About World of Charts
My career began in 1982 with a visit to the floor of the London stock exchange as part of the investment course I was on. I had a conversation with a jobber in ICI shares who was downbeat about the market and the lack of interest in shares. My timing was fortuitous as the great bull market in stocks had just begun. I got a job as a trainee investment analyst with a large city stockbroker and learnt the fundamental approach of valuing equities. My interest in charts took off after I discovered the Datastream terminal in the corner of the office. I soon realised their tremendous value and how they gave me an edge over the fundamental approach.
In 1987, I purchased a traded call option in Rio Tinto Zinc and sold it after several weeks, making four times my money. I highlighted chart-based buys to fund managers and in 1988 spotted a change in trend on the chart for UK interest rates and asked the finance director of a major house builder about their land buying strategy. They were still increasing the size of their land bank. I put out a sell note on them and others in the sector before Interest rates doubled to 15% in just over a year.
I took the Society of Technical Analysts exam in 1989, passing with distinction and the highest mark ever recorded. That fast tracked me into Chart Analysis under David Fuller, one of the few to warn of a crash in 1987 and then predict one of the shortest bear markets in history, as the stock market was still in a secular upward trend. I learned more about point and figure charting which was useful for price targets, support and resistance, breakout confirmation and trend running. I covered markets from equities, stock indices and bonds to currency futures and commodities.
In 1992 I discovered Japanese candlestick charting which was just as exciting as discovering charts on the Datastream terminal seven years before. You’ll find a description of the key candlestick patterns in the Technical Analysis section.
My next job at Informa Global Markets saw me specialize in currencies, bonds, gold and oil futures. In 2005 I wrote a very bullish article for World Gold, when gold was US$450 per oz. I researched the market in depth in 1999 when it was clear that a major bottom was unfolding in the US$253-US$330 range. Also two classic contrarian signals occurred then: selling by central banks and Gordon Brown disposing of half the UK’s gold reserves. I wrote technical commentary for the International Mining review for ten years. Now I have launched my own monthly investment newsletter – World of Charts - and I’ll also send out chart alerts in between issues.