The beginning of a new year is a very timely occasion to review one’s personal finances. I decided to review my share portfolio but started by rereading one of my share management books The Best 50 Trading Tips of all Time by Frank Watkins.
Frank Watkins has been involved in the Australian Stock Market since the “Poseidon Boom of 1969 as a commodities broker. Since 1986, Frank has been involved with software development which has emerged as Pro Trader Charts, charting software for equities.
I became aware of Frank’s work when I was looking for a new charting package and decided that Pro Trader Charts was an outstanding product. His software is quite unique and to help me get a handle on his philosophy I purchased this book and two more. Frank supports the software with weekly webinars where he reviews the share market and looks for opportunities using his software.
You don’t need to be an avid chartist to gain a wealth of knowledge from this short book, The Best 50 Trading Tips of All Time. A full explanation of the importance of each tip is provided. This is a very easy to read book without a lot of technical jargon. Frank has organised his top 50 trading tips into sections:
- Before you trade
- Trading rules
- Rules for trading a stock
- Portfolio rules
- Order Placement
- Risk management
- Money management
- Psychology of the market
Whether you are primarily a technical or value investor, the tips in this book will be invaluable. It will provide ideas to evaluate how you are managing your portfolio. You may decide to take up some of his great tips for managing your share portfolio.
While I don’t want to steal Frank’s thunder, I don’t think he will mind if I mention Tip 2, which is to invest visually.
Only by looking at price action on a chart can you make a fair assessment of whether the price is rising or falling.
This book is not about using the Pro Trader software. I would strongly recommend this book for anyone who manages their share portfolio or who wants to have a better understanding of investing in the share market.
For my readers who are dedicated to technical analysis, you may also enjoy two other books written by Frank Watkins. These are Exploding the Myths – Trading to win in Bull and Bear Markets and 12 Steps to a Profitable Trade.
Glenis Phillips SF Fin – Good Financial Reads