Hi , im new to trading and have read numerous books on trading and one in particular: The Naked Trader by Robbie Burns, mentions a promising technique for analyzing annual/interim reports quickly.

The Traffic Lights System: using the following words to highlight in reports using the 'News Phrases' tool.

Here are the phrases he recommends to highlight:

Red: challanging, difficult, sown by, unpredictable, lower, poor, difficult trading, tough, below expectations.

Yellow: in line with expectations

Green: exceeding,expectations, positive, favourable, profit up, excellent

Blue: debt, banking facilities, bank covenants



Now i have tried this 'technique' with Alphameric and Prudential annual news/reports but the Only phrase it brings up is 'Debt' in blue.

Have the companies learnt about this technique he recommends and have now changed the wording of their reports?
Could anyone recommend alternative words to use?

I do appreciate this book is two years old but i was shocked how none of the key phrases came up in their reports besides 'Debt' ??
I understand this technique is also just a quick method to get the feel of a company, and not by no means anything more than that

thanks

I find the key phrases still work very well when reading company reports. Sometimes I come across a report without much highlighted, but normally it's because they haven't much to say of interest.

As well as using the key words suggested, you have to look at a few reports to see what words keep croping up. Directors are very predictable, and like to use the same wording over and over.

The book is for complete novices sbabbab.

Robbie Burns is only successful because of the 'wall of money following him' cleverly set up and managed by himself and just within the regulations governing the market.

He says he isnt a tipster....... i beg to differ, and remember he is not regulated.

If you want a top class trading book i recommend Marcel Links 'High Probability Trading' its a gem and Ive read a lot of trading books.

The following for this his bloke's website is now quite amazing. Yesterday he announced that he'd bought 2 ergo, and the price was immediately up 7 1/2%, and sold Vectura and the price immediately fell by the same amount. Why bother with p/e's and yields when you have that kind of power.

FFS who gives a toss, good luck to the guy (NT) if he can get away with it and at the same time make a few bob for a few others usually newbies. No one was born a trader! There are worse culprits, gobshites out there!

Here is a test if you have some time... why not look back at his historic trades, say those placed over 12 months ago and see how the shares performed from the week after the trades were published onwards. ie. after the initial bump up in price due to flock trading.

My guess would be that on average they will still be well ahead over the following 6 months. His trades are pretty smart, even if the gains are exaggerated by the flock.

Carson - I don't believe I'm asking whether you give a toss or not and I really have no interest in your opinion. I was just pointing out how amazingly successful this bloke is simply by people following his trades. I'm not suggesting he is doing anything wrong, as you seem to have rushed to infer, in fact his whole operation appears to be amazingly successful and good luck to him.