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Poll: When do you buy shares

I tend to follow Livermore style.

He does not hold many counters and so me too.

Livermore does not trade very much,that is,buy and sell or sell and buy.

For me,i keep things simple,will not sell if the counter does not go up 20%.

And thus enjoy the dividends while waiting for it to move up 20%.

If u follow Livermore,he uses margin lending.So do i.

Hehehe......that is the way stupidfool play,just follow people.hehehe.Thus i very seldom cut loss.

 

 

sarahlkh      ( Date: 25-Apr-2008 17:56) Posted: hi SF, i am starting to believe in cut loss, sometimes i do, but feel that i have not practised often enough. however i do more avg cost investment = buy in again when its low. basically if the stock is something that is worth holding on  .... u? stupidfool      ( Date: 25-Apr-2008 17:08) Posted: icicic....so if there is no decent profits,u will continue to hold???? you do not practise cut loss theory???

 

Hi cathy, I was losing money too when I didn't know how to play.  When you start trading forex, you need to remove all your bad behaviour, indicipline and the most important thing is emotion. 

Forex is the highest risk financial instrument right now.  If you don't know how to read the chart, you need to stay away from this platform.  In forex, one wrong step will immediately take out all your money. 

You need to be familiar with the price behaviour, before you can play with.  In stock, if market price againts you, you still can say "keep it for tomorrow", in forex ... it's a doom.

So, you need to find out a strategy, money management, maket psychology, and how to do market analyst before you start.

 

I'm on the way home.  On the bus, but let me give you some example.

My favourite is Synear.  Synear before 2008 was traded between 1.5x to 2.5x something.  This counter had a few people play only, considering the price.  You need to know stock market paradigm, and the separation of the trader base on risk appetite and money power.  Synear mostly played by trader with higher risk taker.  By my observation, Synear could be played using Pivot Point, additional to RSI and William R.  Means you need to see if RSI and William R had crossed Overbought area, you could bought in.  About how much the price is, you take it by using Pivot Point.  About stop loss, you can use R2 to R3 from Pivot Point.  The profit in Synear you could determine by using Fibonacci.  I usually used 68.1% as my target price. 

But after market shock, how about now? Can we still use this technique?

For your consideration, since Synear becomes so cheap, everybody is pouring their money in, hoping it will be back to 2.xx or 1.5x at least.  But what happen?  This counter's behaviour has changed.  The reason is its share holders's risk taker ratio are not the same.  It makes Synear more volatile.  Now, if you observe it, Synear will move down after 5-10% up. (It  was 25% before).

Synear now can be watch by Moving Average 20 days and 50 days.  Indication it can be read by MACD also.

 

I tend to agree with you that forex is not as manipulatable as stocks and shares although I have never touch forex before. But we often hear of people complaining about losing money in forex, what is you view on it? 

 

base on my experiance, playing stock is easier, but the money is not so liquid, since we can't take profit in one day.  Intraday trading is not so good nowaday.  And also the stock volume is to small, so tend to be used by smart money to manipulate.  In stock exchange, who own more money, who own the floor.  So, you need to play more expensive stock in order to have safety.

In forex market, no body can manipulate the price.  And also there is only a few pair you need to learn.  So, you cut the number of thing you need to observe.  Since there is no body can manipulate the price, the price movement characteristic also quite stable means predictable.  This is the reason why play forex is more simple. 

In stock market, you need to adjust your technical analysis with the fundamental thing, to avoid fake signal.  Fake signal means the probability market is being played, and we become the victim.  In Forex market, no matter what the news, we just now there is a movement, but we can't predict which direction.  But, by using indication from our technical analysis, we can determine the probability of its movement. :)

cathylmg      ( Date: 25-Apr-2008 18:08) Posted: Gotta tok to u sometime regarding this. Which do you think is easy to play with? Shares or forex? Why?

 

Gotta tok to u sometime regarding this. Which do you think is easy to play with? Shares or forex? Why?

