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Saturday, December 31, 2011

Financial MindSet

The 7 Steps to Financial Success



1. Mindset

2. Goals

3. Financial Plan

4. Income

5. Expenses

6. Invest

7. Protect

Financial Check-up

Mindset : I was a total idiot and worst than any average young lecturers(low wage-earners too). So, my financial intelligence was way below average Malaysians. So, I decided to make a huge change in my mindset about financial 6 years ago after reading RDPD by Robert Kiyosaki. Two years of failing with my titbits-business, I decided to explore stock-markets in end of Dec 2007. I bought one of my first financial book written by Adam Khoo --- "Secrets of Millionaire Investors". Gladly change my mindset and will hope to help more of those who wish to change their mindset. Many of my colleagues could learn from me in this aspect, especially if they are still 'young' .

Goals : About 4 years ago, I wrote my 5-year goal in trading and investing in markets. Being in education line, it is only logical that I want to learn well so that I could teach!! Yes, I m acheiving that direction ... so, I am looking forwards toward my another 5-year financial goals. Without firm goals, all are talks and dreams.
Financial Plan : Yes, this is one aspect I certainly need to re-fine my plans.

Income : I have more than doubled my income when I moved back to KL last Jan(2010). Salary jumped by 25% with tuition rates here are doubled of those in KK. But those are still not the main point I am back here in KL. It is my goal ... to acquire knowledge and share through teaching with others. I am going to double my income further in 2012. So, increase our income... salary, part-time, passive or other legal sources.

Expenses : Control and manage expenses is very crucial for me as my income jumps, my expenses have escalated too. So, it is good to reveal how I could control the expenses. Remain to live below my means, keep things simple and ... delay gratification!!

Invest : Yes ... income - expenses = surplus. Use the surplus invest or trade and make sure we are gaining consistently.

Protect : This is something I need to ponder further.

Nice to reveal those motivational clips in the last day of the year. Haha

counter : 348, 200 (averaging 950 viewers per day) Thanks.

TEH

3M in trading : Mindset, Method and Money Management

Learning Corner : The three M

Reasons Why Most Active Traders Fail



I will slowly share and discuss MINDSET with my tratles in coming meetings as I am sharing METHODS part with them. Yes, majority in markets concentrated in METHODS and always thinking what indicators to be used etc etc. To me, MINDSET is more important in trading.

Yes, trading plan need to be emphasised in my meetings as I still see many in my tratles-group trading without planning!! So, they do not keep track with their trades and such. They will be searching blindly for the next good trade again ... and it is matter of time, they will be those normal traders out there. I will make sure that we stay as contrarians and OUT of the normal-noisy market places. Forums are VERY noisy with so many losers there and some boasting away their 'killings', as if it is a game? Hmm ...

Listen to the above clip. Be happy that we are going into a new year. BUt, if you never want to improve yourself ... the choice is still yours.

Good luck.

TEH

Winning : Influences by friends

Book : Winning the game of life by Adam Khoo

If you want to change you life, begin by changing your friends

After some time, I came to realise that there is a powerful force that influences the way we behave on a daily basis. This force shapes our beliefs, attitudes, values and life standards. It is the forceful influence of the people we choose to surround ourselves with. We can do our best to make a change in our lives but unless we change the people we surround ourselves with, any changes we make will not last.

to be continued

Friends affect us and infect us

Why are our peers such a strong influence on our behaviours? As human beings, we are creatures of conformity. We are hard-wired with the emotional need to be accepted by the people around us. At the same time, we fear rejection. To feel connected and accepted in a group, there is a tendency for us to think and act like the people in that group. Ultimately, people like people who are like themselves.

Have you ever noticed that you tend to talk and act differently when you are amongst different groups of people? All of us have different groups of friends from different social circles. For example, I have got school friends, army buddies, colleagues, business friends and family friends.

When I am with my business friends, most of whom are CEOs of successful companies, it is natural to talk about politics, business, investing and economics. I carry myself differently and speak a lot more professionally. Because everyone is an industry leader, we feel comfortable talking about our achievements and goals for the future. The time I spend with them is intellectually stimulating and inspires me to greater heights.

However, when I am with some of my old school friends, I find myself having to think and act very differently to fit in ... If I were to speak in the same tone and manner as I do with my business friends, they would probably stare strangely at me. With the second very local group, the conversation will probably turn to sports, gossip and sex. Talking about business and investing would bring about a blank stare. While I have a lot of fun with this group, hanging around them does not stimulate me intellectually or drive me to raise my standards.

Your friends affect your success

If friends have such a strong influence on us, we have to be very careful with whom we choose to spend out time with. Whether we like it or not, our friends affect how successful we will become in our finances, relationships, careers and even our health.

I believe we should mix with all kinds of people from different socio-economic backgrounds, races and religions. It opens our minds and teaches us to be more understanding, compassionate and tolerant of others. There is always something we can learn from anybody, regardless of their age, status or experiences.

At the same time, we should consciously be aware of how much time we are spending with each group of people. Hanging around certain friends may be fun, but we should be mindful not to spend all out time with people who may unconsciously hold us back from where we want to go.

Why the rich get richer

If you want to be financilly successful, you have to network with financially successful people. The reason why I am able to stay passionate and motivated in investing is because many of the friends I spend time with are successful entrepreneurs and investors.Whenever we get together, the conversation is invariably about their views in the stock market, the hottest investments and how much profits the have made.

One of my friends(he is savvy investor) always talk about few hundred thousands he makes trading FOREX and commodities. By being around people like that, it is not difficult to stay motivated, to keep improving your own investing skills.

At the same time, every meeting with them is an educational experience. We add value to each other by sharing our knowledge and experiences. This is why the rich get richer. If you only hang around people who draw a salary and put their savings in a bank and whose only 'investment' is buying the lottery(4D), then you can forget about ever being financially successful!

to be continued

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I will recommend my readers to grab this very inspiring book, share with others or buy it as a gift. I will buy a few more to be given to many as a gift this year(2012).



Happy New Year

TEH

Friday, December 30, 2011

Stock Watch : BJCorp


BJCorp : I posted this chart for my tratles to analyse. See how many will take up the challenge. It is a good practice for many of them there. Haha

Need to explain the FIVE dotted horizontal lines. Need to explain the FOUR arrows. Need to explain my three purple-eggs. Hehe.

New Year homework!! Haha.

I bought a new book "Winning the game of life" by Adam Khoo today. This will be my new-year reading ... it is a good book. Do read good books, mix less with those negative ones.
TEH

Last trading day

Today is the last day of 2011 for trading. So, I need to do some last minute promotion!! hehe

Good morning!! DOW closed 135 points higher and we are going into a new 2012 year full with optimism that market could only be bullish?! Good ... after heavy buyings for past weeks, when buyers are back, I will gladly sell more of my stocks, going into CNY.

Tratles : Well, I do have two batches this year which I named them batch-1, comprises of my tratles from cohort-1 and cohort-2. and batch-2 which is the combination of my cohort-4 and cohort-4.

Batch-1 : Our meeting will be next Friday and alternate Fridays from there. There is a person(male) who will be joining our meeting as 'trial' and he is thinking of joining my new cohort-5 class.

Batch-2 : The next meeting will start on Jan 14th. There is another person(male too) who will be joiing our meeting and he is also interested to join my cohort-5.

Batch-1 : AC, BL, CT, EK, EL, HK, Jess, LK, MS, PT, RR, SC, and YV(inactive)

Batch-2 : AL, AW, BH, CO, DN, JE, JL, KS, MH, MN, NC, RC, SM and VAY.

So, actually I no longer have 30+ in my tratles group as some have stopped. From my batch-1, two of them stopped(the older ones, actually) PL and SP due to some misunderstanding. As for my batch-2, a few from cohort-3 did not reply to continue and two ladies discontinued from my meetings after done my 5-modules.

Well, my focus will still in their LEARNING and to trade well. We will use the group to our benefits.

e-tratles : This is for those registered to follow my e-learning. Yes, I will be using my e-tratles blog and facebook for our teaching-learning aids. More to come but I have not added all. Anyone still interested with my e-learning, please register by e-mail to me at cpteh@yahoo.com for more details. There are many who have asked but did not reply or hear words from them. At least have the courtesy to reply and say that you are not interested la. Hmm ...

cohort-5 : I do have a KIV list of about 15 of them and I will take my time to write to each of them with details regarding my trading-class which is scheduled to start after CNY, ideally at the beginning of FEB. So, please give me a week to write to all ... and IF I miss-out your name, please kindly send an e-mail to me as a reminder. Thanks. For those still interested to join us in my cohort-5,  please e-mail me too for more details. Thanks.

