So, waking up the next day seeing DOW down more than 500points and expecting another round of selling. Hmm ... that is how unpredictable markets could be. And the best is still ... stay sideline. Wait for the sell-off to cool? This time the correction could be much deeper than many expect.

SLV up almost 6% today while GLD hit a new high. Many started to speculate about QE3. As USD will continue to weaken, gold could go much higher from here.

I will try to grab some good counters like BJtoto or YTLpower which at oversold region at the moment. What we need is to see more PANIC selling later and to queue at lower price. Could it rebound again? We shall see ... if not, then we have to cut-off as the market force could be too strong. At the moment, no one could come out to say ...KLCI target at 1680 anymore, right?

Checking Gamuda to go back to RM3 and UEMLand to go below RM2?

Brace yourself for those decided to hold. Technical analysis does not work in such situation Whatever signals will most likely to be false and whatever supports will be broken. Buying anything in such an environment could be catching a knife ... err ... a dagger.

8.55 am : Yet another painful lessons to many ... well, just brace yourself or cut-loss.

Today the exams results is out. I am happy as I do have a few students sms-ed to thank me. That is the greatest 'gift' of satisfaction being a 'teacher'. Seeing them feeling good making u more motivated to teach! I have a tuition-class of 5 of them where 4 of them obtained A in their exams.

MAS-AirAsia : It is interesting to see the re-actions from many traders/investors how the preception changed on MAS. But, why AirAsia investors showing their dislikes with the deal and exiting(profit taking?) AirAsia? AirAsia still has a target-price of around RM5, right? Hmm ... will continue to watch ...

SMS : Yes, in the morning ... I do sms some friends, some readers(old-timers) and today my new turtle about his stocks. Nope, I will not 'expose' their holdings. What is more important to point out is how we could learn from there.

KLCI recovered(again) but still down by 3 points.

YTLPower : Yesterday I do have lunch with a new-student of mine, BL. I gave him this example that during such situation, if we need to buy... we need to go for defensive stocks such as YTLPower. If one bought at 2.20, dont you think so at 1.80 it is cheaper and as investors, we will like to collect below RM1.80 during such a crash? If another person bought at RM2 level, today ... it has rebounded well back to RM1.95 level. If I bought at 1.80 level, should one sell?

So, by treating me a nice lunch(thanks), I shared with him some ideas which could be applied. Again, I do not make a commitment to ask him to buy at 1.80 or sell at 2.00. We speak about probability here, and once a new treader learnt these, they could be more confident to trade well.

9.30 pm : I have deleted the comments as it might spark some irrelevent debate of opinions. Also, I have deleted the un-needed response from me. It has been a good few days for me as market tanking as I should continue to be focused. I have decided NOT to entertain such readers and wont explain to them what a blog is.

Learning from basics

It needs time to learn, only IF the person wants to learn. Once the person thought that he knew most of the thing, his mind will shut-off from learning. We need to understand ourselves, how to learn. I learn from practical experiences and I am a slow learner as I learnt from very basic. Yes, very basic ... and it took me 6 months to learn "Trading using MA". Yes, 6 painful months of learning thru reading, thru listening and thru experimenting. 6 months with so many questions in mind. Yes, when u r new to markets or using simple technical analysis ... or reading some broker-reports, quarter reports/annual reports ... it will be daunting. One could be easily GIVE UP as it is simply too much. And especially you are losing money(being novices), you will be in great fear to move back in.

Yes, I do took about one year to learn RSI. Yup, I am a slower learner. I do not really assume that I know about it!! In fact, last year I paid thousands to learn proper technical-analysis. Yup. Learning, I will. More importantly, how do you apply? Knowledge without applications is empty.

The more you are in the market, the more you might leanrt, only if you wanted too. We could easily shut off our mind from learning when we are egoistic and thought we knew about something. Some people really go to the very details(like ... I want to know how they calcualte the RSI and WHY RSI using 14-days and not 13.58days) and will understand one day that SIMPLE system that work is better than a few complicated ones.

Selling point is .. more indicators, the better!! I no not agree. In fact, some stocks you just need to know their characteristics and trade accoding to that!! It is not the system, it is US ... being a novice with emotions, we could not execute the trades as planned(if any).

It does not matter much if you win a trade or lose. As novices, expect to lose. If you do not to lose real money, then you could always use the mock-accounts. Just get yourself familiar first and I am suggesting that you attend some lectures/courses. Then, if you need a tutor, I could help to clear some of your questions!

