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dmlabuda

07/31/11 9:44 AM

#50380 RE: pjfrn #50376

I've been interested in investing for a long time. When I had little or no money to invest, I used to read everything I could get my hands on regarding investing. I figured out very quickly that most of the books regarding fundamental analysis, and the interpretation of how worldly and monetary events affected stocks, were a little beyond my comprehension but, when it came to technical analysis and fundamental data analysis, it all made perfect sense to me so, I focused in that area. I used to paper trade a lot. By paper trading, I would set up a fictitious account on a yellow pad of paper (this is before we had desktop computers) and I would draw my own daily price charts on graph paper. That was a very slow and tedious way to learn investment analysis but, I was determined because I could see how the information in those books could make me a lot of money. I was lucky enough to pass the civil service test for a job with the US Air Force in Computer Programming at a time when there were very few computer programmers and they were not even teaching it in universities yet. I was trained by the Air Forces to be a computer programmer. With the help of a computer, I was able to do so much more in the way of technical analysis and by saving a part of every pay check, I was finally able to open a trading account. I lost money for several years primarily because I was trying to trade by the book and the books, I found out, had certain flaws in them. So, I began to trade with the knowledge I had but, to observe the charts and use my own instincts and intuition to determine what did and did not work. I went back into paper trading mode until I was making money on every trade but, this time using a Microsoft Excel spreadsheet instead of a yellow pad. After about three years, and several more books, I finally understood what was actually going on in the markets and from that point on, I made money ever year. So, if you are serious about learning how to invest successfully, I recommend John Murphy's book on Technical Analysis of the Financial Markets and Larry Williams book entitled The Secret of Selecting Stocks for Immediate and Substantial Gains both are available at Amazon.com Anything written by Gerald Appel is also worth reading. Good Luck to you and you are certainly welcome to tag along on my posts here.