#TradeMyWay: Learn the hard way

#TradeMyWay: Learn the hard way

As part of our #TradeMyWay campaign, we have asked followers to send in some of their own personal trading stories. Thank you to Derek Bester for sharing his story with us below.

I, Derek Bester, started to get interested in shares just after my university years, 1978, and made it my hobby. I invested my first hard earned R10 000. Man, in less time than a blink I lost everything! I started to do a little reading about what went wrong, and without any program I started to draw share price graphs by hand. It was hard work. I then invested another R15 000. This time it took longer to lose everything.

I then started to read up about technical analysis, but the standard indicators on their own are not very friendly and everyone has so many combinations that you don’t know whether you are coming or going. I began to adapt the best indicators to combine and design my own indicators. These cyclical indicators were not enough, I had to seperate the wheat from the chaff. I used a “filter” to root out all “penny stocks” and also to just look at those shares that do to at least R40m volume traded per day as well as a positive “Trend Factor”. (By the way, the current “Trend Factor” showed to stay away from Steinhoff Steinhoff on R93 already.)

All the good books that I have read say that you need a “prediction indicator”, but do not give you one. I then designed “FrontRunner” which can be used in many different ways of which the most accurate way is “divergence”. Here’s a very busy picture of its uses.

The one big rule which books recommend is that you shouldn’t borrow money to buy shares. I broke this rule (not advisable) and borrowed R1m. Within 3 years I paid back the loan and never looked back. My company made me retire 5 years earlier and I thought, “what now?” I decided to make my hobby my pension!

The disadvantage I had is that my instruments were spread over a few programs, Metastock, Omnitrader, VectorVest and Visual Trader. My son, Alwyn, studied programming and mathematics, and became interested in shares. He then used his spare time to develop a program for us to bring all that together. To inspire the young people, we started a Web page where I give the news of the day for free free, www.zoclee.com. The Web page is, of course, all Alwyn’s good work. We still have a few good ideas that need to be programmed.

The lessons to learn from my story are:

  • never give up,
  • believe in what you do, and
  • know that you will never learn all about the markets in your lifetime!

Leer op die harde manier

Ek, Derek Bester, het pas na my Universiteits-jare, 1978, belang begin stel in aandele en dit my stokperdjie gemaak. Ek het my eerste hard verdiende R10 000 belê. Man, vinniger as  ‘n oogwink, het ek alles verloor. Ek doen toe so ‘n bietjie leeswerk oor wat verkeerd gegaan het, en sonder enige program begin ek aandeel prys-grafieke met die hand teken. Dit was harde werk. Ek belê toe weer R15 000. Hierdie keer het dit langer geneem om alles te verloor.

Toe begin ek oplees oor tegniese analise, maar die standaard indikators op hulle eie is nie baie vriendelik nie en elkeen het so baie kombinasies dat jy nie weet of jy kom of gaan nie. Ek begin toe om die bestes te kombineer en ontwerp my eie indikators. Hierdie sikliese indikators was nie genoeg nie, ek moes die kaf van die koring skei. Ek gebruik toe ‘n “filter” om alle “penny stocks” uit te skakel en ook net na aandele te kyk wat ten minste R40m per dag verhandel en ook ‘n positiewe “Trend Faktor” het. So terloops, die huidige “Trend Faktor” het Steinhoff reeds op R93 as ‘n wegbly aandeel uitgewys.

Al die goeie boeke wat ek gelees het sê jy moet ‘n “prediction indicator” hê, maar gee jou nie een nie. Ek ontwerp toe “FrontRunner” wat op baie verskillende maniere gebruik kan word, waarvan die mees akkurate gebruik “divergence” is. Ek sluit ‘n baie besige prentjie in van sy gebruike.

Die een groot reël wat boeke sê is dat jy nie geld moet leen om aandele te koop nie. Ek breek toe hierdie reël (nie aan te beveel nie) en leen toe R1m. Binne 3 jaar het ek die lening terug betaal en kyk nou nooit weer terug nie. My firma laat my toe 5 jaar vroeër aftree, wat nou gemaak? Ek maak toe my stokperdjie my pensioen!

Die nadeel wat ek toe nog het is dat my instrumente oor ‘n paar programme versprei was, Metastock, VectorVest, Omnitrader en Visual Trader. My seun, Alwyn, studeer toe programmering en wiskunde, en begin belangstel in aandele. Hy gebruik toe sy spaartyd om vir ons ‘n program te ontwikkel wat alles saam vat. Om die jong mense te inspireer, het ons ‘n webblad begin waar ek elke dag nuus van die dag gratis gee, www.zoclee.com. Die webblad is natuurlik alles Alwyn se goeie werk. Ons het nog ‘n paar goeie idees wat verder geprogrammeer moet word.

Die lesse om leer is, moet nooit moed opgee nie, glo in wat jy doen, en om te weet dat jy nooit alles van die markte sal leer in jou leeftyd nie!

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