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Lost $8000 this month !

asleep, swing trading is now vety confused and misunderstood as many ppl call whatever they like, for me, i still the old school of swing trading. like Mao zedong said. as long cant catch rat is good cat.

 

snapper, as long the indicators works, it will be good, my advice for u is what u actually know and doing now which is stick to ur trading style than come here read the postings but whoever, chances are almost 95% got one time prediction correct and wrong 99 times.

it is much better sticking to ur current style till you master it, than u can move on to more complex system. in fact i prefer u stick to simple system as simple system work best overall. in fact i can trade with just 3 indicators. RSI, Stoc and Moving averages.

anyway, stressfree is momentum trading indicator. suit short term Day trader & players. the package cost usd247

 

Hi snappers,

I was actually referring to the MACD values not just simple moving averages. This is a solid line which shows the difference between the MA of 12-26 days, then there will be another dotted line, which is set up by the user to 9 days for the above settings. When the 2 lines cross, their paths, it will be time to either buy or sell.

Be sure to look at the chart itself to determine on support and resistance as well. There are a few ways to look at support and resistance, by the pattern of the bar, new highs, new lows, moving averages, fibonacci sequence, etc.

A combination of TA and FA will be the best. But the most important thing is to manage your money well. Always play within your means, so you can cut loss without hesitation.

Anyway, the market nowadays is very uncertain, so its best to sit along the sidelines until the trend is defined, or if you want, you can day trade. Day trade only when you can do it full time though.
 

 

hi asleep.

i'm using moving average of 15, 30 & 50, exponential.  my buddy taught me this to be used together with the swing trading indicator.  we are still on the learning track for this, so it's taking us some time to learn more about it.  previously we kept buying and selling without knowing the support and resistent level, thus it caused us to "bleed" and ended up dried corpse!..ha..ha..  now, we are slowly learning to find out the resistent and support level of the counters that we gonna buy, read on the company's on going matters as to whether there are shares buy back, clinching new projects, etc..  and we are starting to read books on trading..  i got myself this book "secret of millionaire investors" by adam khoo and conrad lim..  i never like reading books but this is one book which i enjoyed reading.  my buddy intro me to this book, so did my broker.  i laughed at some of the traders sentiments and behaviour..  but ironically, i was laughiing at myself as it happened on me too when i juz started trading.. 

 

hi cashiertan,

i'm using a program called stressfree (swing trading indicator).  this program bought by a buddy of mine from US via Ebay.  previously i used the rex takasugi - TD profile, but i really can't get a good understanding of it.  it's my buddy who taught me abt this stressfree program.  i subscribed to cyberquote end of the day data and end of every trading day i will update the counters and go thru one by one to check for support level and resistent level.  as for the MACD histogram, i study the wave pattern.  i'm still in the process of exploring more on metastock together with my buddy..  both of us went thru hell losing our hard earned money, that's why we are learning to read trading data and pattern using metastock...  but compared to expert and "old-bird" traders in here, we are still very green and learning stage..  hope to learn more from ppl in here...

 

Hi snapper,

What are the numbers you use for your MACD? Do you use the normal numbers, 12, 26 and 9, or some other values? If you do some back testing for this indicator, you will notice that it will definitely injure players who use this indicator for volatile stocks.

As MACD is a lagging indicator, I see it as a tool for stocks who do not have too much fluctuations in a day. 

 

Swing trading can be used for 1 min to daily bars. Even day traders use swing techniques.

I'm not sure what exactly is momentum trading though. From this particular book I'm reading, it defines that when the speculator notice there is a sudden burst of excitement in that particular stock, he or she will jump into action. (Summarized)


Swing techniques can be used for day trading as well, such as common TA patterns like flags and pennants. Fibonacci sequence is often applied as well and the normal support and resistance is looked into thoroughly.


How does a momentum trader trade? What are his or her rules and definitions for his buy and sell price?

 

Short term trader generally trade momentum and Swing trade trade trend and time.

Short term trader cant stand taking time risk thus taking (usually) samller but confirmed profits while as swing trader take calculated time risk for potential higher gain.

Sanpper yah good to hear that, no greed is not human liao, only accomplised saints or monk has no greed for $.

however from your postings it seem ur trading has changed much better. keep it up. i uses metastocks too but what abt metastock which u like abt? the scanner? expert indicators?

 

hi cashiertan,

metastock gotta buy and load up..  that's what i meant

if possible, each individual gotta find a trading analysis comfortable to himself/herself..  for me, i find metastock suits me and i use the MACD Histogram to help me buy or sell.  and you are right, it's the greed that overcame me initially bcos of the easy money.  like you said, i will gradually increase from 10 to 20 or even 50 lots..  i gotta agree with you that there mayb a tendency such thing will happen to me..  but i'm happy to say that the tendency ain;t that great as compared to the initial stage i started trading..  geniunely, i bought asia env and china hongxin few days back, 10 lots each.  i made some profit after selling.  i bought again china hongxin at 10 lots again when it dropped.  if before, i would had bought 50 lots again..  but now, i'm happy with 10 lots.  i'm glad that i'm slowly overcoming my greed little by little.. but i must admit, the greed in me is still there..

 

Hi cashiertan,

What do you mean by "ppl who like short term trading will not like swing trade"? From what I can understand, Intraday trading uses the same techniques as swing trading, but the duration is different that's all. They can use japanese candlesticks or other forms of chart reading to help the trader, but the period will be different.