 

Hi cathy, I can tell you which indicator can be apply to which counter. 

I have investigated 642 counters in SGX .. so that why I know exactly which indicator can be used for which counter.  It took me 1 year and more to do this research. But, it's worthed.  :)

Because this difficulty, I'm prefer to play forex.

cathylmg      ( Date: 25-Apr-2008 17:53) Posted: Then how do you know what indicator to use on which counter? There are so many of them? techsys      ( Date: 25-Apr-2008 17:48) Posted: Yup, you need to know which indicator you need to use.  Every counter has their own behaviour.  Fundamental is the movement drive, technical is the behaviour.  Using only fundamental you won't know what the entry price is, from technical analysis, you will know the specifict entry price and profit.  I only use fundamental news as market drive.  But don't bother much by it.

 

Sometime you never know that it might rebound. For me I practice dollar cost averaging.

 

hi SF, i am starting to believe in cut loss, sometimes i do, but feel that i have not practised often enough. however i do more avg cost investment = buy in again when its low. basically if the stock is something that is worth holding on  .... u?

stupidfool      ( Date: 25-Apr-2008 17:08) Posted: icicic....so if there is no decent profits,u will continue to hold???? you do not practise cut loss theory???   sarahlkh      ( Date: 24-Apr-2008 09:55) Posted: SF, i usually hold till i get profit out of it. once i think its about decent and lesser chance of getting more profit, i will sell. some i have holding for many years now. u r long term?

 

Then how do you know what indicator to use on which counter? There are so many of them?

techsys      ( Date: 25-Apr-2008 17:48) Posted: Yup, you need to know which indicator you need to use.  Every counter has their own behaviour.  Fundamental is the movement drive, technical is the behaviour.  Using only fundamental you won't know what the entry price is, from technical analysis, you will know the specifict entry price and profit.  I only use fundamental news as market drive.  But don't bother much by it.

 

Yup, you need to know which indicator you need to use.  Every counter has their own behaviour.  Fundamental is the movement drive, technical is the behaviour.  Using only fundamental you won't know what the entry price is, from technical analysis, you will know the specifict entry price and profit. 

I only use fundamental news as market drive.  But don't bother much by it.

 

Can really make money on pure TA?

techsys      ( Date: 25-Apr-2008 14:00) Posted: I buy when the price is low and can be confirmed by some verified indicators.  Btw, I'm technicalist trader dude ..

 

icicic....so if there is no decent profits,u will continue to hold????

you do not practise cut loss theory???

 

sarahlkh      ( Date: 24-Apr-2008 09:55) Posted: SF, i usually hold till i get profit out of it. once i think its about decent and lesser chance of getting more profit, i will sell. some i have holding for many years now. u r long term?

 

I buy when the price is low and can be confirmed by some verified indicators.  Btw, I'm technicalist trader dude ..

 

Pre CNY, End yr coy housekeeping and X'mas are the most prominent one, locally.

sarahlkh      ( Date: 25-Apr-2008 13:39) Posted: guess most pp are waiting for opportunities to buy in rather than due to seasonal factor? heard abt the january effect? in singapore there is also the vacation effect? the hungry ghost festival effect? i still think that factors as such matters.. opinion?

 

guess most pp are waiting for opportunities to buy in rather than due to seasonal factor? heard abt the january effect? in singapore there is also the vacation effect? the hungry ghost festival effect? i still think that factors as such matters.. opinion?

 

Now, the global market atmosphere seems fine, esp China tax cut boosted the local market and Spore Dragon stocks. US credit crunch seems gone over and lets corporate news after end Apr.

Gut feeling, with STI climbed over 3200pts, its an optimistic investment climate for all to share. AK view only. 

 

I think the worst is over or almost over. So i think this is the right time to buy and hold.

 

For me buying shares is not the moment you buy and then the next day it must go up. 

 

Good to hold some for long term