It has been a busy weekend for me ... and I did not blah-blah yesterday. I did not even attend the wealth-expo day 2 as I was too tired. Sunday is my rest day to be with family. And catching up with some readings ...

Last night I had an e-meeting with my e-tratles. Well, just showing them simple MA. We do not need to pay thousands to learn MA, ok? Anyone explain in details those MA lines well enough? What is the difference between SMA vs EMA? When do we use what ... and is bullish crossover really a buy? Which pair of MAs do we use to trade? How do we use MA to see trends and using it as support-resistance? Why? What? How?

For a newbies, even a simple MA(= moving averages) could be too much to handle in a session. There is no way a newbie to learn MA is a day or not even in a month!! I am talking about learning and using MA effectively for their trading. Can a trading course which offer a few days classes be effective to learn all those technical terms, all those technical indicators and strategies? Personally, I feel it is NOT possible. I went thru that ... I should know. Even with my prior knowledge, I do not think so I could grasp those concepts in ... days?

If I am telling those newbies that MA is lagging ... can u imagine the word 'lag' is new to them in trading? How are they going to understand how to use MA ... when the word 'lag' needs to be explained?


This is a chart of KLCI ... dropped below 20MA on Wed, gapped down and broken 50MA on Thu. Support at 1605 level, still above 100MA. What do all these mean? Buy-hold or sell? Technical rebound expected after Friday many stocks showing harami. So, for short term we could buy for that short term rebound. That is leading ... but using MA, it is a downtrend now ... that is a sell.

One good question came out last night. If a stock is below 50day-MA(like KLCI) but still above 20wk-MA, should we be selling or buying? It is from a young e-tratle of in our group. To be able to ask such question showing that he is trying to digest and understand MA, to be applied in his trading plan.

With all these MA, if it is not confusing enough ... with lack of liquidity in KLSE(and most of the stocks), many of our stocks could be manipulated. Sigh ... technical analysis really fails badly in KLSE and many of KLSE's stocks.

Lets move to HKSE ... as it is cheaper valuation there. I will share with my group in a talk next month about HKSE and few stocks to watch, letting them to learn to move out of KLSE(very expensive and toppish now). I might be having a public talk to share with those who might be interested in HKSE? The risk is high, buying into something we dont understand.

Got to go ...

Note : If we need to trade, trade short term. If we need to sell, sell during rebound. Avoid penny speculative stocks, avoid call-warrants. Keep more cash ... and perhaps look into broader picture. Acquire that knowledge could save us from being burnt again?

TEH