Now, when I was a novice ... I took so so long to learn few terms, FA or TA. It is because I do not have a tutor!! Hence, I could understand how dis-advantage a novice trader could be. So many factors to consider. So much of noises. And if you have a blog like mine, so many opinions - constructive or destructive.  Who are you listening to? Bloomberg or CNBC jokers? Your remisier, dealers? Your friends? Books? Articles? Blogs?? Gosh ... you will be drown.

That is the whole idea of me having classes for the novices!! Yup, I want to help the novices NOT to lose money as by not losing money, they are the top 20% in KLSE. Wow.

If I am going to teach MA and RSI for 6 months, no one will want to learn from me. Haha. If you tell them that you need at least 2-3 years to familiar with some trading systems using TA, how will they look at you?

Many bought a stock but do not know anything much about it. Dont believe me, please. Ask around ... or perhaps, ask youself why you are buying or selling a particular stock. You will be surprised that MANY could not answer your simple question.

Question : If you bought, say, YTLPower at RM2.00 or RM2.20 or RM2.40 or RM2.60 (whatever level), it went down to RM1.80 and below, what do you do?

Do you see that it is VERY difficult to ask a person to buy or sell a stock? If I bought YTLPower at 2.60, i was chasing her up ... when one fine day it shot up with one long white candle stick seen. So what now? It moved lower and lower. What is next? Cut-loss? Average down? Hold?

When it went down to RM2.40 and stablise, will you buy more to average down? For those sideline, will you start to pick her as she is attractive and seem to be supporting well at 2.40 level? Or will you wait for it to move lower? What if it moves higher and you might miss the boat again?

So, it is at RM2.20 and stablise there too ... again the similar question in mind. If u bought at 2.60, what's next? If you bought at 2.40, what's next? If you have like her at 2.60 r 2.40 level, dont u think so at 2.20 is pretty low? Yes? No?

Fine ... my turtle, WX, came to me ... sifu-sifu, that YTLPower is dropping. RSI very low already. Can buy ar? It was hovering at 2.15-2.20 level then months ago. I said I am waiting for 2.08 and dont worry, this babe is low-beta and heavy. Wont run much. She has resigned and I dont know if she bought at 2.08 level.

there you are ... YTLPower reached RM2 and breaking of RM2(RSI was low then, ok? It is a downtrending stock, formed a decending triangle and ... break!) seeing 1.95 becoming attractiev. Back to my question again ... IF I bought at 2.60, 2.40, 2.20 level ... should I buy more at 1.95? What IF it goes to 1.80 level? No? Yes? How much of our capitals will stuck there as we average down?

So, market crashes this few days ... it really went to RM1.80 and below. What is next? Low will go lower, right? If I bought at 2.60, will I sell NOW? or even if I bought at RM2, I will wonder if I should sell for a loss? Or should I hold? Should I average down(if still got bullets) at 1.80?

THINK ... as NO ONE could tell you that. THINK ... no one will know why you bought YTLPower at certain level? FA? TA? Or hope-analysis? Does it matter? What is important is ... we do not lose so much of money there, right?  If one buy for its dividends, why panic selling now? Or should I ask why hold on till now only sell? How about hold till it is back to 2.60 again!! Can anyone tell you that?

TIP = Think In Probability. Remember, when you going to buy something we need a exit plan!

Learning from basic ... that is what I am trying to share with my current 'turtles'. I do accept the fact that MANY will not need to learn, not to get to the basics as many think that it is not needed. This is a serious flaw in many in markets. When they get burnt, they will say it is to 'pay tuition' fees to market. It is just to console themselves ... as majority lost/losing money in markets. The fear ... and many of your friends will make you feel stupid - I told you so. blah blah ...

THINK again ... we took years of education to learn some basic Math to college level Math, at least. We do much more complicated Mathematical calculations ... we learn the BASICs for years and even some do not learn it well. WHY are we not going to learn the BASICs before we trade or invest?

Because NO ONE told us that trading and investing could be that difficult and tedious!! It takes MONEY and KNOWLEDGE ... and lots of TIME in order to acquire some certain levels of knowledge. DO YOU REALLY THINK it is sufficient to protect you from the market forces. Hmm ... ask around. Ask those honest to you.

I do not want to put 'cold water' to your trades and such. I am just sharing my opinions to novices/newbies who still think that they want to be in market without much knowledge and experiences. I could wish you luck, as you really needs it.

Enough said ... you are big enough to make your own decisions with your money, I hope.

My normal reply is ... not in market, GOOD for you. Err ... already in market? Buy those good-dividend stocks! Haha.
TEH