Saturday, October 02, 2010

11.25 am : Bangsar - CN's traders meeting

I was reading The Star - Is Economics a religion? Written by Andrew Sheng. I m a follower of his column. Haha ... that is creatively put. IT IS.

Question : Should Governments cut deficits or increase them to get jobs going?

Japan : Tokyo intervenes in forex market. As Yen at new high, japan attempted to weaken its currency to preserve an export-led recovery.

So, the question ... is the strengthening of MYR(vs greenback) a good sign of economic recovery? How these factors affecting businesses and which sectors will be affected most? The strengthening of MYR will certainly not seen as a positive sign in rubber-sector and tech-sector. Now, if you try to explain such an economic-finance-business things to a science-background person ... say, a Biology lecturer, it is a challenge. It is too huge, too abstract to explain and it is not really possible as we need to use terms which as alien to them!!

PT : I dont even know how currencies traded, why currencies could be trades and such just merely 2-3 years ago. So, start from bottom - place your foundation well if you are going to be serious investor. That is my point. Learn ... learn ... learn. start with the terms first, ya.

Recently, someone in RHBInvest asked that if MYR is strong, that will benefit JCY? And someone at least kind enough to answer. So, the investment circle should give these novice-in-economic-n-invesment a chance or a platform to ask these so-called silly questions. I was LOST when I first listened to Bloomberg 3 years ago ... I read The Star-biz section daily(without miss for 2 years) and diligently read The Edge(every pages, every week for a year) ... I was lost, honestly. It is too large for me - it is too complex. But, I know I wont give up ... I m an educator, I know how my own brain works, I even planned what to learn in given time frame!!

Stock market, as it is ... could be viewed as a place for gambling. For example, a reader of mine mentioned buying Mtone at 0.03 as a tick to 0.035 will gain her much!! I shaken my head and said ... we r VERY different. When my old friend(ex-classmate from std 3 to form 3) mentioned that she is buying Kheesan, I re-acted(overly, I guess). I freaked out as she told me she is a trader. That is not trading, that is punting. (I m a trader and a punter too).

So, do we really need to know so much about Economics before we move into share-markets? My answer is NO. But, economics news do move the market!! Do we need to know if Economics can be viewed as a religion or even bother to read such articles(I find pleasure reading such articles after trained myself). Most in stock-market do not even bother what is going on or what are the businesses of the stock(a company) doing.

I viewed punters different to speculators. many are speculators too. Count me in, of coz.

Anyway, knowing ourselves - our risk appetite - and generally our attitude towards lives is the first important point I will place BEFORE a person speak about buying/selling. A person who is buying in LCL and another person who is buying into Genting is a TOTAL different personality. Knowledge wise too ... if I have to ask my friend 5 good reasons of buying KheeSan, I think I will get 5 'excuses' to buy rather than any economics-business-finance-investment related sense. Markets do NOT need to make sense, ok?

I m going for my meeting ... these writings are for my 'young' and new colleague-friends.

6.05 pm : I attended half of the CN meeting - KLCI resistance at 1480, but failure to break this level, we might see double-top. HSI showing a reversal candle-stick and at resistance now. SO, HSI will likely to move lower. But due to holiday-off in China, HSI does not has the chance to retrace!! Interesting ... so, we shall see KLCI to move higher next week?

Our group are suppose to discuss : Gadang, Faber and Sunrise.

HW Chow : Thanks for acknowledge me but I wish to remain as an observer, ok? You are one of the person I respected in CN. You are a very friendly and kind person. But I dont know how you found me in this blog!! Hmm .... anyway, keep it to yourself, I do not need more followers from CN and I might blast CN or TA theories which I could not understand. I want to remain INDEPENDENT. I m NOT a supporter of TA or CN, of coz. Shhhh ... thanks again. I do look into the post in CN's forum. Cheers ...

HW Chow is the first person I met in CN. In fact, he is like a mentor to me initially. hehe ... Today;s CN's meeting ... we see MORE new faces, more aunties registering to learn TA. Hmm ... I suspect they wont understand ... and apply in their trading!! Perhaps 10% of them MIGHT benefit from the thousands of $$$ they are paying CN. CN is GOOD in their marketing. MONEY = CARROT. haha ... many going for the four-day course soon. Seriously, many are aunties and some retired. I was talking to a retired teacher!! Wow.

Back to stock-pick : I chose Sunrise to rise again. Now, this is to answer the FA-kaki about what AlexLu spoke about breakout - CN taught that if you are 'late', then you wait for it to retrace to the NEW support level, which was the resistance level that it recently broken. So, today Sunrise is trading back to the support at 20-MA. So the CHANCES of rebound is higher .... for trading!!

I m not defending TA or against FA. It has nothing to do with it. It is just for education sake. Breakout is just a strategy being used by some traders. NOT all using this strategy, ok? Sunrise could possibly continue its uptrend as property-stocks are hot at the moment!!


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