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Interview with Hernan
(August 25, 2002)
 Hernan
and his wife How
he got started in the stock market and in technical analysis: Hernan
got started in the stock market in his high school
days. He bought only one stock of which he held for a year. At that
time, he was not familiar with even the basics of stock market
investing. It was curiosity that made him buy. For him, there is a
certain kind of excitement that the stock market generated.
Looking back, he got more interested when he was in 4th yr.
college. He remembers buying Mabuhay Holdings because he thought the
firm owned that satellite which was launched in space. However, most of
the time his portfolio consisted mainly of stocks belonging to the
mining & oil sector. Due to his limited funds at that time, he never
had the chance to buy books about stock market investing and, besides,
the bookstores at Ilo-ilo at that time did not carry such selections.
Fate would have it that Summit Securities opened a branch there in 1995.
That started his path towards trading. When he started trading, he was
fascinated more on who were buying and selling stocks rather than
looking at the stock’s charts. His education started when he explored
on the charting software that Summit Securities uses.
Everyday, he would use the Metastock’s help menu for
definitions of technical terms, learning every characteristics of every
indicator and studying their weaknesses and strengths. He was
fascinated, and soon afterwards, he was able to customize a trading
system of his own, aside from his broker activity analysis.
People
who influenced his way of thinking: 1.
Irvin Ackerman
- Author of How to Invest and Win in the Philippine Stock Market (the
only book he has read about the stock market). 2.
Judy
Sawyer - He met her in the Internet back in mid 2000. She influenced his
perception with regards to trend lines and patterns. She's responsible
for his education on how to look, check and confirm for
valid trend lines and patterns. She taught him her concept of the
wedge and grid theory. 3.
Cristina I.- He met
her in the Internet back in early 2000. She is one of the pioneers of
Elitedaytraders.com and the daytraders channel on the dalnet server.
They discussed ways on how to suppress one’s emotions in trading.
She taught him how to take advantage of emotionally driven
stocks. She also influenced his thinking on how Market Makers move and
the use of the Nasdaq Level 2. Spyfrat's
trading system: Spyfrat
basically uses a trend following system. For identifying the trend, he
makes use of a Bollinger band/Keltner
band-type of indicator.
He uses different
simple moving averages depending on the stock's volatility. A
buy or sell signal is triggered when prices break above or below those
moving averages. He
also makes heavy uses of patterns and trend lines. Judy
Sawyer's Wedge and Grid theory are also used in his analysis. He says
that the concept explains that trend lines and patterns should be
validated first before using them. The concept also places importance on
the time element. Her concepts can be read further at http://www.provide.net/~wedges/
. When
trading the US markets, he uses the daily charts to look at the overall
picture of the trend while he uses the hourly charts for his triggers in
entering and exiting a trade. He
says, "If
the indicators in the daily is trying to reverse but there is not a
signal of a reversal yet, dito na papasok yung 60 min. Kasi yung daily
needs confirmation ng mga 1 day or 2 days pa or a breakout from a highly
resisted level. Sayang yung points...I'm not after the low, but
if you can buy near that, why not". He
also says, "...but
usually if a stock is in consolidation, I avoid such a stock at hanap na
lang nang iba". He
also says, "...I
ignore the
news".
Learn
more about Spyfrat |
