The 5 Phase Trade: Lesson 4

My Explanation  My Interpretation of “Why a five phase trade?”   Phase One   The Build Up. This is the initial euphoria wave when company directors come up with a new idea, often joining into the latest trend. It may be a move into uranium, gold, nickel, mobile phones, medicine, waste disposal or whatever the […]

The 5 Phase Trade- Lesson 3

The Five Phase Trade   Phase One (P1) – The Build-up   The first people in a position to have knowledge of sensitive information will be the first to start buying a stock. They often do this in a deliberately unobtrusive manner so as not to move prices upwards until they have accumulated sufficient stock. […]

The 5 Phase Trade: Lesson 2

Plan Your Trade and Trade Your Plan!   A couple of years ago I was doing my homework one Sunday when I spotted a stock that fitted the “Five Phase Trade” category perfectly. Rather than placing the orders with my broker and walking away, I broke my rules and decided to watch the open on […]

The 5 phase Trade : Lesson 1

Trading the Spec Stocks  Background   During the Gold Boom of late 1979 and 1980 most of my energy was consumed by trading the very speculative end of the market – the “penny dreadful” stocks that were generally trading at less than ten cents. There were dozens of new floats with an issue price of […]