No. I am not in the industry bro.
Best if you want to know, call your remiser.
Give the fella/babe some work.

hehe... I am not an investment adviser.
Having said that, I can let you know one big secret.

That's the spirit!

Type out exactly what you want to know...
You be surprised to see all the hits.....

for example...
try searching .... 'average down vs average up'.....

see what kind of hits you get....

after researching....
you can adjust a bit...

for example... you see me say averaging down is bad...
so you could thinking...
why is it bad? what is the risk?

well... try searching 'averaging down risks in stocks'.... etc etc etc....

the info out there is limited...

of course....
not all article makes sense....
some actually are poorly written...
this is where... yourself comes into the picture...
you need to rationalize what is making sense and what isn't............

etc etc etc....

blah.... blah........ blah...............

You what talk you?

Me stand no under.

Conslidation breakout retracement incoming? <---------- What is this?

How la you use the first 3 words together?

Oh yes, Homer is consolidating/retracing after its recent run.....

and what would be your decision?





Most stocks sort of gave in and started 'retracing'.........
It wasn't a pretty sight.........

hehe86

The immediate risk here is that the stock could test 85......

I was waiting and waiting.... for your reply.

So you bought more?

If you follow my posts, it suits me that I do not buy based on where I think the support will be.

I know, I klnow...
many like to buy at where they think the support is....
well.... sometimes it does work....
but many times, it doesn't.

if I was going to buy Homer, I would rather wait.

Shark market is always a game of waiting.
Wait to buy.
Wait to sell.

In between.... you do more waiting. LOL! LOL!

Because everytime I post something on Homer, you sure to reply one.....

Err... you say you want to learn TA ma....
the very basics is support/resistance....

and one thing you need to know is.........
stocks are traded all the time...
hence...
supports and resistance are very fluid...
ie.... they change all the time....

and for my past trading......
I found out that it's not a 100% fool proof method to rely on supports to buy a stock......
Many a times.... supports tend to be broken.....

p/s this not exercise to maximize profit. instead to focus on developing a sound trading.

Need to have an open mind when you trade.
Need to be one with no emotions.

This is dead serious matter.
Not for fun.
Not for kicks.



Put some logic into your thinking.
Why is the stock near the support?
Most likely answer?
Something happened and the stock FELL... and it's now closed to the support....
Yes, sometimes the selling is caused by silly market action.
Market players panic....
and they gift money to you by selling it cheap.

YES it does happen.

But then... the danger/the risk.... in trading... EVERYTHING IS ABOUT MANAGING THE RISKS!
is that the stock FELL because of real weakness....
Yes, selling might be silly......
but if enough selling is done by more and more players.....
that selling could cause the stock to fall beyond the immediate support to the next support level (ask yourself why in a chart software, they have support 1, support 2, support 3... etc etc etc)
and when this happen....
are you able to manage this fall?
and what if the next support level is much lower?
are you willing to simply sit it out?
could you handle these potential 'paper' losses? (Paper losses are real!, you already lost.... )

and of course...
what if the selling is done by the big players...
who know more inside stuff than we do?
are we going to simply buy while they dump?

Food for thought......

just opinions......and yeah.... you can always not agree with me.

p/s: just for exercise la... nothing else... ie... don't simply die die buy...

if entering badly beaten down stocks suits you...

try looking at OLDTOWN and PMETAL and DSONIC.

see if you can paper trade here .......

post your fake buy and sell decision.

Knowing style is one thing.
Knowing when NOT to use your stylo milo style is another thing.

Market is a monster.
There is no one style that will last you every day/every year.......
test this long term (say 2 years).... and you will know EXACTLY what I am saying.

85?
That's where the stock broke out from.
So theoretically it 'should'/'might' see support at that price.

Where my tips?

That game how to play one ah?? ....

http://www.theedgemalaysia.com/business-ne...carat-game.html

macam play monopoly already.......

prefer not too............ but then..... there are cases which I will..... (maybe more on this later)

Ho Hup? I admit this one has 'potential'... but then.... on the other hand... I dunno...... ( you can never know all one... ya? )

Anyway here's the chart...



Not so nice eh?



and when you put both of them together...
hmmm...mmm...... not sure if I would even consider this as bottom fishing.....
heck... I am not even sure if I know where the bottom end is....



err.... masteel?

wait ah....

Masteel is different kind of animal imo....

Fundi wise...
it's not really the worst... but then it's also not really the best either.....



