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Tuesday, October 23, 2012

Risk Management

Last night I have my e-meeting with my e-tratles ... continuation of last week tallk about RRR. Yes, last night I used about 2 hours just talking about how RISKY trading market could be. There are newbies, there are many who could be new to technical-analysis ... and certainly there are people who never logically pause a while to understand the RISK they are in. If you are in stock-market, you are in a risky-biz. Simple as that ... afterall, 80-90% of them losing money?! What makes you think you will be in the top 10% of those traders or investors?

So ... the first thing any newbie should THINK of is RISK and how they could protect themselves from the exposures.



Sinotop : Previously known as John Master International(I was told) ... I used this stock as example yesterday. Now, how do you trade this lousy goreng stock? FA failing ... pure fundamentalist will ignore this stock(I will too as it is speculative) TA failing .. pure technical analysts may want to claim that those indicators giving them buy signals(I am not pure TA person, so I sure TA fails for such stocks).

If we do not have KNOWLEDGE, and taking this trade ... it will be LUCKY if one could get out with profits. We are trading with some sharks there ... and stealing their food is NOT advisable. So, it is extremely RISKY to take a punt into these stocks ... generally, we could only advise a person not to swim in that part of water as it is sharks-infested. But ... being newbies, being ignorants ... do you think many will listen? They will ... only when they lost part of their bodies, badly wounded ... if they ever recover to stay positive, and fight for their lives. Then, may be ... just may be ... they will change their mindset, attitudes.

I told my whole packed meeting last night, that is what RISK means. RISK is in markets, always ... but we want to increase our knowledge in order to reduce our risk ... forget about profits, please.

Yes ... I was talking about RISk for about 2hours plus ... and I could actually continue for another few hours!! Haha ... No one will tell u these .. the risk and how not to lose money. It is like spoiling your mood(as if markets care about your mood?) ... as many came into markets with IN-CORRECT mentality(I want to be rich?!) ... and without much of logic. No logic ... no need to talk to them and let them experience swimming with sharks!!

After telling them about sharks-stories ... where it takes time to understand ... EXPERIENCE is another very important part of trading well. No one could obtain experiences by reading!! No one!! It is a schoo of hard-knock case where causing us real pain ... making mistakes, blunders ... everything!! Then, if we could still stay positive ... good. We have a surviving chance and be stronger!!

It is 'easy' to teach a person METHODS ... even tho we placed it 'easy', it is because it is so much difficult to teach a person to do homeworks and be discipline to write a trading plan. That will take a few years for a trader to be good in it ... indicators? That is much easier to learn ...

We should not ignore the risk ... we should not be distracted with so many methods used etc etc ... for newbies, it is too daunting. It is too huge ... to comprehend. Hence, getting a person and a mentor(good experience and sincere one, please)  to guide will be good.

Teach them how to 'fish'. Teach them which ponds to fish for the type of fished they want. Not everyone like Tuna or Salmon, you know. Teach them ... to differentiate deep sea-fishing and different baits to be used. Teaching a person to fish is certainly much better then providing them the fishes ... as my taste may not be your taste, right?

e-mail : I do have few e-mail from i3(i think) requesting to join my group. Well, first of all, all my groups are closed groups ... next time, I will have interview process(LOL) for new members. I am going to explain(AGAIN?) the differences.

stock-watch : NO learning here much as I will only post what I am buying, at what price, when to cut-loss ... and take profits. Yes, MY trades ... not analysing anyone's else stocks. One may alert me to take a look at a certain stock as it is technically nice, but I am more to fundamental-news analysis person. I will only use technical after I have checked on its FA-NA.

cohort-9 : This is come personally for my ah-pek trading class. I called this group as 'tratles'.

e-tratles : Yes, I am taking in(and limiting to 25) those interested to learn thru 'online'. It will start in JAN2013 and I am still designing my modules, to make it much more effective. I do have batch-1 and batch-2 with me at the moment. The limitation is needed as I wish to have time to guide, especially it is not easy to learn thru online ... I do have e-tratles from all over, even some from Spore!!

I only charge small tokens ... but if you want free, if you are those noisy-kaki, then it is not suitable. I am only teaching BASIC ... so basic that it is suitable for newbies and novices. If you already knew all those technical charting and trading well, it will be a waste of time(and money).

Hope I have cleared some dust. If you are still wanting to join me, do e-mail me at cpteh@yahoo.com

glad to help and serve ...

ok ... enough said.

TEH

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