This blog is primarily for my own benefit to outline my trading and investment analysis. It is NOT to convince anyone that my strategy will make them money; I am not qualified to give investment advice. I do enjoy theoretical debate about strategy, approach, and alternate investment ideas. If you want to leave comments regarding my approach, I'll be happy to read them and respond.
I am an amateur stock trader and investor, who is genuinely interested in the mechanics of price movements in equities. Currently, I am a senior in college studying accounting. This background lends itself to fundamental analysis, yet I have learned not to underestimate the power of technical analysis. I may own the greatest stock in the world, but if the stock needs to drop for technical overbought reasons, why buy it now? It's better to wait for a pullback and time the buy to match better technical conditions.
Philosophy
I endeavor to integrate all knowledge and construct an overall framework from which to invest and trade from. If the technicals say a stock should rally, but I dislike the fundamentals of the company, why would I own it? Also, fundamentals are not limited to a company's health, that is only one aspect of overall fundamental analysis.
Timeframe
I trade and invest in multi-day, multi-week, and multi-month trends. I may decide to capture multi-day price swings with options. My timeframe is never shorter than 1 day.
As I see it, it doesn't matter what time frame I use for an investment or trade, as long as I define the timeframe before I make the purchase. The danger is that I explain away failure by adjusting my timeframe, which is a violation of one of my basic investment/trading tenants.
No comments:
Post a Comment