Trading Techniques   

Not-So-Simple Rules of Trading

really! sounds like a day trader to me

 

if u all wanna to see a professional live trader trade, u should go to Bukit Batok POems ctr. there is this man with receding hairline wear specs and shorts. he trade very good. everyday almost everytime earn money and he knows when to short and long. he can predict how far the counters will dip to.. was impressed during one of the day when i went there to use their comp. i believe he has a group of kaki there too. there maninly share tips and info but i think he is the Man there..



Dun say never share good stuff with u all.. 

 

Ten4one,

Yes... I agree with you. I was whacked by the market before. I lost so much, you see. Until I am sad and sigh everytime I think of it. So I take it as an expensive lesson fo me. My elder buddies used to tell me how dangerous the stock market is. Then I didn't believe them before.

Nowadays I only punt punt a bit, usually lost, but since I bet not much, I also won't lose much. To me punting is just to have some thrill. :). And at the same time, hope I can contribute some of my ideas (beside punting, hehe) for others' benefit. :)

 

Mr Market is your best Teacher.

 

That is quite true...

There courses which are purely courses only without any products to be promoted

Anyway it's always good to 'look see look see' first, without being subjected to any hard-sell efforts.

For complete beginners, it's better to attend the Teraseeeds basic coaching first. Then after the initiation into TA, you can buy any number of products that you fancy..

 

Hi Theresa,

Be wary of companies that conduct training courses around their product. Ultimately, they want you to buy their charting software.

I would recommend neutral training providers. They will give more objective training.

My humble opinion only...

 

Hi Theresa...

Nice of you to post this here. 

It's much more convenient for those who are glued to the quote screen or stayed at this joint whole day and have no time to read anything else. 

I believe those who enter the market "blindly' (without basis other than a solid supportive feeling for a stock)  will benefit most from this.  :)

 

 

Hi,

This brings back memories of a certain stock trader some years back who was a dancer by profession by the name of Nicolas Davas. He developed his own system of buying only stocks that go up and up, higher and higher. He actually made millions of bucks and wrote a book to show his method, which is based on the principle of "rising boxes".

When he enters a stock and it went higher, he would invest more money in the stock. When it went even higher, he puts even more money into it. So it goes on until he made millions.

Nicolas Davas system is similar to trend-following systems of today.

(It is interesting to note that this is actually the reverse of "averaging down" in a falling stock).

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4. This Is Not a Business of Buying Low and Selling High; it is, however, a business of buying high and selling higher. Strength tends to beget strength, and weakness, weakness.

This is for those who like to "spot" bottoms. Why SInggal only buy trend is becoz of this. Since u all like and admired her skills, than u had to accept this is the only way to trading..

 

Why 99% of ppl who made millions in stocks are those ppl who dun catch stocks. They enter for a real TA or FA reason, never based on feelings. Catching stocks is like 50% winning, however, after the counting the spread and comm u paid, the odds get lower than 50%..

 

I totally agree with you, RickyTan.

Although there are so many rules for us to follow, it is in practice very very difficult to follow the rules due to the a multitude of factors. In the real world, rules are often sidelined unknowingly or even deliberately.

You are also right about 'catching' a stock. Like for instance Biotreat - many of us have hoped to 'catch' it at 0.45. But when it went to 0.48, if it was 'caught', we would have made a lot of money. It didn't go down to 0.45 as we expected. So sometimes, catching  earlier is good, but not always.

Thank you for your observations.   :)

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for some ppl yes.. ppl who dun follow orders will be F left rite center in mid to long term. but ppl who follow order "stupidly" will benefit.

Hokkien got a saying. Kiang a sai, mai kay kiang.. Do u think you can outsmart the market or the insiders or even the institution players? If not, than be only choice is be dumb but discilpine. actually there is lots of wisedom in discipline.

If u just follow the recommended s/l by ur "teacher" etc. 4% decline from peak like what singgal use. you will be unlikely be caught in any correction or scandal. falling knives dun really all plunge. even gradual decline is considered as one.

However, i wont 100% blame u all since STI brokers are all damn outdated and conservative. they even want to charge $ for new trading platform that can set S/L. Etc. is that P***S brokerage. In USA, this is basic tools, just need to set the S/L and go away thus no need much real discilpine. That is one of many reasons i am going to trade USA investment pretty soon..

 

As the saying "it is easier said than done".  Sometimes it is very difficult to execute eg cutting loss.  Unless you are very experience, you may not know that it is a falling knife.  You may think that it is a normal correction or a pull back. Other than clear example like recent Centillion or Bio Treat whereby the prices really plunge and are obvious that they are falling knives.... 



As advised by gurus and veterans here, it will take time, effort and alot of hard work to learn and be discipline.  Will put in more effort. Cheers.

 

It will be a good thing for all to print out these rules presented by my sifu  "nextdoor" and frame it for easy reference forever. :)

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It's always nice to share! :-))

 

Hi, nextdoor, thanks for the post. It is good for forum members to be constantly reminded of the fundamentals of successful trading. The rules are certainly not common sense and it takes discipline and time to internalise them. Our emotional attachment to our money is some how our biggest weakness to overcome in trading. 

 

Yup, Rule #1 is a No-No! .... Great find, Nextdoor!

 

Good post! Great stuff.

 

Rule no. 1 is what i have been warning others as there are veteran  and gurus still encouraging ppl to level down. Remember, never catch a falling knife it will cut you. let it fall to the floor before u analyse how to pick it up again.