PROMOTION : Free one teh-tarik for those register before Jan 1st. Haha.

With the above advertisement, I hope I could get a few more tratles or e-tratles in my group. Hehe.

Happy New Year!!

10.45 am : KLCI at 1511.

Taking profits

Unisem : Sold at 1.10-1.11 when saw it coming down in the morning due to profit-taking. So, at 1.13 now, touched 1.14, checking if I want to grab her back if it managed to break 1.13 level. Watch.

RSawit : Cleared some at 0.93 and 0.935 done. Once 0.94 done, I am out ... in one week trade? I do expect it to move but ... just dont know when and how far it could go. Using technical, selling should be at 0.93-0.94, so I am just executing my plan? No? You think it will go to RM1? Base on? As I said, I am a trader, if I want her back, I will ... afterall, I have traded RSawit quite successfully for the past 3-4 trades. Cant remember how many times or the profits, actually. I dont count the details.

Taking losses

E&O : At 1.40 now ... cut-loss was right?

BJCorp : At 0.95 level ... cut loss was right?

Note : The profits done SHOULD be much larger than the losses that we cut. And with chances of doing 7-8 positive trades, dont you think so doing it consistently will help us to grow --- in knowledge sense and experience sense. Of coz ... money-sense too. Does it make sense to you?
Now, in trading ... we are not here to show to others if you are right or wrong. I do think it is more important that one knows their OWN plans. That is what I will always question my tratles. I do see EXIT points(profit or loss) is more important than entry. Everyone knows when to BUY .... but selling is a difficult decision due to FEAR and GREED.

Move on to the next one once a trade is done. DO NOT regret ... another bad  character of traders!! Those hai-ya, hai-yee ... ohhh--- huaaattt --- lau-sai and such words are plainly un-wanted. You can hear such from those in forums or kopi-tiam. It wont help us to be a better trader, ok? Trading is SUPPOSED to be mechanical, nothing to do with your emotion ... you mentaility of "IF ONLY ... but but but ... I think ... huat-arrr". Sigh ... I m cynical again. These words somehow piss me off.

2.55pm : Good year ahead for KLCI?

Kulim-wc : Are you still reading these lines? Check my post of analysis of Kulim-wc last night. Check out Kulim and especially Kulim-wc which pushed down yeterday. Nope ... not me. I do not ask them to buy into Kulim-wc. Hehe. Nice.

My stocks



Benalec : This is still lagging. Bought back at 1.32, at 1.36 today ... nothing to shout about(yet?). I will see it breaking 1.41 first before doing any actions.





RSawit : Collected at 0.88 level, can u see the chart as nice? Yes, last week I posted in my facebook for all to share. For past three trading days, volumes are increasing as prices inching up. That is a good sign. Not much of indicators that I am using --- just simple 20MA as support, 0.84 as my low level to watch and clearing at 0.94 level. Once my 0.94 cleared, dont worry, I could buy back if there is a breakout. The aim will be RM1 again. Yes, RSawit is tradable ... I have SAM and BL inside her with me. Hmm ... will it give us some profits? When I grabbed at 0.88-0.89 levels, I was thinking ... will it LOSE us money? I will cut if it goes below my support.


Unisem : Breached 1.06 after a month of consolidation, touched 1.13 yesterday. Will see if it could breached 1.13, otherwise ... take 10% profits.



UOA : Still consider as lagging but supported well by 20MA now. Need to wait for the funds to be back to have some fun? Hold.




YTLLand : Bought back at 1.05 as it is well-support at current level too.

RISK : When I want to take a trade, I will be thinking ... will I lose much of my capital at the levels I acquired? What are the chances it goes lower or higher(the risk-reward ratio in play too)? Think in probability ... and use technical for entry level, which use some fundamentals to confidently buying into these stocks. CONSISTENTLY winning more trades than losing. Cut-losses short ... and take profits off the table and buy something that you THINK will give you a higher chance of a profitable trade. REPEAT that again and again ...

Are you discipline and patient enough to wait?

Attitudes and Mindset

These are the MOST crucially important conditions


TEH

Thursday, December 29, 2011

Stock Watch : Kulim

Learning Corner



Kulim : New high ... yeah ... she is in news. Do read Jcorp, QSR and KFC news, in case you are a newbie and dont know that they are related? Besides, Kulim is in plantation-sector, in case you dont know that plantation is starting their party too?



Kulim-wc(overall) : Checking the current level ... nice.


Kulim-wc(zoom 1) : A zoom in is for my tratle AC which asked about trend-line. So, as it is DOWN-trending here, the down trend line could be used as our resistance la.



Kulim-wc (zoom 2) : A clearly picture when you zoom in ... there is a HUGE selling of its warrant today. Can I know WHY WHY WHY? Kulim is up but .... the baby is rebellious? haha.

The above is a simple analysis I was seeing as I was surprised that Kulim shot up buy its warrant is down today. I will want to check WHY the huge selling volume being seen today BEFORE I will like to move into its baby tmr!!

The above posting took me longer than I analyse the charts!! I wont be free next year to do such postings.

Yes, as long as IF I am free, I will drop some charts discussed in my tratles group. We will be creating ANOTHER blog just for our discussion purposes. I will have my hands full.

I doubt that I could manage to write or share here as I m doing above. I used about 45 minutes of my precious time to have this post out. Do you see the number of hours I have spent reading, sharing and blogging here for the past ... 3.5 years?

To all my readers here, I will thank you all for your supports. I will still be here but wont be in daily basis and the charts will be significantly reduced due to my busy discussion in my closed group.

Thanks and Happy New Year.

TEH

TEH

KLCI is above 1500

DOW down 140 points. Crude oil down. Gold and Silver down. We have two more trading days to end the year. I will like to see if KLCI closing below or above 1500?

9.40 am : KLCI down by 6 points.

RHBCap : At 7.15 level, EK must be happy to grab back at 6.95? Few of them still in at 6.80 levels.

KNM : At RM1 level today ...

MayBulk : At 1.51 now ... was discussing with JL yesterday as he posted the chart for discussion.

Alam : At 0.765 ... well, I missed her at 0.70 ... lack of focus.

Affin : Touched 3.09 this morning. Nice.

E&O : Failed me again ... cut-cut-cut

12.35 pm : Taking a peep at KLCI ...

Unisem : Yeah ... nice idea to collect at 1.01-1.02. Hey, did post it here when I gabbed at RM1 level, ok?

YTLLand : Collecting at RM1.05 level will do well too ...

RHBCap : A new gift to all of those tratles who too the trade. Nice.

Maybulk : Wow ... 1.57 level now.

Benalec and RSawit are above my cost price now but UOA is in red? Hmm ...

8.50 pm : Just back from dinner ... nice meeting with my tratles BL, AC and EK. BL brought his friend who will be joining my cohort-5 in FEB. Yeah ... BL, I will treat you TWO teh-tarik, ya.

Unisem : At 1.11 ... I queued to clear at 1.15 not done today and will ride on her .... till many more push her higher ... well, it was accumulating at 1.01-1.03 level and I posted it for my tratles to share but I do not know who is in or not. No one discuss much about her(was lagging JCY) and I guess I m the only patient person waiting for a case like ... today? Seriously, JCY is much much better trade than Unisem but I m TOO conservative, too 'fundamentalist' ... so, I missed JCY but grabbed Unisem instead. Do remember my principle(which I shared with AC today) ... do not lose money. Unisem at 1.01 level has good RRR, ok?

RHBCap : Today closed at RM7.30 ... well, EK must be too happy and treated us the 'Old-Town' drinks just now!! Thanks!! Haha ... few of my tratles went in RM6.80 levels. They are better than me. haha ...

UOADev : My largest positions as I averaged-up last week. Touched 1.42 today before retracing. Another surge will see me taking half profit. Selling my 1.32 portions at 1.45 should be good.

RSawit : Consolidating at 0.84-0.88 range before I decided to jumped in. Today, it is at 0.905 and need to check if it is sustainable.

Affin : A nice one, closed at RM3.08 now.

Benelac : Closed at 1.35, still lagging too ... hmm ...



TEH

Wednesday, December 28, 2011

KLCI above 1500

4.30 pm : KLCI at 1503. Yeah ... two more days to conclude 2011.

