Tuesday, November 22, 2011

How not to lose money

Malaysia won the penalty ... how come no one declare today as a public holiday? I do need another day of break as I am still not feeling so well. My head is banging ... and seeing DOW dropped 250 points is the only thing making me excited today!!

Will KLCI drop 50 points today? I doubt it again ... how about go HKSE for shopping today if HSI drops another 1000 points? It is a very volatile market ...

Now, last week I have shown bearish crossover in KLCI, which means SELL. That explains why I was busy clearing off many items!! You see, if only you know these SIMPLE concepts in technical-analysis, you wont be buying anything much last week, right? Today, KLCI sits at 50MA support, which very likely to break. I will show the KLCI chart after today.

I was telling my tratles last Sat about buying AMMB at RM5.90+ is purely ... errr ... un-knowledgable about technical-analysis and also markets!! Yup, perhaps ... pay me RM300, I could 'save' you RM3k. Serious ... who is the arrogant person rubbishing technical-analysis again? Look ... when we buy or sell a stock, we do think in probability ... we know we are taking risk, and we want to reduce the risk, right?

That also explain why SIMPLE technical analysis works ... I repeat, SIMPLE. You dont give me 10 indicators and your charts with so many lines or colours. That is not to show you know TA. That is NOT technical-analysis, to me. That is 'show-off' and not practical. We want to be practical ... we want to learn how to apply what ... when.

Hence, I have shown the bearish crossover(RSI was high then too) ... then, I added that many stocks trading nearing their resistance. It is time to SELL. Do you understand WHY 80% lose money in markets?

Yes, IGNORANT ... being totally ignorant of fundamentals of stocks(and markets) and ignorant of technical- charts of the stocks. Apply simple COMMON sense, you will know that you SHOULD protect yourself from losing(to me, not losing money is more important than profitting!! By not losing money, I am errr ... top 20% in the markets?)

e-learning : This is to those who wish to learn simple basic of TA which could prevent you from losing money. This is to explain to you why I always clear my holding before things going lower ... and buy back when things reverses. It is NOT a magic or crystal ball ... it is NOT a secret. It is just a skill we all SHOULD learn. If you are in markets without knowledge, there is NO WAY you could profit ... you wuill be running like a headless chicken, asking around ... DVM or SYF can buy or not? Even if you ask AMMB can buy or not at RM5.90, you are really ... IGNORANT. Get yourself educated first, profit will come later ... after you learn NOT TO LOSE money.

Interested to learn simple basic technical analysis, contact me ... e-mail at

I am still counting the numbers ... to reach my first 20. Hehe

Have a nice trading day. I will be busy to check if KLCI or HSI diving ... otherwise, nothing to buy!!

Genting SP : Checking at 1.30 level, it broken 1.50 level yesterday.

AMMB : Checking at 5.30 level now.

10.15 am : KLCI only down 4+ points. Sigh

UOADev : At 1.40, checking at 1.20 ...

YTLLand : At 1.05 ...

Malton : At 0.670 level ...

Propety-stocks will be badly hit when China's property bubble burst ... it is bursting soon. Then, perhaps ... I might want to buy a landed-house?

10.50 am : Ok ok ... KLCI in green. DiGi is still doing well ... so?

I do not mean to make any enemies ... I want peace. Whatever I wrote here is some 'truth' I tried to share with many ignorants ... especially those paying money for 'tips'. I rather teach them to fish ... tho that is VERY challenging. As many prefer not to learn to fish but given the fishes, I think it is still OK ... as the bottom line is 'profit' from markets?

Using common sense, can ANYONE tell you what to buy at what level ... and sell for profits? Can ANYONE at all do such? If they can, why NOT they buy it themselves hugely? Why must they charge you fees for it? How greedy can KLSE-kaki be ... and being ignorants?

They said ... it is THEIR choices if they want to buy Harvest, for example. Heck ... who dont know the goreng-goreng Harvest? Now what? Serve them right for being greedy? I find it sad if we think it that way. Why dont we(or BURSA) educate those ignorants? Is it possible in the first place?

How not to lose money? Do not listen to rumours, tips and even your dealers/remisiers!! That is not a secret ... that is COMMON SENSE. Why put yourself in THEIR traps? They goreng-goreng some stocks, ask you in ... lure you with huge profits, making you believe that the 'tips' are good ... and you get stucked and lose money? Who are you to blame ... but yourself, right?

If your remisier has been doing a lousy job, asking you to buy XXX and YYY ... then you are losing-losing money, will you still listen to him/her? C'mon ... get real. Dont lose money, can you?

E&O : Wow ... at 1.30 now, checking at 1.25 and 1.20 for next level. Long time I did not check on her. Stalk. Forget about SIME.

4.05 pm : HSI recovers and it green now, up 50 points. KLCI should close slightly green later, after 20points mulling yesterday.

How not to lose money in markets? Pointer no 2 ... buy only UNDERVALUED stocks ... fundamentally and/or technically. With KLCI's PER around 13, it is not cheap or undervalued. With most of the blue-chips trading at premium ... it is NOT cheap at all. Hence, as investor ... we SHOULD NOT be buying any stocks!! Technically, we buy only when it is oversold(undervalued ... technically speaking). So, when RSI of KLCI shooting from below 20 to above 60, it is time to run.

There you are ... two pointers for all to THINK about. How not to lose money ...

1. DO NOT listen to rumours, tips and such
2. DO NOT buy over-valued stocks.

Think about the logic, then ... you might be the top 10% of those who do not lose money to markets. Be patient ... be discipline. Continue to learn ... and dont listen to those in forums. Most of the time, they have 'hidden agenda' with THEIR INTERESTS in focus. Do not fall prey to those un-scrupulous people in internet or your so-called punters friends.


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