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Commander T's Diary

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Your BOOK LIST is worth copying here. I think:


*What books do you recommend?


Secrets for Profit in Bull and Bear Markets: Stan Weinstein - probably the only trading/investing book I would ever need.How to Get Rich: Felix Dennis - Great inspirational book.

Rich Dad, Poor Dad: Robert Kiyosaki - Great introduction to financial freedom and for learning about passive income streams. I don't agree with everything he says, but as with everything, make your own mind up.

Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications: John J Murphy - A text book into technical analysis of the markets. If you can't read charts, then this is a good start.

How Investors Can Make Money Using Mass Psychology: A Guide to Your Relationship with Money: James Dines.by

Hot Commodities: How anyone can invest profitably in the world's best market. Jim Rogers

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I think I have too many books, here's a new up to date list, and most I've read cover to cover about five times each. I don't think I'd let anyone of these books go though.





Further reading.


I recommend the following reference sources, in no particular order;


How Investors Can Make Money Using Mass Psychology: A Guide to Your Relationship with Money: James Dines


Goldbug!: James Dines


Spread Betting the Forex Markets: An Expert Guide to Spread Betting the Foreign Exchange Markets: David Jones


Guide to Investing in Gold and Silver: Michael Maloney


One Up On Wall Street: Peter Lynch and John Rothchild


Market Wizards: Jack D. Schwager


The New Market: Wizards Jack D. Schwager


Stock Market Wizards: Jack D. Schwager


Hedge Fund Market Wizards: Jack D. Schwager *NEW for 2012*


The Naked Trader: How Anyone Can Make Money Trading Shares: Robbie Burns


Trading by the Minute: Joe Ross

Trading by the Book: Joe Ross


Ruff's Little Book Of Big Fortunes In Gold & Silver: Howard J Ruff


Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders: Curtis Faith


The Financial Spread Betting Handbook: Malcom Pryor


Secrets for Profit in Bull and Bear Markets: Stan Weinstein


Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading

Methods and Applications: John J Murphy


How to Make Money Trading: Lex Van Dam


Rich Dad, Poor Dad: What the Rich Teach Their Kids about Money: Robert T. Kiyosaki,


Hot Commodities: How anyone can invest profitably in the world’s best market. Jim Rogers


How To Get Rich: by Felix Dennis

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And there's the DVDs, maybe I'm a bit OCD on this thinking about it, I don't own many other DVDs that aren't financially related;


Enron the smartest guys in the room



Glengarry Glen Ross

How to Get ahead in Advertsing

Noahs Castle

Boiler Room

James Dines Investment Course

James Dines High-States Low-States



Ring Of Power

Be A Property Million in 5 years or Less Inside Track DVD (Don't worry I paid £20, not £2000)

The Ascent of Money - Niall Ferguson

The War on Democracy

The Obama Deception

New World Order


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I have another blog also, all about stock market losses: http://hugestockmark...blogspot.co.uk/


Just read some of those quotes and slightly frowned. I often wonder however anybody could risk all they have on one share, which some seem to allude. Saying that got suckered(read fell in love) with a few myself - good lessons I suppose.


Does make me wonder if they really are genuine posts in some cases, I somehow doubt it every time. Call me a bulletin board cynic.

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You had a profit and many small resource shares (as I did) - back in Feb. 2011.


It seems you managed to exit almost all - Well done !

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For everyone -> It is hard to let go of things when one has researched so in depth - but to be a trader, one has to take and an investment ride it and move on. It was a hard lesson to overcome.


I can look at any sector now - resources, gold, silver etc are just one chess piece don't forget the others on the board, you must use all of them to play the game.

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  • 2 weeks later...
  • 3 weeks later...

Keep us posted.


And on lessons learned too, if you are willing

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New addition, which is a CR recommendation, and I agree with him on this one - I am having trouble fitting it all into one screen shot, so this is in portfolio 2. I don't actually own every stock as I'm not minted having recently bought a house not so long ago.



Lessons learned,



Warning Signs of a Gambler with an intent to Lose.

The warning or danger signs that you must look out for if you are stock investing, that show you are a gambler with an intent to lose your money, are:


- You own one or only two stocks, with 50% or more of your money in one trade.


- You have pie in the sky dreams about one of your stocks making you a lot of money in short time, so you do not have to work anymore.


- You have no stop losses, risk management or trade plan.


- You are emotionally attached to one share in particular. You may sometimes lie awake in bed thinking about it.


- Your share account comprises mainly (80%+) of penny shares (under 10p) or companies with market capitalisations of under £50m.


- You check the bulletin/forum boards each day and write long posts about the company, and you use a search engine to find every very little bit of information about the company, and anything to do with the business it is involved in.


- You check the price of the share in the morning before you go to work and after you finish work. You may even check the price at work on your smart phone in the hope it would 5 or 10 bag.


- You average down when the price goes down. You feel awful when the price goes down further, and cannot add further as you have invested far too much.


- You ignore share dilutions, director selling, and balance sheet information.


- You are outwardly irritable, and easily lose your temper.


- You are continually looking for double or triple bottoms.


- You are not honest to yourself about the risks of junior companies.


