Play so big! Geng!

Edwin, sometimes, events creates the stock movements and the movement can be seen in the charts.
Hii had been one big factor that drove up the shares of this Sweet Young F...
He was the big buying hand that had been sapu-ing the shares.



That had created the buying demand for the shares and with news he was buying he attracted others to follow suit.
When this 'news 'became' official, the classical 'buy on rumours, sell on news' happened, and you can see the sharp retreat in share prices recently.
Out of the blue, today, news flashed saying Hii might want to buy more?
I think this could be the catayst.
Check the stock tracker at 12.15.
Sweet Young F.. was eaten up at 73 sen.
Big volume was transacted too.
My interpretation is the 'news' created the buying interested.

Of course, your interpretation is valid too.

hehe.. big player hor.

Chef: You want to start a stock fund also ah?

You mau me to lie or talk bull tahi?

No lah.
The 'tree tops' showed hand by buying shares in the open market.

See this berita: http://biz.thestar.com.my/news/story.asp?f...67&sec=business

Someone very happy.
27 sen wo!

Who so brave heart say me?

Why I am Little?

3.19 or 3.20?

Scomi to benefit from budget?

Cilaka!

Fire starter~!

The most important now is to profit from your past.
Last time, you believed that AnnJoo was worth a buy cos the chart looked cantik.
I suggested a buy-on-breakout strategy, buy bigher sell higher. That did not happened...
What happened next, as you know, is history now but you should profit from this experience by asking why did your chart trading failed.
Why did it fail?
Ann Joo last traded at 1.33, far from where it was when you recommended it.

Don't just give up mah.
There's so many things to learn from all this.
I think the reading of the charts seem fair and the strategy was ok. All you need to do is some fine tuning.
First thing.
General Bursa Malaysia market on the whole is still hot.
The market is still trading quite near all its all time high.
But for Ann Joo, it was trading against the market.
A down trend stock in an overall up trend market.
I would ask why.

There's a saying, which you can goog easily, that one should profit/learn from one's mistakes in the stock market and that one should also profit/learn from one's success in the stock market. This is my own biggest rule.
As the saying goes, one can be the richest dude or richest dudette but if one never learns from one mistakes no amount of money will ever be enough.

Much preaching on a Monday morning. LOL!
Do you like Mondays?

Yes, as mentioned before, some charts are event driven.
These stocks moves up because of an 'event'. They also move down also.
Example, stock earn more money.
The more money they earn, means the 'cheaper' the stock becomes and for value investors, what is cheaper, means it's better, hence they will chase after these stocks.
The reverse scenario is when the company loses money. Once they lose money, investors would get jittery and such an event would cause the stock to fall.
Or take IJM initial plan to buy a stake in Scomi.
The initial reaction was bailout and the stock was hammered down.
Charts cannot predict all these events.
However, I have to admit, I've seen far too many times, the good news being reflected in the charts and for some events too, sometimes, good news is reflected much earlier, hence the buy on rumours, sell on news axiom.

Talking male chicken so long already, I have diverted from what I was saying already. LOL!

Quote:

Me and you talked about Ann Joo on 5th May 2012.
http://forum.lowyat.net/index.php?showtopi...&#entry52775214
See post 765 and 700.

Anyway, I was mentioning about Ann Joo trading against the market trend.
The market trend should always be the one you are chasing for.
Think of the trend as your girl friend or boiy friend.
Respect it!
Follow it!
Seduce it!

KLCI, 2 year trend from 5 May 2010 to 5 May 2012.


Ann Joo's 2 year trend from 5 May 2010 to 5 May 2012.


Ann Joo on 5 May 2012, was clearly trading AGAINST the market trend.
I would have been cautious against it.
More so, the stock, if you look at the 2 year chart, is clearly rolling down the hill.
I would have avoided it.

But on a shorter time frames, things could look different.
I am sure you are aware that a 5 mins chart, an hourly chart and 6 month chart are all different and they could offer different trading for different traders.

As I said 'I think the reading of the charts seem fair and the strategy was ok. All you need to do is some fine tuning.'
Here's the chart you posted in May 2012.


I really understand the idea behind that trading plan in May.
Volume increased and the stock appeared to form a bottom.
A dua kali bottom too!
And I guess, you bought the 'bottom'.

