57 - Technical Analysis for Value Investors with David Keller

How to connect with David Keller

• Follow his work on Twitter: @DKellerCMT 
• David Keller's Websites:
  • MarketMisbehavior.com (home of Sierra Alpha Research)
    • Includes a blog and YouTube Channel
  • https://stockcharts.com/

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Show Outline

The full show notes for this episode are available at https://www.diyinvesting.org/Episode57

Part 1: Applied Technical Analysis for Fundamental Investors

• Technical analysis quantifies investor behavior
• Charts can help you filter investment ideas after they have passed a fundamental analysis process. "What are the best 5 ideas TODAY."
• Value Investors would most benefit from using:
  • Leading indicators: Demark Indicators anticipate reversals
  • Lagging indicator: RSI (Relative Strength Index) measures price momentum

Part 2: Behavioral Finance and Mental Models

• Key Behavioral Biases / Mental Models that investors struggle with:
  • Confirmation Bias - Give greater weight to evidence that agrees with you
  • Narrative Bias - We love stories
  • Endowment Effect - Falling in love with your stocks
• Investor Habits that lead to Success:
  • Keep an investment journal (Why are you buying?)
  • After each investment: Write a post-mortem analysis
  • Find a tribe. Who will hold you accountable and help you grow?