Beginning

This blog is about my third journey in the interesting word of the Technical analysis and Stock trading.

The first journey started in 2002 during my internship at Piraeus bank. It was a successful first journey which helped me buy components for a new server that I was building and also fund my first romantic trip with my wife a few years later. The actual success of this journey was to understand the problems in my approach and get ideas for the second journey that started a few years later.

In 2007 just before joining the Greek army, I thought that I should start again with a new approach. This time, I was ready to combine the accounting knowledge from the BSc and the newly acquired knowledge from the MSc in ITMOC. That's when I started thinking the first version of my shortlisting model which end up in successfully creating a model call MuadDb v5 light. Unfortunately, when I had finished all the testings and I was about to start to actually invest in the ASE, the Greek prime minister GAP requested the help of IMF (Prime minister addressing the Greeks) and the Greek crisis started and I had to postponed my plans. A few months later, I moved to UK and lost touch with the Greek stock market.

Now, the third journey starts. The target is to use the same approach but a new platform. Excel is good but the Cloud technologies have given us new perspectives.

My opinion on stock trading is simple:
  1. In order to invest in the stock market you need to have an adequate amount of money which you do not need for the short/medium term.
  2. These amount of money is not considered as part of your savings in order to allow you to think objectively and without any remorse. Preferably, this amount of money does not belong to you.
  3. You also need to have enough time to collect information regarding the market that you invest in
  4. You use technical analysis to eliminate the "noise" from the vast amount of information that exist around us.
  5. You finalize your decision based on fundamental analysis and not based on the results of the previous step. 
Why this approach:

My understanding is that the way that we use our mind limit us to process a certain amount of information. This means that even if you have been trained to collect, process and analyze bulk amount of information, you can not process all the information that exist for a specific market and you will probably end up to a wrong conclusion. This comes from a theory that I had read during my bachelor studies which was roughly saying: The person who has the resources to invest does not have the information while the person who has the information does not have the resources to invest.

The human mind is also really inclined to follow specific/safe/already-experienced patterns and be subjective (At least my mind). This means that you may be able to see the signs that tell that something is happening, you may be able to see that a disaster is coming or you may have a feeling that something will produce a huge profit but your mind will just ignore it.

In order to eliminate the risk of the above observations, I have decided to build a model to gather, analyze and shortlist the investing options in a market...

Have a nice journey...

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