Day trading

GameOver_2

Hi Schiff

I am not employed "in the city" but to be honest, i think i would like to be, because i think that would be pretty good, i dont have the diploma you see, i did not go to UNI, i did study advanced business in college, maybe i should of gone to UNI, if i could go back, i would of gone to UNI at 18 to get my diploma, as that would really help me now!!

Ideal job in the city, would be stock broker, or technical analysist.

No i dont live off my money, i do the investing along side a normal job which has nothing to do with stocks unfortunatly.

What i would like to do is carry on learning, i want to be as good as my teacher, and thats going to take some time, he started 6 years ago, and has made just over 2.5 million dollars this way (to be honest, thats why i created the 1 million & interest thread), in the hope i can get there at some point.

Most important thing for me as that i seem to love stocks and looking at charts, i would rather go through my watch list than watch tv! Im enjoying it alot, specially the learning part, i think ive got the charts down now, so the next step is just to keep doing it and doing it.

Would like to maybe be an independant stock broker, if i could get people to listen at some point.

Funny thing with this is, if you lined up 100 traders/investers, they would probably all see different things on the chart, i started to make my own short term picks in Jan, to see how ive learnt, and its May, i have not been wrong yet!

But me being wrong is coming, i know, theres no way i can be right 100%, and i will definatly lose money at some point, the plan is to make more than i lose, and keep going for that 200%.

The way i do it, i hold on avarage of 3 to 6 months, so its not a quick thing.

You can always "court" me for friendship, thats all i want to do, if you ask me about a chart, i can tell you what i thinks going to happen and we can monitor it, you may have your own opinion of it, which is great, would love to talk over some charts, i wont ever stop learning i dont think!!

Thanks, its so late i need to get to bed!!!

Matt

Deemy

LOL

When everything goes up.... EVERYTHING ! Then yeh, its pay day for everyone... what do you do when EVERYTHING goes down

Its not a case of oh... well dollars falling so gold should still go up


Lets see what follows over the next 6 months

schiff

Hello again Matt.

I think you'll do OK! You have started off in a very rosy period for investing in shares and it will one day start to decline (not for ever but, probably worse for investors, an indeterminate length of time). In addition you have successes to look back on which could encourage you to become over-confident.

You seem to have this in mind and it's very important. Two things interfere with good investing - being greedy and not being decisive enough to cut out. Both come with time and experience.

In a way I'm reassured that you have a job outside the City. Though you obviously love the subject, maybe having a total break from it is no bad thing.
And sitting glued to a screen most of the day and probably in your leisure time too does nothing for your physical fitness! I'm retired so have the opportunity to do exactly that and it's not doing me much good. Trouble is it's compulsive, with so much info available on the net.

Incidentally, you say you 'hold for an average of 3 to 6 months - so it's not a quick thing'. In my opinion this is very much a quick thing! Unless your timing is absolutely spot on and you are happy with a modest enough profit and are prepared to take it within your 6 months, then in my experience share prices don't usually move that conveniently. Except possibly in the current climate!

A friend is into Golden Crosses in a big way - when the 50 day MA cuts through the 200 day MA in an uptrend. I can see the merit in it but haven't used it so far, though I do prefer to follow the upward trend and often buy when the SP reaches a new all-time high. Any of these strategies part of your modus operandi?

Have a nice weekend.

GameOver_2

Hey

No, none of those methods are what i do im afraid, I dont like things like that, i dont like relying on indicators that go up 50% of the time, i dont even have the 50 or 200 day on my charts.

I use candlesticks, the T3's, volume bars, and self drawn trend lines.

I only buy if i know smart money has accumulated the stock for over 3 years, even in a declining market, the stock will go up, in the last crash, the accumulated stocks still went up, so a declining market isnt my concern, because my stocks are being controlled by people who's plan is to make millions from that stock.

Thanks

Matt

schiff

"I only buy if I know smart money has accumulated the stock for over 3 years ......."

I am afraid that leads me to a fairly obvious question Matt and that is: How do you know smart money has accumulated the stock? And how do you define 'smart' exactly?

schiff

GameOver_2

That is what ive been tought about the most and it may be hard to explain in a single post.

Read the book i mentioned.

It has alot to do with how the volume is acting, and doing your homework on insider shares.

GameOver_2

And smart money is the group with millions of dollars, who are working with the market maker for that period, accumulating the shares.

schiff

Matt

Just been on Amazon to look for the Ted Warren book you mentioned. It's not cheap - £37+ minimum. Though I know you would say it is cheap - for what it teaches you! However I've finished with hard studying at my time of life I think, so I'll just carry on as best I can! :rolleyes:

Your last post - with respect - doesn't take me much further on but I can understand you might not want to broadcast the intimate detail of your methods of trading to all and sundry. No problem about that at all.

schiff

icebergx

Hi Matt,
I'm interested in the book you mentioned. I'll try to get hold of a copy and provide feedback to the other MSEs.
I (like Shiff) would also be interested in finding out how you monitor where 'the smart money' is going. Is information on who's investing where available?

GameOver_2

Yes you are right, i wouldnt say its a cheap book either.

I had to order mine from America, i couldnt find it in England!

http://news.moneycentral.msn.com/process/insider/top10insider.asp

Thats an example, its just about doing your homework, like most things are, i find a stock that looks like its been accumulated on the monthly chart, what im looking for is a stock thats gone sideways for 3+ years, and its meant to look like this, because it doesnt want to attract day traders, the smart money are buying up shares for this period, then you either wait for the break out, or you buy stocks that have broken out after accumulation.

Controlled breakouts, and rallies are different, rallies are just traders, controlled break outs are the smart money doing there mark-up phase.

This is no big secret, that book has been out for years, the whole book is written about stocks in the 50's and 60's, Ted Warren is not alive anymore, but he sure knew what he was talking about.

Thanks

Matt