Trading Increasing my knowledge

Hi everyone.

Can anyone recommend any day trading courses? or any other courses that you highly recommend to help make money on the share market?

I have been investing in the share market for almost 2 years now but would like to start investing in more spec stocks (higher risk I know) therefore I'd like to be able to understand graphs and read data to give myself more confidence in putting money on these higher risk stocks.

Thank you all in advance.

 

Read Louise Bedfords 'Charting Secrets', it's well written and easy to understand.

 

If you want more confidence in betting on speccy's , I'd suggest drinking a bottle of scotch/rum/tequila (take your pick) before you place any trade. Double down on the alcohol if you lose it all!

Charting and data analysis is basically the share market equivalent of voodoo. Some people make money from trading but I'd bet that it's probably due more to their intuition on market psych, than their mathematical prowess.

 

Thanks for your input mate but I totally disagree

 

Thanks Jess, I'll check it out

 

Yeah sorry, I wasn't being particularly helpful.

Out of curiosity, which do you disagree with?
1) Drinking alcohol will make you feel more confident.
2) Markets are driven by investor's sentiment (psychology).
3) Charting and data are voodoo.
4) All of the above.

 

I know some guys who do this type of work. They are stress head geniuses.

If you were wanting to do it properly a good dose of mathematics and finance is necessary.

I would recommend

Kaplan Technical Analysis 231

http://www.kaplanprofessional.edu.au/fin231-technical-analysis/

Kaplan Specialised Techniques in Technical Analysis 331

FIN331 Specialised Techniques in Technical Analysis

These can each be done in 3 months (so 6 months in total).

The courses are quite practical.

Do not just buy a black box trading program. Do a course of study to properly understand what is going on.

Just my thoughts.

 

Do you think it really works? How common is it for people to make decent money doing this?

The reason I ask is, if it was that easy, everyone would be doing it. If everyone was doing it, it wouldn't work.

 

That's interesting actually because I was just reading an article about technical analysis which says:

Despite all the fancy and exotic tools it employs, technical analysis really just studies supply and demand in a market in an attempt to determine what direction, or trend, will continue in the future. In other words, technical analysis attempts to understand the emotions in the market by studying the market itself...

Read more: Technical Analysis: Introduction | Investopedia http://www.investopedia.com/university/technical/#ixzz4ZHhW9Okb
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It's not really that different to what @Phase2 said

 

Thanks for your replies guys. @Phase2 @Perthguy

I agree with the supply vs demand and market sentiment dictating the price but are people purely just following the crowd by jumping on once the share price starts moving?
Someone obviously starts that trend by buying or selling a decent volume of shares before everyone else so are they seeing something in the charts or deep research of the company that others aren't?

What I've found is that i am seeing growth in my portfolio by jumping on after the share price has already moved therefore missing out on the first 10-20% growth but still seeing a further 5-15% growth. If I could understand the charts and fundamentals of a company could I then possibly buy in earlier and see that first 10-20% growth?

I could be completely wrong (probably am) as I am only a novice in the share market. Hope this makes sense haha

 

why-technical-analysis-is-bs

 

Perhaps, but it is possible to predict using charts? It seems like it's not.

I don't think there is anything wrong with learning more about charting and technical analysis. If you are looking at fundamentals and buying good companies because they are good, charts could possibly help to pick when to buy those companies. But if are relying on technical analysis alone to make money, you will almost certainly be disappointed.

Why technical analysis is shunned by professionals

 

Charting worked for buying companies like MIM.AX when they existed. However, you could have also set your clock to the troughs and peaks... I wasn't old enough to buy shares back then

I have an old work-mate that went into technical analysis.. and quit his job, but this is how he did it:

1. He went all-in, and essentially shorted the bejeezus out of a whole bunch of over-leveraged stocks.
2. He doubled down with long positions on gold.
3. Very nearly mis-timed the GFC, (we thought something would happen in Q4 07) but got lucky and,
4. He laughed all the way to the bank, then onto a plane and retired at 42 in Thailand.

He tells me now that he still trades, but it's just for fun.

 

Yes. Hedge funds or others with deep pockets usually start the trend.. you'll see that when prices kick-up there are masses of volumes driving it. Insider trading is still rife, but very difficult to prove in the big organisations because they trade so much, so often.

Note, charts and fundamentals are 2 very different things.

 

I was fanatical about trading shares and futures many years ago. Did the accredited Securities Institute Technical Analysis courses, attended courses by supposed Top traders such as Guppy, Tate, Bedford, Colin Nicholson, Gary Stone, Larry Williams, Nick Radge and others, read a pile of books, had the best trading software, backtested system after system and gave it my best shot for a number of years.

Can be very stressful at times. Enthusiasts spend most of their time trying to develop / find the best buy / sell triggers. Time would be much better spent focusing on psychology and money management as this is where most fail with trading.

To be honest having known quite a few traders I personally feel it's a mug's game for the great majority who try it including myself. But generally once someone gets the urge to trade it's very difficult to talk them out of it. So best to have a crack at it when you're young to get it out of your system.

If you're one of the lucky few with the nerves for it and make a return worth the effort then great. However if you're like most who stress out and eventually lose most of their capital then thank your lucky stars you learnt this lesson earlier in life. If you try trading around / in retirement and lose your capital then you've lost your most precious asset, TIME! Money lost and with your working life over there's no time to get it back. Unfortunately I've seen this sad situation all too often.

 

While I am in no means a chartist, I do enjoy listening to the "On The Charts" Podcast. Podcast

You might like to start there and then think about joining his program.