Events - Event View

Agenda

9:00 - 9:30: Meet and greet with tea & coffee

9:30 - 9:45: Welcome and Introduction

9:45 - 12:00: A continuation of our study in the book - Building Wealth in the Stock Market by Colin Nicholson

[Attendees won’t be disadvantaged by not owning the book as the chapter material will be displayed on the screen.]

Chapter 8 - Managing Market Risk

Colin Nicholson’s overall approach is to active timing of the market is to increase or decrease the proportion of his capital invested in stocks depending upon perceived risk in the market:

➣ When the risk is low, the proportion of capital that is invested in stocks will be higher;

➣ When the risk is high, the proportion of capital that is invested in stocks will be lower;

➣ When the market is trending down (in a bear market), he will have switched to having his capital 100 per cent in cash.

This strategy for determining the proportion of his capital invested in stocks is driven by three analytical steps:

Step 1: Dow theory phase analysis

Step 2: The Coppock indicator

Step 3: Trend analysis of the market index

In this session we will complete the study of Coppock indicator by revisiting the calculation and replicating Figure 8.9 in Tradingview and then look at the appropriate use of the indicator as set out in the chapter.

We will then begin the third step of Trend Analysis of the market index. 

12:00 - 1:00: Lunch

1:00 - 3:00: Reading the Charts – Breakout patterns

A study of charts exhibiting a breakout pattern; members can contribute by bringing at least one chart example to be discussed in this session.

William O’Neil said in his book How to Make Money in the Stock Market – ‘only take the breakouts happening from a properly formed bases’. This book is an excellent coverage of this topic.

Another book dealing with breakout strategy is Leon Wilson’s The Business of Share Trading. This book is arguably one of the best for beginners.

3:00: Meeting close

An Invitation to speakers:
An open invitation is extended to any member willing to give a presentation – either in-person or online - to the Brisbane chapter; beginner speakers are most welcome. Please contact Tim if you are interested (0414873003).

Future meetings: Usually held on the second Saturday of the month (except January).