JCY : Above RM1 today.

KNM : Reverses ... at 0.95 now.

Gamuda : AT above 3.30, with its wd above RM1 now.

My stocks are lagging behind ... hmm ... Benalec, RSawit and UOADev. They are lagging!! We shall wait and see ...

Two comments by m1sg

contradiction...
No system will works in market. Otherwise, no fund manager is needed.
On the other, you are conducting a course how to make at least 10% profit?!

10.21 AM

What a contradiction!
No system works in stock market. Otherwise, fund manager is not needed.
On the other hand, you are conducting class promoting how to make at least 10% profit?!

Class on how stock market works, the pitfalls of stock market, ... instead of on the sense of making profit is more appropiate.

10:32 AM

Reply to m1sg

Actually I have wanted to delete off the comment as I will view it as another noises. Then, I re-read again ... and gathered some interesting pointers to reply. First of all, you must be a NEW reader. Welcome and do not jumped into your own conclusion, visiting others site. Say ... 'hello' ... be polite and you will be more welcome.

Yes, it is MY belief that no ONE system works for all. Yes, you pointed it out correctly which I have written MANY of times(in case you are REALLY first time here in my blog and shooting your bullets away) that I do not BUY into the stories that the systems could give us huge profits or return in short-period of time. That is speculative and YES, I AM TRYING to expose those scams. Read my posts and back-track to ONE thousands previous posts of mine, please.

Are you around in markets LOOOONG enough? I hope more than my mere four years? Bear with me, I am only in KLSE for fours years and you do not expect me to know anything much, right? Fund managers are needed, of coz. Many DO NOT want to manage their money much, they will buy bonds or mutual-funds(unit trusts). That is very OK, provided the funds are LEGAL and the returns are better than the FD rate, obviously. But, if one is to take charge of their own funds and trying to INVEST in stock-markets, what will be your advices for newbies? Buy a system which cost a few thousands and get greed as we will be rich? Or will you splash some water ... telling them the fact that 80-90% of those in markets WILL lose money and advise them to let the fund-managers to manage for them?

By know the RISK, we will try to reduce that ... since when I am selling a course that gaining any of my tratles 10%? Read the post again carefully as I have very low vocab and write in simple English. Many Chinese-ed readers could read my posts too(I think).

Yes, I am SHARING with my tratles through my short trading course on how market works(as if I know) and the pitfalls of stock market!! You get that right, that is my whole idea ... but I think I am going into a simplier idea of trading-course. I just shared with them some indicators to be used when trading and doing it consistently, HOPING that by year end, they will accumulate more than 10% profits. YES, I DID mentioned that is just a CHALLENGE for MYSELF. I do not even tell them or impose anything on them, ya. Hey .... there are 30+ adults there, do you think they are not adult enough to think? Err ... perhaps I m good in my marketing and managed to 'con' them? Haha ... just kidding.

As a person in education, I m more concern about their learning than profits. What is wrong to check that they will profit from markets? Is that the ultimate motives everyone in market? If you could get more than 10% in a year, will you SHARE with others your so-called secrets? I do ... I shared here in daily basis for past 3.5 years!! Hmm ... and I shared with my tratles in daily basis too since we created our facebook?

 Actually, again ... you mean good. That is why I am replying. But, I do not understand WHY many like to jump into their own conclusion, making judgment on others ... and in OTHERS backyard? It is amazing ... we talk about courtesy? Manners? Hmm ... respect?

I am on holiday, so ... you are lucky(or is it unfortunate? hehe) that I do reply. Most of the time, I placed such comments into spam. I was too busy to reply many e-mail and comments, anyway. If the posts do not benefit my readers or do not serve me as my trading-dairy, I will be 'lazy' to reply.

Hope I have cleared some 'contradictions' in our mindset about me. Please understand that I am just trying to educate. Positive feedbacks will be appreciated. Thanks for dropping by.

will want to write about : Groupon, Medical Check-up and direct-selling

TEH

Glove-stocks rallying

DOW is flat. Oil is above USD100 as the tension in Iran increased. That could spark some speculation on O&G counters. Bird-flu news is in play, sparking some interests in glove-stocks.

NEWS : Tensions in the Middle East also boosted oil prices. Iran has threatened to block oil shipments through the Strait of Hormuz, one of the busiest routes for crude shipments, if the West tries to embargo Iran's oil exports. The Iranian navy currently is conducting exercises in the region. About a third of the world's oil passes through the narrow strait. The U.S., The U.K. and other nations have talked about more sanctions against Iran as part of an effort to clamp down on its nuclear program.

Iran is the world's fourth largest oil producer, according to the Energy Department. Much of its oil is sold to customers in Asia. If tankers could not use the Strait of Hormuz, they would have to take longer, more expensive routes to their destinations.




Alam : Hammer formed at 0.70 level, reversal seen. Buying at 0.73 should be a safe entry point.



Latexx : Lagging behind TopGlove and Supermax and might break through 2.03 level to continue its uptrend. Well, it reversed from RM1.20 level to current RM1.90 level. Watch RM2 now for entry. Those who want to bet that it will break RM2(which most probably will) could take a small positions at the current level and to average up once it break RM2.03. That is how I see Latexx.

I will medical check-up and seeing a dentist for servicing my rottening teeth. Haha.

I have positioned myself enough, queue to sell sell sell ... and will only see if next week a good bullish week as KLCI is above 1500 now.

Happy Day ahead.

TEH

Tuesday, December 27, 2011

Ignorance : A price to pay

Most successful traders use a mechanical trading system. This is no coincidence. A good mechanical trading system automates the entire process of trading.

The system provides answers for each of the decisions a trader must make while trading. The system makes it easier for a trader to trade consistently because there are a set of rules which specifically define what should be done. The mechanics of trading is not left up to the judgment of the trader.

If you know that your system makes money over the long run it is easier to take the signals and trade according to the system during periods of losses. If you are relying on your own judgment during trading you may find that you are fearful just when you should be bold and courageous when you should be cautious.

If you have a mechanical trading system that works, and you follow it rigorously your trading will be consistent despite the inner emotional struggles that might come from a long series of losses, or a large profit.

The confidence, consistency, and discipline that a thoroughly tested mechanical system affords is the key to many of the most profitable traders’ success.

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I was reflecting on my first trading-class idea ... well, it was not new to me. Some suggested to me to 'coach' them or asked me to write a book about how I trade. I do not have impressive records to speak about. I amdoing things in a 'difficult' and 'painfully' slow manner. I do not claim a system to CATCH 20% or more of a stock BEFORE it flies off. I dont market a system, I do not believe in such.

Back to my educational background. For those new readers or my new e-tratles ... I am a 'cikgu', literally speaking. I teach Math in college level. Nothing spectacular ... no financial-resume or attended any high-tech trading systems that I can boost about. But ...I do have one PASSION ---- to teach.

You see, as I know MANY out there are clueless of what to do(buy or sell) when they decide to be in stock-markets. It is amazing as majority are VERY optimistic about their chances of gaining huge in STOCK MARKETS. It should be the opposite!! Yes, blame it on the media, the so-called promotional trading courses or systems which claiming that YOU too could be a millionaire!! ra-rah-rah ... and those motivational talks to get your GREED in play(you know it if you are in markets) ... and then, you are left there to defend yourself!! Arrghh .... we are against the buaya-darat, sharks, lintah ... syndicates, broker houses, fund-managers .... arrghh .... we are so ignorant. Yes, we are easy meat for them. What a nice dinner!!

So, I am very concerned. WHY are these allowed to happen? It is a day-light robbery!! Many of innocent newbies becoming victims?!! Imagine those noises ... your friendly dealers or remisiers asking you to INVEST and get-rich. Imagine those sales-persons selling you some SURE-WIN systems or courses. Normally it costs few thousands. Imagine that you read in some forums or blogs how much some people 'easily' profitting from buying a stock which flying VERY high. Imagine .... the IGNORANCE in many greedy eyes.

I was concerned. I was wondering how I could reach out for more 'losers' or newbies out there before they are being SUCKED into KLSE's hole.

If I could share with my merely 1k+ readers here, listening to my stories ... looking for some clues about stock markets, I will share with all ... NOTHING IS EASY. Nothing!! I want to repeat that MANY out there are SELLING you the system for thousands!! THINK LOGICALLY .... if they could use thesure-win system, WHY would they bother to share with you? WHY fund-managers do not pay MILLIONS for that systems? Better still, I will set up my own fund-managing company, buy those system and start generating millions in a year, RIGHT?

