Beware of false breakouts (bull traps) |
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Stock Market
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Written by Ben
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Friday, 16 May 2008 |
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With broker firms making available chart services,
more and more people have come to know about charts. To have some
knowledge about charts is easy. To be proficient in chart
interpretation is indeed extremely difficult. Professionals
know that a great majority of people now depend on charts to time their
purchases and sales. So they will do what is necessary for their own
benefits. Let’s say a
professional trader has a big block of shares to unload and the market
is in equilibrium (buying and selling in balance). How can he unload
his shares without disturbing the price? The only way to do it is to
sell into strength. So he waits for the stock to test it resistance in
a high level. With some well-timed purchases, he pushes the share price
above its resistance. This causes a false breakout. Conditional buy
orders are triggered. People become excited and
join in the buying creating great demands for the stock. The
professional then releases his holdings. Other professionals short the
market and soon the stock is back to square one. Buying on breakouts was profitable in the early days. Now you have to be very careful indeed. You must be witty to survive. Good luck.
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List of Politician's Blog in Malaysia |
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Miscellaneous
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Written by Leremy
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Thursday, 08 May 2008 |
Hello guys,
I have just created a new website at www.lokaloka.net. I have listed a majority of Malaysia politician's blog there and you may be interested to take a look.
If you simply glance through the list, the oppositions seems to have a lot more blogs compared to Barisan Nasional. I have did some research in the last two days, and most of the Barisan Nasional sites are website, but not blog; so I have not listed them there.
I hope that the list will continue to grow in the future with the help of Malaysian netizens.
Until then. Please visit the site and drop a "Hello" there ;)
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General Discussion
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Written by Leremy
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Friday, 02 May 2008 |
For you information, Dr Mahathir has just setup his own blog at
http://www.chedet.com
Now, I don't know what is the meaning of chedet, but the blog has got 955 comments in the 1st entry after it was launched yesterday, and with over 100,000 hits.
This traffic can go into World Record already.
Kennysia.com, the No1 Blogger in Malaysia is going down for sure to Dr Mahathir... hahaha.
I hope Dr Mahathir will update his blog everyday... hehehe.
And if POSSIBLE, I want to do/design a website for Dr Mahathir FOR FREE if I am able to contact him. But I guess he won't entertain me.
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Twenty golden rules from Traders Wheel |
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Stock Market
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Written by Ben
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Sunday, 27 April 2008 |
1. Forget the news, remember the chart. You're not smart enough to know how news will affect the price. The chart already knows the news is coming.
2. Buy the first pullback from a new high. Sell the first pullback from a new low. There's always a crowd that missed the first boat.
3. Buy at support, sell at resistance. Everyone sees the same thing and they're all just waiting to jump in the pool.
4. Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.
5. Don't buy up into a major moving average or sell down into one. See #3.
6. Don't chase momentum if you can't find the exit. Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble.
7. Exhaustion gaps get filled. Breakaway and continuation gaps don't. The old traders' wisdom is a lie. Trade in the direction of gap support whenever you can.
8. Trends test the point of last support/resistance. Enter here even if it hurts.
9. Trade with the TICK not against it. Don't be a hero. Go with the money flow.
10. If you have to look, it isn't there. Forget your college degree and trust your instincts.
11. Sell the second high, buy the second low. After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.
12. The trend is your friend in the last hour. As volume cranks up at 3:00pm don't expect anyone to change the channel.
13. Avoid the open. They see YOU coming sucker
14. 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two lower highs and a double bottom.
15. Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.
16. Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again.
17. Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.
18. Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.
19. Bottoms take longer to form than tops. Fear acts more quickly than greed and causes stocks to drop from their own weight.
20. Beat the crowd in and out the door. You have to take their money before they take yours, period.
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Change with the Circumstance |
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Stock Market
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Written by Ben
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Sunday, 27 April 2008 |
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Technical analysis is an inexact science. Here we
are talking about probability and not certainty. No one can read charts
correctly all the time. If you can, you hold the keys to unlimited
wealth. When you see black
clouds, you bet that it is going to rain. When it doesn’t and the sky
clears up, will you continue to bet that it will rain? Common sense
tells you to bet against it now. In
the stock market if you know when to switch from being bullish to
bearish or vice versa, you will be miles ahead of others. To survive,
you must change with the circumstance. In an uptrend, buy on dips. In a downtrend, sell on rallies.
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