 

lol. yes. some personality types are not suited to be investors or traders. ever heard of the MBTI? go to personalitypage.com. useful info for those into a bit of self reflection. of course, take everything with a pinch of salt, but hey, if it helps in the process of self discovery, why not?

arbitrarily, i daresay the ones who'd not make good traders are the INFP, ENFP personalities. since these are likely to be ruled by emotions and have difficulties following rules.

any opinions welcome! hehe.

 

there's where warren buffet said buy index for non savvy investors.

some are just not cut out for trading, can consider investors where u buy a shares of a co u think is of good value during bear market only.

1 of them is singtel, dbs, ST engineering and affifiliates.

 

It is also possible that some of us are not meant to be traders/investors afterall.

 

sigh. bottomline is simple. in the market, you play against yourself. so know your own personality. all the rest is just talk, white noise. take what helps you; if it doesn't, change, adapt, find/create something that suits you. no one system is perfect or best. market's a wide place, lots of ways to make money. cut out all the white noise and listen to yourself.   

 

1st important is to know if you are a short, mid or long term player. usually ppl only suit only one of this 3 or max 2. those they say they suit 3 dun really know what they want or just too PRO areadi, or maybe he is a money maker himself.

why i say so, if u see many traders who are successful, if u see their system, almost all are famous have a system that trade a single style. what works for them may not work for u.

ppl who like short term trading will not like swing trade or mid to long term trading like value investing blah blah blah. thus finding a style and system which suit your character is better than trading a "sucessful" system which dun suit ur character.

 

 

 

load up metastocks? can meh? i thought need to buy.

one of the reason why u are happier now is becoz u are playing 10 lots which u are comfortable with the amount, thus removing you of your stress. also as u play smaller size, ur greed is limited thus u can make lesser mistake and react on time. The Stock market is nothing but a place where humans trade their emotions.

good that u progress so far. u will go far when u carry on like that, soon u will move from 10 lots to 15 to 50 lots. and so on. lots size increase only with increase in capital and "applied " knowledge.  

next thing is that u need to find the trading style that suit your character. else u will find it hard to follow the rules and discipline needed. not forgotting you will be happier and less stress trading system that suit yourself.

 

 

i started trading in june this year. the first couple of trading contracts i made close to $3000 and i believe it's due to the bull run and not that i'm good or something.  my downfall came in august and it was down all the way.  within august and septmeber i lost $14000.  savings kena swept clean to pay the losses.  ended up gotta borrow here and there a bit to tide over my family expenses.  my broker called me up and told me that i'm not so clever in trading and advised me to stop for the time being.  i was thinking "what the heck?!  i paid up my losses and didn't owe any money but he's talking to me in this way!!"  i was wrong, he called me again the next day, asked me to go to meet him as he wanted to talk to me.  he advised me to go for courses preview on how trading works, visit websites with stocks info on company and even suggested me to load up metastock to keep track.  now, i;m very grateful to him.  initially he may sound nasty but it's for my good.  i really appreciate his kind intention.  now, i'm trying to recover back my losses bit by bit.  i'm happy even if i'm making 50 or 100 bucks a day.  no more panick buying and selling.  the most important thing is, we must discipline ourselves to cut losses once it goes down.  i'm sticking with the theory, if it goes down 2 bids (3 bids most) i will cut loss.  after that, don;'t look back again.  carry on with your life. let's say if you buy 3 counters, if 2 of them had risen and you had made a profit, then sell off the 3rd one, in this way, you will be able to use the profit to average off your loss.  most important of all, it's discipline and not be too greedy.  i used to buy in lots of 50 and 100s...  and it nearly killed me..  now i play with 10 lots... and i'm very happy with it.  slowly making back my losses bit by bit......  and also, you gotta forget all that you have lost...  be it $100 or $100,000....  if you keep looking back, then you will never be able to overcome it and make good your recovery from your losses...

 

behaving the way one is used to behave.

To those who have lost money time and again, I highly recommend you take an introspective look
in your trading style. This is very important, since if one doesn't take action in this direction, further $$$ could be just as easily lost in future behaviour.

In this regard, I have found to my satisfaction that the 10-module instructional tutorial package:-
The "Stock Market Genie" to be a real gem.
This is a valuable bundle of goodies painstakingly designed and (lovingly) produced by an Australian couple who trades the stock market.

Once you have it, I am 99% sure you will be thankful you have such a baobei... hehehe...

 

Yup, very difficult. It is like letting go of attachment to worldly matters... :)

Overcoming this difficulty is like entering a state of oneness with the market... :))

 

On second thought, it is easier said than done. When the time come, I might hesitate again.

As Dr Alexandra Elder said in his book, "Why Johnny can't sell" Why Why Why.

Cheers.

 

 My loss since Aug is unthinkable. A friend sent me the following,

 We must all suffer from one of two pains: the pain of discipline or the pain of regret. The difference is that discipline weighs ounces while regret weighs tons?Jim Rohn

 I guess my problem is lack of discipline. Always thinking that DOW will recover the next day or so. So I did not cut loss. Now the losses weigh a few tons.

The purpose of trading is to make money by learning to execute with consistent discipline. I need to learn from this mistake that I am making.  If we did not make mistakes, we would not learn anything, and there would be no advancement of our trading skills.

 

Cheers