Money management and risks.

For profitable contra trades ,a good money management strategy,cut loss policy and when to buy and sell is 

a must.Lets say you have a working capital of 100,000 (or credit facility),how do you maximise your profits

and minimise your risks.Spread your risks by dividing your capital by five if you are trading five counters....

Example:

1) First counter you make 5%

2) Second counter you lose 3%

3) Third counter you lose 2%

4) Fourth counter you make 4%

5) Fifth counter you make 5%



Nett gain is 9%

20,000( 100,000/5 counters) x 9% gives you 1,800

 1,800 x 3 =5,400/per mth (12 to 16 contra trades are done per month.)

For those with working capital of 20,000/30,000/50,000/150,000/200,000 ,please allocate the money accordingly( per counter).

P/S......The above is just a hypothetical example...

Hope the above is helpful to my *Contra Trade Member's Group*.

The above is just *My Trade Plan*.If you have a better plan that gives you good profits,stick to it.

My *December contra trades* will be revised to the above format. 

The 4 Stock Market Stages.

Learn the 4 Stock Market Stages That Every Trader Should Know

To trade stocks successfully, you must first understand the four stock market stages that individual stocks and the overall market go through. These cycles tell you if you should be long, short or in cash.
Once you are able to identify what stage it is in, you can then trade accordingly to those characteristics.
After a while you won't even have to think about whether you should be long or short. You will know, without question, exactly what you should be doing NOW. You will either be focusing on long positions, short positions, or you will stay safely in cash - just by glancing at a chart!
Here are the four stages that stocks go through. This happens in all time frames whether it is a monthly chart, weekly chart, daily chart, or an intraday chart.

Ok, so I'm not the best artist in the world but I think it will serve our purpose here! What? You thought it would be more complicated that? My philosophy on the stock market is that if it is too complicated then it is just not worth doing. Now, we'll look at the characteristics of the four stock market stages. I promise it will be painless!

Stage one

Stage 1 is the stage right after a prolonged downtrend. This stock has been going down but now it is starting to trade sideways forming a base. The sellers who once had the upper hand are now beginning to lose their power because of the buyers starting to get more aggressive. The stock just drifts sideways without a clear trend. Everyone hates this stock!

Stage two

Finally stocks break out into Stage 2 and begins the uptrend. Oh, the glory of stage 2!! Sometimes I have dreams of stocks in Stage 2! This is where the majority of the money is made in the stock market. But here is the funny thing: No one believes the rally! That's right, everyone still hates the stock. The fundamentals are bad, the outlook is negative, etc. But professional traders know better. They are accumulating shares and getting ready to dump it off to those getting in late. This sets up stage 3.

Stage three

Finally, after the glorious advance of stage 2, the stock begins to trade sideways again and starts to "churn". Novice traders are just now getting in! This stage is very similar to stage 1. Buyers and sellers move into equilibrium again and the stock just drifts along. It is now ready to begin the next stage.

Stage four

This is the dreaded downtrend for those that are long this stock. But, you know what the funny thing is? You guessed it. Nobody believes the downtrend! The fundamentals are probably still very good and everyone still loves this stock. They think the downtrend is just a "correction". Wrong! They hold and hold and hold, hoping it will reverse back up again. They probably bought at the end of Stage 2 or during Stage 3. Sorry, you lose. Checkmate!
Here is an example:
Stock market stages occur in all time frames on every chart you look at. This could be a five minute chart of Microsoft or a weekly chart of the Dow.
Generally, you want to stay in cash when a stock (or the market itself) is chopping around in a stage one. In stage two you will want to be aggressively focusing on long positions. In stage three you want to be in cash. In stage four you want to be aggressively focusing on short positions.

Reading Chart.

Someone ask me  how I read the chart.


10 Person looking at the same chart,would have come up with 10 different opinion.

For newbies a chart is just a chart.                                                                                                        

For those with experiences,they know that all the informations and all the insider moves

are there, before being make known to the public but there is more...........

A picture speaks a thousand words.But the chart can be painted..... by those who wants

you to believe what you see.For those with well trained eyes and experiences,they

are able to see through this *trap*.