Well ... I do get about agitated each time I hv to splash some cold-water on many 'ignorants'(I am restraining myself from using the word 'stupid' because they are actually not stupid, they are just greedy-ignorants). WAKE UP.

Many used years to obtain their degree or Masters. I wonder ... why? But when it comes to trading or investing in markets, WHY ... WHY MOST DO NOT BOTHER TO LEARN?

Oh yes ... the MEDIA. They are giving us this illusion. GET-RICH quick. Punt or trade so that THEY could be profit from public. If you are expecting our SC or Bursa to protect OUR interests as minority investors, DREAM on. Those are crooks too. Wake up. Splash!!

I have deviated away from my main writing again(haha). Where am I?

Yes, reflecting on my trading class ... initially, I was only interested to share simple technical indicators(4 modules planned) and only for cohort-1. I want that to be a trial class ... and want to improve my teaching(materials, experiences, sharings, information etc etc) before I will consider to continue my cohort-2!! That was initially la ... haha .... the response was quite encouraging. I was so-so tired at night but making a point to start my cohort-2. My cohort-1 was good ... I like the company and some of them are my friends now!! My cohort-2 was smaller but I was doing better with the purchased of my projector!! Haha ... I was teaching technical-charting without a projector!! I cant remember how I done it ... and they do not complain to me!! My tratles(I called them turtles, initially) never really complain much(those not-happy lots stopped. Good) ... and being kind to me.

Then, I have my facebook created(maintained by BL of cohort-1). Next ... I will have a closed-blog which will be maintained by my tratles themselves too!! Yes, sharing is becoming the main idea for all. You never walk alone again ... in trading.

I am still in my initial stage of improving my teaching in trading. I still stick to my BORING principle "DO NOT LOSE MONEY". And that was the first thing I shared with all my tratles ....

Today, I do have bigger batch in cohort-3 and cohort-4. Some are experienced traders, sharing ideas and concepts with me. I am still going 'slow' in my teaching ... have not really share with them candle-sticks!! Trading without candle-sticks is NOT right, in my opinion.

Do you understand WHY I still feel many will continue to lose money in markets next year? Human never change ... history repeats and they will continue to be ignorant. There is no way these newbies and ignorants will ever understand how difficult it is to trade and invest. It could take YEARS before one realise that they are just running in the circle with their limited knowledge and experiences.

INSANITY is doing the same thing, the same way expecting different results.

I am writing very long-winded again. Hmm ... but to me, nothing is more interesting to see the improvements in my tratles learning-in-trading. The ultimate result is THEIR profits!!

It is a challenge to all of them --- at least 10% profits by end of next year. I will check end of next year, making sure most(if not all) of them trade well to gain 10%.

This is my challenge for my coming new year.

As for my e-tratles, I will only be sharing with them some BASIC technical indicators. Nothing much about making a trade. Nothing much.

cohort-5 : Yes, the couraging response making me pushing myself further to have a new class next year. Initially, I was reluctant as I will be too busy from Jan-June. But, checking the requests and KIV list, there are about 15 of them now. Well, by FEB, many will disappear silently and few more new enquiries might come in. I have two new enquiries about my cohort-5 today!!

Ok ok ... it is getting too longer now.

TEH

Tratles : Spotting reversals


AnnJoo : This is from SM, letting the group to check when it dives. Not many responses as I guess no one place her in her stock-list.


BIMB : One of the most talked about stock in our group recently, I guess. Well, this is a well-done work by AL. Many followed at 1.70-1.75 levels but I do not know their trades if they have taken profits(I sold mine at 1.83 to move into BIMB-cc). Breached RM2 and at 2.04, touched 2.07 today.


MahSing : I missed her totally when someone mentioned her. As we are using facebook for discussion, it is difficult to follow! I cant remember who posted the chart but I do know some entered at 1.70 levels.



RHBCap : This is mentioned by Jess as she posted her first chart!! Haha ... interesting as she grabbed and a few more too at RM6.80-6.85 levels. Again, I do not follow their trades(too many la). So, today at 7.05 levels. I do know EK bought back at 6.95 when I questioned his 'mistake' of cutting at RM6.80. Now, I mentioned to them I do like RHB a lot at RM6.80 as the risk is low. With RHB lagging behind PBBank ... then MayBank and CIMB, guess RHB wont stay low at RM6.80 for long, right? Are you patient enough to see through you trade? Watch RM7.25, then RM7.40 to sell ...once those buyers coming in.

 The above are a few stocks I could remember which some spot-on the reversal. They are certainly better than me. Haha ... A few more being mentioned such as GuanChong, HiapTeck, XinQuan ...

I do not take credit from their analysis and findings. I do monitor to share with them my opinions. Trades are theirs and some day, they will certainly do well. Yes, I do want to get the group together so that we could help each other and trust each other better. Given time, we could only grow.

I did not ask anyone to buy anything. I could only say I do like BJToto at 4.10 levels or PChem at 5.90 levels. These are low risk trades and I wont mind many of them jumped in. Recognising that RHBCap at RM6.80 is a low risk trade is important as we do not want to take un-neccessary risk for those not monitoring market much. So, I will only 'endorse' those low risk trades. Buying YTLLand at RM1 or UOADev at 1.30 are moderately high risk which I will not recommend anyone taking large positions. Yes, I am a risk taker ... but we do reduce our risks if we know what we are doing and we are in control, not our emotions.

Maintaining discipline and patience are very important for us to be consistently having good trades.

Good luck

TEH

KLCI : A quiet day

2.45 pm : KLCI was down in the morning, recovering and flat at the moment. I just came back from UM-hospital, bringing my wife and baby-girl for their 'usual' check-up. Anyway, today is a very quiet day for market ... KLCI's turnover is below RM300m. That is VERY low. Many fund-managers are still having fun ...

UOADev : At 1.39 now. Good ... checking to clear around 1.48.

Benalec : Still in the range but up a little to 1.34 today.

BStead : AT 5.80, will like to clear around RM6.

E&O : My only buying today, done at 1.43-1.44 so far. At 1.46 now and will top-up later.

Affin : Reaching RM3 now, checking her to break RM3 level by next week?

TopGlove : At 4.85 now .... nice recovery due to 'bird-flu' news?

Malton-wb : At 0.29, touched 0.285 ... well, if you have sold around 0.40, you will like to re-look into her as I am still stalking closely. At 0.25 should be a good entry? wait.

I will want to take nap now.

Write later ...

TEH

Stock Watch : LionInd

I was showing my tratle, EK, how I do some simple homework on analysing some charts. He is jotting down my pointers, to be compiled by BL and shared with my tratles once these 'concepts' being recorded. Yes, a lot of learning to be done as my 'teaching' is not structured yet. It is verbal, it is random ... and yes, it will be confusing for newbies!!



LionInd : Closed at 1.37. It will be a good entry if it could close above 1.38 later. Buying signals will be seen the next day. It is always a good tradable stock. I do like her in my list.

Yes, I was showing to him how to place stop-loss, profit taking ... and the good chance that LionInd will go to 1.48 level and WHY. Yes, the why is speculative and subjective but charts do not lie. It will move once the accumulation at currently level is done. We only buy a stock when it starts to be mark-up, not sideway. Unless of coz we could wait for buyers to be in.

It is 2.15 am .. i need to rest.

TEH

Monday, December 26, 2011

DOW up 124 points. Shall we see some buying coming in tmr? Are we anticipating some bullish sentiment next week or rather next year?

e-tratles : This is for ALL my registered e-tratles. For those of you who STILL did not add me in your facebook to enable me to add you in my e-tratles group, please do so. Please let me know if I did not register you in my closed etratles-blog. Please take responsible for your own learning. Thanks.

cohort-5 : I will be e-mail-ing those in my KIV list in these few days for some confirmation. I have lost count of those in my list. Those interested, please e-mail me(again) so that I could keep in my KIV-list and we shall start in FEB. I could not start in JAN as I will be too busy. Besides, we have CNY around the corner. Thanks

No writing today as I will be writing my first post to my e-tratles.

note : Do click on my google-ad above. Thanks.
TEH

Sunday, December 25, 2011

My Tratles

Merry Christmas, everyone. Good morning ...



Looking forward into 2012, together with my teaching-learning with my tratles(30+ of them) as a group, I will be the main person, a driver ... to get everyone together and we could leverage on each other expertise. Yes, looking into possibilities of win-win situation for our trading group. Getting together as a group will be helpful, building on the strength and support of each other ... understanding each other a little better ... for us to learn from one another.

