I will divide stocks into few categories. As I am focusing in KLSE, HKSE and US markets to trade, I do need to know which could give a better opportuinity to trade. Trading KLSE is much cheaper than the overseas using our local broker's platforms. So, the fees charged need to be considered too.

Big, mid and small market caps stocks are placed in different categories ... short-term and mid-term trades should be differentiated with different strategies. I called these as 'diversifying' to reduce the risk. We do not put our eggs in one basket or should we? We will also want to categorise our stocks into sectors ... yes, stocks in similar sectors tend to move in tandem, due to HERD mentality.

I would use simple 'contrarian' mentality to trade ... and most of the  times, markets are too NOISY. If you are to read a lot of news, articles, forums, blogs...  listening to friends, remisiers ... you might know what I mean by NOISES. It is everywhere. What I will basically do is move AWAY from the noises and letting go of these 'hypes'. Sound simple to be contrarian but ... it is not.

Remember how MANY of these noise-makers shun IT-sectors? How they downgrading the whole sectors, giving you ALL the possible BAD news, how bad and gloomy these counters are? And with the will of God, the flood in Thailand being used as a turning point and JCY is at 1.30 now. Unisem recently shooting from my base of RM1 to RM1.60 now. These craziness could be heard everywhere now ... it is still marking higher for MANY syndicates and sharks to SELL to these greedy and ignorant traders or so-called investors. No logic needed ... gloomy to bloomy. If you could STOP, PAUSE a while to think logically, you will be wondering why is such ... that is MARKET!! It is a noisy place .... it is driven by HERDs, moving together ... with fear-greed in play. FA and TA fails ... logic thrown out of the system and some STILL asking if Unisem is a buy, analysts or those so-called noise-makers in forums will be yelling a buy ...buy ... upgrading coming in from your broker-houses ... BUY is the whole mania!!

Hmm ... pause.

Hmmm ... these could be the same person who yell SELL ... JCY target-price at RM0.30(read my last year post ... merely 4 months ago!!). Pause again ...

Ok, when MPI dived and formed a nice waterfall ... it was discussed by my tratles. I am teaching them how to check on leaders, check on bad-news ... use indicators to time our entry ... and BUY when during accumulation and no-one talking about it, or better still ... those HERDS who are in fear. I thought we are supposed to be greedy when others in fear? And ... I thought when everyone is greedy ... err ... we supposed to be in fear? Yes? No?

I thought when markets going higher, risk is higher? When markets at resistance, it is time to sell? Yes? No? I thought we ALL knew that before trading markets? Yes? No?? NO NO NO!!

Hmm ... pause.

Think ...

It doesnt make senses, right?

Markets are used by many syndicates ... our broker-houses(sharks) ... insiders ... manipulators ... to trap-n-lure many retailers into markets. It is a place where MAJORITY losing money, yet could not get-out. If one is out after losing, they could never re-coup their lost capitals!! It is VERY emotional place to be in. No one will want to listen to your logic, your stupidity ... and continue to search for SURE-WIN systems to get them RICH ... yeah ... getting rich is their motives in market!! Wow ... I used so much of time explaining to my tratles WHY 80%-90% of them lost and still; losing money!! I am certainly a few stupid idiots to advice others NOT to be rich!!?

Think ... I do hope you pause and think ...

Read good investment books. Read more goo trading books to LEARN ...

Reading forums could corrupt and spoil your mentality. Once that becoming a HABIT, to change the way you trade could be very challenging. THINK again ... these are for my tratles, e-tratles ... as markets becoming noisier as KLCI inching higher. General election news becoming a noise. THINK ...

My number of posts regarding stocks also reduces as market going higher and higher ... due to Proton story, MAS is being linked. Interesting? We dont talk about fundamentals or business here in market. We speculate on news ... and ride on it. Yeah ... MAS flying, AirAsia landing ...

I could continue this un-organise post ... I just want many to THINK. Take a break ... listen to the noises. When MORE posts in forums, more people talk about Unisem ... and more speculate about how good IT-sector would be in 2012, we need to use BRAIN to think ... any logical sense to us?

I rest my post here ... with a word. PAUSE.

Happy trading

TEH