It takes years to really learnt.... how to master the art of chart reading if you are learning

from the school of hard knocks.Basic TA is a *must*for those who wants to know

more about the share market.

For me ,I am able to see more things from the chart and able to anticipate the next

moves, to make more profitable trades.

It takes a lot of financial power to move the market.See how I predicted with deadly

accuracy on the FBMKLCI. ( refer to all my postings on it ).


( Just my thoughts )

The Rules Of 72.

How to makes your *Money* grows more .....

Example :

1) Putting money into FD ( says 4% a year ).

    Using the *Rules of 72*,your money will double up in 18 years.
    
     72 divide by 4% ( a year ) = 18 years.

2) Putting money into share investment,with a return of  8% a month.

    Using the *Rules of 72*,see what happens.....

     72 divide by 8% a mth.  = 9 mths. to double up.


It is obvious from the above that share investments will give you a better returns.

And not forgetting investing in properties also gives you good returns.

To be successful in trading shares,you needs to know the market well.You are

up against the *smartest and experienced*who think of ways and means to take

money away from you.You needs to have good knowledge (FA or TA),years

of experiences and a consistent winning strategy and not forgetting a lot of hard

works to achieve your dream of making more money.Trading in shares like

running your own business will more than often helps you to make the right decision.

Highlight: No sabotage/error in Friday’s trades, says Kenanga source

Highlight: No sabotage/error in Friday’s trades, says Kenanga source

MY SPECULATIVE Observations.

This morning all the 6 counters which limit down on Friday reverse back to

almost near the previous prices.


My Observations.

Counter         Price      On Friday                                             Today( price)  Vol. done
                                    (approximated vol.done @ )

1) Bjtoto       3.20        50000                                                   4.16               17923

2) Bkawan   13.46        2240                                                    17.48              6

3) Cbip         1.93         6200                                                    2.50               15582

4) Coastal     1.48        41150                                                  1.92                10392

5) Tdm          2.90        21730                                                  3.77                119

6) Hsplant     1.89        55180                                                   0                     0


Remarks

1) Powerful invisible hand at work.

2) Selling from right hand to left hand and making huge profits....

3) More upward prices action are expected from now......

4) The program buying /selling is well executed on Friday before closing time

    is to prevent interference....



( Just my 1 cent opinion )

NO UMA issued for----Bjtoto,Bkawan,,Cbip,Coastal,Hsplant,Tdm,Jcy,Star.


LIMIT DOWN .

1) Bjtoto

2) Bkawan

3) Cbip

4) Coastal

5) Hsplant

6) Tdm


LIMIT UP.

1)Jcy

2)Star


Bursa have confirmed trades are valid and genuine.There is no reversing to

the original price come this Monday.


THINGS TO PONDER

1) Some said the above are done through "Married Deals".

    What are "Married Deals"???

    Married Deals are off market deals agreeable between an Institution Buyer and Seller

    over a block of shares at a fixed price.

2) Why would the SELLER sell to the BUYER at such a low price???( 30% discount ).

    A smart SELLER would sell to the current market and get a better price.

    All the above 6, are fundamentally strong counters. 

3) Why would the BUYER acquired the counters( Jcy,Star ) at such a high

    price from the SELLER?.He could get it much cheaper from the current market.

4) Why all the Trades are done 10 mins before closing time???Why not earlier???


MY ANALYSIS.( Just my 1 cent opinion ).

I have detected Programme Buying/Selling on the above 8 counters.

Hundreds of trade done with different volumes on the above counters

over a short period of 2 seconds.It is manually impossible to key

in such a large orders.

WHAT WOULD HAPPEN ??? ( Just my 1 cent opinion ).

Come next week, I am expecting the counters to be goreng up....

( To buy or not....the decision and risks are yours.....)



Just a note.

