How i choose a share.....

[barry_1]

I'm only giving my method as some one asked which MA i used....1.Jasco has a good SENS Market Update the other day....2.ON THE STANDARD BANK CHARTS :I then waited till the OBV reponded,which shows there are more people wanting to buy.It has moved rather sharply upwards....3.I then decided how much i wanted to invest....4.i then invested a third of that amount....5.when the price crosses BOTH the green and red lines ,going upwards i'll invest the second third....6. and when the green 28 day line crosses the 60 day red lines i'll invest the rest....Only my opinion...FOR GOODNESS SAKE DO YOUR OWN REASEARCH!....That is why i sold MRF,it crossed the first hurdle,but subsequently failed to cross any more.

[232926]

Hey Barry, where do I learn to use Technical analyses and read charts so forth. You talk about red and green and moving averages, where can I go or what can I read to understand this better

[cfm]

Interesting. So you pick a fundamental reason and then use technical analysis to confirm the entry.
What do you use for a target or exit strategy? Do you also scale out of a trade?

[barry_1]

I hope u can get into the charts,i found impossible to download without ADSL.U can phone SBK for advice...1.Now presuming ,u can click on the charts,do then start a watchlist of shares u pick and see how well u do....2.go to Help and Education and u will find a 121 page course online....tip; besides reading the first few pages,better to skip to the sections that interest u,as too much info is likely to just exhaust u.....3.try to attend a live course where u will get better feel of the subject.

[barry_1]

Firstly i use different methods for different sections when considering buying.....1.For the forty top capital i would read their previous balance sheets and choose shares coming up to their LDT dates as those are mostly mature industries,in sections that are HOT atthe moment such as Financials,Retailers,Construction,Property and would either buy and hold till ex the dividend.....2.I find the Technical method workk better on the shares outside the top forty....3.property i'll hold as it is a different asset class as long as the bankrate is stable or falling.

[barry_1]

....4.Sell signals are usually the OBV falls below the price,then the price crosses both the MA of 28 days and 60 day,and stays below,then i sell and dont wait till the 28 day crosses below the 60 day....5.sometimes the OBV stays stubbornly high,how ever i still get out as the share then is too volatile.NOTE THIS TYPE OF TRADING i only use for SHARES AND INSTALLMENTS....derivitives are another kettle of fish,where hard and fast rules don't really apply.

[Running_bull]

hi barry, interesting reading as i follow a pretty similar strategy, like to keep it simple(sticking to the same) couple MA lines with RSI(shorter terms) seems to work well for me.

[#8]

ROC is always a good indicator for my trading although sometimes premature.Bit of a gamble when it crosses through zero but normally an indicator that gets my attention.

[barry_1]

Good you mentioned ROC it gives a better overveiw of the way a share is likely to trade.

[striker]

Barry- just interested to know your buy indicators for JSC,while the profile Media consensus is a sell ??

[barry_1]

With respect,the media profile for Amplats is BUY which its been for over a year.Now during that time the price of the underlying commodity has almost halved.If one were to take notice and have bought a year ago and held ,u would have lost your shirt and some more!....Sure JSC is ex-div,but now with the ir BEE in place and a profitable aquisition see their SENS they are showing the first signs of recovery....,i've only invested one third of my final investment as the OBV shows a positive change taking place.If there is no follow through with the share price then i'll sell ,seems to be holding at this stage.