It's going to sound cruel.
Well, if you are clueless now then you should read more before you play the market.
Read tons of books....
Do paper trading.... lots of it.... that's the best way to gather experience.

Only when you are ready, then only you should play the market.



Hope this does not sound so discouraging.....

anyone can make money from the stock market.
but they need to learn before they play the market.

Would it help a trader if you understand why someone else (like an investor) would want (and also NOT WANT) to buy a stock?

If your answer is yes, then knowing fundamentals is a big help!

Waaaa.... taiwan backpacking?

Sounds fun.

Company started as a highway operator la....

recently it's only divesting into O&G.

with this disposal, it wants to be a full fledged O&G player....


I don't quite agree this is 'unlocking value'....
not quite the same....

this is from SILK's profit report.



like I said, the highway is not 'very profitable'.....

not very valuable.....

if it's not valuable... it's not unlocking of value...

no value to unlock.

,,,, and you really do not want to see it's balance sheet too.






.... stock boom or not....

I dunno lor.....

This post has been edited by Boon3: May 28 2014, 09:01 AM

not an easy stock to trade.

You no see what I wrote to you last night?



Actually that selling price..dunno profit or lost.
For a highway....sounds a bit cheap.

Wahhh...resign only look for job meh?

why don't you share some of your paper trades here?

show us your buy/sell decision makings.

Time to wake up and go back to sleep.

I believe there's a place to go if you lost some chickens while praying!




See.
Most important is to get your entry correct.

... also it was also a case where your anticipation of the stock movement was correct to the dot.
only problem was, you jumped the gun too quickly.

IF this same setup happens again, how would you trade it?

Well done! Congratulations.

Hahaha!

Stock watch list!

Ah La Lat's earnings is impressive.



no stock to chit chat ah?

Here is an updated chart of PDZ.



Here was the chart I posted on 27/5 morning.



Compare the 2 charts and then compare these 2 charts with the chart of PDZ when you bought at 16.5 and 17.5
Notice the difference?

It's a good exercise to mark your buy and sell decisions on the chart per trade and then save the chart.
It's a good review practice to learn what you have done, what you should done and what you should not have done.
Since you had used the stoch and rsi, note also where the indicators were.
See how the stock did not reach the presumed support of 14 and how a new support of 15 is formed?
'Supports' and 'Resistances' changes constantly, do remember this.



This post has been edited by Boon3: May 30 2014, 08:22 AM

alpha91

Actually the 'idea' or decision to trade PDZ is understandable.

Stock hits a high of 19.
It then pulls back.
So for you to buy at 17.5 and 16.5 (not advisable to average down as you did here), your thinking is that perhaps the stock is only consolidating its strong run up and most importantly, there is a second coming for the stock.
Sometimes it will work but sometimes it might not.
..... and this is where knowing some sort of fundamentals will help.
You need to figure out, besides the 'godam chart says so', if there is fundamental reason (like the company is way undervalued or if the company's ability to make more money blah, blah, blah) for OTHERS to buy the stock.
ie the stock needs to sell itself besides the chart.

SELL!

This stock was priced for its stellar growth and now there is indication the growth story will end.

when you are making a TRADE, you have basically made one DECISION to buy a stock.
You assess the situation and after 'rational' thinking, you took the big step and DECIDED to buy cos you assessed that you are correct with your decision.
You assessment is that the stock will go up.
So you trade/bet the stock will go up.

You buy.
The stock, however, does not go up.
It goes down instead.

What does this mean?

you are not correct, instead you are wrong since the stock then goes down lower.

Your bet is wrong.

If you buy more and average down when the stock goes down lower, what are you basically doing?
You are merely doubling up on your bet which was wrong in the first place.
Buying more of your initial mistake?
Is that wise?

.... then what if the stock goes down lower again?
buy more of your mistake(s) again?


Supports/resistances.
Stocks are traded constantly.
Every trading data has a new set of data.
Data which might or might not alter the stock supports/resistances.
Things like stock breaking new highs or setting new lows, it happens all the time.
The supports and resistances changes all the time.


ok?