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

Learn to keep the goreng OUT of your mindset.

You will never be good if you keep thinking goreng.

First thing first.

Why do stocks go up? Profits. Companies makes more and more money.
Why do stocks go down? Poor profits or losses.

That's the main reason.

Then you have of course, stocks going up because the company is acquiring another company.

Which also goes back to profits. After the acquisition, the company via the acquisition will become a bigger company.
Which means the company, will now be a bigger company and will make more money.

Or company wins a big contract, which also means the company makes more profit.

And this is what investors or buyers seek in general.

They want a better company.

Stocks that go down and down and down for years.

Why?

The company is lousy.

Always losing money.

And what do investors scared of?

They do not want to face the prospect of their investment going kaput.

That's why they sell or refuse to invest in such companies!

Won't it be crazy and stupid to be an investor in a lousy company?

That's why the stock is so cheap and is usually down for many years.

Ok.. sometimes, these lousy companies... they go the goreng way.

They fry the stock.

Enough said.
I actually explained to you specifically on PDZ.

post #847

I copy here again
Maybe my England no good.

Let me try again.

PDZ is really a poor (ie LOUSY) company.

It usually lose money.

Which is why the share price WAS so cheap few months back.

Then speculation on the stock.

Stock was GORENG up. 

A new shareholder came in... ie PELABURAN MARA.

Soon came this acquisition proposal.

The problem is this company, Efogen is not making hell a lot money.

Only less than 11.7 million.

Which is peanuts....

Which is where we are right now..........

Not much catalyst or seduction for one to invest or trade the stock.

And this is why, the stock is drifting lower and lower.
This advice I can give to you.

If you want to develop into a good trader...... STOP looking for short term profit.
Trading for a 10% income will lead you to hell!

Sorry for the blunt advice. 

Let me try explain a little.

When you set yourself such a meaningless trading strategy, you are setting yourself up to lose.
It's simple mathematics really.

You win, you get only 10%.
What if you lose?
What if you make a mistake like PDZ (trust me, such mistakes will happen and happen again in the future)?
Where are you going to set your cut loss point (ie point that you finally admit that you screw up and you sell)?
If you exit at say 15 sen, how much is your losses in percentage?

Can you see that the loss percentage is more than your 'hope to win' percentage?

Does this sound right to you?

You win, your win is capped at 10%.
But if you lose, your losses is easily more than 10%.

No matter how you put it, it's not a wise game to play.

Ok, how about the long run.

Which would you think is better?

a) many small wins, few big losses
b) many small losses, few big wins

In (a), the few big losses can easily wipe out all your small wins... and losses could be so big that puts into financial troubles....

In (b), the few big wins can easily wipe out all your small losses.... and you still end up ...... huge profits.