Trading the Spec Stocks: The 5 Phase Trade
About the Author – Frank Watkins
Frank Watkins first traded the Australian stock market during the “Poseidon Boom” in 1969. He traded intermittently from then until 1979 when gold prices soared. In 1979 and 1980 he became very involved in the market during “The Gold Boom” and has been heavily involved since.
Frank’s broking career started in Adelaide in 1986 in the commodity market. His commodity broking career continued for over ten years during which time he returned to his native Western Australia. However it was in Adelaide that Frank began the education side of his business at the Securities Institute of South Australia. He continues to educate private investors to this day. He has managed “night desks” with direct access to the trading floor of various international exchanges.
Frank has had an involvement in software development since 1986 and has operated his own successful Commodity broking firm in Western Australia. More recently he incorporated Pro Trader Pty Ltd in 1998.
Pro Trader has developed a unique stock market scanning software application. This software was the first to successfully incorporate Darvas scanning capabilities. Frank is a great believer in “keep it simple”. He is also a great advocate of technical analysis and believes that timing the market is imperative rather than time in the market.
Frank has been a regular speaker at ATAA (Australian Technical Analysts Association) meetings across Australia and at STANZ (Society of Technical Analysts New Zealand) meetings as well as AIA (Australian Investors Association) meetings. He has presented various lunchtime lectures at the ASX in Sydney, Melbourne, Perth and the Singapore
Exchange, as well, as presenting on local radio. He is well known for his practical, common sense and easy to understand approach.
Price is a measure of value, but more importantly volume is a measure of emotion and I need to know the emotion behind the price of a stock.
Timing the purchase of a stock is far more important than time in the stock.
The only reason for buying a stock is to make a capital gain – if you get a dividend then that is just a bonus.
It always surprises me that fundamental analysts who “bag” technical analysts use charts!
I don’t really care what method of analysis you use, as long as you are profitable.
Never purchase a stock without looking at a price chart.
Only buy when you have a buy signal, sell when you have a sell signal.