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Wednesday, July 18, 2012

Learning takes time : Be educated


Presbhd : Breaking new high ... ride on her.

I shared with my 'intermediate' group about the special candlestick seen, a week BEFORE it broken the new high. Let me try to share it here ... can u see that the candle-stick preaching to NEW high at 1.32 at that day? It means ... someone willing to pay RM1.32 for her, right? Then it came down(we used the term ... testing resistance). Can you notice the volumes? You need to learn to read candle-sticks and volumes ... as that is where the actions are. Can you see the current two gree volumes increasing? It means that there are STILL rooms for it to move high.

Due to THAT early signals, I asked my group to take positions on two situations.

Case 1 : We bought at 1.25-1.29, anticipating breakout with cut loss at 1.23.

Case 2 : Those who did not, we plan it to buy above 1.3 and ride on her(only to sell when bearish signals shown).

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It is almost 5am ... DOW up 60+ points. KLCI reaching new high and time to trim more of the stocks which I collected for past weeks. Many stocks that I anticipated breakout, it was successful ... thanks to the bullish sentiments.

Affin : I have finally sold my Affin-cg and asked my group to sell Affin too. I don't feel comfortable at the current moment.
Oriental : Bought at RM6.20 when RSI nearing 30 ... today RSI at 84, so it is SELL at RM7.20.

SKPetrol : Bought at RM2.20, at RM2.30 now ... one of my larger positions. I do have a call-warrant attached to her too. Will it break 2.30 soon?


I posted a 'long' comment to i3-investor forum

For sharing purposes, I do have many common stocks in my list too such as BIMB, MBSB, MPHB, Supermax ... etc etc ... do we buy them all? How to select from the list?

It is just a list of uptrending stocks. When do you actually BUY? Waiting for buy signals, right? So, the prices listed here is not the entry prices.

When do we sell? Can I know the time-frame used here please?

I believe in education. I believe that everyone of us should learn. We learn by asking good questions.

Risk appetite : Another important thing to discusse as we are all 'different'.

While I mentioned MPHB at RM3 to buy, personally I traded MPHB-ch few times. Know the difference? Yes, the RISK-REWARD. Know why MPHB, right? The 'selling of non-core assets' and the Magnum-news hanging. Ride on her, right?

While I do buy hugely into YTLPower(sold all at 1.79) and YTLPower-wb(still keeping some), I won't go for YTLPower-CW. Do you understand the risk as YTLPower WAS downtrending. I dont see it as 'luckily' it rebounded as many in our group buying into her. It is NOT hope-analysis.

Currently I do have SKPetrol at RM2.20 and its call-warrant. I dont mind sharing with all but do you know the risk of not knowing when to sell? What-if the trades go against us and market collapses, are we prepared for that?

Today, KLCI at historical high ... are you in GREED(I can feel that here) or should we be in fear? Don't we read enough that we should be a contrarian?

With more than 80% losing money out there(simple stats ... 100 readers here, 80 lost or still losing money) ... why are we following the herds and doing what they are doing? Are'nt we all logical human? Do we trade with "knowledge&experiences" ... or do we blindly follow others? How many of us losing money following the broker-reports, remisier, dealers, bloggers, friends, forums ... to buy into stocks? Have we forgotten all our losses and learnt from mistakes?

THINK ... PAUSE .... THINK.

I do have few losing trades but I do make sure the losses is 'small'. Yes, very few in my whole 2012. The small losses were during Mac-May.

Learning Corner : Keep your losses small, change your strategies and let the profit runs.

I will continue to contribute to the forum whenever I could.

Please accept my apology if I offended anyone.

Learn to trade well. Do not rely on others as 'sifu'. Be your own 'sifu'.

Thanks for listening. I just want to share.

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I don't know ... I do know that we be defensive when market is turning down, and riding the trend when market is shooting high. When market is down ... you will see I am buying 'boring' MayBank, Axiata ... or GenM and such ... but in bullish market, some penny stocks, RM1 or RM2 stocks with breakout ... and trading many call-warrants in short term basis.

Yet, majority around will ... run around ... asking what to buy or what they should be doing with their stocks.

I want to promote 'education' in trading markets .... SC should do this too. Majority of us 'falling' into those buying due to hear-say category ... and losing money. Yes, we might buy a good stock ... yes we might be profitting in such bullish market ... but we dont know when to take profits. We regret ... we agonised ... we get emotional.

I always feel market is there to TEACH us lessons, yet WHY most of us never learn? WHY?

Because it is GREED driven. Yes, it is irrationale ... illogical. It doesnt matter to many that they lost many trades ... they wont pause to THINK and ask WHY. It is too painful to answer themselves ... we might slap ourselves ... yet, repeating the smilar mistakes!! See the pattern ... of many losers in markets?

We do try to advise them ... if we know-how. But ... honestly, market is too noisy. Forums, especially ... such a good place to create GREED ... some will sell their trading courses ... selling sofwares, selling systems ...

And to create FEAR ... some will sell Unit-trust in forums. Dont go into risky markets, our UT will give you consistent returns ... blah blah ... there goes the salesman.

Let me tell you how I feel ... and what I will do. If I have earned millions(I know I m progressing well but I rather be logical and take a step at a time) ... I will teach trading for EDUCTION purposes. I will make it cheap ... and DONATE all the proceeds to charity!!

What charity? I will open a trading school so that 'Now, everyone can trade well'.

That will be my contributions to the trading community before I leave trading. I have in-directly helping to educate public through my ah-pek blog here ... but the most effective way so far is having my own tratles-group. I am reaching out for more. Somehow, I feel great ... with just words "THANK YOU" from many in my group.

We discussed and talked about stocks or businesses ... having drinks and gathering. It touched me so much recently when some of them wrote sincere thankful testimonials for me(will post some over the weekend).

Yes ... my trading adventure continues ... in my quest to be more educated in trading. I am still a novice(bear with me, please) and learning ...

I am still a logical person.

Good morning ...

TEH

1 comment:

big boy big toy said...

TQ for your sincere sharing....you are doing a good job, you are educating more and more people....to think, ponder......