Believe me when I say, that so many conflicting opinions are not going to help your financial spread trading career. In fact, they could ruin it. I decided a long time to ignore much of the information out there as I was finding that I was ‘paralised’ by a kind of information overload. I was unable to look at my potential trades objectively which led to me being unable to ‘pull the trigger’.
One of the few exceptions I will make to this rule is director dealings (when trading shares).
The directors of a business are, or should be, in the best position to know what the real state business is. So watch out for how the directors, and other key employees, buy and sell shares. There are many internet sites where you can find this information.
Beware when directors say they are selling shares to create ‘liquidity’ in the stock. It may just be a ‘smokescreen’ and an attempt to hide the true state of the business. On the other hand, when directors buy shares, it can be a good signal that the business is in much better shape than the market is predicting.
For small and medium sized companies, be slightly skeptical if the directors don’t own a stake in the business. If they are not shareholders themselves, their motivation to grow the share price could justifiably be questioned.
My name is John Eagle and I live in the UK. I first became interested in financial spread betting in the late 1980′s when I saw the original Wall Street movie. You know the one…where Michael Douglas plays Gordon Gekko who tells us all that ‘Greed is Good’.
Anyway on a more serious note, since then I have read dozens of books about trading and attended numerous seminars and courses and now tarde myself.
Please take a look at http://financial-spread-trading.blogspot.com/ for more information.
You must log in to post a comment.