Trader Health
07/20/2005
May be it is my old age, having celebrated a birthday last week in New York City, or may be it is the late nights of the single lifestyle, or the exhausting impending schedule of four cities in five days in India this forthcoming week, but I have been thinking more about the link between health and trading success and profitability.
As traders and investors we focus on quality companies, stock ideas, when to enter, when to exit, but what about the fact that our minds need to be sharp, our ability to concentrate outstanding? Anyway, with all this in mind I did two things recently which I recommend to all investors and traders and it is as invaluable as any stock tip.
First, I went to the optician. Of course being genetically superior I have perfect eyesight. However, I was informed that since my last visit 14 years ago(!) I may wish to try some light reading glasses (look I am in my early 30s honest)- and I have to say - what a difference. I can see text clearer. It means I can work longer hours and concentrate on the screen more and read those investment reports for longer (!).
Those who saw me on CNN this past week commenting on the Indian PM's visit to the US will notice I am not bespectacled generally.
Second, as a trader friend of mine had always nagged me to do, I hunted down some eye drops. Having tried a sample of Tulsee eye drops, I ordered a batch from www.tulsee.com. Now the way I see it, trading is a business. My body is the factory and so anything improving the factory's productivity is welcome.
Of course parts of the factory need an overhaul and are a bit creaky, some would say the whole factory needs a 'face lift' - but the eye drops did the trick after the 'work hard, play hard' events of the preceding evening.
In fact, I endorse them as well as going to see an optician too. (The compliments about having sparkling eyes after using the drops made me overdose a little on them I guess!).
What else? Well, Richard Branson says we all work too hard and that to improve productivity we need to have breaks to refresh ourselves. So, as I did not go to the Himalaya's on my birthday last week, I am going next weekend instead...just what the doctor ordered as they say.
And of the markets themselves? We are now into an amazing bull run in the UK with every rising prices. With interest rates on hold or even lower that should fuel more rises. I can't say I am comfortable about the levels given how weak we have been recently.
The FTSE 100 is up 50% since its 2002/3 lows. It is still almost 50% off its all time highs though too. Anyway, at least I can see clearly now.
Value-Growth
On my value growth criteria which are based on stocks meeting revenue and profit growth and good value based on criteria such as price earnings growth, the following names come up. Remember they are for a 6 month outlook: Rolls Royce (still doing well - just look at all the flying I am doing), BAe Systems, Spectris.
Remember I am targeting about 20-20% with the value growth criteria. Last year it produced 33% return. On my momentum value indicator I have: SAB Miller, Paragon, Investec (fund manager rising because of the markets) and Dana Petroleum.
Crazy Small Stock
These are high risk volatile stocks which could move sharply higher or move sharply lower in my view, but will almost certainly not stand still. Names on the radar include: Glotel, ServicePower, PGI, Independent Media, GB Group.
Also, if you would like a free multi-media CDROM on 'Investing Better', which covers spreadbetting, CFD trading and momentum indicators like the MACD, posted to you then drop me an email with your postal address to alpesh@tradermind.com.
Spreadbetters
Spreadbetters and futures traders often look at hard and soft commodities. Here's my quick take on the action for the week ahead:
- Oil: Mixed to lower
- Copper: Mixed
- Gold: Mixed
- £/$: Down
- Dow: Mixed to possibly higher
- FTSE 100: Down
- Soyabean Oil: Down
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