The purpose of this blog is to document the teachings that I have learned (so that I can have them in one place), and to document my findings so that you can benefit from them.
My trading style follows that of Stan Weinstein and William O'Neil. I am also a very close listener and an active participant on Gary Kaltbaum's website and frequently e-mail him with questions.
While I enjoy keeping things simple and clean when it comes to trading, I also have been influenced by the Optionetics team to use options when appropriate. I also spent a good 5-6 years learning R.N. Elliott's "Elliott Wave Theory" and Fibonacci applied to stock analysis.
I will post charts and my opinions (and my predictions, although nobody can predict the market, so any predictions should not be acted upon because they are my own idea of where things are likely to go).
Lastly, I have been doing a combination of investing and trading since 1996 (I opened my first Roth IRA in 1995), which means that I have been trading for a little over 10 years now. Keep in mind this doesn't mean that I am anything other than a novice. However, that being said, I have learned a few lessons over the years.
Currently, I have been gaining skill in reading technical charts and indicators, and while that is only 40% of the picture (fundamental analysis is the other 60%), that is where I currently am proficient at. I plan in the near future to bolster my skills in fundamental analysis, and have been reading William O'Neil's books and have been frequenting the Investors Business Daily (http://www.investors.com) web site.
All this being said, enjoy the ride.
ABOUT THIS BLOG
Welcome. The contents of this blog comprise my personal observations on the stock market from the perspective of using both fundamental and technical analysis by reviewing market data and stock charts based on the methodologies of William O'Neil of Investors Business Daily and his books, from Stan Weinstein's books, and most of all, through lessons learned over the years by listening to Gary Kaltbaum's "Investor's Edge" radio show on Business Talk Radio.
Criteria of stocks include first researching sectors to determine which are strong and which are weak using the ADX indicator (>40 = increased volatility); focusing in on a leading sector and buying leading stocks on a high volume breakout (minimum 2x average) above a base; stock prices are higher than $25/share with daily average volume higher than 300K; positive and increasing PVT (indicating institutional ownership), positive and increasing RSI (indicating relative strength compared to other stocks in the market).
Please keep in mind that I am by no means an expert, nor are my posts intended for anything other than to share my opinions of what stocks are doing for the purpose of getting feedback. Thus, please do your own research before taking action on what you read here. I will be adding posts on topics of interest as I learn about them.
Criteria of stocks include first researching sectors to determine which are strong and which are weak using the ADX indicator (>40 = increased volatility); focusing in on a leading sector and buying leading stocks on a high volume breakout (minimum 2x average) above a base; stock prices are higher than $25/share with daily average volume higher than 300K; positive and increasing PVT (indicating institutional ownership), positive and increasing RSI (indicating relative strength compared to other stocks in the market).
Please keep in mind that I am by no means an expert, nor are my posts intended for anything other than to share my opinions of what stocks are doing for the purpose of getting feedback. Thus, please do your own research before taking action on what you read here. I will be adding posts on topics of interest as I learn about them.
Friday, June 20, 2008
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