1. November 2015
My personal set of tools
I grew up with a dad that was a carpenter. He could craft almost anything, just using his hands and his tools. As a young boy I often visited his workshop. The tools fascinated me. There was always an aroma of sawdust and oiled machine parts, and I was fascinated at the number of tools arranged on the wall and everywhere. And I liked to watch him make a piece of furniture and see him switch tools, using a hammer, switching to a chisel, switching to sand paper. It was a joy to watch. I wanted him to train me in carpentry but as a young boy I didn't have the patience. But the love of the tools has continued with me.
What relevance do this talk about carpentry tools have here? Well, as I see it I have a big carpentry workshop with lots of tools when I'm analyzing the markets. We all have to switch tools, using the one that is appropriate for the job. Naturally we don't insist of only using a hammer and a chisel for every job that comes our way. We need different tools for different jobs. And that brings me to the topic. People often ask "are you a technical analyst or a fundamental analyst?". For me that is like asking a carpenter "Do you use a hammer exclusively in your work, or do you also use a chisel?". He would frown and not really understand the question. Of course he uses both, but he also uses a screw driver and sand paper and so on. He likes all tools, regardless of what they are called. If they do the job, then he likes the tool.
So back to the question here. Are you a fundamental analyst or are you a techical analyst? I often had a difficult time answering that. Not because I didn't know, but because the answer is much more dynamic than just saying that I'm a 50/50 combination. Instead the answer changes over the course of time, and it is not limited to only fundamentals or technical. But now I have finally found a way to describe it. It may not be 100% spot on, but we are getting quite closer to the core of it here.
Instead of writing my answer, I have done a Youtube post. This explains it more dynamic than a written version, so I hope you'll like it. It's my first Youtube video, and so it's full of blatant rookie errors, but just ignore that and look for the content. Perhaps the conclusion and the dynamic way of showing the tools is something you can use to depict your own, personal set of preferences...
See the video to the right or find it here (https://youtu.be/QbrVSudEUtA)
The video shows my "wall of tools". You are welcome to send me a picture of your wall of tools (use the contact in the About Me section).
May the pleasant aroma of sawdust be with you...