Market View 12 Nov 2008

I received a very interesting email from my report mailing list
asking me why am I always suggesting trading idea on the same
stocks, like Noble, Cosco, Straits Asia, etc?

My open answer will be: that is because they are the "Hot"
trading stocks, and they will have the volume, liquidity, volatility
every trading day, and that is what you required in making
money from trading. Moreover, they are still "tradeable"
as shown in my chart, so I just have keep trading them,
and squeeze them dry, if I have to.

I don't believe in having many stocks in your watchlist,
and today trade Stock A, tomorrow Stock B, and maybe
trading different stocks everyday, this don't really works well.
You can make money just by sticking to a handful of
"Hot" trading stocks, and through observation and actual
trades, you will know the "pattern" and "behaviour"
of the stock, which give you an unfair edge over the others
trading the same stocks.

You need to realise that 80-90%, maybe even more of each
day's and stocks volume is done by institution traders, house
traders, or maybe the so-called "Invisible Hand". This is
especially true for the "Hot" stocks. Stocks change hands
between the Big Boys in an attempt to fulfil the "goal"
of "Price Discovery", be it up or down. By sticking to the
same stocks, somehow or another, you will gain some
"insight" on the stock.

Hope that the readers can learn something today from
my "crazy" 2 cts view.

As usual,
Stay Alert but be Aggressive too.
Audentes Fortuna Juvat !!