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Interview with Danny
(October 14, 2002)
 Me
and Danny during the interview at my residence Persons
who influenced his way of thinking: Gary
Smith, John Murphy, Edwards & Magee, Jack Schwager and Alexander
Elder His
Trading System: Danny's
trading system is primarily on the use of area patterns. He gives much
emphasis not only on the area patterns, but rather on the crowd
psychology of why and how the area patterns form. He
says, "...area patterns has evolved already, depending on certain
conditions and depending on the trend". He
also uses trend lines and made special mention of the MACD as one of his
primary technical indicators. He
also says, "Volume is very important on the breakout or
breakdown". He
also says, "...the (technical analysis) story has to come out first
because if you just look at the area pattern, you will get killed by
trying to form-fit". How
he pick stocks: Those
that are heavily traded. He
says, "...if you pick stocks that are not heavily traded, some rich
guy like a Warren Buffett, can just easily come in and make a fool out of
you". Best
Trades:
SSO
(now Philweb) - Sometime in 1999, he bought P500,000 worth at P0.018 and
was able to trade it up to P0.047.
Worst
Trades:
QLGC
(Nasdaq) - Early this year, he shorted 500 shares at $42. It went to as
low as $36 but then catapulted up to $50. He covered his position at
$50.
Learn
more about Danny |
