It is Saturday noon ... 3.45pm. I do not have any tuition classes due to Raya-off ... used to be classes from morning till noon.
So ... I m going to read a book by Ho Kok Mun.
This is one of the first investment book I bought back in 2008. But, I was too newbie and know how to apply the theories.
Note : I will contact the author and 'interview' him ... hope he will 'entertain' me. By the way, I do not earn anything from promoting his book. It is a good book for FALLING MARKETS.
Let me share his page-74 ... regarding technical-analysis. Bear in mind that he is a full fundamentalist and I respected him for that.
HKM (page 74) : If TA really works, those who practiced it would become wealthy beyond their wildest dreams quite easily, and yet none of them have, at least not right now. In short, I m not a fan of TA.
I agreed with him. Think of few so-called TA-sifu out there ... think about thousands of people paying thousands to these trading-course ... teaching EW or FR ... or MACD. IF they are THAT good, they would be trading FCPO (hugely) and move into high leveraged instruments such as trading futures or commodities.
It is funny, right? Ever wonder WHY they are still standing there telling us about what the entry price of XYZ due to the BUY signals triggered? Is it THAT simple? Don't be naïve ... get real.
So ... I agreed with Mr Ho. If it is that simple, no need stand there talk-promote-persuade at nights ... asking them to buy the software, right? I was always wondering ... till I started to know the real stories behind.
So ... not TA to get rich. Then ... what? FA?
During bearish market and as we are nearing to sharp-correction, FUNDAMENTALS and PLANS are very vital and important. If you are using charts, I BELIEVE you know how to do a trading plan, exit point etc etc. Yes ... moving back to FA ... after markets recovered, TA will be my choice. Increase my #4 : Knowledge and Experiences ... as my preparations.
HKM : Picking stocks is more of an art than a science. No right or wrong about it.
Personally, I agreed with him in many points.
Ok .. time to read and rest.
buy the book. period.