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Tuesday, November 16, 2010

Learning Corner : Charts dont lie

These are for my students who will be attending my first class. I will be sharing with them about RISK vs REWARD. It is for them to UNDERSTAND why 8-9 out of 10 of them in KLSE STILL losing money despite KLCI at new high. I do hope the stats has change? Perhaps 8-9 of them now gaining money? Can anyone correct me with latest stats?

Yes, charts do not lie - how many 'loss'(paper-loss) as they bought into it but dont know anything much about SELLING. Do not love your stocks!!

裘海正 - 愛你十分淚七分



The title of the song : Love you 10-points, tears for 7 points. To translate that into my stocks, if I m in love with a stock 100%, holding on to her ... and seeing her diving down, losing 70%, I will really be in tears now.

TIME (code : 4456)


Chart 1 : This is a months chart, showing the peak at RM8.00+ in 1995. Today, it is below 50 cents.

Chart 2 : This is a weekly chart, showing the that it dived below 10cent during the Mac 2009 dip, but shot up to 50 cents level. 500% profits, anyone?



Chart 3 : A more recent chart showing that it was holding at 0.450 level until it dropped to 0.36-0.38 levels but managed to recover to trade around 0.45 level again for some time .... until days ago ...

Chart 4 : Last friday, it went berserk. Shot all the way to touch 0.57 from 0.47 in a day with EXTREMEly high volumes. The most active stock in KLSE. With rumours flying around, every aunties/uncles start to believe it ... YES, this time I will be RICH. Yesterday, some profit taking seen ... and then today, no mercy. SYNDICATE happily cleared their positions on Friday/Monday ... and pushed it down today. Cool .. it is back to 0.45 level. It closed at 0.435, lost 16.35% in ONE trading day today.

These will be good charts of a counter to show my 'students' about RISK in markets. No punting, no gambling, no speculations and many more NO from me. I m novice, these are new babies in KLSE.

Welcome to our legalised casino, BURSA ... my friends.

TEH

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