I am somehow subscribed to the ASX’s Investor Update. In the latest edition I came across the following article – Ten Questions When Picking Junior Miners I have striped out the ten questions.
1. What commodities are being explored for?
2. Where are the projects?
3. Are the projects of significant scale?
4. Is there potential for high-grade mineralisation?
5. Who is the managing director?
6. How much cash does the company have?
7. When will the company be drilling?
8. Is a re-rating possible?
9. What are the relevant risks?
10. Have I taken appropriate advice?
Not a single mention of the most valuable piece of information available to traders and investors – PRICE. This is to be expected of someone with an academic bent problem – you wont get published very often if all you say look at price and it will tell you everything you need to know.
However the same issue befalls the majority of traders. The chart below is the default view of the Dow offered by Stockcharts.com.
You actively have to remove all this junk from the chart to see what is actually happening. If this is the default setting ot is little wonder that new traders (and many who should know better) obscure their charts with rubbish. It is hard to convey to traders that each layer of information they add to a chart actually moves them further away from what they might actually see.