Position for Trends Play

 In this article, I've used the chart of Mewah International as a discussion topic for looking into trends

As you can see from above, the analysis of Mewah is that it is now in a BEAR trend. Starting from 18 Jan 2011, the price has been moving down from 1.20 to 0.87 (see A). After there is a technical rebound (see B) and it end lower on 25 Jul 2011 at around 0.77.

The above counter from its high price of $1.20 till $0.77 takes 7 months to move lower. As the latest price show that this stock may go for a technical rebound as it is oversold. However, i would consider this stock a BEAR stock with a primary trend that may last 9 mths to 2 yrs.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

The Trend is Your Friend. Partner with them

In understanding the stock market, a novice trader must know and understand that the TREND is your friend.
Basically, there are 3 important trends:

• Primary Trend - It could be a bull trend or a bear trend and it last from 9 mths to 2 years.
• Intermediate Trend - A trend that could last 6 weeks to 9 mths
• Short Term Trend - Usually 2 weeks to 4 weeks

There are 2 more trends that are worth knowing and they are as follows:

• Intraday Trend :- recommended for short term trading using 1min, 5 min or 30 min chart. Usually this type of trading is influenced by News and Psychology.
• Secular Trend: - This trend will last 10 - 25 yrs and it usually consist of a number of primary trends.

The above information is extracted using the below reference:
TECHNICAL ANALYSIS EXPLAINED, 4th Edition by Martin J Pring.



DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Dimesions of Stocks Trading

In order for us to trade stocks, we need to learn the different dimension of reading a stock. This means when it will give us a buy signal or a sell signal.

I have currently summed up the learnings of stocks analysis and trading into 5 dimensions namely:

1. Price
2. Volume
3. Psychology
4. Time Frame
5. Trends

By correctly identifying each of its unique characteristics of the underlying stocks, a trader is able to take advantage of the Buy LOW and SELL HIGH concept and to ride out any trends that the stocks presented to him.


DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Identifying Yourself

Hi,
    A lot of people trades in the stock market. They are simply retail investors trying to get a source of income so as to increase their savings. However, most people whom i have know in the market, do not identify themselves as what type of investors are they.  In the end, they will tend to chase stocks and often get themselves burnt. That is when they will decide that stocks are high risk.

   Unfortunately, this is the classic case. Take it as a learning experience. You need active participation once you have stocks holdings.

   Generally, there are 3 types of investors that can be summarized:

1. Position Traders: - Position traders are people that buys the stocks and treat it that they are co-owners of the business. They hold this stocks for long period of time.  Their mantle: BUY and HOLD philosophy applies. They will only sell when these companies is unable to innovate or when it is regarded as a sunset industry due to changes made to the industry. Their Buying and Selling of stocks is based on FUNDAMENTALS of the company. They are also known as investors. Their risk appetite is usually LOW.
2. Swing Traders: - Swing traders are people whom buy and sell their stocks in a time frame of holding between 2 weeks to 2 months. This is the most common type of characteristics that you can find in the market. They use charting tools to assist them in Buying and Selling. Risk Appetite is MEDIUM. 
3. IntraDay Traders: - These traders are know to be fast and furious. They trade on news and will usually close their position within the same day. Their RISK Appetite is VERY HIGH and usually this type of trading is for professional traders only. 

So having to discuss the 3 types of investor character, so what are you? If you like me, am a swing trader you can look forward to my blog as i'm starting to post on using the tools of the trade to help you to buy and sell in the market.

What affects the stocks price?

Hi,
   I believe if you have purchase a stocks before, you will know that the price of each stocks differs every day. Sometimes, you purchase at a price which is perceived to be high, while at other times you may purchase it at a low price. So what makes a stocks price moves up and down?

It all boils down to a few factors:

1. Economic news and events of a country
2. Company earning announcement
3. Forecast earnings outlook
4. Analyst upgrades and downgrades
5. Mergers and Acquisitions
6. Confidence to Management level
7. Lawsuits
8. New product launches or failures
9. Insider buying/Selling

With all this few factors in mind, you need to be nimble to closely monitor your stocks such that it will not become a worthless piece of scrip.

Getting Started on Singapore Stocks

Everyone need to start somewhere in order to learn new things.  To learn more on charting the singapore stocks, we need of course, tools and the Singapore stock prices.

A piece of software which is free and easy to use is chartnexus. This software can be easily downloaded from
http://www.chartnexus.com/

Hi

Hi,
   I've decided to start a blog after posting on Facebook as information is gathered and post. In this blog, i will focus on the tools of the trade used and probably blog on using different setups to enhance our trading skills. Please note that not all tools will be used as there are thousands of tools in the market.. I will stick to what i have learn.

If you have anything to share, please comment. We're all open to learning.