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Wednesday, November 17, 2010

Today KLSE taking a break ... DOW down 200 points at one stage and closed 178 points lower. I will be watching HSI today.


伍佰 - 挪威的森林




FBMKLCI : Click the chart to enlarge. There are 5 vertical lines where each time our KLCI moved to 20-MA, it rebounds to continue its UPTREND. Everybody could see that it is uptrending, bullish sentiment. That explained why I will be BUYING. I will not understand why suddenly many turn bearish now and some even asked if this is the reversal! FEAR in play.

Now, there is ONE question many should ask : Do you think KLCI is merely in correction mode or reversal?

This is one decision that I will NOT commit as we all view markets/stocks differently. For those one week bullish when it is up, bearish this week when it is down it has no idea about market. Well, market do move up and down, ok? A breather after such a looong upthrust is needed.

Simple ... IF you still believe market will move higher up after this 'short' correction, you will see it as an opportunity to move in. Buy your fav stocks at support level. Of coz your stock MUST be an uptrending stock with some fundamental to speak about.

If your think it is a point of reversal, SELL all your holdings if it breaks 50-MA.

These are my advices to my 'clients' with some started to show signs of worry. Market is a noisy place for many. If you hear this rumours or that news, it could be really challenging NOT to be swayed away or influenced by them.

An experienced investor will tell you that buying should be at such levels where correction in place. This is easier said than done as when you see REDS, you might get 'heart-ache' and words of regret(of buying earlier) will be there. Isnt it common for novice like us buying WITHOUT a plan? A simple plan could be at what level I will buy my first portion, at what level I should be buying at second stage(up or down)?

Say I bought Kinstel at RM1.00, and still bullish on her(I m a practical trader, I do buy it because others want her too ... that creates volume) ... so, at what level should I collect more as it is going below RM1 now? Nope ... I do not really think of cut-loss on her. So far, I only bought 2k units. So, at what level should I buy more? Hmm ... interesting decision, to BUY, HOLD or SELL? Then, we need to look at out time frame!!

Say, I dont know TA or whatever analysis. I bought it at RM1 after I read someone's blog and have always trusted his writing. A no brainer way could be buy another level at 0.95 and another level at 0.90(just example). Hmm ... buy 3k units at current 0.95 level and prepare another 4k units at 0.90.

That is a no-brainer way to me, which at times I use it(haha). When I buy a stock, I do prepare that it could go lower(risk) rather than imagining how high it could go(reward). To me, being more experienced in market now ... RISK comes first. Anything extra is the REWARD.

Be glad that make is down ... if HSI down today(expect that!!), it will be the time I m moving back some into HKSE on my babe. :)


HSI : Rallied to 25,000 level. At 23,700 level now. That is 1,300 points lost. Breached 20-MA yesterday after it fell 334 points. I am eyeing HKSE's babes too as this will be the place the 'hot money' moving in. I will like to see 23,000 level where 50-MA stands at the moment.

10.10 am : HSI down by 260 points. Interesting that KLSE is closed today. Phew!

11.30 am : Pool side ... many of us who stay in condo/apt with pool-facilities will be paying monthly maintainance fees but HOW many of us actually use the pool? I do ... otherwise, I will NOT stay in a place with pool, paying extra for it. It is not a matter of 'small' money only ma, but the practical attitudes in us. Call me practical person, call me frugal or call me kiam-siap or plain stupid. I dont really care. I m so used to it. haha. I do still riding my second-hand kap-chai to office and people will tell me it is 'dangerous'.

Life is full with RISK ... knowing a new friend is a RISK. Going into a relationship is a risk. Marriage is a greater RISK. So, if you tell me market is NOT risky, I will wonder what you actually meant. It could be you have been gaining so much that market is never risky from the beginning for you or perhaps you are new to market, ignorant and naive. You mean buying property is NOT a risky investment too? Stock is risky? Hmm ... strange enough, it sounds LOGICAL. I cant be disputing logical facts, right?

That is statement is in-correct, not wrong. RISK is depending on HOW you manage them.

Ok, time to go for shopping at Sunway Pyramid. Well, being a regular shopper in JusCo, of coz I will like to buy Sunway and/or Aeon stocks, right? hehe

TEH

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