Saturday, November 08, 2014
It is the RED vs BLUE day ... will Monday giving me a RED day or a BLUE day? We shall watch later ...
KLCI formed an inverted hammer ... will it rebounds next week after five days down? Yesterday, many stocks are in GREEN ... check them out.
Day-trading : It is not an easy task ... it is looking into more potential stocks for breakout, or related news that move some particular stocks, for that quick and short punt. As I m moving into trading ... I am learning and practicing short-term trading. It is a different from swing or positioning trading... as the time frame is very much shorter. Many retailers are short-terms ... some playing on contra or margin-trading, which I feel very risky if we do not know how.
As I m just moving to trading since I retired from my full-time teaching job, I could have more time to monitor closer ... and learn. Yes, learning is very important in trading stocks. Learning is ... improving ourselves. Learning takes time and FOCUS ... which majority of us do not have.
Most around do not have strong passion in things they are doing ... and to know what is needed to move a step ahead. Most of us ... are not focus enough in what we want to do, and do it to the very best.
After 6 years in KLSE, finally I have moved out of newbie level ... where newbies are those still learning about terms ... and understanding about RISK. It is THAT hard ... and that is what I told many in my trading group. To tell them RISK is like promoting losses ... but most around telling u about their profits/winning.
All of us will be liking to know about how to WIN ... how to profit .. if possible, in the shortest of time. We let our GREED to dictate us ... control our mind, which normally ... we are logical. But when it comes to trading, we thrown away our logic. Ever wonder why we always buy at the top, and after we sold ... the stocks moving higher? That is psychological ...
Read as much as we want ... talking about it will not make us a better trader. That is noises ... where it is so easy to talk(example : I profited RM1mil in trading Gamuda-wd ... blah-blah ...) but it takes more than guts to trade consistently. It takes time to understand and re-define our trading system. Nothing comes easy ... ask any good traders.
But ... if I continue to promote FEAR ... no one will want to learn from me? Most so-called sifu are smarter ... they promote GREED ... come and join me, I teach u how I could catch MMSV and profit XYZ amount in a day? Otherwise ... who will be interested about what you are talking about or ... heck, who will want to learn?
Yesterday night, during our monthly tratle's meeting ... I talked about some trading idea for the month. For example : QE in US and Japan, GST related stocks, low oil prices and such. What stocks should we be considering this month and coming months?
Then, I will always remind of the risk of punting ... risk of trading. Well most of them been with me for 1-2 years and knew how to trade well(I hope) and how we should approach markets. Yes, we talk about defense before attacks!
What is hot in markets? GST ... IFCA, Censof-Dnex, GHLSys ... hmm ... even Goodway, DGB being discussed? Which one to trade?
Imagine that we are holding to IFCA ... and now the profit is very good ... we will start to feel good ... feel that we should be buying more and the target price of RM1.50 is nearing! That is how we retailers will be sucked inside there game of GREED ... and unaware of the pitfalls. It is like ... we do not want to miss the boat ... hence, buying sounds logical to us?
By the way, I will want to talk about HERD MENTALITY ... on WHY we are always following the crowd. In stock-trading, we tends to follow majority losers(80%) by doing what they are doing ... without even realize that? Why?
One may join me in the e-meeting. I will try to have once a month e-meeting for "My Trading Adventure" readers and followers.(Thanks for being supportive all these while. That I do appreciate and motivate me a lot).
Join here : https://www.facebook.com/groups/cpteh/
Will be attending a market-talk tmr morning organized by M+.
Time for dinner and have a nice weekend.