Profits have some what recovered from the poor 2011 and 2012....
but then.... as you were look/compare 2010 and current TTM profit numbers....
there is the improvement... from 28 mil to 32 mil...
but for some...
this doesn't look like a top notch company...
because in a time frame of 4 years, company profits only grew at a cagr pace of around 3.3%
Probably if I have to grade it (*cheh waaa... like terror only ... hehe*), I would say that this is only an average company....

Ahhh.... yes.... PE multiple is considered low.... Masteel trading at a multiple of 7.4x current TTM earnings.

And the immediate current chart probably does support your definition of a neat bottom end fishing with the chart indicating there is an immediate support at 1.02



But then the next chart is rather telling....

on a slightly longer time frame....
we have this chart below...



it indicates CLEARLY that the stock is STUCK firmly in a range between around 96 sen and 114.

OK, some traders love such stocks....
They like to play range....
buy in the lower end of the range...
and then HOPE the stock will trade back higher to the upper end of the range....
if it doesn't break past the upper range, they will dispose and gain the stock trading range....
and if it does break the upper range, it's like BONUS jackpot...


Some just don't like trading stocks in a range...
(1) it is 'limiting'... *gains are usually limited* - hitting jackpots is rare... (not every stock will hit the jackpot like Homer recently)
(2) As much as a stock can breakout of a range, it can also break down. (meaning to say, you can buy at the bottom of the range, and the stock can actually breakdown)

ya..ya..ya.... I know... not everyone trades the same stylo milo way....

and the last chart.... when we zoom out more.....



now if we put into perspective...
the company's profits performance... and the chart....
I feel la.... (ya I could be wrong)...
this stock is probably fairly priced......
A year ago, the stock was around 70+ sen...
now it's about 100+.....
which is probably a fair value given its profit performance....

and mind you we need to consider the HAPPY FAMILY issue....

Masteel is a steel stock...
and given how lousy and how shitty the other steel stocks are performing....
yes, we can say, maybe Masteel is the better steel stock...
yeah... let's give Masteel a pat in the back...
well done guys!

But then.... like it or not....
funds in general, they do not like to invest in a sluggish sector.
again, like it or not, they do not like to swim against the tide.......
and this is why....
they will most likely... avoid... stocks like Masteel (doesn't this kind of explain why the stock is trading in a range and there is not much excitement in traded volume (in fact some would call this 'coma' liao... hehe - note the almost non trading activity from Sep to now) ? )

And yes... of course.... you can ALWAYS bet against these funds....
it's your money and your decision....
and it is perfectly ok to be contrarian at times.

Most important thing is you understand what is happening and why you want to trade this stock.

Some times....
you can think one step out of the classic 'bottom fishing' teaching...
ie buying stocks at the so-called bottom end...

tu ah hehe86 calls it a consolidation breakout.... or something like that....

let me pull this stock chart out...

just purely for example only.... ( *if you are a silent reader, please don't simply die die buy hor - I hold no responsibility)

we look at Efficient



here's my interpretation of what's happening...

on the left side.... COMA...
lousy stock.... sleeping.... blah blah blah....hehe...whatever you want to call it, do call it....

towards the end of Aug (i think around 26 Aug or so)...
this stock came into alive....

VOLUME came...

see, if you are a trader ( err... this after all is a traders' thread)...
you have one GOLDEN RULE....

NMNH !!!

Yes.....

Forget this not.

Stock came alive...

See how the stock run and then consolidated?

it's like ... err.... orang yang tua sikit running...
they run .... and then.... they have to pause to catch their breath....
and then they run again....

so if one is positive on this stock (for whatever's the reasoning)....

they be watching this stock....

closely....

here the chart again (note this is the chart as of Thursday trading)



they be thinking maybe 30 sen....
or maybe if 32 sen holds, let's 6 C what the stock does next...
key maybe (have to ask sifu hehe86 ) is 34 sen....
if the stock trades above/breakout of 34 sen, I chase the fella until pants come down....

and what you know....
a consolidation break out happened...
it broke out of 34 sen...
and closed at 35 sen on Friday....



of course...
some would not chase that 34 sen.
they scare their own pants fall out.... LOL!

They think 36 sen is a safer point to start chasing.... (yes... so many different ways to skin a cat, yes?)

But best you ask hehe86.

LOL!



anyway... this is just an example la.....
on how you can expand the bottom fishing strategy....

and needless to say this example is based purely on charts....
which will have its risks....



This post has been edited by Boon3: Oct 4 2014, 11:44 AM