Tratles meeting : Currently I am renting a 'small' space for my batch-1(Fri night) for our tratles meeting. The meeting is meant to learn how to analyse charts ... CP's way, so to speak. We are doing OK ... but I do like the idea of getting a standard format for the meeting, making a point that it is structured and hope that everyone get a clearer picture of how I do analyse charts. My bacth-2(Sat noon) is currently using AL's conference room!!

AL : He is just one of us in the group, learning trading and sharing opinions. Thanks AL for being so kind to allow all of us to use your room. I do appreciate that, boss. Hehe.

Yes, we are in a way trying to make our meeting more organised with follow-ups so that those more advance ones will help those lagging ones. Yes, I do wish to see that we help each other!! Some are slower and some came with knowledge in trading. Together, under my class ... we will be speaking similar language. This will help learning more ... by teaching another person, one could help deepen his understanding.

So, the meeting will becoming more exciting if we could encourage each other learnings. I still need to teach or guide in this coming months but I believe some more advanced one will more or less grasp what I am speaking about(trading) and will help the others.

Fees : I will be reducing the fees charged(fees is at minimal level just to compensate my TIME spent, but not the knowledge shared. Knowledge is 'free' to share, in my opinions. What do I do with the fees I collected? Well ... it will go back to our tratles group!! I will be getting a training or meeting room for my tratles group soon!! Yes, I will use the money to rent and setting up the place for us to meet. It will be our own space ... in future, I will want to have a trading room, a place to rest and chit-chat. I will also shift my current home-office there. There will be materials to share etc etc.

Yes, I will want to that we learn from each other, continue this supportive group, respecting each other ... and then, we could grow. I am so excited with my new-year plans. There are many more things being thrown in.

My objective remain the same : To see that they will be able to be analyse charts one day by themselves, each and every of them!! Is that impossible task? Can trading be really taught? We shall see in coming years ...

Dear tratles, thanks for trusting me ... most of you were my blog-readers and now my friends. Yes, I have this 'passion' in me ... to teach and teach well. Hor far our group could go, it will really up to us. I do need to mention BL ... he has been doing great for us, our secretary.

BL : A young busy man ... new to markets, but due to appreciating me giving 'cheap' trading course for inexperience trader like him, he is willing to 're-pay' me by helping me to coordinate our tratles in our group. Thanks a lot, BL. You are great!!

I will like to see everyone in my group to benefit. Yes, if you could not feel the passion I have in me to share, to teach ... you never will. I am very concern that none in my tratle group to LOSE MONEY to market. As they have been with me for few early months now ... they started to understand that I do not allow 'losing money' by punting into those VERY speculative stocks. We will remind each other ... we could only grow stronger and better ...

Being a 'cikgu', the satisfaction is a tremendous motivation to teach better!! I could only improve in my teaching as I am so in-experience but ... thanks to their trust, we are growing together!!

Merry Chirstmas, my fella tratles

cikgu TEH

KNM : An interesting discussion

Recently, SAM,  our most experienced tratle(in market sense) told me about someone 'boasting'  regarding his gains in Harvest in Tradesignum's page. Well, I seldom visit forums but he said it is very interesting to read how many other readers or members there shooting him inside-out regarding his KNM's call.

KNM : A discussion taken from Tradesignum

Bought 1/2 a mil $ today @ 1.44.
KLCI has formed a double bottom @ 1474, next stop 1530.
Overseas mkts making U turn.
Budget on 07 Oct 2011.
Traditional run-up to budget day is just 6 weeks away.
Can make 30 to 60 cents easy in 6 weeks !!!
Those with bullets to shoot, shoot now !!!!!!!!!!!

by Xenon 23-Aug-2011 10:58 PM



This is his call for KNM at 1.44. Well, it seems that he has cut loss at 1.35.

Reply 1 : Good luck. I don't think it will go up so much, in fact, I'd wager it'll go down somemore. But since you can afford half a million in stocks, should not be problem for you. May the force be with you then.

by BuddingInvestor 24-Aug-2011 6:00 PM 

Reply 2 : Be safe. Be vigilant. Good luck!

by xiaosong 24-Aug-2011 6:19 PM

Reply 3 : Get out from this share... Its nor really reliable anymore...

by danielsoh 24-Aug-2011 8:11

Reply 4 : I don't know whether current price is cheap.But, based on KNM's historical data their fair value shouldn't more than RM1.00. Only it drop below RM1.00 i will consider to buy some if not there are plenty of stocks better than KNM.

by dennisyap 24-Aug-2011 9:53 PM

Reply by Xenon : Historical low was at the height of the US sub-prime mortgage crisis in March 2009. The price then was 0.32, before share consolidation 4 into 1. This means the price then was 0.32 x 4 = 1.32. Today's close at 1.40 is just 8 cents above this historical low. I may not get the bottom, but I believe I get in at a low price band. Felt it was cheap at 2.00. Went in once at that level and cut loss with a few cents loss. Was patient at 1.75, but at 1.44 I lost my patience and went in. Noticed in the announcement that its CEO added position at 1.80++ some time back. Will hold this one for pre-budget market strength. Hopefully can sell somewhere in between 1.75 to 2.00.

by Xenon 25-Aug-2011 12:16 AM

Reply 5 : Take heed that Maybank Investment has made a sell call on KNM and downgraded the target price to RM1.19 from RM1.48. 1H results were a letdown, prompting us to cut 2011-13 earnings by up to 64% p.a.. While KNM delivered on topline, bottomline was a disappointment, felled by cost overruns and high operating expenses. While the share price has underperformed by 48% YTD, we expect performance to be further suppressed. There is no sign of an operating recovery and declining margins is a concern. Further, valuations are expensive now.

by BuddingInvestor 25-Aug-2011 9:24 AM

Reply 6 : looks like heading to 1.00??

by SimonShu 25-Aug-2011 10:37 AM

Reply by Xenon : This is a traditional sign of a bottom; when people are scared and thinking it would go down to the abyss. Don't lose perspective - 1.75 to 1.85 was cheap. now at 1.35 to 1.45 is super dirt cheap.

by Xenon 26-Aug-2011 2:43 AM reply

Reply 7 : Admire your confidence, but sadly misplaced in this case. But anyhow, you're the one with half a million to burn. I'm definitely not shooting bullets any time soon at this one. KNM like other O&G players will only move when they get lucrative contracts, announce huge profits or get M&A. The last 2 is highly unlikely to have, so good luck with the 1st catalyst.

by BuddingInvestor 26-Aug-2011 9:55 AM

Reply by Xenon : Expect trend reversal to take place next week. Close Fri = 1.33. Previous day close = 1.37. Expect it to close > 1.37 in the next trading day. Then you'll have a trend reversal, not merely a slight rebound. We'll see.

by Xenon 27-Aug-2011 6:39 AM

Reply by Xenon : For those with longer term horizon, one big transformation not really noticed by many is that KNM is now becoming an EPC contractor plus maintenance & operation operator of oil n gas facilities. This is a super mega shift from only an equipment fabricator. Those in the oil n gas business may realise this, but no so the general public. Warren Buffet would realise this as well. Ignore market noises, but capture the big moves over time !!!

by Xenon 27-Aug-2011 6:51 AM

Reply by Xenon : Losing faith is one of the few signs that the price is bottoming out. When u expect it to go lower, it will stop going lower. Been there, done that many times over.

by Xenon 27-Aug-2011 6:41 AM

Reply by Xenon : Don't set target price when to sell but set the time - 3 days before unveilling of budget 2012 on 07th Oct. No contra play. Contra is gambling - either u make or lose in 4 days. All gamblers lose money; undisputed fact.

by Xenon 27-Aug-2011 6:35 AM


Reply by Xenon : Agree that double bottom set-up has been violated, but we are in a "cheap environment". There are 3 bull markers ahead where the environment will get expensive (or overbought):

1. Pre-budget, leading towards 07/10 - 6 weeks
2. Pre-election, expected during school holidays Nov/Dec - 3 or 4 months
3. Pre-CNY, leading towards 23/1 - 5 months
All the buyers now (buy N hold type) will make money. Believe me..

