Problems investing

[larry123]

I am having some troubles investing in the sharemarket

I am doing lots of research into companies and I have been doing lots of reading but I am having trouble recieving any kind of return.
I am using a chart program and I am currently trying to establish a trading plan. All of my shares are sort of going round in circles. I know it hasn't been a year yet since I started to invest in shares, but I still seem to be a little confused about well everything in general.

can anyone help me ?

Any advice would be muchly appreciated

Larry

 

[rowes]

Hi Larry,

Where to start...

What books have you have read?
You are trying to establish a trading plan, what is your plan so far.
Are you trading short term or longterm
How do you decide when to take a position.
How do you decide when to close your position

Lay it all out and i am sure there are plenty of willing people here to help.

 

[Happy]

All of my shares are sort of going round in circles.

Larry,
I assume that your shares go up a bit and then down a bit, if this is the case, have a look at SWING TRADING subject.

This type of trading takes small bites out, every time stock completes cycle.

 

[larry123]

In response to Rowes questions,


What books have you read?

Posts on this site and hotcopper
Your money – Anita Bell
The art of trading – Christopher Tate
Share trading for dummies
Bits on shares from money magazine
And a few other books which I’ve forgotten

What is your plan so far?

- I am using the peg. Ratio to determine if the company is at a fair price.
- Use the relative strength index to see where the price is at in terms of buying and selling
- Using both Bollinger bands and volume to look for price breakouts

By combining fundamental and Technical analysis I think that I can get the best of both worlds.

After this I research companies and try to understand what they do, who runs the company, does the company have potential, does it have any plans for development etc.

(Trying to establish)

Are you trading short term of long term?

I think I am trading between short and medium length terms

Also does anyone have any suggestions to which programs I could use to scan companies on the asx which meet the characteristics I am looking for in a company? (Preferably free programs)

Thanks,

Larry

 

[stevo]

Larry

Also does anyone have any suggestions to which programs I could use to scan companies on the asx which meet the characteristics I am looking for in a company? (Preferably free programs)

I think that it is worth spending a some money in this area to get something worthwhile. You could use Amibroker for the technical side and something like www.aspecthuntley.com.au to do fundamental scans - but there are lots of options.

I notice that you don't mention what your exit criteria or position sizing strategies are. Focusing on the exits would be good, it is possible that you are over-trading.

Stevo

 

[stink]

In response to Rowes questions,


What books have you read?

Posts on this site and hotcopper
Your money – Anita Bell
The art of trading – Christopher Tate
Share trading for dummies
Bits on shares from money magazine
And a few other books which I’ve forgotten

What is your plan so far?

- I am using the peg. Ratio to determine if the company is at a fair price.
- Use the relative strength index to see where the price is at in terms of buying and selling
- Using both Bollinger bands and volume to look for price breakouts

By combining fundamental and Technical analysis I think that I can get the best of both worlds.

After this I research companies and try to understand what they do, who runs the company, does the company have potential, does it have any plans for development etc.

(Trying to establish)

Are you trading short term of long term?

I think I am trading between short and medium length terms

Also does anyone have any suggestions to which programs I could use to scan companies on the asx which meet the characteristics I am looking for in a company? (Preferably free programs)

Thanks,

Larry

Hey Larry,

Mate as far as i can see you havent answered the most important question. What do you want from your investing? Picking a stock based on indicators and some fundamentals is easy really. Once you can answer that question, you then go on the search for the right instrument, once you have the instrument the trades will present themselves.

You have probably based your decisions thus far on a bunch of sound indicators and fundamentals but. How is the next trade you make going to get you closer to your investing goal? I think you should bve asking that question before each trade.

My

Stink

 

[larry123]

Thanyou all for your advice and it seems to have made me more comfortable about investing

Regards
Larry