What is your buying process? From research to actual purchase

[oowl]

What process do you go through, from researching, to the actual purchase?

Do you watch stocks first? How long, what makes you watch them? How do you decide on the point that it gets to when it's 'go time'?

How do you research? What resources do you look at?

What do you weigh up? What signifies a 'buy' opportunity for you?

Are these different for short or long term investment decisions? How so?

 

[burglar]

There is a great thread started by SirO:

https://www.aussiestockforums.com/forums/showthread.php?t=14370

It should see most of your query answered!

 

[Steve C]

I am also keen to hear peoples inputs - great questions to be asking oowl.

Steve

 

[Out Too Soon]

Thanks Burglar, that's an interesting thread. You can learn a lot just by reading the threads on ASF, after a while you learn as much about the different characters too We all trade differently as you are probably aware by now. I have a very casual approach compared to some here but I do spend many hours studying the ASX. At some point early on you have to decide what you will specialize in & only change if you can't make it work.(shares/CFDs/FX/options) The following scan is out of "Trading Tactics" by Guppy These triangles refer to the type of candle charts you see a lot of here & the top left hand corner is of cause the holy grail. Alone though it can mis-lead, also it is easy to imagine patterns where there are none.
This is an example of a magic triangle forming after the sp has broken out from a long down trend, I bought on this after much further study on MGO, eventually you can over do the analysis because you either talk yourself out of the trade or you say to yourself "I'll back myself & take a punt".
Read "Trading Tactics" by Guppy, read other books & the internet, eventually you look at so many charts & other analysis it becomes second nature as it is with me & it gets difficult to self analyse exactly how I go about a trade.
PS - you sell when there's a nice profit to be made (6 weeks 10-20%) if you're lucky
PPS - their are many people here who will roast me for mentioning the word "luck" (they are full of ****)

 

[Tysonboss1]

A great investor once said, " Investing is most intelligent when it is most business like"

Consider your self as a business man looking to buy a business to invest your families fortune.

Here is a few points it's worth taking some time to understand.

 

[Gringotts Bank]

I like to analyze a few hundred key economic indicators in my first hour of preparatory work, then I like to run a few quantitative calculations to come up with an in depth risk analysis, then I like to perform some neural network back tests, forward tests, sideways and upside down tests, then I divide the whole thing by Pi and then...

...I realize that none of this matters.

 

[Out Too Soon]

There are probably 4 ways I find initial suspects,
1)scan using Incredible charts free scanner,
2)see what the latest is on ASF especially the "breakout"etc threads,
3) check some of the companies I've traded on in the past &
4) check the suggestions of pay for mobs like Motley Fool, Fat Prophets etc. --* I never pay for their analysis but they're always trying to get you in by giving you a peek or a limited free subscription.
** You could always put all the ASX co.s in a hat & blindly pick one out at a time & test it, using the pay for & talked about methods (2&4) are slightly better because the spotlight will cause extra buying (or selling) of that particular stock.

 

[oowl]

Thanks for the information so far

The recommendations for specific websites are quite useful too. Besides Fat Prophets and Motley Fool, what are some other subscription advisory services which might be beneficial to look into, or read the free reports on? I've seen Scott Pape's Barefoot Blueprint, but I haven't heard any feedback at all about that.

Are there any other books besides Guppy's Trading Tactics that you'd recommend?

Oh, and I have had a look in the 'resources' section of ASF, but It seems a bit overwhelming, and since I'm a beginner, I thought it might be better here.

I'm also making my way through SirO's thread. It certainly is a good read.

 

[Tysonboss1]

Are there any other books besides < Deleted because it's rubbish> that you'd recommend?
.

Yes, Benjamin Grahams " The intelligent Investor"

 

[So_Cynical]

What process do you go through, from researching, to the actual purchase?

Do you watch stocks first? How long, what makes you watch them? How do you decide on the point that it gets to when it's 'go time'?

How do you research? What resources do you look at?

What do you weigh up? What signifies a 'buy' opportunity for you?

Are these different for short or long term investment decisions? How so?

My first post in the Boral thread was on 5th-March-2009 here is a link to it.

https://www.aussiestockforums.com/forums/showthread.php?t=1918&page=2&p=405347&viewfull=1#post405347

I added Boral (BLD) to a watchlist only a week or so before that post, i entered BLD for the first time just 4 or 5 months ago and completed the trade just a week or 2 ago...that answers all your questions from my perspective.

Well one good example anyway.

 

[Klogg]

Yes, Benjamin Grahams " The intelligent Investor"

Get down to the good stuff and just read "Security Analysis".

Although it should be said that the Intelligent Investor is good for the psychological aspect, whereas Security Analysis focuses on exactly that, the analysis.

 

[Tysonboss1]

Get down to the good stuff and just read "Security Analysis".

Although it should be said that the Intelligent Investor is good for the psychological aspect, whereas Security Analysis focuses on exactly that, the analysis.

offcourse, But slap security analysis down infront of a begineer and before the table has stopped vibrating under it's weight they have probably already started saying " I'm not reading that"

The intelligent investor is a good introduction to security analysis, I do recommend people read both though.

 

[Julia]

Or, oowl, you could save yourself all that tedious reading and crunching of figures and learn something about trend following.

 

[Tysonboss1]

Or, oowl, you could save yourself all that tedious reading and crunching of figures and learn something about trend following.

Yes, why give yourself the self confidence to make wise business decisions when you can just follow the pack.

The reason, everybody these days is trying to second guess the pack. But relying on sound business principles will lead you to better results, without the need to watch the market every day clicking the refresh button.

At the end of the day, If you find learning about different companies tedious and cruching the figures to much work perhaps your in the wrong business or perhaps just lazy.

p.s
Love you Jewels,

We can disagree. :

 

[oowl]

Or, oowl, you could save yourself all that tedious reading and crunching of figures and learn something about trend following.

How would you suggest I get started?

 

[Tysonboss1]

How would you suggest I get started?

there we go

and the kid takes the path the promises returns without the work.

He wants to have businessman profits with out becoming a business man, Good luck kid

See you in 10 years after all else has failed and you relise that,

Investing is most intelligent when it is most business like.

Cheers
TB

 

[Tysonboss1]

just incase you change your mind here is a link to 24 videos you might want to listen to.

 

[Julia]

p.s
Love you Jewels,

We can disagree. :

Of course we can.
PS I knew I'd spur a response from you if I raised any alternative to the fundamental approach.
Blame Ves. It was he who pointed out that my approach differs when applied to real estate or to shares.

How would you suggest I get started?

Buy a now quite old but still very good book by Stan Weinstein "How to Profit in Bull and Bear Markets".

 

[Out Too Soon]

Sorry to have mis-led you oowl, we should know by now that the only true religion is Fundamentalism, bible= The Intelligent Investor & Messiah Warren Buffet. Now that has been cleared up go make some solid investments in some solid co's & wait 50 years. You'll be superior to everyone else because you'll be safe in the knowledge that you'll be one of the richest men in the world (in 50 years time) & you can spend all your spare time (over the next 50 years) pestering Traders about how they're all totally wrong & you're Investment strategy is sooo brilliant. You'll especially have fun starting pointless arguments on newbie threads because we know the more newbies you convert to your religion the more likely you are to go to Billionaire heaven & sit on Warrens lap. :

 

[Out Too Soon]

How would you suggest I get started?

Psst! download "Ãncredible Charts" as I already mentioned, top left hand corner is a magnifying glass, click on it- DYOR (do your own research) on what to put in the screener/scanner as everyones angle is different. (don't tell the fundy I told you, I'll be burnt at the stake) :