time its breached to the down side the stock continues it's decline ---- use this along with a  ADX -20d and the UP tread line and Count Back for a Long Position (must Close above C/B)


This is a Reversal Trade within a Trend.


Not really all that hard , just remember each stock has it's own character and what applies to it does not necessarily apply to another stock.


Have included a 6mth chart of PSV, don't know if it uploaded.


   Cheers


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