Posted by CP TEH > 2012-06-04 16:03 | Report Abuse

Yes, sell first when stocks at resistance, overbought. Dont worry if it still fly higher. Buy back when things are cheaper again. That is trading.

But for investors, dollar-averaging ... collecting during bearish market will do well too, in longer time frame. I m assuming buying into those good fundamental stocks, if possible with good dividends.

Trade or Invest ... it is up to us. Get the strategies right, few simple indicators and LOGIC right.

Be contrarian. Be glad we have sales ... :)

TEH

Posted by fzank > 2012-06-04 16:10 | Report Abuse

hi Mr Teh, glad you are here. thanks for the advise. so far you are spot-on on many occasion. You & Mr. Tokan-corner are truly sifu in this forum, without you guys, guys like us just don't know who to rely on. Mr Teh, i always remember your advise on "buying on support & selling at resistance". Thanks again Mr Teh for your advise.

Posted by Namoyaki Takarajima > 2012-06-04 16:55 | Report Abuse

Hi CP Teh! Welcome back, glad you are with us. Indeed, 'BUY at Support, SELL at Resistance' formula works for traders methodology. Wishing you all the best at HKSE. We need you, Welcome Home Teh!

Posted by investor77 > 2012-06-04 17:08 | Report Abuse

Mr Teh,

Can you please give some pointers which shares are the so called good fundamentals counter with good dividend ?

Would you consider Pres Bhd, BIMB as one of it ?

Coastal at support ?

Posted by Kl Vin > 2012-06-04 17:37 | Report Abuse

COLLECT ON WEAKNESS !! AS LONG AS THE COMPANY HAVE STRONG GROWTH PROFIT !

Posted by Kl Vin > 2012-06-04 17:37 | Report Abuse

THIS MARKET CANNOT BASE ON TEHNICAL ANAYSIS ~~~!!
THEY ARE FOLLOWING THE NEWS !!
IF THE EUROPE CASE SOLVE....
EVEN BEARISH SIGNAL ALSO WILL TURN TO BULL SIGNAL !!
CheerS !

Posted by ktrader > 2012-06-04 17:40 | Report Abuse

Correct.....not all the time buy at support and sell at resistance will work!!

Posted by Namoyaki Takarajima > 2012-06-04 17:45 | Report Abuse

Agreed! NOT all the time BUY at Support and SELL at Resistance, NOT applicable to all counter. Sometimes markets will depend on Market Policy Makers; The King of All Movers.

Posted by Kl Vin > 2012-06-04 17:54 | Report Abuse

TODAY I BUY SOME COUNTER AND HOLD ~~~
COZ I BELIEVE ONCE REBOUND...THE COUNTER WILL RECOVER VERY FAST !!!
Take 4 months time to drop...1 month time to recover...base on my true experience :D

Posted by CP TEH > 2012-06-04 19:18 | Report Abuse

Hi all

Thanks for the warm welcome. PLEASE do not call me sifu or whatever. Please do not give me too much of credits. I will prefer to see that we are learning from each other as we grow wiser and acquire more experiences.

Let me put it this way : Buy at support when stocks OVERSOLD. If possible during KLCI oversold. So, we just need to wait. But, assuming that our buying at support fails, which means ... the support broken, then we have to manage our stop-loss and clear first, only to buy back after it rebounded(as our supports turning into resistance).

Another pointer to make : We do have many type of supports ... we could use horizontal lines, our moving averages ... some using BB, some using FR. I stick to basic MA and Horizontal supports.

Next is ... the strength of supports .... is it the immediate support or is it strong support?

So, even buying at support is subjective, depending on our trading strategy ... and our risk appetite. Today, we see many counters dived and closed below support(s). Hence, it triggering a sell signal.

Want another pointer? Ok ... the resistance, especially the strong ones are DIFFICULT to break comparing to supports. In such sentiments, we could see many sellings and naturally the support could easily be broken.

Just need to learn more on trading plan as we do need to manage the risk. Buying at support strategy could only work if we are discipline to cut-loss once our support fails to hold.

TEH

p/s : I am planning to write a book about all these basics. Who do you all think? Got supports? Haha

Posted by Ram Cheong > 2012-06-04 19:19 | Report Abuse

mind to share what counters u bought which can expect very fast recovery . ............ today many counters break its support level but still scare to enter .

Posted by CP TEH > 2012-06-04 19:31 | Report Abuse

Hi Ram

NO ... breaking support is a SELL, not a buy. No such thing as if we know what counter(s) will recover very fast. Again, I repeat .... no one could tell you what stocks will recover fast.

Good stocks WILL recover when market sentiments improves. No one could tell you when. Technically, I like to see the RSI reaching to the extreme low level.

We all have our own likings. So, try to refrain from asking around what stock(s) to buy as what I like may not be your flavour. So, we learn to check on what stocks we do like(business-matter, fundmentally).

One thing for sure, I will not trade Saag, AGlobal, NiCorp, Utopia, DVM ... whatever being discussed busily in many forums. Someone asked me about Flonic and Ingens recently and I could only advise them NOT to touch such stocks anymore. Cut them off, dont be naive. Those are gambling/punting and technically failing. Again, we have our own 'taste'.

Trade with your own plan. Do not think of fast recovery, as there is none.

TEH

Posted by ktrader > 2012-06-04 19:35 | Report Abuse

How's your Hang Seng recent trade?....cut loss already or to be a looong investor?

Posted by Namoyaki Takarajima > 2012-06-05 23:50 | Report Abuse

CP TEH, Please go ahead to wrire your book. You have my vote; 100%. I catch your remark on 'Cut Loss Dicipline' and some other strategy. Write about it, chapter by chapter. Do update me on yr book status.

Posted by TokanCorner > 2012-06-06 00:18 | Report Abuse

Will be one of ur voters ^_^

Posted by Maliki BAR > 2012-06-06 00:23 | Report Abuse

Yea, it'll be good to read your view on the market... the more views and opinions to share, the more we can learn. :)