Thursday, October 30, 2014

Still buying speculative counters?




http://cpteh.blogspot.com/2011/12/learn-to-trade.html

I was shared this link ... my previous page about teaching trading. Will elaborate after I re-read my previous old post which a member who followed me for since 2012 telling me ... about how he lost money before joining me ... and now, after 3 years with me, glad he is a learning to be good trader. Will share his words .. to show that I was able to be his ''mentor'' tho we are miles away.

While MANY so-called guru with huge group following them to PLAY, GAMBLE and PUNT into lousy counters ... recently lost A LOT of money, the members will be keep quiet. They knew they are the one who took the RISK. Serious issue of GREED in SO MANY retailers .. LAZY yet want EASY money. So, they followed some tips given ... and recent sharp correction killing many. Still want to buy speculative counters? YOU THINK using brain for a while. Are you game enough for it?

Those so-called sifus who attract retailers to their group by promoting 10-20% profits in less than a week? I believe many members got burnt ... and keeping quiet? If u bought into it, ask the sifu when to sell. Now huge paper-loss, still can hold or not as those companies are lousy fundamentally? But, why they promoting such stocks? Because that is what retailers want ... suckers!! Hmm... serious mental block.  zzz ... they will never learn, more newbies coming into markets and believing that they will profit from tips ... and they will be WINNERS. Hmm ... 80% of them in market losing ... it cant be ME. Hmm ... why? Because we over-rated our own intelligence ... zero LOGIC.

Trading is NOT gambling or punting. There is a fine line to be drawn and I am sure I drawn it clearly.


DRB : This is trading ... market bearish. DRB formed inverted hammer, with high volume. The risk was low at RM2 level entry, RSI showing oversold with KLCI is oversold too. Then, at RM2.24, I asked member to SELL at 2.24 level. Hanging man formed, nearing to resistance. Then, we see ... stochastic moving fast into over-bought region. If today closing lower, we expecting bearish crossover in stochastic. Then ... we will re-plan to trade again.


KNM : A down-trending counter ... imagine buy at RM1, and did not cut-loss. Many bought KNM before 2008 crash ... and have not get to their cost price. It went to 40cents ... guess what, it is at 80cents now. Could we average down KNM at current level? Ask your sifu, dealer, remisier ... your friend or whoever at all given you TIPS to buy KNM, and telling u it is under-valued ... or some rumour .. hot-news etc etc. THINK(need brain again ... sigh ... still working or simply want to profit and tell stories it is down due to crude-oil price down? Serious?).

Majority retailers (80%) are losers and will continue to be losers as they believe in such TIPS. They believe that The Edge written about those news are for them to get rich. Or perhaps, their friendly remisier giving them first hand hot tips ... (psstt ... don't tell others, you are my best customer ... I tell u buy first) ... perhaps broker reports yelling us to BUY XYZ or WXY ... then, we naively went to forum ... the noisy market-place to talk, brag, share argue opinions ... and knowing majority believing it is under-valued, wow ... we quietly bought into it, thinking we have a good catch.

Let us plan where I should go ... for Christmas IF the stock I bought hugely going to fly? Let me see ... our brain telling us ... we are smart to buy early. And endorsed by our so-called sifu .. our so-called friendly remisier ... our great broker report ... plus support by the forum community. WOW ... ini kali la ... WOW.

We have thrown our logic out ... we are convinced that this will be our killing. Oh yes, since we are lazy gamblers ... we easily forgotten about our losses. Our recent pain? no? wow ... continue to keep quiet .. with many stocks way below our cost price. Ignore them ... buy new TIPs. Sound familiar enough?

Do you know that when market corrected sharply recently I received few e-mail asking me about their stocks? And do you know that they have more than 10 PENNY SPECULATIVE counters in their portfolio ... they don't even know what the companies doing ... plus don't even know why they bought into them? A SERIOUS issue of mental block, irrational traders/gamblers in stock-markets. Without them, how are funds, operators going to profit? Tell me .. someone have to lose, right??

I am ASSURING many readers here ... most in forums losing money buying into those speculative counters. Do not believe me ... do a survey. See if they going to tell you why they buy into those punting counters. Also, ask them(nicely la) where they got the tips ... which sifu(s) asking them to buy ... and also what they should do now with that losses. Keeping in the fridge is not an answer. MONEY stuck inside ... cant average down as it is lousy losing money company ... cant cut-loss as it is down by 20% or more ... but but ... believe me again, these gamblers WILL buy into more speculative counters to WIN back. ouch ... did I just said WIN back? Revenge-trading as we known it is for those gamblers. That is not trading. Traders take a trade due to better reward against the risk.

Anyway ... in markets, we will always have new fools believing in trading software, trading sifu, trading tips, trading books ... those buy-sell calls ... etc etc.

Till newbies understand that they WILL lose money in stock markets, and MORE in future if they do not wish to learn first ... sorry is a hard word to say.

KLCI closed 1842.47

Good trading day : My trades done with my group today are good ... suddenly everyone becoming bullish?

Sold Armada, BJAuto. Bought AAX, Yinson and Yinson-cb, Supermax ... day-trading on DNex, SMRT, SMRT-wa, IOIPG.

Those wish to check on my trades(live), please contact me at cpteh@yahoo.com

Time for cycling.

TEH

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