Alpha Team
Section 8. Searching
You’ll be shown how to conduct a data search of the 3,000 stocks in the London Stock Market to build a pipeline of perhaps up to 100-400 stocks. There are shortcuts to do this in about 10 minutes using published tables. (However with shortcuts, you risk losing some of the super-shares over 100%.) Next you’ll analyse your pipeline to make a shortlist of 5-10 stocks for buying. The best shares are taken to the next stage - buying.
Section 9. Buying
This is when it really gets interesting. There is a buying checklist and three steps to start the process:
(i) Measuring the extent of price moves. (ii) Matching the share against the Ten Price Trend System Principles.
(iii) Forecasting price and time. There are six buying tactics to follow. Also you are warned about three commonly used ones (which are sometimes recommended in the press but are bad trading tactics). You’ll also be told how to apply “stop-loss” insurance techniques to minimise the risk of losing money. For beginners, there are scripts to deal with a stockbroker by telephone and explanations about dealing on the internet.
Section 10. Holding
You need to know what to do with company bulletins and media news, scrip issues, dividends, rights issues, placings, annual and extraordinary general meetings and year end - bed and breakfast. Also you should follow a regular monthly portfolio review to keep your share pipeline and shortlist up to date.
Section 11. Selling
You are told the 5 key criteria to sell a share. These selling rules must be followed exactly. Finally, there is a section on “Review & Feedback.” It highlights reasons why you might not be as successful as you should. Be aware of them. Review your errors and faults and take corrective action.
Section 12. Advanced Trading Techniques
This is how you might make money by studying and identifying market highs (peaks) and lows (crashes) and turning around a failed portfolio. It also points out the use of warrants, options, futures, contracts for difference and spread betting. This links to the section on “risk-reward ratio” described in Section 3 - Stock Market Basics. Finally it suggests how you can improve your trading instinct to make better buying and selling decisions.
Section 13. Case Studies
When you have studied all the training material, you should work through the case studies of four companies. You are shown a price chart of each share and you have to decide whether to buy or sell. If you decide to buy, you must forecast your future selling price, profit, timescale and stop-loss “insurance” point. Each company has four charts showing the passage of time over several months. As each chart unfolds, you’ll see whether your forecast was met or not. Also you should compare your forecast with our answers to assess how well you followed the “rules.” If you passed this test, you should conduct theoretical/paper trading on your own share selection before using your cash. To paraphrase an old saying - “Learn to walk before you run and you shouldn’t fall over” - So, practice properly and, hopefully, you shouldn’t lose all your money.
You’ll be shown how to conduct a data search of the 3,000 stocks in the London Stock Market to build a pipeline of perhaps up to 100-
Section 9. Buying
This is when it really gets interesting. There is a buying checklist and three steps to start the process:
(i) Measuring the extent of price moves. (ii) Matching the share against the Ten Price Trend System Principles.
(iii) Forecasting price and time. There are six buying tactics to follow. Also you are warned about three commonly used ones (which are sometimes recommended in the press but are bad trading tactics). You’ll also be told how to apply “stop-
Section 10. Holding
You need to know what to do with company bulletins and media news, scrip issues, dividends, rights issues, placings, annual and extraordinary general meetings and year end -
Section 11. Selling
You are told the 5 key criteria to sell a share. These selling rules must be followed exactly. Finally, there is a section on “Review & Feedback.” It highlights reasons why you might not be as successful as you should. Be aware of them. Review your errors and faults and take corrective action.
Section 12. Advanced Trading Techniques
This is how you might make money by studying and identifying market highs (peaks) and lows (crashes) and turning around a failed portfolio. It also points out the use of warrants, options, futures, contracts for difference and spread betting. This links to the section on “risk-
Section 13. Case Studies
When you have studied all the training material, you should work through the case studies of four companies. You are shown a price chart of each share and you have to decide whether to buy or sell. If you decide to buy, you must forecast your future selling price, profit, timescale and stop-
“Secrets of Forecasting Shares”
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. . . CONTENTS
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