David CappaertI started trading about 1980 or ’81 (a long time ago). This was when discount brokers first came to my attention. My first brokerage account was with Gruendig when you had to call the broker and discount trades were $60.00 per side.

I’ve been electronic trading for 17 years and have successfully learned to read the market and use my knowledge to beat the market most of the time. For the first few years my trading was very erratic because like most new traders I didn’t have a clue. After several years of fumbling around and losing money, I spent five grand and went to a trading school. I got the basics down and thought I was a market wizard. After a couple more years of up and down trading, I finally started to get it. The only things I was missing were market direction, market and stock sentiment, investor sentiment, up and down momentum, P/E versus sector P/E, chart patterns, etc, etc. The biggest problems I still have as a trader are patience and controlling my emotions. With these elements of trading you can be a market wizard and still lose money. As time passed, I acquired the skills I needed to trade successfully.

From 1998 to about 2010 or so most of my trades were day trades. As I reach my very mature years I find the pace of day trading to be more trouble than it’s worth. I would rather spend a few minutes to a couple of hours checking trades and trading candidates and go out and enjoy the rest of my day while my money makes me more money.

I spent most of my career in commission sales. When I’m not trading, I like to fly fish, read historic and action novels, do some woodworking and enjoy my koi pond. Somehow, I got into gourmet cooking, which has happily impressed my wife.

The reason I started this Blog is because several people call me for trading tips or advice and take up my time through the day. I enjoy talking with them, but I would rather be fishing.

There won’t be a post here every day, or every week for that matter. I will only post what I think are good strong trades. For those of you with questions I will try to answer them as time permits.

My trading style has evolved to value trades that I find through searches or from earnings calls. Price action following a quarterly earnings call can be quite dramatic and can generate some great trades. Once I determine the value of the company the daily price charts tell me where the best entry and exit points are.

I use technical analysis of the charts to determine entry and exit points. When combined with value analysis these are very powerful and reliable tools. Some of the chart analysis techniques I use are support and resistance; moving average lines from 6 period to 200 period; certain candlesticks; certain Fibonacci retracements and extensions; Stochastic and Rate of Change indicators; volume and numerous other studies. All have been customized to one degree or another.

Good trading,

David Cappaert