Learning Corner : Buy at support and sell at resistance


BIMB : Few of my tratles bought into her at 1.71-1.76 levels. Today is a SELL at RM2 level. So, without doubt, I cleared all my BIMB-cc and moving to into next trade.

Check the above chart. If u know how to check on support, know what that huge volumes mean with inverted hammer formed at support, you will be glad to buy. This was discussed in our meeting as I was asking those into the trade to SELL at RM2 level. What else do you want if you bought at 1.71-1.76 levels, right?

Someone in a forum yelling BUY BUY BUY today of BIMB. I defnitely would not agree, technically speaking. I do not like anything shooting high in fast pace.

BIMB closed at 1.93, touched 2.01 this morning when many ignorant aunties-uncles-yuppies(AUY) jumping into her to buy. Sigh ... they always buy at the high and wondering why each time they bought something, it goes against them? Nope ... market do not know what you are buying-selling. We follow sentiments, following the pulse and sell when these AUY moving in. Like it or not, that is how the game is being played. Unfair advantage?

Technical chart gives us the EDGE, if you know how to analyse. Many making TA so so complicated with so-so many lines, indicators, colours and.... it is so so confusing. Look ... trading what you could see and understand. Nothing is for sure, dont bother to look for sure-win trade. Be mechanical, be strict to plan and be ... err ... LOGICAL?

If BIMB could not close higher today, it will form a shooting-star and tmr it will probably goes lower. Keep this page and watch. If it could break RM2 convincingly, that will be my second round of trade!!

Those pure fundamentalists could only shake heads and some even yell TA as 'stupid' forecasting tools(half true, man). It helps ... to complement your so-called good fundamental stocks. BIMB is cheap? Well ... i dont know about its valuation but I do know that it is tradable at this point of time. Dont worry, those caught at RM2 will sell below RM1.90 and we might want to consider her again?

So, do learn ... be open-minded. Be a contrarian. When someone yelling a BUY in forum, it is time to SELL. Obviously majority of them in forums listening to tips and do not analyse stock themselves, right?

Next year, I will consistently analysing charts with my tratles. They do the homework to look for good stocks to trade, I show them how to trade. Win-win ...




12.05 am : BIMB closed at 1.91, touched 1.90 with high at 2.01(in the morning). We shall check how BIMB will be traded this week.
TEH