Stock Trading that Works
Robbie Burns aka the Naked Trader is a successful stock trader that it is useful to follow to see how he manages to make money stock trading when so many other people do not. On his site he lists his trades in his ‘trading diary’. He was recently interviewed by the Motley Fool site.
The stock market can be a great place to make money, but it is difficult for beginners so taking advice from someone like Robbie Burns is not a bad idea.
He lists his latest buys and sells, and shows the buy price, target price for when he might sell and stop loss price. His sytem is easy to understand and is based on common sense. He makes a good living from his stock trading, even if markets drop as they did in 2007 - 2008.
His method is simple enough, he buys shares in profitable companies that have good prospects. He avoids penny stocks and stocks that are falling and concentrates on stocks that are rising and provide good company reports. He holds the stocks for a few weeks or months then sells if he thinks they have run their course. He also has a very simple system for deciding which companies not to invest in. If a company report uses the word ‘challenging’ in its report then he takes this as being code for ‘trouble ahead’ and so he looks for something else. In addition if the company debts are more than 3 times their profits then he is not interested, he looks for a company without so much debt.
He also looks at a company’s p.-e. ratio but in his own way. He takes full year profits, multplies this number by ten, knocks off any net debt, and adds on net cash. He checks this figure against market capitalisation, and this tells him whether the share is cheap or not. It’s his own way of doing things but it works !
Robbie Burns is worth taking a look for a number of reasons a) he has many years experience b) he does actually make money on the stock market c) his method is easy to follow although you would need to buy his book to see all the details d) he gives away a lot of information for free on his Naked Trader website. So whether you are a beginner or an old hand but are not making money from your stock trading then check him out.
Comments (0) • stock trading • August 2010
It seems that BP has finally managed to stop the oil spilling into the Gulf of Mexico, temporarily at least - you can see it not spilling into the Gulf here - oil spill live video feed - BP are still carrying out pressure tests to see if there are any leaks elswhere, but so far so good. They are also continuing to drill the two relief wells which it is hoped will finally plug the well once and for all.
BP’s share price has recovered significantly but is still way below its 200 day moving average - to see thoughts of one chartist on whether it is time to buy BP shares yet click here - time to buy BP ?
The DOW fell 200 points on Friday after a few days moving higher - it could be that the death cross will get the better off the markets yet !
Comments (0) • stock trading • July 2010