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Just manage to find time to read up this whole thread. Great stuff by Nextdoor.
Nextdoor said:
Forget the news, remember the chart. You're not smart enough to know how news will affect price. The chart already knows the news is coming.
Comment: You certainly know something which SI forumers do not know.
Question: Who are the ones who are smart enough to know how news will affect price? The insiders, manipulators, syndicates, etc?
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Nextdoor said:
The trend is your friend in the last hour. As volume cranks up at 3:00pm don't expect anyone to change the channel.
Comment: I am facinated by this 'last hour' thing.
Question: Why you said: '........don't expect anyone to change the channel?' Care to elaborate and help forumers to understand?
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Nextdoor said:
Avoid the open. They see YOU coming sucker.
Comment: This is a two-way traffic. On a bull market day, the opening could be two or more bids higher at the opening. On a bear market day, the opening could be two or more bids lower at the opening.
Question: Do you agree that it is a two-way traffic? What do you mean when you said trading at the opening are suckers? Like to explain a bit.
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Nextdoor said:
Beat the crowd in and out the door. You have to take their money before they take yours, period.
Comment: Wise saying.
Question: 'How can one beat the crowd in and out the door?' Would you like to give an illustration or a concrete example how one can do this?
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Nextdoor, I believe many SJ forumers would appreciate your response to my questions. Hope you can oblige. Your response will certainly by an eye-opener for me to learn more from you.
May be also buy a Blood Pressure meter, draw a chart at comparing BP reading and STI reading. if BP is in the same direction with STI then it is dangerous...
Just took the plunge into trading few months ago. Bought a couple of books to 'initiate' myself. Now I no longer read them because forums like this is far better because these are practical tips not just theoritical ones. Anyway, the Market is the real teacher. If one had not experience the Market, then one has not learned about trading. What I learn so far: Discipline is key to success while greed is the key to failure. This is especially true for punters. Forget about roller-coaster for excitement, play the stock market!! BTW, get a full medical check up before embarking on the stock market!
ten4one... :)
Actually, Mr. Market (the animal) has a mind of ital's own...
So it will move in whichever direction it thinks... no one can change the market.
The best we can do is obey Mr. Market as it reveals it's action through the charts by acting accordingly...
ie if support or resistance is penetrated, we act accordingly without fear or greed coming in the way, (just like a programmed robot)... :)
Halo iPunter, yes it's only human and it is this higher echelon 'animal' that we're dealing with everyday in the Stock Market most of the times. It is this thinking 'animal' that never fail to come up with ideas and change the Market's directions. Ideas are a matter of taste - a good one to some could be bad and boring to others. But one thing for sure, it never fails to excite or cause panic to the Market and develop into new ideas (not rules). Cheers!
ten4one...
You are so right that it's really difficult to remember our preset rules in the midst of all the action.
In the heat of the moment, we can easily forget all that we are supposed to follow strictly...
I have also experienced this countless times in the past and occasionally now too.
It's only human, you see... :)
Trading rules are at times very difficult to follow. Especially so when you're in it and got carried away by the momentum and forget our discipline and let our instinct takes over. I've been in such positions only aware of them later. Maybe it is not a bad thing, or is it? Cheers!
Hi, just read the original post long ago. But still find it interesting. thanks.
Great post by Jesse ! :)
Very true posting from Livermore blue texts! 3thumbsup. Cheers!!!!!
Waxing Lyrical About Markets
Business Times 29 November 2006 - Genevieve Cua talks to to technical analyst David Bensimon, whose market predictions are almost uncannily accurate
He began as a trader looking mainly at fundamentals, news, economic events, dominated by supply and demand and banks flows. In the last few years, the availability of charting software made technical analysis more accessible.
He said, "To ascertain a very long term trend, you need to know what the fundamentals are. Technical analysis allows you to identify the precise turning points - that this price at that time is a good place to buy or temporarily sell. It is not a question of technical versus fundamentals. They each contribute to the investment and trading decision.
Mr Bensimon does not trade stocks but invests in futures and physical commodities, holding positions in gold, silver and platimun. Mr Bensimon is also developing a trading model, aimed at giving clients buy and sell signals
Cashier... I will enter selectively...
TA is fine and I believe it helps. But I find that if you firmly believe in the growth of a company for the next years, it really pays to just buy and hold. Look at the rise of FibreChem, Ezra, Labroy Marine etc.
Maybe a combination of one stock you buy and hold and 1 or 2 others you trade using TA.
ipunter,
so are u going to join us again to long after exiting totally on monday or hold for correction?
Hi my fren ipunter, thank u so much and hope moni will keep rolling into each n everyone in SJ who care n contributed here like u!!!! ;-p
Today i bought Innovalu leh...:-))
To my sifu "nextdoor", who like a benevolent and merciful friend, has given us the 20 trading rules to ponder upon... Thank you , dear sifu.
We are forever thankful to you for your concern, kindness and generosity. May all the money in the market come to you to reward you.
Take care ...
depends on its characteristics, no one fit all.
I use Fibonnacci sometimes (see Williams 1.28 rule) to find out the peaks and valleys of price trends.
It might be hard to believe, but sometimes they work very well. But do not rely on them entirely for trading. My primary instruments are still the TA charts.
It might be hard to believe, but sometimes they work very well. But do not rely on them entirely for trading. My primary instruments are still the TA charts.
today
when is the 6th day before the new moon?