What a coincident, Jcy ( my runaway train ) is running faster now.....

see if you can catch it...( And again ,all my private blog members

are laughing all the way to the.........BANK.  ) 



    

Saturday June 22, 2013

Bursa: Trades ‘valid and genuine’

By CHOONG EN HAN
han@thestar.com.my

PETALING JAYA: The seemingly unusual market activity that saw sharp price gyrations in several stocks in the final 10 minutes of trading yesterday was valid and genuine, according to Bursa Malaysia.
Six counters from mid-caps to big ones, namely, Hap Seng Plantations Holdings Bhd, Batu Kawan Bhd, TDM Bhd, CB Industrial Product Holding Bhd (CBIP), Coastal Contracts Bhd and Berjaya Sports Toto Bhd, hit limit-down, or a 30% plunge, with a combined trade of RM43.1mil in that short time window during pre-close.
While the trading pattern may seem like an “error in trading” could have taken place, a Bursa Malaysia representative when contacted by StarBizWeek clarified: “With regards to the eight stocks which hit their limits-up (two) and down (six), Bursa Malaysia has investigated the matter and has confirmed with the broker that the basket order, which was from their institutional client, was valid and genuine.”
In yesterday's trade, Hap Seng shed 81 sen to RM1.89, Batu Kawan lost RM5.76 to RM13.46, TDM declined RM1.24 to RM2.90, CBIP decreased 82 sen to RM1.93, Coastal Contracts was down 62 sen to RM1.48, and Berjaya Sports Toto fell RM1.01 to RM3.20.
At the other end of the spectrum, JCY International Bhd gained 24 sen, or 36%, to 90 sen and Star Publications (M) Bhd shot up 85 sen, or 29%, to RM3.71.
In the broader market, the FBM KLCI shed 6.49 points, or 0.37%, to 1,755.85 points, with 306 gainers, 512 losers, and 267 counters unchanged.

FBMKLCI   : UPDATE (The way I look at it )

My Analysis........After the knee jerk on Thursday, the CI rebound back into positive

                          territory for the next two days.The CI is now at the strong support

                          level 1766.50.

                          As long as it dont breaks the trend line AB,I am seeing more GREEN

                          DAYS ahead.


( Just my 1 cent opinion )

Congratulations to All Recently Joined New Members.

Joining at the RIGHT time and the RIGHT place is rewarding.......

You would have got 2 winners with nice profits......and more to come...

1) Mrcb giving  profit gains 17.12%

2) Hwgb giving profit gains 13.46%

3) The Rocket.....my private members knows what I meant.....


P/S..........The above gains is more than recovered  your startup

capital (membership )......and you are now on the right way to

the money chest...and happily laughing all the way to the BANK.

MY TRADING RULES.

1) Never trade with borrowed money.

2) Only trade with the money you can afford. ( eg. money locked up in FD )

3) Trade with a plan. ( plan your trade and trade your plan ).

4) Dont put all your eggs in a basket.

5) Spread your risks.( for trading purposes,average 10 trades or more )

6) Roll your capital ( when 1 of your trades show you a nice profit,take it )

7) Time management.( how long it takes you to double your capital,eg:

    having an average gains of  8% a month,it will takes you 9 mth to double it )

8) Having a proven time tested trading strategy.



( Just my thoughts )

Profits Taking Today (the general market )

The market tells me to take profits today..........

Sold the Bullet Train ( MRCB ) at......1.71......bgt at average price....1.46

Giving me a nice gain of......17.12%......

( To all would be members......time to get out.......)

The Bullet Train is moving very fast now.

Come tomorrow I will let Mr Market to tell me whether to get out at the next stop,

Or to ride on it until stop out by my trailing stop........( just a note to my would

be members...... watch out for my posting at 12.30pm )

Update on The Bullet Train.

At the time of writing,the bullet train went up another 0.06c

making a total gain of 0.27c so far.Today I am seeing the next stop

to get out in the far distance......( just an update for my would be members...)

The Bullet Train.

At the time of writing ,the price went up another 0.04c,

making a total gain of 0.19c up to date.It is still far away from

my  TP. To all would be members,enjoy the ride.......

Will post when time to come to get off at the next stop ......

The Bullet Train

To those who have boarded the bullet train with me,enjoy the 

ride,I am still on board,will post again when I get out.

(All my members know when is the next stop to get out....TP....)

FBMKLCI....Update

As predicted earlier in my post the CI again set another record high at...1826.22.