Use a stock scan, and don't blindly follow a tip unless you have similar methodologies. Follow your trade plans, let your seeds grow. If one is sitting at night thinking about stocks/trades then you have put too much on one horse. If your stop is hit, cut your losses, you must be brutal with equal measure as you were buying. If one spreads the money about a bit, you're more likely to find a winner. Iofina has been superb. The benefit with many horses is that the portfolio can grow geometrically, but it will take more time to check up on it. I guess that is why billion pound funds have a team of subordinate managers - not one person could do it properly, and I wouldn't trust a computer to do it automatically.


Learn about overhead resistance. If a share has fallen massively, it unlikely to rebound in 3 months, as previous buyers trapped in higher prices want to get out. I think 90% of short term new investors do this - the market doesn't work like this. Most new investors over estimate their ability - the market humbles everyone. It has taken me a while to de-program ones self to accept this. Look for a long narrow trading range (1-2, or 2years+ years at least) that suddenly trades at a new higher price level. This is a good sign - ideally on higher volume and in positive Relative Strength (RSI). Have a stop if it falls back in that trading range. If it makes above a new high then that's another buy signal. As the share moves up, move your stop up to lock in profits. Look for price entry points that don't have far to go before the stop is triggered, to mitigate losses. Have a price target in mind in your trade plan, that is at least 2x your risk. That is all to it. I have a brief look at the fundamentals, shares in issue, etc one day I will use this table if the portfolio (or if I landed a job managing a fund) got too big -->




A: Market capitalization


£0-5m = 250pts

£5-10m = 500pts

£10-25m = 750pts

£25-50m = 1500pts

£50-100m = 2500pts

£100-250m = 7500pts

£250-500m = 15,000pts

£500m-1bn = 20,00pts

£1bn-2bn = 25,000pts

£2bn+ = No more than 20% of portfolio that is worth more than £100K or 25,000pts what ever is greater


B: Paid A Dividend Last Year


Yes: Multiply pts by 1.35

No: Multiply pts by 0.65


C: Shares In Issue


Under 50: Multiply pts by 1.25

50-100m: Multiply pts by 1.15

100m-250m: Multiply pts by 0.95

250-500m: Multiply pts by 0.85

500n-1bn: Multiply pts by 0.65

1bn+: Multiply pts by 0.40


D: Director ownership -collective


IF less than 5%: Multiply pts by 0.75

IF 5-10%: Multiply pts by 0.80

IF 10-25%: Multiply pts by 1.20

IF 25%+: Multiply pts by 1.40


E: Track Record profits


IF loss making last year: Multiply points by 0.75

IF in net profit last year: Multiply points by 1.12

IF in net profit 2 years: Multiply points by 1.15

IF in net profit 3 years: Multiply points by 1.20

IF in net profit 4+ years: Multiply points by 1.35




IF you have one other stock in this sector: Multiply pts by 0.80

IF you have two of more stocks in this sector: Multiply pts by 0.70

IF you have no other stocks in this sector: Multiply points by 1.20




IF when you invest it is trading sub 1p: Multiply pts by 0.50

IF when you invest it is trading 1-5p (penny stock): Multiply pts by 0.60

IF when you invest it is trading 5p-10p: Multiply pts by 0.75

IF when you invest it is trading 10p-25p: Multiply pts by 0.85

IF when you invest it is trading 25-50p: Multiply pts by 0.90

IF when you invest it is trading 50p+: No action



Example 1

Vodafone (VOD)

A: 84Bn = 25,000 pts

B: YES = *1.35

C: 512m = *0.65

D: Under 5% = *0.75

E: Profit 4+yrs = *1.35

F: NONE = *1.20

G: 162p = No action


A(25,000)*B(1.35)*C(0.65)*D(0.75)*E(1.35)*F(1.20)*D(0) = 26,654 pts





Example 2

Microcap Mediazest (MDZ)


A: 1.27m = 250 pts

B: NO = *0.65

C: 247m = *0.85

D: under 5% = *0.75

E: LOSS = *0.75

F: NONE = *1.20

G: 0.57p = *0.50


A(250)*B(0.65)*C(0.85)*D(0.75)*E(0.75)*F(1.20)*G(0.50) = 46 pts



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  • 2 weeks later...


I have this in my "home office" wall now, it is not quite a multi-screen trading set up like this below, (I don't need it), but it would be a good talking point when visitors come over. Perhaps I might start a thread on what your home office looks like - (Dr Bubbs might be interesting), although I need to clear this table of junk first.



From http://www.mathewing...ch-information/

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From this weekend I'm going to open a Short portfolio as an experiment, I'll recheck the prices on Monday at the open to see if we can get filled here.



In the spreadsheet - how to turn a price fall into a positive profit gain and vice versa -> you end the formula with *-1

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Sown some new seeds in the last few days, I wonder if the home builders have staged a false upside break out, only time will tell, the UK home builder index has gone parabolic.



Indeed it has - I posted this on the Uk Housing thread:


BUILDERS STOCKS are Running... and it looks like they have more running room


PSN / Persimmon ... update




BDEV / Barratt Dev'l ... update




And the brokers are celebrating a possible resurgence in UK Home prices



Last month was all about whether or not we had witnessed the green shoots of a housing market recovery. Since then, the good news has continued to emerge.


When the Funding for Lending Scheme was first launched by the government to encourage banks to lend money, many commentators were unsure how successful it would be. At first, it appeared only to be helping house buyers with a decent deposit and not those at the opposite end of the spectrum who needed it most. Since the end of last year, this has begun to change. The scheme is now starting to deliver reductions in the cost of borrowing across the board...


/more: http://www.property-...inkworthwestend

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