Wednesday, July 06, 2016

coffee-date #14

12.50 am ... just back from a coffee-date. Will write about that especially the question "How do we a total newbie in market to start ... and what books should we be reading?" ... well, definitely not paying RM5k for a FA(or TA) course, for sure ... was my answer.

In my logic ... if anyone charging RM5k for a FA or TA course, that is over-valued and 80% of the participants could understand only 20% of the contents. They could not able to APPLY the knowledge acquire ... and ever wonder WHY these companies charging so high for those knowledge?
If they are so so good in their technical trading, don't you think so the trainers or the companies who are promoting the software could GAIN so much in trading?

Yes ... trading course provide us basic knowledge (in actual facts, markets do not work that way leh) ... but at the end, it is still you&me who needs to practise on what we have learnt to acquire EXPERIENCES.

9pm : Raya Day 1 ... went to a place called Sg Janggut, near Kapar (Klang), had seafood for lunch there. Went to Pantai Remis and played mud with my girl ...

Tiring but a nice day.

Ok ... let me continue to answer the young 22-yr old ... asking me, how should we start to trade/invest in stock market?

To start with, learn FUNDAMENTAL ANALYSIS ... one may buy DynaQuest to check on those listed companies in KLSE. That would be a start ... to screen on what stocks we could trade, which are lousy counters where will be used to goring once in a while.

By saying FA ... that doesn't mean that we need to be 'experts' in those ratios etc etc ... using common-sense and logic is equally important as stocks do not move/work like what others thought. Otherwise, all the accountants, analysts and such could be very rich by now!! As WB said ... the librarians would be very rich as they have books to read!!

I bought this one book yesterday from the book-fest. It is another text-book for me to revise ... into FA and TA ... before market-crash ... what to look for during crash ... and when it recovers.

Being an educator, I believe in reading. Read as much as we could to acquire the needed knowledge. But as we are not in the 'field' ... there will be many of things will would not understand. Don't worry ... we do not need to know all those to be in markets!! Surprising answer, right? Also ... learn TA from youtube or many sites ... why paying so much for those trading course? So ... I asked him to use the money/funds to "DO IT REAL" ... to experience the market pulse!! All the theories will not make us good or experienced, ok?

We all 'sucked' into those terms ... such as PE or MACD. We really do ... those being promoted by books, sites and such .. making us feel so-so 'insecure' if we do not know these. So ... many of them taken advantage on our ignorance. This is more so if someone have lost so much to markets and desperate to find 'solutions'.

So ... I answered to him : Look inside US ... it is inside us ... the MINDSET.

We were looking into METHODS ... really thought there is such thing of 'winning' system. That is the serious issue for many of us. We bought into these 'idea' ... there is something OUT there that I do not know ... to make money in stocks.

I also given him few books to start with : William O'Neil is a good book. Ho Kok Mun's book would be handy in current market environment ... read as much and whenever we are free ... do that. Reduce the noises surround us. I have quit forums ... also reduce reading 'broker reports' tho I do still glance thru The Edge or Focus.

BJCorp : Let me use her as example ... we all know Berjaya group, right? Ok ... we might heard of "VT's counter don't touch" ... we are total newbie ... imagine, HOW am I going to know if I could buy BJCorp? During the goring time ... with news about 'sports licence", this baby was shooting to RM1.50 and above!!

BJCorp closed at 35 cents ... with support at 34cents. Will you buy more if we are stuck at RM1?

As trader, I will consider at current level ... but WHY buy at support is my next question .... if no news to push her, is it worth the trade? See? SPECULATIVELY ... we will try to relate her to etc etc news or forums write-up ... or broker's report.

Can we really understand their biz and calculate its 'intrinsic' value? Serious?

To enlighten the newbies ... it is too difficult as market is noisy. They are trapped inside the noises ... and could not have a bird-view of almost everything. Once newbies are TRAPPED in noises, they will be lost ... and their learning would stopped. They will be confused ... and could not focus in what they wanted to learn.

TIME ... do take time to learn. No newbie becoming novice without TIME to LEARN.

So ... I advised him to be patient to LEARN ... then, look for me during crash and I will guide him to go thru the whole crash ... that would be the most valuable experiences he would appreciate for years to come.

And sent him this clip ... hoping he will learn to be CONTRARIAN ... be patient and learn now.

Well ... hopefully, he will heed my advices ... as it is not easy for a young grad.

Note : His father brought him to meet me and is an experienced investor (do not trade type) for 20plus years.

Have a nice sleep ... as DOW minus 100 at the moment. OIL lowering ... Brexit fear re-surface. I have sold most of my stocks ahead of Raya-off.


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