More bullish days are on the way.I am wearing green.


P/S.....Here is the stock that I said is leaving the station ( MRCB )

          See if you can catch it.( It just went past the 1st. stop,gathering steam now!!!)



Collected another 3 counters for My Fifth Portfolio .

1) Txx at.......x.x6

2) Yxx at......x.x9

3) Yxx at......x.x1


Happy Trading and Good Luck!!!

FBMKLCI  Analysis ( The way I look at it )

KLCI

As predicted in my last week analysis,the CI is now going into uncharted area.

After the past 10 days of consolidation the CI will climb higher once it breaks the

last  record high at 1718.08.

I am looking for more bullish days ahead.

The CI will set another record very soon......most likely in a week`s time.

Support is now pegged at........1700.00.


( Just my 2 cent opinion )

Get Ready For The Ride.

Thanks to all who response positively to my reply...

The recommended stock is about to leave the station now.....

Enjoy the ride.....and good luck to you all.....



P/S.........The stock will be posted here,once the trade is done.

Important Notice To All Would Be Members.

Thanks for all the emails,do check your email for my reply.

For maximum profits...to buy when market opens tomorrow...


Happy Trading and Good Luck!!!

KLCI analysis ( The way I look at it )

After hitting the high at 1716.47,the CI goes into

consolidation mode.

Profits taking is going on now,it will takes a few

days before it resumes its course upwards.

Support is now at 1688.75


( Just my 2 cent opinion )

KLCI Analysis ( The way I look at it )

KLCI

As predicted last week, the KLCI was trading between 1679.82~~1700.

Today it finally breaks above 1700.

Closing in the morning at 1707.01.( The highest was at 1708.97 )

To expects more bullish days to come....



( Just my 2 cent opinion )

FBMKLCI  Analysis update.( The way I look at it.)

Chart analysis

Early morning,from the word..*GO*...the CI shooting up past the magical number

1700 ( the highest 1700.55 so far ).

The BULLS are in charge for the whole day,the BEARS are weakening.......

More bullish days are expected from now on......

The trading range now is from 1679.82~~~1700,before climbing up higher...

As predicted yesterday, the CI touches 1700.55 in the morning from the word ..GO...

Will post tonight where the CI will be heading..........

FBMKLCI  Analysis  ( The way I look at it )

Chart Analysis

This morning the CI is like a roller coaster....fast,furious and swift.

The BEARS push the CI down( 52 points) to the low 1632.28 but the BULLS

fight back to closed the CI at 1685.40 ( +0.40 ).What a fight!!!

I am looking more bullish now,the CI will hit 1700 very soon......


( Just my 2 cent opinion )

When dissolution of Parliament is announced, all blue chips fell heavily

but all my counters are holding up well....some even increase in price.

Now that the news is out...no more bad news...all my counters will

move up....

Enjoy the ride from now.......( for all my members )

This morning when dissolution of Parliament is announced, FBMKLCI drops

to a low of....1632.28 but now climb back to 1670.41 (climb back 38 points).

The news is out,Parliament is confirmed dissolve today..,

The Magical Rule Of 72

By applying the rule of 72,you will know the time taken to double your

money....


Case 1 ( FD )

       72         
   4%(FD)/yr       = no.of yr to double your money.

                           = 18 yrs.


Case 2 ( Investment )


         72            
    8% per mth      = no. of mth to double your money.

                            = 9 mths.


Its very obvious from the above,through investment your money will double up faster.

( Only if you know how to make consistent profitable trades)



( Just my 2 cent opinion )..


       

    

          

A Big Thank You to those who have show interests in my private blog...

The invitation to my private blog is now closed.Those who have email me,

the date will be made known to you soon.

Happy trading and good luck......

HOW TO MAKES YOUR MONEY WORK FOR U

Lets say for the next 10 trades you make a consistent 8% profits....

