A survey of over 250,000 users of ADVFN (www.advfn.com) showed that traders resolve to go back to the basics and study company accounts more, analyse balance sheets and news announcements in greater detail and make a more balanced judgement before “jumping into” the market. On the more technical side, traders want to study the relevance of indicators such as pivot points, envelopes and Gann angles more closely.
Users of the UK’s number one stocks and shares Web site also pledged to focus on trading times and volumes; resolving to get position sizes in trades right, trade more often but in smaller amounts and even split the year into precise ‘trading’ months and ‘investing’ months.
In addition to streamlining their trading, private investors also cited specific lessons that they need to heed in 2004. These included:
Using a mixed strategy. Some favourites were:
o Bottom fishing (stocks whose prices have recently crashed)
o Momentum (buying stocks making new highs)
o Buying shares with big dividends
Looking for longs in a long market and shorts in a short market
o To trade long in shares when the index is going up and go short in particular shares when the index is trending down
o Only buying a share when they believe they’ve got in at a better price than others tipping the share
o Opening another holding only when the most recent one is in profit
o If a holding starts rising, buy another when the profit on the original is enough to cover all the costs of the second holding and is able to withstand a small drop in price
“These resolutions are evidence that private investors are really learning from their experiences and adapting their investment styles to the changes in the market. They are keen to explore different trading techniques and recognise that knowledge is a powerful trading tool. Learning to analyse balance sheets and news announcements is a great foundation for robust investing, ” said Clem Chambers CEO of ADVFN.
“ADVFN thrives on the success of its users and we will continue to support them with professional quality tools, first-class content and educational seminars,” he continued.
NOTES TO EDITORS
ADVFN (www.advfn.com) is the UK's number one stocks and shares Web site. With full real-time coverage of the euronext-liffe, the London Stock Exchange, OFEX, NASDAQ, Amex and NYSE, including FTSE, Dow and S&P indices, ADVFN provides professional quality information to the person on the street.
ADVFN was established in the last quarter of 1999 and floated on AIM in March 2000. It now has over 250,000 registered users who generate in excess of 35 million page impressions a month.
We currently cover the following areas in the UK, France and America:
· Free real-time prices from the London Stock Exchange
· Level 2 data
· Comprehensive fundamental data
· Streaming stock charts, historic and intraday
· RNS and AFX news
· UK's busiest financial bulletin boards
· Historical data downloads
· Stock monitors and filters
· Covered Warrants
· Investor Relations Web site solutions
· PDA service
· SMS stock quote service
· ADVFN TALK – Inter-casting show
For further press information, please contact: Francesca De Franco on 020 7070 0932 E-mail
Francesca De Franco
Main tel: +44 207 0700 909
Direct tel: +44 207 0700 932
Fax: +44 207 0700 959
Published on: 12:00AM on 5th January 2004