DOW rebounded and inch higher again ... funny, KLCI not going in tandem with DOW or even HSI? Where could I get the correlation coefficient between KLCI-DOW or KLCI-HSI? The last time I read ... it was below 0.10? Are they really correlated?

Learning Corner : Candlesticks

As Christmas is approaching, I was shopping for some nice decorative candles. Yes, candles that we use to light up our homes, to give us the soothing feeling that our lives are 'lighten'. As for trading, candlesticks are very important. To me, it is very important. It is an early signals of some possible changes in the market sentiments, the prices and the psychology of the markets.

There are weaknesses in candle-sticks reading too. Many, in fact. One of the most common one is these candlesticks can be NOT REAL. Yes, it is planted as I always put it. For example, you may want to check the candlestick formed in Gamuda which closed at RM3.40 yesterday. Of coz those experienced one(like my tratle SAM pointed it out last night) could tell the differences between the real candle or the planted ones by checking on intra-day queues and trades done. I do that when I am checking if there is any kaki-tangan(shau-kiok, in Cantonese) being done. Haha.

Learn to read candlesticks ... they are important. They are leading-indicators of the price movements. Price-volume and candlesticks come first ... that is for me. Whether overbought-oversold will come next.




By the way, I do use the above candlestick as my picture here!! Haha.

9.20 am : KLCI down 10 points. Well, DOW up, HSI up ... KLCI down? It was last-minute pushed up la ... check it out that articial candlesticks in many stocks. For example, we are looking at IJM at 5.50 level but it closed at 5.70, and back to 5.55 level today!! Wow ... where can? Yes, KLSE boleh spirit!!

Benalec : Cleared at 1.41 for short-trade. Good.

RSawit. Collecting more in the morning as it went down to 0.915, but only managed 0.92-0.925. Cleared yesterday's 0.88 at 0.945 done moments ago!! Keeping 0.925 levels at 0.98 for short-trade. Good.

EnVair : At 0.285 vs 0.290, can clear her off for some dinners ... but .. err ... wait.

WTHorse : Grabbed at 1.61 yesterday, at 1.65 now. Wait for dividend players to move it.

Glomac : At 0.83, my only red at the moment. Need to watch to cut loss at 0.815 or below. ouch.

Yesterday was a buying day ... KLCI down another 10 points now, I will clear some above soon. As I was writing, Benalec at 1.43 now and will be testing 1.50 again?

PohKong : I saw some activities in her yesterday, huge volume coming in. Otherwise, this is a sleepy stock, unrelated to the price of gold. Perhaps they are selling the gold stacks in their store-room?

11.05 am : KLCI still 11 points down, HSI down 200 points. Nothing much to buy as buying was yesterday. Couldnt sell much, either.

WTHorse : At 1.67 now, low volumes as it is not tradble.

PChem : Will be hanging at 6.05-6.10 range for a time being, waiting for someone to come back to buy more.

EnVair : At 0.275 now, have to clear off at 0.28 again. Waiting for the wind to blow ... check the whether, it is gloomy outside. So, sell?

Glomac : At 0.82 now, need to cut-cut again ... hmm ...

Malton-wb : At 0.355 now ... well, up to fast, down also very fast ... perhaps faster. Phew ... luckily taken profits? Hmm ... buying back?

11.20 am : Yes, Envair is a risky trade, cut at 0.275-0.28 done and lose some dinners!! Ouch. Never mind, queue to buy back at 0.25?

11.40 am : KLCI still very red but HSI testing at 19k level now.

EnVair : At 0.26 now ... yes, the risk is VERY high playing with these counters. We could lose easily as our emotion will be in play.

12.10 pm : It is raining outside .. I am wearing red. So, the market is also in red and crying. Haha.

Mechanical : We should trade with plans, and execute our plans accordingly. You may lose a trade but make sure you execute that cut-loss point of yours. If you are not free to monitor, DO NOT take short term trades as market is very volatile these days. It wont be good for your emotion, either. You dont see me jumping up and down with my profitable trades or down due to my cut-losses on some stocks. My tratles seeing me in person, my colleagues seeing me in daily basis ... I blog here everyday ... do you see much of mood change? Let me tell you that I dont jump up with many of profit taking .,.. BECAUSE Liverpool LOST that day .. I am still trying to get out of the blues.

AirAsia : I am looking at her as there is very low volume generated. MANY retailers are still holding to her and as she is landing, many will be in fear that it might be a hard-landing. They might speculate about the crude-oil at USD100 level or perhaps on Tony's disagreement with MAHB. Perhaps they might watch QPR trashing Liverpool and ... yes, it will be a strong buy on QPR ... ooopsss ... I mean, AirAsia. AirAsia is a very good tradable stock to watch.

