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| Upcoming Events |
Stockscores.com Stock Trading Clubs
Edmonton Stock Trading Club
Mon. Dec 1 6:45 - 9:00 pm
French Cultural Center
8627 91 Street
Anyone welcome to attend
Register
Calgary Stock Trading Club
Wed. Dec 10 7:00 - 9:00 pm
University of Calgary
Murray Fraser Hall Room 160
Anyone welcome to attend
Register
Vancouver Stock Trading Club
Thurs. Dec 11 6:30 - 8:30 pm
Best Western Abercorn Inn
9260 Bridgeport Road, Richmond
Anyone welcome to attend
Register
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| What are the Stockscores.com Stock Trading Clubs? |
Many of you may have thought about coming to one of our stock trading clubs in the cities that I do them, but have never done so because you were not sure what they were all about.
Essentially, these clubs are meant to facilitate learning and the sharing of trading ideas. We discuss trading tools and strategies, and work to identify opportunities in the market.
The first meeting you come to is free, after that I ask attendees to pay $10 a meeting to cover the costs.
Currently, these meetings are only in Western Canada, but I am working on a technological solution to allow us to broadcast these meetings over the Internet so that anyone can participate.
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Stockscores.com Perspectives
For the week ending November 30, 2003
In this week's issue:
Go back to your roots. Remember when you first started trading the stock market? Back then, all that mattered to you was price. Perhaps it was out of ignorance, perhaps it was because you were only concerned with making money, but in the beginning, you probaby did not look much beyond what the price of your investments were. Subtract the price you paid and you could quickly figure out whether you were making or losing money. Price was all that mattered.
Since then, whether it has been a few months or tens of years, you have likely muddied the waters. With an appetite for finding the holy grail of trading success, you have added many tools to your investment toolbox. The PE ratio, MACD, RSI, OBV and TRIN may have satisfied your hunger with an alphabet soup. But are you satisfied?
So many traders seek to solve their inability to consistently profit in the stock market by making the analysis more complex. In doing so, they miss the point. All that really matters is price.
Stocks do not go up because the MACD signal line crosses up, they do not make a bottom because the RSI hits oversold levels. I have never known a stock price to move lower because of a violation of the 200 day moving average. While many traders will use these signals to make decisions, we must still remember that stock price changes for very simple reasons.
Stocks go up because people are willing to pay more. Stocks go down because people are willing to sell for less.
While there are many factors that affect how investors make their decisions, the one constant in the market is that people are making decisions. To be successful in the stock market, you have to understand how people think. We are not computers. Instead, we have emotions that make us do stupid things. The trader who understands human psychology is the one most likely to beat the stock market.
What causes us to buy an Ab Roller advertised on the TV while we lie on the sofa eating Doritos at 2:00am? What makes us put bars on our basement windows while we have a decorative glass door on the back of our house? Why do we carry a balance on our credit card when we have money in our savings account? Why do we buy lottery tickets when the return on our investment is negative?
Mr Spock would have found great humor in human behaviour if he had the ability to laugh but, alas, he was not burdened with emotion. He was probably not great at parties, but he certainly could have made a good trader.
If you are investing in stocks, always remember that all that matters is price. If you buy a stock and it is priced lower than what you paid, you are losing. When analyzing a stock, the price patterns will tell you more about the future direction of the market than any indicator. When determining the sell point of a stock you own, keep in mind that the good feeling of a locking in a profit is not a good reason to exit. Don't ignore a negative price pattern because trading volume is light. If price is telling you something, listen. Price is your Daddy.Back To Top
The Canadian speculative market is hot, so this week I did a very simple scan for stocks under $5 on the TSX. I set the Market Scan tool to find stocks with a Sentiment Score of 60 or better and trading at least 30 times on Friday. This scan revealed 93 candidates, of which there were a couple of standouts that I have discussed below.Back To Top
1. T.ACA
T.ACA has been pretty quiet lately, but perked up on Friday. The stock's price chart has made rising bottoms over the past couple of months, and the Sentiment Stockscore is moving through 60, showing the optimism of this pattern.
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2. T.TIO
T.TIO has just broke through resistance, and volume has picked up over the last few days. It is quite possible that this stock will pull back to $0.34 before it works on an up trend, but so long as it can hold above support at $0.30, I think it has good potential to trend higher.
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References
Get the Stockscore on any of over 20,000 North American stocks.
Background on the theories used by Stockscores.
Strategies that can help you find new opportunities.
Scan the market using extensive filter criteria.
Build a portfolio of stocks and view a slide show of their charts.
See which sectors are leading the market, and their components.
Disclaimer
This is not an investment advisory, and should not be used to make
investment decisions. Information in Stockscores Perspectives is often
opinionated and should be considered for information purposes only. No
stock exchange anywhere has approved or disapproved of the information
contained herein. There is no express or implied solicitation to buy or
sell securities. The writers and editors of Perspectives may have positions
in the stocks discussed above and may trade in the stocks mentioned. Don't
consider buying or selling any stock without conducting your own due diligence.
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