RE: CHARTS -T LINE TIPS17 Jan 2016 12:34
Good afternoon Tommytink. I am coming to the conclusion that the majority of AIM shares are not worth the time, effort and risk. What with wide spreads and big % losses, if timing is wrong or T line entry is a false start. Also a lot of the posters are uneducated yobs using gutter language to express their views. One finds a different calibre of poster on FTSE 100 shares. Just an observation!
I was drawn to AIM by WRN which I know is main market but similar, as being a small cap and illiquid share where I made £36k in the space of a couple of weeks. I have only lost money on AIM, FITBUG AND ZOX being prime examples.
I thought money could be made on AIM using the T line if one could spot a potential spike and hop on the train before it had left the station. It can be done and I have posted a couple of examples, e.g. CNEL, UKOG, even Fitbug on the rare occasion in the last year but the time, patience and effort may not be worth it. I will be reviewing whether I feel it is viable probably at the end of June.
So far this thread has not been brilliant in identifying potential AIM blockbusters. I suppose one just needs the one like WRN just over a year ago which was a tip not identified by the T line. Apart from NewForestLad and weimaraner73 and a sprinkling of others no one has posted tip offs and as far as I am aware no shares have been identified so far BEFORE a meteoric rise but it is early days.
Unfortunately AIM is a market which restricts one to only trading in one direction. At least one can short FTSE 100 shares giving one twice as many opportunities. Look at shorting PMO over the last 6 months. One cannot short the vast majority of AIM shares. If one could, one could become a millionaire very quickly. Not by spotting the next 4, 5, 10 or above bagger going north but by shorting almost every share that spikes. Sadly, it cannot be done despite various posters claiming they have done so. Whichever poster claims to have ever shorted an AIM share write them off as living in a Walter Mitty world, not to be taken seriously and best ignored. Similarly dismiss all the blatant rampers. You know, the ones that continually say ‘time for a top up’ or ‘this is going to go vroom’ or ‘ I would not like to be out of this over the weekend’ or spouting conspiracy theories to explain the fall in share price, or other such nonsense. Blatant derampers also, the ones that are blatantly yobbish in their rhetoric, continually poking fun at a share and those invested in it, without substance to their comments or without humour or use profane language in their rhetoric. The latter also applies to rampers.
As SB says in his webinars, candlesticks and the T line can be used on anything that involves greed and fear and any time frame. What one chooses to use them on is up to the individual investor and his/her aspirations, investment fund and trading style.
For the investor who has a full time job, imo small amounts in a variety of Aim shares but not too much of one’s overall investment fund or big amounts in FTSE 100 shares with small spreads and maybe FTSE 250 and 350 shares too. AIM is not suitable for day trading imo.
For day traders imo the Ftse 100 index and EUR/USD present the best opportunities for the conservative and the DOW, DAX indices and other currencies for the less risk adverse. The FTSE can be a bit of a plodder but DOW and DAX can move/change direction very quickly.
As to your query re time/period of a trade, this cannot be determined in advance, same as future price movement. Go back and watch/listen to a couple of SB’s webinars. The principles of candlesticks and the T line can be used in any time frame ranging from 1 minute to monthly to 1 year. Which time frame one uses depends on the type of trader. Day trader, daily and all the lower time frames and for the scalper I personally use essentially 1 minute to 5 minute charts.
One cannot determine the period of a trade once entered as exit is determined by where price closes in relation to the 2 ema’s which could be minutes, hours, days, weeks or months, dependent on the type of trader one is and the plan set up for the trade, which would include stop loss and stop profit over rides and personal trading style. The one caveat is if one is range trading where time periods can be determined but subject to being flexible and obeying what the 2 ema’s say.
My style for what it is worth is to protect capital first and foremost, then quick look at fundas, a look at potential profit, then risk assessment, then how much to risk, which determines bet size or in the case of actually buying the shares how much to invest, usually £1k-5K for individual shares both AIM and main market and not more than £1K spread betting AIM shares.
I’ve read some real horror stories of posters putting all their eggs in one basket, green investors investing blindly without a plan a