Rohan Weerasinghe

Finding Performing Sectors

One question people often ask is where they can go to find sectors that are performing. One very useful site that is worth a visit is DIGITAL LOOK. This site has lots of great features including a sceening tool. Have a look at which sectors are performing well. One way to bypass the process of filtering through lots of companies is to find the strong sectors/industries and then trade the index.

Here is the link DIGITAL LOOK

Deep Discount Share Trading Facility

Those of you who attend my Trading Seminars will know that I am a big believer in saving money on Trading Commissions.

How would you like to pay a minimum of only $1.00 - yes 60 pence !

The company is INTERACTIVE BROKERS

The great thing with this brokerage account is that it is online and also you can practice with very small numbers of shares to keep your initial trading costs down.

This company allow you to trade internationally and short the market and do options...CHA CHING

If you want to find our more and avoid the long winded process of opening an account on line - then here is the name and number of a gentlemen who know me personally and who can help you get a live account quicker:

Let him know that I have suggested you call so that he knows to put you through the Fast Track Application process.

JAMES on  020 7 776 7811 or jsmallwood@interactivebrokers.com

Trading Book

Someone asked me recently about a good simple book that I could recommend for share trading. One that comes to mind is "Beginners Guide to Day Trading Online" by Toni Turner. Toni is a lady trader and she writes in a very honest and straight forward way. Don't be put off by the term Day Trading - the methods and approaches she talks about are applicable over longer timescales. More importantly, she talks about the mindset of trading and the need for commitment.

One note - this is primarily a technical traders book and so don't forget that understanding the market and strong sectors to trade is also very important before approaching the technical stages of your trade.

Quick Look at the FTSE

I was teaching recently at a seminar and one of the students was asking about the importance of VOLUME when looking at share price movement.

Take a look at the snap-shop of the FTSE below:

Download FTSE-20-09-05.jpg

Notice I have drawn a horizontal resistance across the top of the previous HIGH. Those of you that have attended my seminars will know that for the share price to break through this level a certain amount of momentum is needed. This is generally represented by an increase in VOLUME which represents an increase in market interest which is a reflection of MOMENTUM.

If you look where I have drawn the two arrows - yesterday when the price started to break through the previous resistance, volume increased and guess what... the index moved to another level.

Whether you are looking at an index, a stock or an ETF the principle is the same. Increased volume is a positive Signal of momentum in the direction of the move.

BUT remember - you should also be looking at your other indicators too!!!

Investment Banking BLOGS

I have no doubt that the average Internet user is rapidly becoming familiar with the whole concept of business logs BLOGS. For those of us who teach and invest they are a valuable source of knowledge. I was recently asked about investment banks and how they communicate information the "real world". Its amazing how you can be asked a question and then different answers appear. What is interesting is that this was written last November.

Tonight I found this excellent article about BLOGS and Investment banks - go and have a read. This really confirms to me that the world of investment knowledge is getting bigger whilst the bridge of communication is getting smaller and easier to cross for the average person.

A Look at the Markets

There has been some interesting developments in the USA with Crude Oil Prices continuing to climb with a barrel crude rising above 59 US dollars in New York boosted the likes of BP and Shell. This has had a negative impact on certain oil-dependent stocks like British Airways. Certainly two UK stocks I have traded in the last week or so have proved nice movement SHEL & TLW. TKW has corrected a little on Friday but has continued its run up towards 190, possibly 195.

UK Market : Quick Look

For those of you who are looking or trading the UK market at the moment - you may want to look at the following Sectors:

• Mining - stocks have recently broken through their down trend and are showing signs of strength. I am currently in a trade on BHP Billiton. Indicators suggest that this sector will start showing signs of strength over the next weeks.
• Oil & Gas - this is another sector showing strength and in fact over the recent week or so stocks like VPC and BUR have climbed through previous resistance.
• Utilities are also showing strength. Watch this sector, SSE is coming into a little bit of a squeeze and has the potential to take off - if it doesn't head north - then because it is squeezing watch for the downside move.

NASDAQ Review

The three main markets to review in the USA are the NASDAQ, DOW and S&P 500. Here we can have a quick look at the NASDAQ.

The NASDAQ (see link below) has rallied over the past 2 weeks apart from a slight kickback last week when crude prices nudged $50. Again the NASDAQ has an old resistance at 2100. The indicators MACD is in the overbought area and the Stochastics are up above 80. There may still be a fewe more days for it to play out to resistance before we see it test resistance.

So the next fwe days will give us a clue as to how much bullish strength there is in the USA market and as to whether we can be looking at more long positions.

Download nasdaq_may_31.jpg

DOW Review

Some interesting things are happening in the USA markets that certainly have an impact on UK trading as well. Last week nudged up over $50 causing some tremors through the market. Obviously this will impact different sectors - for example airline companies will be hit by increasing fuel prices resulting in reduced profits.

If you click on the link below you will see that the DOW  has  been climbing but in recent days has hit a previous resistance at around 10550, it has broken above its moving averages which shows strength but it does face another resistance at 10600. Should the DOW break through the 10600 then we are likely to see a rally possibly up to 10800.

Download dow_may_31.jpg

 

A Weekend of Learning

I often get asked whether I attend many courses and if I do - why.

The answer is a resounding YES. I have invested over the years thousands of pounds in personal growth learning. It has paid me back many times over! Remember though - it is only an investment if you do something with it!

This weekend was no exception. On Friday I popped in to see my good friend Gill Fielding presenting her fabulous Wealth Creation Weekend. This is one NOT to miss. Gill, who runs the Wealth Company teaches the principle of abundance and how to develop wealth in a rounded and steady way. It was great day.

On Saturday and Sunday I attended a Share Trading seminar run by Greg Secker. As someone who already trades I found this a great weekend. I am not familiar with the UK markets and Spreadbetting so it was a great education for me. The attendees were put into teams and were set challenges as part of our learning. This made for a fun weekend and guess was - ours was the winning team!

Greg has a very relaxed and enthusiastic approach to presenting which made the weekend fly by - added to which I was very impressed with his depth of knowledge and experience. I picked up some great knowledge and with the support of his coaches look forward to developing my spreadbetting skills.