Help and inspiration for aquatic hobbyists

Stock trade is for everybody since web banking has become common.

Written on 03-10-2006 15:19 by Webmaster

I have traded with stocks and bonds since 1990 but due to limited assets I have only made a very small number of transactions. I made some good deals during the nineties, where I took advantage of the so-called (at least in danish) "elevator effect" which certain kinds of papers exhibit. For instance "Danske Bank" have gone up and down in a more or less predictable pattern, so I bougth when they were low and waited till they were high - pretty basic actually and also low risk. In the end of the nineties I was convinced that there were only one way and that was up, so in late 2000 I purchased some telecom and IT stocks through my web bank provider, not at XCSE but at my banks internal reserve. This was a shining exmaple of poor timing combined with a poor trading system so as of the end of march 2001 I have only traded directly on the exchange (through my new bank).<br><br> <h2>Wiser and poorer.</h2> I lost a bit when the socalled IT-bubble bursted and also after the terrorist attack on september 11 2001 so I was compelled to define my own set of investment rules to serve as a guideline for future investments: <ol> <li>SL is not an option, but a must - I tend to go with 4% (Faith is good in church, but expensive on the exchange!). Define your SL and reevaluate it while going up, but never going down!</li> <li>Low trade costs is a must due to rule #1.</li> <li>Trading directly on the exchange is also a must due to spread and rule #1. (This also support a true image of the market)</li> <li>Spread your risk in several branches, sub branches or companies (if your are in love with a certain branche, split your investment within the brance, for instance IT/TECH are many things, don't go above 33% within each)</li> <li>When in trouble - don't double, Sometimes it works and you save your investment - even with a small plus, but other times it doesn't work a you go down with a hollow thunder (and loose big time).</li> <li>Know yourself and maintain a tight grip - sell on hunces and buy on analysis and thorough contemplations (your own, not others) combined with hunches and rumors.</li> <li>Set a goal for how much you can accept to loose and how much you want to win.</li> </ol> Since my first losses, I have won some back due to these guidelines, but since 2002 I haven't had enough time or money to keep up the trading. On the other hand I haven't lost anything since then.<br><br> I have build a database in Access where I keep track of my trading and can see the development in profit, which unfortunately still are in red. There are a number of online seervices who can do the same thing, but I am still more comfortable having that kind of data on my personal computer.