Some time ago a Reader emailed me with some Questions about how I learned to muck about with Charts and I have reproduced much of it here and added a lot to it. Apologies to that Reader if I did not ask your Permission to do this but I have been very careful to remove any references that might give away your Identity and you seem like a reasonable Chap so I am sure you will be happy that I share this around. And I am confident you will appreciate the improvements I have made to that original text !!
As always I never seem to have enough time to really think hard and focus on a Blog and I have one formulating in my mind about the Evolution of an Investor which should cover how we mature as Investors (and Traders to some extent) as the Years go by and what this means in terms of how we behave and how we deal with the Markets from a psychological and practical viewpoint. Hopefully in the Blog I eventually produce there should be a lot more to it than that but as things stand I am just not in the mood to start on that one so I am jumping into what I think will be a much more straightforward one and I can bash it out with little (if any !!) preparation.
This is one I have had in mind for years but only now am I finally getting round to it - silly really cos in truth it isn’t all that complicated although it is a hugely important Subject and I suspect Readers (especially Peeps early in their Investing Evolutionary Journey) will find it a really valuable and insightful concept.
Thought I'd do a recap of simplicity in trading and how it can be all lost in complex analysis and then still be incorrect, so this is a short blog on the no nonsense approach to the stock market.
My approach won't be for many but I feel it will keep you alive and finish each year with a decent gain.
I see the magical words “Santa Rally” bandied around all the time and I thought it might be useful for Readers to summarise the info on this from the 'UK Stockmarket Almanac 2016’ so we get a clearer understanding of what it really means (you can buy the Almanac for 2017 from Wheelie‘s Bookshop but I note it is quite expensive at the moment - I am delaying buying a copy until into 2017 when the price usually drops. Once a Value Investor, always a Value Investor…..). I am sure majority opinion thinks of it as a December Rally but this is really not true at all. I had intended to include a bit on this in my Blog from last night regarding the Charts but by the time I had watched the Apprentice Final I had pretty much timed out.
I am pretty bored with this Hedging Disaster which befell me for most of 2016 and I am sure Readers will be equally deflated at the tedious prospect of yet more words from me on the subject; but I feel a pressing need to punch the keys and just give the whole sorry business some ‘closure’.
Regular Readers / Twitter Followers / Podcast Sufferers etc. will be fully aware that I have made some poorly executed Hedging Trades against the FTSE100 and Nasdaq 100 Indexes which have dogged my Portfolio Performance throughout 2016 and how I finally Closed Out most of them just before Trump got elected - taking advantage of a slight dip in the Markets. For a bit of clarity on this, if you look at the ‘Trades’ page on this Website and find the entries for early November 2016 regarding the FTSE100, Nasdaq 100 and XUKS (ETF), there is a reasonable explanation of the pain which caused me to bite hard on a chunk of wood to mollify. There are also copious Blogs I have written about Hedging and if you click on the appropriate ‘Category’ in the column on the Right Hand Side of the Blog Page, you should find plenty on the subject. You can also use the Search Box on the Homepage to track them down.
The markets globally have started to feel instability.
Markets over recent weeks have been stable as there has been no action by central banks in Europe and US. Article 50 for the negotiations to start on Britain leaving the EU has been parked to March 2017.
UK Stocks in the majority reporting strong earnings and FTSE pushing up from 6300 to 6900+ area.
The markets this summer are contrary to previous summers where they needed constant intervention by central banks. Now they are a happier place if left alone. Amazing how things can move full circle.
One of my mates from Twitter, James @traderdiarycouk, has written the following piece to introduce himself back to the world and give a simple explanation of how he does his Short Term Trading stuff - he is very good at it and even Long Term Investors can learn a lot from the kind of methods successful Traders use.
James used to run his own website as you can see from the text, but time constraints forced him to stop doing it on a regular basis but he still likes putting Fingers to Keyboard and bashing out some thoughts - I hope we will get more stuff from him for the WD Website in coming months. If you follow him on Twitter then you can see the Trades he does and get a better feel for his approach.
Many thanks to James for providing this input and I hope Readers find it useful and interesting.
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