1) RM 10,000   X  8%  = RM 10800

2) RM 10,800   X  8%  = RM 11,664

3) RM 11,664   X   8%  = RM 12,597

4) RM 12,597   X   8%  = RM 13,604

5) RM 13,604   X   8%  = RM 14,692

6) RM 14,692   X   8%  = RM 15,867

7) RM 15,867   X   8%  = RM 17,136

8) RM 17,136   X   8%  = RM 18,506

9) RM 18,506   X   8%  = RM 19,986

10)RM 19,986  X   8%  = RM 21,584


The above is just a simple calculation....how much you can make if you know the

right way to trade profitably.If you dont know how,ask your remiser...for the name of

the customer who make consistent profits...OR ...follow a consistent proven profitable

trader.

( You be laughing all the way to the bank when you join a winning team....)


( Just my 2 cent opinion )

As predicted the FBMKLCI hit 1615...in the morning before closing for the day

at ......1621.36..The index has turns very bearish....more red to come in the coming days...

( Just my 2 cent opinion )

The Fbmklci........analysis..

Most of the Blue Chips like Bursa,Cimb,Dialog,Drbhcom,Gamuda,Genting,Ijm,Maybank,Mrcb

are in downtrend now.It looks like CI (in bearish mode ) is fast approaching 1615....

P/S :It is a good hunting time for blue chips should CI hit 1615....


( Just my 2 cent opinion )

How to MAKES YOUR MONEY WORK FOR U...

Putting money in the bank will earned you a FD of say 4% a year.

Putting money in the share market will earned you more % ( if you know how )

Lets say for every trade you makes 10%,all it takes is 10 profitable trades to double

up your initial capital.


How to TRADE IN THE SHARE MARKET...

1)First of all you must have good knowledge,skills and experiences to consistently make

   profitable trades.

2) You must have a plan and a good trading strategy.

3) You trade your plan without emotions.

4) You must do your trading in a business like manner ( calculated risks,calculated gains ).

5) Sometimes,when the MARKET tells you to take your profits and run,you dont swim

    against the tide.( you dont fight the market )


( Just my 2 cent opinion )

Congratulations to all my members !!!

The news is out that....Tan Sri Syed Mohtar Albukhary has upped his offer for Twsplnt

to Rm5.00 now.Another good profitable counter to those who follow me.

Most of my members collected it at....4.23 (25/1 )


P/S   : For those who wish to join my winning team,dont wait till the cows come home.

          Opportunity goes to those who dares to pick it up when it knocks at your doorsteps.

Analysis of FBMKLCI ( the way I look at it )

FBMKLCI     

The KLCI closes up for the last 2 days,making it slightly bullish...

I am seeing more bullish days ahead if it can close and maintain above...1621   

Expected trading range is between...1621...to...1636..

Bearish days will be over if it can close above 1636 convincingly....


( Just my 2 cent opinion )

As expected ,this morning KLCI hit 1600 but rebounded...hope it does not breach

it again,otherwise the next support will be at ....1590.

Analysis of   FBMKLCI ( The way I look at it )

FBMKLCI

The CI is still very bearish-four consecutive red candlesticks in a row..

Stay clear of index linked counters for the time being ( for traders ).

Looks like the CI is heading towards 1600 soon..

Should it breaks this,the next support will be at 1590...

Excute only short trades for the time being...( fast in fast out..to capture profits )

Trade with care..

SUMMARY OF MY COMMENTS (Chart )
( The way I look at it )

FBMKLCI

MULTICO

OLDTOWN

PATIMAS

SCOMI

TAKASO

TIGER

HAPPY CHINESE NEW YEAR!!!  TO ALL MY READERS...

Huat! Huat! Huat!.......May the year of the SNAKE brings Prosperity,Wealth And Good Health

to All of You... 

Reading Stock Charts

Reading charts is an art form that can take years to fully master.

Why do we read charts?

Because,by reading charts,we can determine what the "big money" is doing!

You have to be able to analyze a chart and come to a conclusion about whether or not

to risk your hard earned money on a trade.That is really the bottom line.

And this is what separates the novice trader from the professional.

There are several factors on a chart that make it worthy of trading.

By analyzing these factors,we can determine with high probability which direction a stock

will move.

WISE WORDS from :

Dr.Alexander Elder

A good signal jumps at you from the chart and grabs you by the face-you cant miss it!

It pays to wait for such signals instead of forcing trades when the market offers you none.

