My One-Year StockTwits Anniversary!

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  • on September 29th, 2010

The main thing I love about StockTwits is “idea generation.” As I trader, it is very important to do your own work, but it also helps to exchange ideas and concepts with other traders. I am very thankful to be a part of the StockTwits community because it has allowed me to share my ideas, while also learning from some very talented people. I truly believe in the importance of surrounding yourself with sharp, motivated people because it can positively influence us and make us strive towards constant improvement.

Since this is the one-year anniversary of my investment blog, I wanted to “re-introduce” myself because there are so many new followers on a daily basis. Back in 2006, I used to send “Market Notes” via email to update some fellow traders on my views of the US stock market. I found it very helpful because it gave me the opportunity to organize my thoughts and prepare myself for trading. Thanks to Philip Pearlman and Howard Lindzon, they convinced me to turn these Notes into an investment blog. My intention is to provide keen market insight, strong stock ideas, and to hopefully pass on some of the lessons I’ve learned from 15 years of trading.

My Investment Process:

The first thing you HAVE to do is define yourself! Are you a trader? Or an investor? I am a trader. I hold positions anywhere from 2-3 days to 2-3 months. I screen the market every night with proprietary screens I developed over the years. These screens are quantitative, technical and fundamental. They are based on the “Greatest Winning Stock” models and studies done by William O’Neil. Essentially, I start with sound fundamental companies and try to trade them at the proper time AND when the market is healthy. I believe in Jesse Livermore’s philosophy: the market is healthy 2-3 times a year, do your homework to identify those times, and trade them aggressively. The rest of the time, build cash and protect your profits. Livermore believes you are a fool for trading everyday and “you should not be in the market all the time.”

My Advice:

Find a philosophy that fits your personality and mimic someone who has been successful at it. I don’t believe in re-inventing the wheel. In other words, if you are a long-term value investor, study Warren Buffett. I like O’Neil’s philosophy because it combines both stock trading and market timing, but it might not be for you.

Be ready to work at it! Remember, there is NO substitute for experience and stock trading involves hard work and emotional control. Gerald Loeb says: “Knowledge born from actual experience is the answer to why one profits…knowledge means information and the ability to interpret it marketwise.”

Study great traders. Three common words of advice from the best traders are: CUT YOUR LOSSES! You will begin to realize the importance of this advice when you study the top traders.

Thank you again for allowing me to share my ideas over the past year. I hope you continue to find this blog insightful and that you also learn something along the way. You can email me at [email protected] if you have any questions or comments. I will try to answer them as best as I can.

Follow me on Twitter @jfahmy

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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