January 1, 2002
These are extracts from my daily stock trading
diary. They are intended to illustrate the techniques used in
short-term share trading and should not be interpreted as
investment advice. Full terms and conditions can be found
New Year Resolutions
Our resolution for 2002 is to continue the phenomenal growth
experienced in 2001:
Our immediate goal is to achieve 1 million page
impressions in a month. Present figures are 400,000
This will enable us to expand the range and depth
of free services offered by Incredible Charts.
Plan the work and work the plan
A good resolution for traders is:
- To develop a sound trading system and to stick
The greatest strength that a trader/investor can have is
ability to stick to their preconceived plan in the face of
continual doubts, fears and conflicting information.
The first quarter
January is normally a good month for investors, with stocks
rising by more than the average month. February and March
historically yield below-average
The latest rally on the Dow has failed to make a new high,
indicating uncertainty, while the bearish MACD
divergence is still evident. The
on the Nasdaq continues.
The year ahead
Forecasters are predicting that the mild recession
will end and be followed by a gradual recovery. (more)
Even the most pessimistic forecasters failed to predict
the depth of the recession in 2001. (more)
Australia - ASX
The All Ords has climbed to 3360 on weak volume.
The challenge here is to stick to the trading plan: there is
still a bearish divergence on the MACD
so avoid new entries.
Short-term: The Dow still shows weakness and the
Nasdaq is in a down-trend. Tighten up on stop
and avoid new entries.
Best wishes for the year ahead.
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