Friday, September 30, 2011

Teaching Trading

DOW up 140 points ... hmm ... bull is running? In days, if KLCI continues to go higher, MANY will start to think that we are back in a bull-run and it might last another 2-3 years. WOW ... these short term noises are un-neccesary. What we need to think is a mid to long term views. Yes, as KLCI oversold, technical rebound is expected but will it last? KLCI is looking at global markets while local funds is supporting our 'small' market. Nothing much to write ... just ride on it for a while but reminding ourselves that we are still in a bear-raly? Dont dream of recession ... just take actions and see which direction we could benefit from - bull or bear.

He was right to say GS dont care if US or global economies recover. You see, as trader ... emotionless trader, we shouldnt care much. I do feel 'sad' when many ignorant aunties-uncles(novice yuppies too) losing lots of money. SERIOUS. We do feel for them ... I was one of them too, the difference perhaps I know I am learning and going to do better and improve myself!! As I went thru such phases, I will want to share my experiences(in learning and improving) with my readers here. Well, blogs are just words ... like you read any books or from the internet. It is DRY ... it is flat. It is between you and the articles you are reading. And if you are totally new in markets(or worst still, you are a science-background like me) ... you will be LOST.

LOST ... that is the feeling I went through. You read about 'carry-trade', you will be thinking how to carry the trade? Is it something to do with carrying the items you bought using a bakul/basket? Then, they tell you that USD index ... it is an index? What is index? And what do you mean by a basket of currencies? What the basket again? Currrencies as at MYR or SGD? Then ... they will list the top few currencies in the world? You wonder why MYR is not there? And so on .... confuse as you read further ... try to recall the first time you reading these terms and learning to relate that to OUR stock market or our ONE stock, say ... Tenaga? USD index down will benefit Tenaga? Huh? Is it? Then ... how will it affect Tenaga's stock prices? You mean, USD up up today, no wonder Tenaga stock going down? etc etc ...

You will get what I mean ... if you are in initial stage. That is my challenge .. to teach these 'novices' how to trade ... and only teaching them some BASIC terms used in technical analysis. I did not even combine those indicators and placing more indicators(suc as economics indicators) into play. Just a basic ... Price-Volume, MA, RSI, MACD, Stochastic, Support and Resistance, Candle-sticks ... trends, signals, divergence and such. Slowly ... I will talkl about FEAR and GREED, supply-demand, risk-reward ... which all these I feel their importance in trading or investing. Yes, I did not speak much about EPS or factors affecting the sector(s) and how these correlate to our individual stock(s)!!

All these, when apply in times ... and with experiences growing ... will grow the confidence in traders or investors. Do you really understand what it takes to be in markets? Sure?

10.55 am : Busy busy ... KLCI up 10 points.

Dialog : Up at 2.26 now ... a student of mine sms-ed me before market opening, stating that he read few bloggers(including S.Dali) wrote about her. I replied ... BUY. So, I bought at the opening at 2.18-2.19 and went off for classes. That is trader ... chances of it going higher is higher than the chances it is diving. Going lower .. you lose a little if you know how to cut-loss, but the profits ... you could let it run.

Yes, if I have larger capitals and more bullets, I will shoot more, right? You cant have SIME, Axiata, Maybank ... then want to buy PChem, MHB ... and then shoot IJM, Mudajaya, Gamuda ... then ... Sunway-wa, SPSetia-wb, WCT-wb ... right? Be realistic. What CS said there isnt logical to me and also shown he is either not a trader/investor OR he just want to confuse many novice readers around!!

Common-sense is very important to me as when it comes to emotional market, common sense is always thrown out of the window!! Amazing, right?

Teach me, please ... if I didnt clear my SIME and MayBank(for profits), how am I going to ride on MudaJaya today? Do you know why the change of the game plan? Are you telling me you KNOW what stock WILL shoot up in coming days? Unless u r working inside PNB-SP investment or those related parties, dont tell me that you know it will shoot to RM3.90? Hey, buying today is silly la ... traders TRADE. My two turtles bought SPSetia at RM3.20 level ... one lost as cut off earlier(but he learnt the lesson and shared with us. That is guts, man. Good.) and another sold yesterday for profits!! What ... waiting for SP to go RM4.50? teach me, please ...

Today, I have few around me ... through e-mail and sms, they will discuss with me what stocks they are looking. I m glad to help but .... I m exposing myself to RISK again. Yup, I have learnt that RISK is more important than profits. As Alpha Chart said "Think RISK before Profit". He is very right in this sense and I adopted that mentality in my tradings. That explain why I WONT go for aunties-uncles stocks. I dont. I am going to teach people to trade(with FA attached) ... not to lose money is no1 rule. Then, take profits as a bonus for being a little knowledgable than most of the rest in markets --- the herds and majority.

Blaming others and get frustrated will not take you anywhere further. Unless you really believe in fung-shui or lucky star(zodiac) ... and believe whatever date we should buy whatever stocks ... gosh ... you stock-pick according to that method. They called it 'astrological analysis = AA" haha ... I was laughing when I read that.