by Xenon 27-Aug-2011 6:29 AM

Reply 8 : dont mean to pour cold water on you.
1) 2) 3) u just mentioned doesnt resuscitate a sick dying stock from worsening.bear in mind it is not an index-linked stock. pls also stop asking ppls to believe u. u have to believe in yourself, and since u had proven wrong in this case, wrong in hwgb case and few others. also as i recalled u shout for target ard 1.20 when it was 70c and on the way down. honestly i was the victim of your great unjustify confidence.

by SimonShu 27-Aug-2011 8:22 AM

Reply by Xenon : No need to resort to such indignified language. One thing you should learn is trading in stock market is a calculated guess, based on combination of past trends and company fundamentals. Once you are wrong, take action to cut your losses. This is not flip flop. It is trading 101. If you are too rigid and keep on holding stocks when the market moves against you, you could be holding stocks with huge paper losses for ages. Cut loss and preserve the cash for some other opportunities. Another thing that you should learn is our market is flooded with stockists. Make a calculated guess when these stockists are accumulating which counters, when they are about to push up the price, when they actually are pushing or 'goreng', when they are distributing their holdings, if they want to push up for 2nd round of play, and when they have released all their holdings. This way you'd know what to buy, when to buy, when to sell and when to cut loss. Look at price levels, volume actions and overall local & overseas market sentiment for tell tale signs. You've got to be in the market for more than a decade, gone thru a few bull & bear markets, got fingers burnt a couple of times, before you could master this FAST PACE GAME. The fact of the matter is 8 out of 10 traders would ultimately lose money in stock markets worldwide, as 'the house always wins'. Why they keep coming back ? Because of the adrenalin rush and the hope of winning big, and he hope of striking the like of Harvest Court or Mbfhldg-WA. Warren Buffet just said 2 wks ago "If you think you can make big money buy jumping in and out of stocks, you are fooling yourselves". But if you are good enough to form the 2 out 10 traders who make money in the fast game of stock trading, then you are better than Warren Buffet !!

by Xenon 26-Nov-2011 3:56 AM

Reply by Xenon : Another basic lesson to learn - don't think where the price will go. The market will tell you how low it can go. You can never gauge the buying supports ahead of time.

by Xenon 26-Nov-2011 4:07 AM

Reply 9 : for your records, i doubt that u have the qualification to teach anybody anything. stop misleading readers with your nonsense. its a waste of time reading your nonsense and counter productive and full of flaws. thanks and stay away please. pls do not reply to me anymore. i have no time for you.

by SimonShu 26-Nov-2011 4:34 AM

Reply by Xenon : Long gone are the days when buying stocks were based on fundamentals and holding them for long term to make 30, 40% gain over a few years. Many worldwide recognise this - that being trapped in a fundamentally good stock during market downturn would mean losing many opportunities to make money. As markets are not efficient, many fundamentally good stocks do not perform as theoretically as they should. Many worldwide now realised that fast pace trading is the way to go. Go in many times and place a tight stop at 5%. Should you miss this stop, then get out on technical rebound. Sometimes you make sometimes you loose. When you strike the one on the move, then place a trailing stop, i.e. don't sell until the price reverses by 5% of previous day's closing price. This is how I made $870,000 on Harvest with $130,000 purchase, and this profit has covered my 10 cents losses on KNM many many times over!

by Xenon 26-Nov-2011 4:47 AM

Reply by Xenon : This page is getting too long now. Time to stop. My parting words... he is not my match...I am too big for him. Obvious for all to see. You know I could write a book about trading.
Good bye all, take care.

by Xenon 28-Nov-2011 12:39 AM

For more of the discussion, if you really need to read. go to :

http://www.tradesignum.com/discussion_1986_23-knm-dirt-cheap-144

-----------------------------------------------------------------------------------

Well, from the above ... apart from his high 'ego', frankly speaking I do think he made many senses when it comes to trading!! I am not supporting his buy in KNM but some pointers to pick from what he wrote about trading! That makes senses.

I will like to elaborate on his pointers someday.

Latest discussion on KNM

New episode in a new chapter.
Price will rebound once EPF stops selling.
$116 mil loss in 3Q11 was a one off event.
$0.85 is below par value of $1.00 & book value of $1.75.
Grossly oversold. Long term resistance level is @ $1.28, which is $0.43 above current price of $0.85.
Bought $0.5 mil today at $0.855.
Good deal at Super Sale value.
BUUUUUUUYYYYYY !!!

by Xenon 3 days ago

Reply by Xenon : knm has been downtrending from the high of 3.20 to the present 0.84 for the past 9 months. Of course the best way to trade the market is to set a cut loss price target before one enters any trade. This is the basic of trading to limit any disaster. Imagine if one did not set a cut loss point when bought into knm at 2.10. At that particular time, one would have felt lucky to buy at 2.10 as it seemed the lowest bargain price as it was 2.60 one day earlier. Unlike in a bull market where the general direction is uptrending, then cut loss point is a vital tool in all other market conditions. To set the record straight, made a lot on knm during the initial phase of what seemed to be a superbull run in the making. that was from Nov 2010 to Feb 2011. bought knm @ 1.90++, sold at above 3.00. That was nothing compared to the 2 attempts on the way down. 1st one around 2.00 & the 2nd one at 1.45. On both occasions lost 5 to 10 cents.

by Xenon 2 days ago

Reply by Xenon : i reaffirmed your misunderstanding of the cut loss technique widely used by experienced traders when buying stocks on the way down in a bearish market. it was not a prediction. buying was based on historical support level around 0.85. the point is the technique works as one would make a lot more on the way up than lose in a few attempts on the way down. my crystall ball tells me a rebounce towards 1.00, then form a double bottom around current level of 0.85, then cruise past psychological ressistance of 1.00, temporarily held back at 1.13 resistance level before testing a significant support-turned-resistance at 1.28. all these would unfold between now and post 4Q11 financial results announcement in the next 3 months. you see my upside is 1.28 - 0.855, but downside is 0.855 - 0.82.this is the risk management technique that you miserably failed to recognise. sixth sense tells me that you and a few others are now afraid that i might be right. trading actions today also show that trading activities have shifted from speculative penny stocks towards real stocks like knm, uemland, mrcb, etc which will pick up speed as enter 2012.

by Xenon yesterday

http://www.tradesignum.com/discussion_2245_21-sale-85-cents-piece

I do believe, from my readings of some of his postings, that he is an expereinced traders. But, I am not sure about his entry points and his cut-loss points. Yes, I am a positive person ... I want to learn from the posts I was reading.


KNM closed at 0.87 on Friday after touched a new low at 0.83. In a way, I do think it is a matter of time this fundamentally lousy but tradble stock will rebound strongly again. Well, some syndicates still inside her to GORENG her up. Many aunties-uncles-yuppies STILL inside her which they are losing more than 50% of values. Many becoming a looong term investors in her. Look .... KNM was one of the hottest babe being traded when I knew about KLSE in 2008-2009. It was traded at RM1.80 level(you need to multiple 4, which will gives us around RM7.20 for current price comparison). Well, many still holding her way above RM5, today at below RM1, many start to say it is 'cheap'? In what sense it is cheap, actually? RM1 divide 4 = 25cents? That is ... err ... cheap?

KNM will be in play again, will be gorenged again and again ... and no doubt, many more uncles-aunties-yuppies which stucked inside now will be excited to buy more into her!! After all, do we need what KNM's is doing? Perhaps Mr Lee will take it private, afterall he mentioned that at RM2.80 is cheap and will want to take it private? I was still in KK, then .... at Damai when I was reading that 'news'. Hmm ... interesting discussion on KNM above.

Question : Will you buy KNM at 0.87 level now?

Merry Christmas, anyway.

Night.

TEH

Saturday, December 24, 2011

Trading vs Investing

We can divide people's stock market activities neatly into two separate disciplines - trading and investing.


Starting with a few dollars, Jesse Livermore became one of the world's richest men by trading (or speculation as he called it). He bought stocks with a view to selling them for a capital profit. He had no intention of obtaining an income from dividends or holding on to stocks for the long term: this is investing.

TEH : Yes, I am a follower of Jesse Livermore after one year of reading about fundamentals of many KLSE's stocks. I have chosen to be a trader. I was experimenting on many so-called systems and strategies of trading and investing. I explored further with the effects of news, blogs, broker reports and such to the stocks mentioned. I have no intention to get some dividends. It is that 10-20% capital gains consistently to be gained from the trades.

