I was doing my weekly scan for trade opportunities recently and was reminded of the unique perspective and ‘vision’ price analysis offers us. It has a great ability to focus us on certain price levels that can trigger high probability price moves and in turn trading profits.
It really is that easy
The Nike motto comes to mind.
Well it finally came. We all knew a nasty correction was going to happen. What goes up must come down. Still we respond with the usual surprise and ‘what should we do’ questions. Many of us are in denial because of course we’ll know what to do or we’ll deal with it when it happens! Sure! Same old, same old – mistake.
That time is upon us when we turn the page on another successful year for Stockradar members.
Do you too want to trade shares successfully?
If you are going to do it you need to do it properly or you will find your capital can quickly disappear. The main game for Stockradar, who has 14 years of successful recorded performance, is working with probabilities and money management.
Charlie Aitken (Aim Funds): ‘the difference between my life as a stockbroker and my new life as a fund manager is that now I limit my losses to 10%. As a stockbroker I (we) are not great at issuing sells.
Now when a stock is at a loss I cut it and move on. We work our capital hard and that means cutting the non-performers and move on to new opportunities.’
Let’s not pretend.
We don’t know, do we?
In fact two of the fundamental truths of trading tell us that:
- Anything can happen and
- You don’t need to know what is going to happen next to make money.
Seems strange but there it is – the truth. It is good to know what we don’t know.
This puts paid to the many analytical hours spent exasperatingly trying to forecast and predict share prices, and yes even technical analysts are more than guilty of that. Fundamental analysts may construct various models, projections and price targets about what the future offers but this is to little avail in guiding us to what share prices will really do. Thus it seems the contrarian was bred!
I am a quant.
In other words, data, numbers, and verifiable results drive my investment decisions.
Why am I willing to stand by this strategy.
Firstly, based on my personal research and results from14 years of performance, it can produce returns that historically outperform those of common benchmark portfolios and in fact more importantly to my members those returns can be ‘absolute’ regardless of market direction.
Our portfolio service is designed to attract patient capital that doesn’t get troubled by broader market conditions.
Recently I discussed the benefits of weekly data (see Stockradar blog – The primary motivation for using the weekly time frame is for perspective), which suits the majority of my SMSF members as it is employed to avoid the damaging distraction of intra week noise and in turn it allows a little more time for ourselves. It is one of the many controls we use to help us focus us on the big picture. The discussion centred on getting a real perspective on the market action and not to be distracted by inconsequential daily noise. Today I will to discuss the trading tactics that can be adapted to various market conditions.