Stuart Petroluem (STU)

Rixter said:
purely because they have a trading plan
Of course a trading plan is only useful if it has been tested for profitability.

A plan that always loses money is worse than no trading plan.

GP
 
GreatPig said:
Of course a trading plan is only useful if it has been tested for profitability.

A plan that always loses money is worse than no trading plan.

GP
Could a plan "have no plan and ignore stops" be a plan if it is profitable?

Stops set too close look dangerous to me. The idea is for Danny Day Trader only. Mind you I am definately not saying to ignore a sliding price which persists.

T
 
Thommo said:
Could a plan "have no plan and ignore stops" be a plan if it is profitable?
I think anything that has been consciously decided is a plan, even if it's just pick stocks at random and sell when you need some beer money. I don't think profitability has anything to do with it being a plan.


Stops set too close look dangerous to me. The idea is for Danny Day Trader only.
In some experimenting I've been doing in AmiBroker with a plug-in I've been writing for backtesting, I've generally been finding that for longer-term trend trading stops reduce profitability far more than they increase it. And in the few cases where they do increase it, it's only by a small amount.

Of course that may well just be because of the other criteria I'm using for buy and sell :D.

GP
 
Personally I have been following Alan Hull's Active Investing strategy in the last year or so, and have been VERY impressed with the results. My SMSF is growing nicely. Also my Investment Club has adopted the strategy and is also doing much better now.
I think a trading plan is vital - partially for picking the right shares, but definitely for making sure you get out of the wrong ones!!
 
Hello Lissy,

Could I trouble you to direct me to more info on Alan Hull's strategies?

I find myself suffering the classic "Analysis Paralysis" of seeing things move up while I research it and being tempted to just dive in.

This thread of focusing on a plan has really brought the need to my attention.

Thank you in advance.

Kenny
 
He also has a book available, "Active Investing" which is very good.
I started off doing it all myself, then a friend and I decided to subscribe to the newsletter, much less work that way!! hehehe
 
Re Trading plans.

Could someone give me a few pointers as to what one has to write in their "trading plan".

I also do a little bit of trading, but my plan seem to be 'ad hoc' and "in my mind". I don't have anything written down as such. What do you suggest (in a dot point format) should be in a trading plan?


Danny D.
 
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