One of the big dangers in stock trading, he said, is when a trade goes wrong and the trader decides to hold a stock until things "come right." In doing so, the trader breaks one of the cardinal rules of successful trading, which is:

                                                  Don't become an Involuntary Investor

"How often have you heard an investor say: 'I don't have to worry about fluctuations or margin calls? I never speculate. When I buy stocks, I buy them for an investment, and if they go down, eventually they will come back.'"

TEH : Yes, many of times .... we heard someone consoling themselves by telling others that they are long term investors but in actual fact, their trading plans failed. Hence, they are forced to be an 'investor'.

However, Livermore says, "It would be simple to run down the list of hundreds of stocks which, in my time, have been considered gilt-edge investments, and which today are worth little or nothing. Thus, great investments tumble, and with them the fortunes of so-called investors..."

Livermore liked to remind people that there is nothing new in Wall Street. Whatever happens in the stock market today has happened before and will happen again. A large number of modern-day investors will certainly nod their heads ruefully when reading his thoughts from the 1920s on great investments tumbling.

In Livermore's opinion, investing using a buy and hold strategy was a bigger gamble than trading.


Buy and hold investors, he said, "make a bet, stay with it, and if it goes wrong, they lose it all."

TEH : These are for those so-called investors who actually lost money and/or holding to paper-loss in their investment. What is a good stock, actually? How about Transmile where hundreds of investors losing so much of their money. MF Global case is just another case where investors could lose all their investments. So, what is considered as good .... to buy and hold?

A trader, on the other hand, might buy the same stock at the same time as the investor. "But if he is an intelligent speculator, he will recognize - if he keeps records - the danger signal warning him all is not well. He will, by acting promptly, hold his losses to a minimum and await a more favourable opportunity to re-enter the market."

Of course, a stubborn-minded buy and hold investor might sleep more easily in bed at night than a more active trader. Even though his stocks are performing poorly, he has an (often misplaced) unshakeable certainly that they will one day make him a good profit.

TEH : Yup ... we have hundred out there holding to their losses due to their stubborn attitutes and wanting to prove to themselves that their decisions were RIGHT. Being right is more important to them. So, they will continue to 'hold'. Example of JCY, which if one grabbed her at RM1.50, seeing it going to 50cents, what is the re-action, if any? RHB was downgrading JCY to sell with target at 30cents just 3 months ago ... today, it is back to RM1 soon, so you believe your RM1.50 valuation is right. You will stubbornly hold to it till RM2 or even RM3? I have heard of so many these stubborn-minded investors.

Traders, however, are under no such illusions and take a more active interest in their holdings. They are therefore at greater risk of being attacked by what Livermore described as the trader's natural foes - no, not faith, hope and charity - but greed, hope and fear.

TEH : Yes, by taking our emotions away from our trading, we take a more active role in our own portfolios. Greed, hope and fear are our natural foes. Yeap!!

Livermore's views on hope and fear lie at the heart of successful trading. He describes how traders fail when they allow hope of recovery to prevent them cutting their losses. They fail when fear of losing a small profit causes them to sell prematurely, when more profit would have been available if only they had the nerve to stick with the trend.


"The speculator's chief enemies are always boring from within. It is inseparable from human nature to hope and to fear. In speculation, when the market goes against you, you hope that every day will be the last day-and you lose more than you should had you not listened to hope...


"And when the market goes your way you become fearful that the next day will take away your profit, and you get out-too soon. Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses.


"Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit."

TEH : A contrarian view point when we trade or invest. Never follow the herds as they are the majority of 80-90% of the losers.

Is Trading for You?

If you can trade intelligently and control your emotions during trades, you have a good chance of success. If you can't, you'll almost certainly fail and you would be advised to avoid trading altogether.

TEH

Reduce the noises, please

It is X'Mas eve ... I am in a lazy mood to read the magz(latest MB : Biotech Breakthrough) and a few more materials. I do have charts to show too but ... err ... I am excused? It is Christmas!! I will be bringing my kids to take some pictures of the Christmas Decorations ...went to Sunway Pyuramid, Subang Parade, Empire, Mid Valley, One Utama, Ikano ... so far. Going to The Mines later?

Getting back to some simple pointers in my mind. I was telling EK yesterday that we do not need to listen to too much of noises out there. One of the more important thing to make our trading simplier will be NOT going to forums. Also, NOT reading too much of those opinions written about global economies and such ... it is opinions, its is free ... and NO economists will agree to each other, anyway. If you read more blogs and newspapers .... there are NOISES everywhere. By doing such, our emotions will be in play .... which defeating the purpose of trading with technical-analysis.



For example, SM(my only Malay lady in our group) mentioned about AnnJoo which forming such a nice waterfall ... then, I read somewhere about steel-prices in Japan!! Would that affect my decision in acquiring AnnJoo at the 'low' level and placing out my trading plan? Do you get what I mean? Of coz ... I am talking to those few who do use charts, who know what a trading plan is and such. Majority in KLSE DO NOT even reach those basics level. But if you are actually trading using some good systems, those NEWS and NOISES should not deter you from taking a trade, right?

Personally, I will move into AnnJoo at 1.64-1.65 levels. Remember that I am a waterfall-catcher and many of my tratles are actually following my way of trading ---- a technical rebound which many in great fear to trade such. You see, be greedy when many in fears? We all read that but  ... but ... SM learnt from ChartNexus too(another one I knew of is KS). Yes, learning from me is difficult as I do not do most of traders will do ... I dont care if you tell me about the steel-prices or perhaps some bad-news which might affect the steel sectors in future!! I am a trader!!

Learning Corner : Reduce the noises

The best way is GET OUT of those forums or discussion group. I am talking to novices and newbies. They wilol be drown with those noises which will NOT help them in their learning at all. I should know ... as I was a newbie? I am still a novice? One of the worst part of many 'traders' will do is .... asking around. Can I buy XXX or sell YYY? They are seeking for some sort of comfort from some 'sifu' and might be affected by these noises in their decision making. It never occur to them that NO ONE could tell anyone to buy what, at what level and sell at what level.

For example : I am collecting UOADev at 1.32 level ... many followed(I know) but if you are to read about UOA or trying ot get some opinions from the forum, you will be amazed how many guru-sifu will be giving you conflicting and contradicting opinions!! You will get so confused that you wonder why 'CPTEH' the blogger collecting UOA, as if he know UOA will go back to IPO value? Then, say ...it goes below 1.25, you dont even know what to do with that paper-loss and cut-loss at 1.15, the current low? Obviously .... in your mind ... you will always remember how BAD my analysis is, telling everyone never to trust my analysis ... and also never to buy a property stock!!

Hmm .... you blame on other ... you put down on others analysis and opinions. You lose some money in your trades. Look ... this is trading. If you do not understand the risk-reward, the probability involved, the technical analysis .... you can LEARN. But, I have heard enough of these losers .... going from a forum to a forum, and making everyone giving him/her opinions(they are trying to help only since you asked?) look ... err ... useless scum-bags.

Final buying-selling decision should be our own. We SHOULD take responsibilities on our trades. I m always very careful not to give opinions on other stocks. I am just telling you that I bought XinQuan at 0.70, and I did not ask anyone(including my tratles) to follow. Somehow, someone will follow my buyings, right? Do you know why some of you following Dali's writing about a stock and rush to buy his recommendations? Then, when a trade go against you, you will swear that he manipulated the stocks? You lost money, you lost the trust in his writing .... you blame that market is a scam!! Then, you ask around about another stocks ... going to forums and stock-kakis for more NOISES?

It is X'Mas eve ... it is very quiet here in my home-office. Yes, we trade well if we know what system to use, for what reasonings ... and take the trade on OURSELVES. You wont see me going around to ask what stocks to buy?

Yes, I am independent. I am original ... I dont copy-paste someone's analysis. We all should be independent and I am teaching my tratles to be independent. Ask them!!

Reduce that noises .... do your trade, you own. My writing here is for edutainment purposes. I am only analysing ans stating that I do like Affin right now, I analysed for my tratles the BIMB trades and many still in PChem(we bought RM5.90-5.95 levels). DO not blame anyone if you lose a trade. And do not point the finger to me that you bought into any of the stocks written here .... and lose money.

Time for some fun out there ....



Merry Christmas!!

TEH

Banking and Finance


Finance Index : Reaching resistance. A break-out will pull the whole KLCI to be above 1500 in Jan 2012? Are you optimistic and ready for new year 2012?



PBBank : The leader ... pulling the finance-index higher for past two weeks. The first banking stock which broken the resistance. Today, some profit-taking seen and MACD histogram shown early signal of reversal. With it overly bought, it will probably correct from this point. Watch next week.