Yes, dont blame your un-lucky star. At times, we are in LUCK side(I agreed) and at times, we might not be so lucky. It has nothing to do much with that, carry-on ... more importantly, WHAT ACTIONS should you take when you are lucky or unlucky? That makes the differences between a good trader and just a person who rely on luck?

Do you think it is merely LUCK trying to buy a stock? Be realistic and logical again. It takes more than the 50-50 chances ... because, once in market, our luck will be running LOW. Ever ask WHY? If not, can I ask WHY NOT?

11.30 am : KLCI giving away the optimism ... FLAT not as HSI losing 320 points. Want to know what is up 25% today in HKSE?

CWP : Yes, CWP( I was sharing with BL that day about her as he was reading y previous posts!! CWP came down from HKD1 to HKD 0.30 level recently. And I told him I am very interested ... heck, NO ACTION, no gain ... at HKD0.40 now.

Challenge : I am thrown with a challenge ... to gain 10% in a year the capitals. Yes, ROI of 10%. It will be transparent etc etc ... nope, I wont write it here again ... this is just an uncle-blog. Haha ... so, I am taking up the challenge. We shall check by end of next year. Nope, I do not take it easy and in fact, I will draw up the whole plan for my given funds ... to attain my 10% target. If the fund is RM10k, then I need to profit RM1k by end of next year(minus those fess, of coz).

CS : Are you glad you got my attention? Haha ... look into a mirror. What do u see? Feel inside your heart, how do you feel? Hmm ... close your eyes and pray. Where are you heading to? Once you learn such, yes ... you might grow-up.

I am still a novice, in fact ... another 3 years, I will still say I am a novice. I define novice as those LESS THAN 10 years in market. When no of years should not be the main issue(as I knew many having more than 10 years BUT do not have much knowledge!! They are novices to me too), it is the amount of years of experiences trading markets with POSITIVE outlook. Do you have that? From the way you speak, you are a novice to me too. Welcome to our novice world.

I am going to ignore you from here on as speaking to you will not be constructive. Readers could see you are sour and something bugging you INSIDE that your cant face it to yourself. I do believe you are JL. Are you still sore when I taught you invest-trade for FREE? I even walked to your SMC(hopital in KK,Sabah) to teach you, ok? By the way, you still owe me RM8k. I tried to add you in your facebook but you rejected me, remember? Hey doc ... you are 30+ now. Grow-up.

Hmm ... you do sound like JL but you may not. You might be just another reader bought into a stock and lost money in market. Sorry for your loses. I am a novice, since when I said I am a sifu or asking anyone to BUY the stocks written here?

Whoever you may be ... I will ignore you. Bye CS.

p/s : CS can also be chee-sin. Hmm ...

3.10 pm : I had two 'free' extra class for my students this Friday and next Friday. I m talking about my further Maths students. They will be sitting for exams next month!! I want them to score. Management wont look into that ... what do I get? Many thank-you from my appreciative students. I gave them an overall of what I have taught them for past 1.5 years. Yup ... it will be good to make 'final' notes for them.

HSI losing 400 points. Yes, tonight I do have a trading-talk. Some of them started to bring a friend to tag along. Hmm ... there will be 3 new faces today itself. Hope wont be too crowded!!

Next Friday class will be as usual for all my cohort-2(plus 4 from cohort-1 which not making it today ... BL, PL, PT and EK).

Going back to nap as I think tonight will be another long night ... and my Saturday starts at 8am to 3pm.

4.20 pm : Interesting ... KLCI down 10 points. Very volatile and sentiments change of sudden?

Dialog : Someone bought 2.30-2.32 level ... hmm ... it is 2.24 now. Ok, top-up.

KLCI is flat today.

VIX : I m going to share in my class tonight.



Moses Sinnappen said...

" judging a person does NOT define who they are, but it defines who we are."

happy trading-losing n winning is part n parcel of trading, do not be a fisherman, try to be the 'fish', swimming underneat the water without any pressure, unlike the fisherman full of pressure expecting the fish to take his bait.

Anonymous said...

I love this quote from yours ,"Speculation is far too exciting. Most people who speculate hound the brokerage offices... the ticker is always on their minds. They are so engrossed with the minor ups and downs, they miss the big movements."


Lau said...

Hello Mr. Teh,

Just happen to read your blog, you are so sincere and flank, investment is definitely no easy, in one need to learn from every trade and the learning process never end, no body is sifu, if one have 70% correct judgement ( both in term of direction and stock selection), I believe he must be a winner... happy & enjoy investing.

alwayswin111 said...

Anonymous I think you have lost perspective of what you are doing. Seriously, do you know what you are doing????I feel sad for you. You are so full of hate and sarcasm. Life must be BAD for you. I can only pray for you.
Now back to business...Why don't we use this blog more constructively. If we see some trades which we think could be a high probability trade, highlight it in the blog. Also note down our reasons for the trade, overextended, divergence, reversal signals etc and add in the news we have pertaining to the stock.
Teh, it would be most helpful if you could elaborate on why you think you want to do a particular trade. Let us all brainstorm together. We can all pull our resources together.
Don't bother to respond to Anonymous if he continues in act in this aggressive manner. Lately you are wasting a lot of time on him. Ignore him. He is something like that Samgoss guy.