the common advise buy low sell high does not refer to the price but to the volume....its another way of looking at it.
what prompts me to write this article is also that people want to jump into Sapura with its high volumes and obvious participation by large funds and professionals......should you? what should an amateur do?
what does history say about buying such a high volume share? will it collapse of not? what are the odds and chances.....? will it go higher even on lesser volumes? I am not saying there is a fixed answer.....but it is certainly educational and worth thinking for future use.
buy low sell high is a 'buy-on-dip' strategy .. firstly the uptrend must be established .. then wait to buy on dip instead of chasing price .. we want to see a bullish continuation pattern (classic TA - flag / pennant / triangle / consolidation box) establishing during a retracement .. as the pattern unveils, we want to see price retracing or consolidating with low volume .. we enter either with bullish candlestick pattern at support level or fibonacci retracement ratio or oversold condition or a combination of these few factors .. finally, sell when volume is high cuz this is when the operators are unloading !!! i guess this is what it means ???
but for breakout strategy .. buy high sell higher - we gotta buy when the breakout is accompanied by high volume (but not too high cuz we still want operators to mark-up higher after the breakout to distribute with frenzy volume) !
The decision to trade with or to counter trade huge huge volumes is an ever relevant decision and makes huge huge impact on one's performance...................................
only the problem with most traders is they get to love the stock when it goes high. Till the time when all the volume gone, they're still holding. Even famous, rich "figure" admit that once upon a time ago.
The day 600 million shares were done, the profile of shareholders has changed from ikan bilis and risk adverse to the big funds, program traders, hedge funds and risk seekers. .....People talk about big Funds, well, this is Big Funds.
The adage Buy Low (volume) sell High (volume)is a wrong adage this time round because 600 million shares transacted is some thing never seen before in Bursa..
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
tecpower
3,536 posts
Posted by tecpower > 2018-04-12 00:56 | Report Abuse
BlackRock sees enduring value in tech stocks
http://www.afr.com/markets/equity-markets/blackrock-sees-enduring-value-in-tech-stocks-20180410-h0ylnj