MRCB

Let's examine the 5 gains above on MRCB chart since Oct 08 - May 09. Do you see the common entry signal here? If you can capture the same pattern in the future chart, you will make fortune. Believe it or not?

Emotional In Market

You will feel joy when you buy a stock and it explode to upward and you may feel sad and fear when it go downtrend.

The more the price go up, you feel the tense on the gain that accumulate on paper, you fear that the profit will varnish if you do not take profit now, on another hand you still greedy to gain more profit by on-hold the selling. Eventually the price drop and you start to regret that you didn't make right decision to lock profit at high price. Portion of the gain already return to the market. You feel sad, regret, frustration & all the negative emotion deep inside yourself. You start to convice yourself, as long as not losing money already can consider as a good trade. 

The more the price go down, you feel sad on the position that you hold on. You think to sell at lost, but another hand feel that may have probability of regain the price, tomorrow or next week the price will go up again. Instead of cut loss, you fear of loss and on-hold the selling. Eventually, the price day by day keeping go down bit by bit. It eat your capital bit by bit as well. If you sell now, the loss is already too big for you to recover and some people just hold it till the company fall to PN16 or equivalent. You said to yourself that next time to cut loss, you do it right after the next trade. But the price go up after you sold the stock, you feel angry, frustrated and piss on the decision made.

The above may sound familiar to you. Emotioanal roller coaster up & down, peak & valley in the trading game.

These feelings have nothing to do with the market, they exist only inside you. The market do not know you exist and you cannot do anything to influence the market anyway. The only thing you can do is to control your behaviour.

We need to use our head and stay calm. Only amature become exited or depressed because of their trades. Emotion reaction is too dangerous that we cannot afford in stock trading. Let's use our intellect to trade instead of emotion to trade.    

I will always love you!

Up Trend & Down Trend

When someone ask me why prices went up for that stock? I usually will answer – more buyers than sellers. I think the answer is not true. The number of trading is always equal. If you want to buy 5 lots of share A, someone must willing to sell the 5 lots of share A to you & vice versa.
I came to a conclusion that prices move up or down is because of changes of the intensity of greed & fear amongst the buyers & sellers.

When the trend is up, the bulls don’t mind to pay a little bit more to get the share. The bulls feel optimistic on the share will rise even higher. The bear think that it is a time to take profit with higher price and get tense in the uptrend; bears that are more fearful & defensive start to sell. The stock prices rally. As long as the bulls have strong feeling & enthusiastic on the stock, the price will keep going up.

When the trend is down, the bear think the stock not going to hold the price, they throw the position on hand with lower prices as long as get out fast to sideline. The bull are fearful and will only agree to buy when the price only at certain discount from the market price. As long as the bears think that the selling out at lower price is the wise move. The downtrend will continue.

Do you agree with me fear is stronger emotion compared to greed?

Successful traders need to obey the below: -


1. Analyze the balance power between bulls and bears as crowd psychology.
2. Practice good money management.
3. Personal discipline to follow trading plan avoid emotional bond with the market high/ low.

DJIA 30 Companies

1. Alcoa
2. Allied Signal
3. American Express
4. Boeing
5. Caterpillar
6. Chevron
7. DuPont
8. Disney
9. Kodak
10. General Electric
11. General Motors
12. Goodyear
13. Hewlett-Packard
14. IBM
15. International Paper Co.
16. J.P. Morgan
17. Johnson & Johnson
18. Coca Cola
19. McDonalds
20. 3M
21. Philip Morris
22. Merck
23. Procter and Gamble
24. Sears
25. AT&T
26. Travlers
27. Union Carbide
28. United Technologies
29. Exxon
30. WalMart

HAI-O: Buy, target price RM5.04 - OSK Research

Business Times 9th April 2010

OSK Research upgraded Hai-O Enterprise Bhd (7668)to a "buy" saying it has decent upside potential, but kept its target price at RM5.04.

Hai-O is involved in wholesaling, retailing, multi-level marketing and pharmaceuticals, as well as Chinese medicinal clinics.
OSK believes the firm is on track to achieve a profit forecast of RM72.6 million for the current year ending April 30.
This would be driven mainly by better multi-level marketing sales on the back of a higher membership base and better retail sales.
It expects sales during the Chinese New Year period, which arrived later this year, to be captured in its fourth quarter.
"Management revealed that there are some developments in the technology division and that all is progressing as planned, although there are no further details," it noted in a report yesterday
The shares last closed at RM4.40.

Today closed at RM 4.58. (Up of 18 cent in single day with volumn increase) - Bullish signal