Amateurs look for challenges;

Professionals look for easy trades.

Losers get high from the action;

The Pros look for the best odds.

William J. O`Neil

History repeats itself in the stock market.

Many price patterns and price consolidation structures that stocks form are repeated

over and over again.

Edwin Lefevre

If a stock doesnt act right dont touch it;because being unable to tell precisely what is

wrong you cannot tell which way it is going.

No diagnosis,no prognosis.

No prognosis,no profit

Linda Bradford Raschke

Some of the best trades come when everyone gets very panicky.The crowd can often act

very stupidly in the markets.You can picture price fluctuations around an equilibrium level

as a rubber band being stretched- if it gets pulled too far,eventually it will snap back.

As a short-term trader,I try to wait until the rubber band is stretched to its extreme point.

Takeover Offer

Now that the cat is out of the bag,I dont mind telling you the counter I collected

on last Friday is MISC at 4.30.

Petronas has proposes to take MISC private at offer price of 5.30 per share.

The offer price represents an 85 cents per share premium over the last traded

at Rm 4.45 before suspension at 12.28pm on Thursday.


( Most of my private members got it at 4.30.Together we.... Fatt!!!

 Those interested to joint me...pls email me at....dsmyoung2011@gmail.com )

MY PRIVATE MEMBERS

A very big "Thank You" to all of you.

You have make the right decision to join me.

My "GOAL" is to turn Mr. Market into a "ATM" cash machine for all my members.

The "Money " is on the table to take...but there is a catch,Mr. Market only give it

to those who knows the way........


( For just a token sum...my daily coffee treats,you get back many Starbucks coffee

in return...)

What is Leverage ???

1) Share margin finance

    The bank lends you money to buy more shares in the market.In return the bank

    charges very low interest rate.It is a two edged sword.You can double your profits

    and you can also loses your pants.Only use this facility in a bull market.

2) Tips from Remiser

   Dont ask tips from your remiser.Ask him for the name of the customer who wins

   most of the time."Leverage" on this person`s experiences.

3) For businesses

   Before launching a new product,most companies will make sure their existing Brand

   is well established in the market.Leverage on this,they will be able to build on their

   distribution networks and good rapport with their customers.

 

FBMKLCI

As expected the Index is in a very bearish mode.

Most of the blue chips continued trading more downtrend now.

Stay clear of blue chips for the time being (for traders).

P/S : There are still some bullish stocks in the market...if you know how to spot them....

         I have a few in my private blog (for members only ).

         I am about to collect more( bullish stock)...in a couple of days from now.


Happy Trading...

What is Opportunity ?

There is no free lunch in the world.

Even if there is,you should take the initiative to be the first and grab it before others do.

Opportunities are given only to those people who dare to take to it.

Those who wait or procrastinate are always left behind.....

( Just a thought )

Why there is FEAR for this coming GE 13?

Everyone knows about the coming General Election as far back as few months ago.

BN will wins this Election, maybe with lesser votes.

The FEAR` is created by the Big Boys ( foreign funds,syndicates ).Since SHORT SELLING

is not allowed in Malaysia (Sell first buy back later).They sell their holdings( blue chips) now,

and buy back later at their targeted price,thereby creating a chain reaction.The general crowd

(herd instinct) will follows.It is more dramatic when the date of the GE 13 is to be  announced.

Stay clear of blue chips for the time being.(for traders)

For investors maybe its time to look for bargains.


( My 2 cent opinion )

FBMKLCI ( The way I look at it )

The market is jittery now due to the GE 13 fears.

The technical rebound is weak,more bias towards downtrend.

Stay away from Index Link stocks for the time being.

Only go for short trade now.

If the counter show u profits,take it n run.

This morning there is a big sell down due to GE13 fears.

I am still holding on to my stocks.

Will ride out of this storm soon.

Time to shop around for some good stocks.

WHEN THERE IS A CRISIS,THERE IS AN OPPORTUNITY.


Happy Shopping N Good Luck!!

Please refer to my TODAY COMMENTARY :

ALAM

MYEG

 

CANONE

 

DAIBOCI

GTRONIC