MayBank : Testing RM8.40 again. Therefore, it is lagging behind PBBank. Should it breaks RM8.40 convincingly(with CIMB), finance-index should break its current resistance.



CIMB : Hanging at RM7 level, should stay above RM7 ... and together with MayBank(both GLC) should help finance-index to breach the current resistance level.



HLBank : Well, the chart says it all here. Bullish outlook ahead.



RHBCap : This is my recommendation to my tratles. It was posted by Jess(first time posting a chart!!) when she saw the divergence and alerted us all. Few entered at RM5.80-5.90 levels. RHB is lagging behind most of banking stocks ... and will it follows those big brothers above? It tested the psychological level at RM7 now. I do like laggards. The upside is much more than the downside. So, it should give us a good trade.



AMMB : Well, ever since I bought at 5.50 levels(with few of my tratles) and sold around RM5.90 levels, I am still waiting for RM6 break-out. If finance index is to break its resistance, we shall see AMMB above RM6 again, finally.



BIMB : This is the most discussed stock in our tratle's facebook as AL done a good homework for all to trade. Few went in at 1.70-1.76 levels but some sold early. I told them in last Sat meeting that we should be holding to her and to sell at RM2. Well, it should be done on Monday itself before it retraced as expected. Then, I was waiting to collect back at RM1.83 but it did not go that low. Its call-warrants BIMB-cc was diving due to many forced selling due to late-comers jumped into the wagon and greediness caught into those gamblers, as always. While my tratles all of them profitted from this good trade, well ... buying back will be seeing it break-out next week above RM2. Today it stayed above RM2. Good.



Affin : From the low to RM3, that is a cool 30% profit, right? What a rebound. Do you understand why I will go for Affin rather than PBBank? Now, if finance index breaking higher, Affin most likely to break RM3. We shall watch. I m collecting Affin-ce at 0.035 and 0.04 to sell at 0.045-0.05 so far. The game is still on ...

So, from the above ... we shall see if finance index will be testing resistance again and breaking it in Jan 2012. What a happy new year that could be?

I was with EK and PT, who paid me a visit for me to teach them in person. Yes, they are my young colleague, science-based brain and were with me since last year in my cohort-0. You need to read last year November's posts(if you are really ke-poh to know the details). Anyway, I was showing them how I analyse finance stocks, particularly RHBCap which I mentioned at RM5.80-RM5.90 will be a good entry price. Yes, I gave them RHB which will be lower risk compared to my Affin and I do share with EK two days ago that I was collecting Affin-ce at 0.04. Each time I sold at 0.045, I will collect it back at 0.040. Well, that is more than 10%? The risk is extremely high. Play at your own risk.

If I am to analyse RHB, I do need time if I was not stalking on other banking stocks. Last Sat, I did show my tratles in opur meeting how I do analyse. Yes, a lot of hardwork behind each trade!!

Now, the works are all done, and I am sharing it here. Well, as I said ... these chart postings may be the last in this blog as next year I will be too busy with my tratles and e-learning(also my tuition classes will be doubled, my trading classes with cohort-5 starting, my full-time job adding two new classes).

Yes, no way I could find the time to posting charts here ... it took me about an hour now writing this ONE POST. At times, there are still some(luckily few) run-appreciative readers demanding me to analyse THEIR stocks, as if I m oblige to do so?

If I could find the time(sacrificing my sleeps, ok?) and energy ... yes, I will definitely still enjoy to share my opinions on stocks and markets.

Thanks for many appreciative readers around. Many readers are becoming my tratles and next year another 60+ of them will be my e-tratles. Thanks for all the supports. I was touched too that many concerned if I am really stranded in Spain?

Merry Christmas, my dear readers.

God Bless.

TEH

Friday, December 23, 2011

The Laws of Prosperity

INNERWORKS SEMINARS presents

THE LAWS OF PROSPERITY

Secret And Power of Attracting More Of What You Want In Your Life

... Date : Saturday January 7, 2012

Time : 10:00 AM – 5:00PM (Registration starts at 9:00AM)

Light breakfast served from 9:00am – 10:00 am

Venue : Pearl International Hotel, Old Kelang Road, Kuala Lumpur

Fee : RM100 per person (includes breakfast, sumptuous buffet lunch & tea breaks)

Contact:

Mr JC Quah
Mobile : 012-3362636
Email : quahjc.rppp@gmail.com

PH Chin

Mobile : 012-3388309
Email : phoyhoy@gmail.com
If you have a strong desire for personal development and growth and are someone who is always searching for answers, guidelines and principles to follow that will bring you and the people around you happiness, peace, wealth, abundance and prosperity, this seminar is for you.

When you get the hang of this, before you know it you will KNOW you are the creator – “The Secret”

Universal laws are the most important laws there are. They have been in effect since the beginning of time and it is working in your life right now, whether or not you believe in them. They constantly are creating the life you are living, have lived and the life you will live. They govern your universe, and by understanding them you will be able to benefit from these laws. Ignorance of the laws of the universe is the only reason for all the suffering in this world.
In this seminar, you will learn about:

* Law of Thinking: Whatever is going on in your mind is what you are attracting.

* Law of Supply: there is an unlimited amount of supply for anything you desire.

* Law of Attraction: Like attract like. You become AND attract what you think about.

* Law of Receiving: For you to be able to receive your desires, be open to get them.

* Law of Increase: Being grateful will attract more of what you want.

* Law of Compensation: Only what is rightfully yours will come to you.

* Law of Non-Resistance: What you resist always persists.

* Law of Forgiveness: Recognize and remove your blocks for quick manifestations.

* Law of Sacrifice: In order to gain something you must be prepared to pay the price.

* Law of Obedience: You can only achieve success if you obey universal laws.

* Law of Success: There is no limit to your possibilities.

Universal Laws have no favorites, not discriminatory and are impersonal. The ground is equal. Anyone, anywhere and at anytime can activate these laws which are invisible but have very visible results.

At the end of the seminar day, you will be empowered and inspired because once you understand them and employ them you will set an unstoppable flow of prosperity in motion.

START 2012 RIGHT!
Get started today. REGISTER NOW!

Prosperity loves speed and rewards those that take action.
(ALL surplus arising from this seminar will be your donation to “Miracle Children's Home”; “GEMS - Girls Empowerment School” & “Miracle Smiles - Cleft-Lip Program” to support orphaned & underprivileged children)
About The Presenter : Dr. T. Aaron Lim

Dr. T. Aaron Lim, a Fulbright-Hays Scholar, is a graduate of St. Francis' Institution, Malaysia; College of Agriculture, Malaysia (now Universiti Putra Malaysia); Louisiana State University, USA; University of Hawaii, USA and Chaminade University of Honolulu, USA. He is a former professor at Brigham Young University-Hawaii, USA.

Born and raised in the ancient philosophies of the Orient and trained in the modern sciences of the West, Dr. Aaron has a unique talent of bridging the traditions of East and West. He has been serving and teaching health, personal development and spiritual growth for over 30 years. Dr. Aaron brings inspirational action and creativity into the everyday lives of others so that each life experience provides openings to abundance, passion and remarkable spiritual and material results. As a dynamic speaker and educator with a wonderful ability to inform and inspire audiences, he uses his multiple talents to help others perform at their peak and achieve their fullest potential. Dr. Aaron has shared his winning insights with thousands of people throughout the world.

Along with his wife, Dehyana (http://www.anchoringthelight.org/) , he co-founded and co-directs "Bodhi Fellowship / Center For Inner Peace" (http://www.bodhifellowship.org/) a nonprofit, spiritual organization dedicated to teaching unconditional, universal love and selfless service based in the Historic Heritage City of Malacca (Melaka), Malaysia.

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I m promoting this talk as it sends positive messages to the audience. I hope it is not yet another get-rich-quick seminars which TRYING hard to sell their products, programmes, courses and such. We need some simple talk about LIVING, PEACE and HARMONY. We need honest and sincere people around to give us some in-sight about lives.

I will try to make some arrangement to attend, at least half of the talk. I wont be free for whole day, actually due to my classes and such. Any of my readers who wish to meet me there, let me know. We can get to know each other and share opinions about the talk(not stocks la).

Note : I am NOT paid to do advertisement.

My 'old' readers should know that I do not like to do promotions or advertisements(except for myself, of coz) as I do not know how good or real most of the talks are. But I do have a belief : Good things are meant to be shared.

TEH