Crab's Mentality by Conrad

I was reading his "Trader's psychology" book ... yes, everyone in markets SHOULD get one. It is a good book, no nonsense and put it bluntly to those get-rich-quick mentality. Yeah ... Adam Khoo's and Conrad Lim's books have been with me since my initial stage of learning. We learn from those successful, we learn from our own experiences ... and we learn by sharing with others.

We DO NOT learn ... by staying with crabs!! Haha ... ok, you grab that book the next time you go to a bookstore. If you cant afford it, chances that you are NOT ready to be in market. If you think that I am promoting some books here and got some commisions, you are THE CRAB. Yes, crabs ...

Crabs(page 111) : When someone telling you that trading is gambling, trading is risky and you are sure to lose money in trading, they are just being a crab. Yes, they will tell you(in good intention, just appreciate their concerns, ok?) those lines, it is because they might have tried and LOST money or they have read enough, heard enough of most people losing money to markets. YUP, THEY ARE RIGHT.

excerpt(page 114) : But the underlying point of telling you that it's risky, dangerous, gambling etc etc is bacause people in general have a habit of discouraging others about things they themselves are unable or afrid to achieve

For some reason, if they can't achieve, the natural instinct is to ensure that others don't achieve. May be it's because they will feel inferior should you succeed. It could be that they tried it without success and your probable success will make them look bad. It sometimes comes from knowledge that they didn't do their best and thier denial keeps others from doing better.

excerpt(page 116) : The next time you feel the need to compare or compete, do yourself a favour; look into your own wallet annd be happy with what you have. It was'nt easy to achieve it but you did. But if you are not happy with what you see, do something about it. TAKE ACTION and make it happen for yourself.

It matters not that others are better than you. If only matters that you can be better than yourself!!

TEH : New year is coming ... new-year resolutions YET AGAIN? Haha ... what a crap. Get real ... stay focus as everyday is a new day --- have you done better than you were last week or last month or last year? If not, why? If yes ... move on. I am still moving ...

3.10 pm : KLCI down 12 points now. It is still raining out there ...

DRB and Proton : Back into the game ... these two counters being goreng-goreng by someone leh. Someone with big-money in hands. Smell fishy?

CIMB : At RM7 now ... a comment placed by a reader. He must be a new reader here ... hmm ... I do not analyse charts or give opinions or comments on anyone's stock, ok? Imagine I have 10 e-mails and 10 comments to answer ... this can buy? that can sell? How do that sound to you? Plain stupid, right? As if I know ... let me repeat, I DO NOT KNOW ANY STOCKS WILL GO UP OR DOWN. Buy at your own risk.

EnVair : Someone e-mail me that he/she bought EnVair at 0.280. Of coz I DO NOT reply, as usual. They want to buy, that is their decisions, not mine. If they profit, I am good. If they lose, I will get the blame. Imagine ... say, I have 100 such readers e-mail me their buying-selling, then expect me to answer  ... what do you think of this-that? Now, see the illogical of emotion in trading?

UOADev : I bought at 1.40, sold at 1.38 yesterday morning and it closed at 1.40. So, I have small losses yesterday on her(still like her at current level). Now it is at 1.36 ... heck, someone will ask around ... UOA can buy or not? Wake up ... get real. get educated.

Gamuda-wd : I sold for a small losses again yesterday at 1.01. It closed at 1.04. Ouch. But, today .. it is back to 1.01-1.02 now. What's next? Can I ask everyone, instead? Can BUY back Gamuda at 1.00 level or not? Will it go lower after I buy arr?

Get REAL. Such mentality SHOULD not be in markets. You wont survive long. I am just being honest.

Please understand that I want to help, but if you are running to every places, forums to ask XYZ can buy or not ... then your ABC can sell or not ... you REALLY need someone to shake you up.

Disclaimer : Do read my disclaimer. Thanks.

3.35 pm : Interesting .. RSawit back to 0.910, lower than 0.915, the level I missed this morning. As I sold off at 0.94-0.945, should I buy back? Nope .. in fact, I cleared all, hopefully could cover my losses made in EnVair.

4.15 pm : I am so sleepy ...

Glomac : Another cut-off today ... another small losses. Short-trades, short pain. haha. Sell already, buyback at lower price. It touched 0.81 today.

KNM : Staying abour RM1, someone goreng-ing her ...


TEH