STA Blog

Rajan Dhall MSTA, one of the three founding members of DND Capital (North and Dance the other two) gave a lovely presentation at an in-person monthly meeting for the STA Tuesday 14th May; well attended, with more than average young people and ladies. A clear and candid talk about has career, managing expectations and keeping an eye out for pitfalls.

Working at a gym near JP Morgan’s offices at Blackfriars (London), he’d listen to the traders’ ups and downs, started following markets, and one day had made enough money investing in stocks to tentatively set up on his own. Along the way he studied for the STA Diploma course and with what he learned there started devising his own trading strategies. He warns that it’s not a ‘’get rich quick’’ effort and admits that today while 60-70% of his thinking is based on technicals, the other 30% leans to fundamentals.

Salient points from his teachers were the limitations of market indicators and how Market Breadth has similarities with auction theory. The part intuition plays and how Behavioural Finance cannot be ignored; also how ego and Buddhism can be important. He also learnt the value of being stubborn – sticking to, and trusting a method and model that you know suits you. Finally, the art of writing technical analysis reports.

Rajan always trades trending markets, with one simple 21 period moving average (not moving average crossovers), buying when price is above the one average for a 2:1 risk/reward ratio, stopping himself out at the previous swing low. He takes into account the structure of a market and instrument before important economic data is released and warns that one can have ‘’too much information’’.

The firm also has two other (less used) strategies, one of which has the MACD at its core, the other the shape of the candles themselves. ‘’I want things to be simple. That’s just my personality’’. His candid talk underlines what a very decent chap he is.

Do look into their website: www.DNDcapital.co.uk