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Interview with Joey (December 18, 2002)
 Me
and Joey during the interview at the PSE Office His
stock market strategy:
He uses technical analysis to time his entries and exits but he uses
fundamental analysis to choose the stocks he trade.
How he chooses his stocks:
He looks for stocks that have low price/earnings
ratios and a sustainability of growth or income.
He says, "I mean it may be low but if it doesn't
grow or if it's going the other way, then it's useless. If it's a one
time thing, then it's useless."
What technical indicators does he use:
He mostly uses momentum indicators like, RSI and
Stochastics. He uses only default values in their parameters. He says
that he closely looks for divergences.
He also uses pattern recognition.
Aside from the basic trend lines, he uses a 10 and
30-day moving average to determine the trend.
He says, "I think our market is not liquid enough
for Elliot Wave." He
believes in seasonal factors. He says,
"...October to January, then from January to mid-February, may konting
dip yan in March because of the ides of March, middle of May up to end
of June or early July it goes up again, then sigurado, third quarter is
down..." Portfolio
management: He is
currently 60% in cash and only 40% in stocks.
When asked about position sizing:
He says, "It depends on the stock...its
liquidity...if you believe on it fundamentally, even if you're trading
only for the short-term, you can afford to put a larger amount."
How do you control your risks in the market?
"Stop-losses.
Maximum of 10% from the highest you've seen it."
Learn
more about Joey |