(why you LOVE playing bottoms so much? Top ones, good meh? )

If the major trend of Ann Joo wasn't so weak, I would thought it was a great plan but which such weak plan, I thought being cautious would have been a better bet.
LOL! The problem then, I wasn't sure about you.
Yes, we did not talk male chicken with each other before, so I wasn't sure if you are one who wear skirt or you were one who is an arrogant big shot in a small forum.
That's why I cannot be 'draw the picture out of the wall' when I talked with you on Ann Joo.
I wasn't going to spit cold water on you.
That's why I suggested

Could there be an alternative 'better' play for Ann Joo? For instance, how about wait and see if Ann Joo could break about 1.75? And if could use the 1.75 as support and go for the bigger reward play?

By buying the mini break at 1.75, you have a more credible support that perhaps Ann Joo might be breaking out of its doldrums.
Yes, buying at 1.75 and buying at 1.63 does sound a big difference but if you look at what happen now versus then, giving up some part of the bottom, is a much safer play.

Ann Joo today?

I don't like it.
I don't see any near term catalyst that will drive the stock up.

Look at the longer term charts of Ann Joo.

One year chart.



Two year chart



Five year chart - see the possibility of what might happen?



Chef, if you no agree with my male chicken talks please share why?
And sorry for being such a long breath chicken.

LOL!
My friend chicken fever getting you are.

Your best friend looks interesting a bit now.
It's like in the yellow light zone.
Just dunno if light gonna turn red or green.

Green ocean is so green.
Magika sure roti kaya big time liao!

i also feel i m quite long gas.. walao.. u r writting 5000words report to me ah? LOL!
Your kelapa la. Mana ada 5000 words? Report Big Sum ah?
Good things never short.
LOL!

anyway.. why do u want to look at 5years chart when u r trading only short term ?

speculators should look at shorter period right?
Yes and No.
Speculators of course look at the shorter period.
That is correct but for Ann Joo, you need to understand what is driving the stock.
The stock is in the steel sector and steel sector business is not good until boom boom sound.
Some losing big money too.
Therefor, in my understanding the stock is driven by the long term outlook.
What does the long term outlook of the stock says?
What does the long term chart says of the stock?
If the long term chart is so bearish, whatever short term movements of the stock is not going to change much.
Not until the long term chart reverses.
Basically, you are betting against the main trend.
Shit, out of topic and I am not going to delete the above.
The 5 year chart posted has a strong meaning.
Look at any of the charts now. The 6 month, the one year, the 2 year. What are they saying?
They are saying Ann Joo is clearly rolling down hill.
Where to?
The 5 year chart shows the possibility of where to.

The reason i posted out the chart... and also.. the reason i posted plan.. i m too good imagination for the right side for the chart.. i learnt this.. without sure confirmation.. we should not enter on it.. at least have to touch 2sens higher of my Entry price.. i cannot wait for the fish come to me.. my patient is not enough on fishing.. this is what I learnt...
Everyone bets on the right side of the chart leh.

For that 6 months chart in May of Ann Joo, you are betting ahead of an event.
You bet because you assumed a 2 kali bottom might happen.
Note this is a common trading strategy.
Remember someone posting about YTL Corp the other week?
He was betting that a 2 kali bottom could happen.
It's a justifiable bet and sometimes it will be rewarding.
The alternative is to bet when it happens.
This is the sort of kiasu method.
Look at the Ann Joo chart pattern again.
If the dua kali bottom would happen, what's the possible max result of such a trade?
Maybe a 1.92? Maybe more.
So if you enter at say 1.76, AFTER the confirmation, you could set your CL at 1.73 and still have a rewarding betting scenario.
If you goog about this, you can find debates on being early (your style here) versus being late (betting only after confirmation).
Lot's of pros and cons mentioned.

Waiting is a very important factor.
If you cannot wait, better don't play.
You wait to buy and you will wait to sell.
If you short cut this, you will short cut your profits.

Alamak! Let go so many words liao.
Someone will complain again.

If you want to survive and play this game long term, you need to develop an edge.

SkyGor: Scomi. This one had action B4 the news was out. The chart reflected the possibility of what might happen and one giveaway was the chart being very strong that one day when Ci swung badly to the red. Stocks showing strength in weak markets is one usable indicator.

Ah, I remember also, many in the other forum, was going for the bottom fishing play. The result now is interesting, ya.

Long again?


Chef, your method... what if you use this similar method but design your trading play on a longer time frame? Would it help? Review your trades. Trade the weekly charts or the monthly charts. Would it help?

Another thing. There is always a time for bottoms leh. Bottom fishing works extremely well, when the general market trend is weak.
Market today is 1635.
Market is still on the high side.
Why use bottom fish strategy now?
Broaden your horizon.

Now is short gua.