As I am 'free' today, I went to ChartNexus(CNX)'s talk at Cititel, MidValley. I am glad to meet a friend there(he is always there for market-talks) ... and he invited me to another talk next week, Value-Growth Investing and I agreed to attend. So, next Saturday will be another talk for me ... and I will share what I heard or my opinions on that(censored, of coz).

So, the title is "How to ride the trend using MA" by a young trainer of CNX. They are chartist and using TA for trading.

1. Classical Analysis : Price Movement, Chart Patterns, Support-Resistance and Volume.

To me, Price-Volume analysis is important ... and some will be learning it as VSA(Volume Spread Analysis). Knowing these will help us to check on the on-goings(accumulations and distributions). Yes, we do use support-resistance a lot in technical analysis charting ... the horizontal-lines where support turns resistance and vice-verse. I seldom look into chart-patterns such as Head-n-Shoulder(H&S) or Cup-n-Handle. Ascending or descending triangles or flag/pennant ... I will use the sparingly.

2. Indicators

I do use very few indicators ... simple MACD and RSI are sufficient. Yes, candle-stick reading and also lots of experiences in reading the characteristics in the counter(s) we are trading, that is much more important. And common-sense?

He pointed out correctly : Three one-million-dollar questions ... what to buy, when to buy and when to take profit.

Well, I will say ... when to SELL. Selling doesn't mean profits ... it could be cut-losses or it could be because we have something 'better' to buy ... we sell. Taking profits? That is optimistic ... and while it is good to stay positive in trading, one needs to be realistic.

Oh yes ... I like what he reminded all : Do you know that statistic showing that 80% to 90% of those in markets losing money? GREAT.

Now, that is what I called ... 'marketing strategy'. It is instilling FEAR in the audience. Most of those attended must be in those situation, right? Chances is high that ... they are losing in markets and that is why they are 'attracted' to the market-talk, hoping that the MA could help them to earn some 'lost' money? Yes? No?

While the statement is true, it is so de-moralising to remind many there that ... they lost money or losing money!! That is tuition-fees being paid for being in markets!! Well, it is only a tuition-fees IF the trader or person LEARNT something from the losses ... majority of those newbies-novices won't analyse their trades, and wasted the lessons!!

Alright ... back to the 'talk'.

Usage of MA : 1. As support-resistance 2. Trend indication 3. MA crossover

The longer the time-period, the MA line is a stronger support-resistance. Agreed.

Using of 20MA as the trend indication ... sloping up, sloping down and flat.

MA crossover : Bullish and Bearish.

He was using 20-100 pair ... I do not use MA crossover as signals as it is lagging.

He didn't  really teach others how to use MA to trade ... it is merely a talk to attract some TA-newbies to believe it is that simple to be used, but he did mentioned that we should use other indicators to complement with MA. Agreed.



Sumatec : I don't know why I got myself upset when he mentioned how they spotted Sumatec at 0.33 level and selling at 0.50 giving us 50% profits in days!!

If that is true ... I was tempted to ask if he bought into it and profits 50%? ouch ... I am attending those marketing-talk ... those who giving the audience WRONG impression on how we could profit hugely in days?!! Yes, it is mis-leading ... so, I voiced my dis-pleasure. Sigh ... I should have just kept quiet ... as I knew where he(they) are heading to ...

He, then, when on to introduce future-market trading. Hmm ... how one person can short FCPO at 2852 and took profit at 2284 days later when CPO prices diving. Yes, every point is RM25 ... that translated to RM14,000 profits for one contract in days. Hmm ... need we work?

I am always skeptical when I heard all these 'talks' on how to catch a trend, ride on it and how we could profit hugely in shortest of time period? it created GREED.

FEAR in the early talk ... GREED in the closing? Marketing strategy ... and many newbies-novices will believe such 'logic'.

I will want to repeat ... DO NOT trade those speculative counters such as Sumatec and many more actively traded counters. The buaya-darats are there ... one may lose the trade, the confidence ... and quit.

Get your MINDSET right ... never believe in fear-greed ... trading are supposed to be PLANNED. And make sure one knew what the biz of the counters we are buying. Do not gamble. TA won't really works on those counters as they are manipulated. Suddenly, an UMA issued ... what is next?

The package of the trading course worth RM11, 000 plus ... but they are giving a huge discount to RM6, 000 plus ... and for those who registering TODAY ... it will be RM4,000 plus.

QUESTION : To those who attended those few thousands dollars trading-courses :

Are you one of the top 10-20% of winners after the course, consistently?

e-mail to me at cpteh@yahoo.com ... so that I could make a compilation on which trading-course is the 'best' around, will ya? There are few 'popular' ones ... and I won't expose anyone's identity or the trading-course. Fair?

Nice Sunday ahead.

TEH