Related to MUDA..

https://www.letsrecycle.com/prices/waste-paper/

Don't be itchy.....

Trading volatility is something not many are good at.

Last couple of years, the strong USD factor created a strong trending market where strong growth were seen in many company. Trading then was more straight forward. It was easy.

This has changed. The ringgit has regained a fair bit against the dollar. This has not fully reflected in most stocks. Weaker earnings are to be expected in many companies. So you are going to witness a market with many stocks experiencing declining earnings. What seem cheap now in relative to it's earnings could be deemed expensive when you factor in future declining earnings.

... and worst still ... the uncertainty of future earnings impacted by this Donald tariff war.

... and then we have our local issues....

How do you want to factor in your market risk assessments?

.... yeah... lousy market will still have a few winners one.... But are you good enough to pick these needles from the haystack? And how profitable is your game plan?


Trade the setups you are good at....
Never trade for the sake of wanting to trade....

Patience....

Wait.



This post has been edited by Boon3: Apr 5 2018, 01:03 PM

The urge to buy previous darling stocks at a discount price is sometimes quite strong. Time to time really need to control oneself from these urges and emotions (FOMO, Greed). Is quite easy to switch from a trader to a 'investor' too.

True also..

I always hand itchy.. lol

Many stocks look cheap to me..

Guess I have to lock my laptop and throw the keys away..

No. Don't lock your laptop. Now is the time to reflect and find ways to improve !!

Develop your game plans, your strategies and most important know what's your best setup is....



Many die foolishly trying to make money in risky markets..... is that wise?



Trade when winning is easy. Good idea?

Sometimes, the best things to do is wait..

wait wait wait

I concur with you.. trade when winning is easy!!! Trade the best set up!! And don’t hand itchy!! 😂

But hor.. the hardest thing to do is control itchy hands..

You must be a close follower of Jesse Livermore’s trading philosophy.. Most of the things you mentioned is from the book..

well... it's really amazing lah.. Cos most of the things mentioned in the book really made sense and amazingly, it still holds true after almost a hundred years....

Jesse's book of How To Trade in Stocks is a good read too

Can you?

It would be much easier if you are just tying to prove yourself right or wrong in a trade rather than trying to make money from it.. cos when you are just thinking of the profits, you tend to forget about the risks involved..


I have read the book at least 5 times over the past few years .. and each time I read it, I learn something new.. the teachings in the book are not so direct cos it’s told in a in story form..

So you start with small position and only add position when your trade is showing profit?

Start big and try not to add just for the sake of adding and if and when you do add, you should only add a small fraction....

looks like now things are about to get real cheap ya?

kaypo sikt....

not sure what u trying to say there....

when you trade, it's best to just trade the trade correctly....
that should be the focus...
when you trade focusing just on the money issue, you usually end up trading the trade wrongly.....

ie... say your results shows that you yield a better profitability trading double bottoms..
well... one of your focus on it should be ....making sure you are not too early....
trade the setup correctly...
the profits will automatically flow in once you perfect such trades.....

That's what I was trying to say.. Paiseh my explanation isn't good..

If we look at a trade as a game of right or wrong, we will try hard to be right and will be extra careful cos nobody wants to be proven wrong!

well... this is why it is recommended that traders should know which setups suits them best. Once they do, all they need to do is focus in trading the setup correctly.

The other thing (sort of related to buy size....)

not recommended to use DCA when entering a trade... cos ultimately it's a form of averaging down....
think of it this way...
u wanna trade but u wanna think like an investor...
trying to get the stock cheaply... (thinking cheap means more discount)
and you have your step down purchases of the stock...
for example...
u buy $$$$ at 1.0 ...
your next purchase maybe is at 0.95...
and the next purchase maybe at 0.85... and so on and so on....
time as you know... flies past quickly...
very soon you will discover you are now owning quite a lot of shares of $$$$...
and every time you line up lower your bids keep getting filled...

now if you take a step back...
this meant the stock is actually rolling down the cliff...
and you are buying...
but what about the stock selection itself?
what if you are wrong?

see the point?

( but of course one would be asking why didn't one use the stop loss? )

Agree... I stopped averaging down after my first one or two years in the stock market.. learn from mistake.. hahahtina

So... after all this volatility/correction/crash.. which would be the better stock to pick? Those that corrected a lot making them super duper cheap, those that could hold their prices or those that ignored the market and continued with their uptrend?

I mentioned that cos you asked if I started with a small position...



Firstly it's fantastic to see that you are planning ahead... that's how it should be.
But then.... remember the book about following others? Remember that couple of chapters?

Anyway... some second opinions....
You need to understand why the volatility is happening.
You need to understand why most stocks are correcting so much? (*hint .. check the earnings and what is it suggesting)

then comes your strategy...
what's your game plan going to focus on?
Are you going to trade like an investor and base your game plan on how 'cheap' the stocks are?
Or ......

now... this I cannot help you.
You need to develop this all on your own.

and definitely the part about stock picking...

remember ... I have no tips to give one.

I'm not looking for tips ah.. My intention is to learn how to fish.. You can't expect someone to always be around to hand you the fish.. Someday that someone will not be gone..

Learning from books and getting advice and pointers from seasoned traders is a good way to learn...