Does a trader need a sat-nav?
Written Monday 22 February 2016
Last weekend, I was giving Tim a lift to a seminar at Heathrow airport. When we got into the car, I went to tap the postcode of the hotel (Radisson) into the sat nav on my iPhone (4, slightly dated). He laughed, saying: 'Do you need to use a sat nav to get to the airport'? He tapped his head as he said this, implying that he had a mental map of the journey in his head. I said, weakly, 'it will tell us if there is a traffic hold-up, and re-route us if necessary', but felt uncomfortable as I pressed the 'Start Journey' button on the sat-nav App. Which got me thinking about my trading system this week:
One of the investment trusts that I follow, in order to have an exposure to shares, has generated a 'BUY' signal, surprisingly. I have the feeling that the price will drop further, and I don't really want to follow the signal. If I do buy the shares, and then the price drops a lot, then I will feel bad that I've made a losing trade. However, if I don't buy the shares, and they continue to rise, then I will be forced to buy the shares at a higher price later on, with a risk of losing more money if the shares drop below the moving average at a later date.
So, I will buy the shares this week, unless, when I go ahead with getting a quote, I can see that the share price has made a drop below the annual moving average, which would, of course, be a 'SELL' signal.
Here is a summary of the rest of my asset classes:
Shares: One trust remains a 'SELL', the other (above) has signalled a 'BUY'
Property: Remains a 'SELL'
Commodities: Remain a 'SELL'
Gold: Remains a 'BUY'
Forex: My 4 existing Forex trades remain in profit. I am making a new trade on a forex pair that looks like its recently 'de-coupled', and may change direction, and move upwards!
As always, this blog is just about what I do, and should not be interpreted as financial advice from me to you. If in any doubt, please read my disclaimer. Think of it as 'entertainment' if you will!
Members of my site have up-to-date information about what I trade and when I trade it via a private Facebook page. They also have access to information about my daily trading system, which in the past few weeks has generated a nice profit of £870.44
Last weekend, I was giving Tim a lift to a seminar at Heathrow airport. When we got into the car, I went to tap the postcode of the hotel (Radisson) into the sat nav on my iPhone (4, slightly dated). He laughed, saying: 'Do you need to use a sat nav to get to the airport'? He tapped his head as he said this, implying that he had a mental map of the journey in his head. I said, weakly, 'it will tell us if there is a traffic hold-up, and re-route us if necessary', but felt uncomfortable as I pressed the 'Start Journey' button on the sat-nav App. Which got me thinking about my trading system this week:
One of the investment trusts that I follow, in order to have an exposure to shares, has generated a 'BUY' signal, surprisingly. I have the feeling that the price will drop further, and I don't really want to follow the signal. If I do buy the shares, and then the price drops a lot, then I will feel bad that I've made a losing trade. However, if I don't buy the shares, and they continue to rise, then I will be forced to buy the shares at a higher price later on, with a risk of losing more money if the shares drop below the moving average at a later date.
So, I will buy the shares this week, unless, when I go ahead with getting a quote, I can see that the share price has made a drop below the annual moving average, which would, of course, be a 'SELL' signal.
Here is a summary of the rest of my asset classes:
Shares: One trust remains a 'SELL', the other (above) has signalled a 'BUY'
Property: Remains a 'SELL'
Commodities: Remain a 'SELL'
Gold: Remains a 'BUY'
Forex: My 4 existing Forex trades remain in profit. I am making a new trade on a forex pair that looks like its recently 'de-coupled', and may change direction, and move upwards!
As always, this blog is just about what I do, and should not be interpreted as financial advice from me to you. If in any doubt, please read my disclaimer. Think of it as 'entertainment' if you will!
Members of my site have up-to-date information about what I trade and when I trade it via a private Facebook page. They also have access to information about my daily trading system, which in the past few weeks has generated a nice profit of £870.44
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