investing

A Book Review – “Harmonic Trading – Profiting from the Natural Order of the Financial Markets” – volume 1 by Scott M. Carney

There are various opinion currents in the technical analysis. One of the recent ones appeals to the natural order of the markets and to uncovering patterns which appear from time to time. This approach to technical analysis does not try to find models where there is none. Rather the natural order trading is trying to catch patterns as they emerge and ride them for the benefit of the trader. These things said, “Harmonic Trading – Profiting from the Natural Order of the Financial Markets” is a book which uncovers several such patterns for the benefit of the trader.

Scott Carney, founder and president of a company called (surprise surprise) “Harmonic Trading”, has studied quite a long time these patterns. His experience started with the Fibonacci approach, a trading method which uses the Fibonacci numbers to predict the most probable incoming price levels. This is a probabilistic approach and, like all the methods based on probabilities, it chases patterns where over the long term you are more likely to offset losses with your gains (rather than the other way around). Read More »A Book Review – “Harmonic Trading – Profiting from the Natural Order of the Financial Markets” – volume 1 by Scott M. Carney

Weekly Update On Our Doitinvest Investment Portfolio no.1 – U.S. Blue Chip Stocks (3)

As we have adopted fundamentally long positions in our US blue chip shares portfolio, there are no changes in the no of shares owned as of today. However, the market seemed to come back a little bit this week and we extended our gains modestly (but certainly, as $8,000 is no little gain I’d say -0.8% per week measn 40% in one year, an investment yield hard to obtain otherwise than by doing a lot of short selling these days).

So the summary of our US portfolio looks as follows:Read More »Weekly Update On Our Doitinvest Investment Portfolio no.1 – U.S. Blue Chip Stocks (3)

Update On Our Doitinvest Investment Portfolio no.1 – U.S. Blue Chip Stocks

djia-april-2009-14th-overall-us-market-evolutionWell, two weeks have passed since we started our blue chip shares portfolio. If you remember, we created a portfolio of very liquid shares two weeks ago, with the intention of tracking its performance and of comparing it with the investments performance of the DJIA index.

Well, in two weeks the things are quite good. The initial value of our investments portfolio was $1,06 million. In these 13 days we had no bad luck – in fact we had capital gains (since we did not made any transactions with the shares) of $60,000. This corresponds to an investment yield of 6% before any trading commissions and taxes, or roughly to 4% after those. Read More »Update On Our Doitinvest Investment Portfolio no.1 – U.S. Blue Chip Stocks