Market View 17 October 2011

With the market expected to open higher today,
I will turn the blog today into a knowledge sharing.
Ok, I received a email yesterday night asking
about my views and how I trade the market.
I will publish the email here without revealing the
sender name.

"

Hi stocklobang

 

I chanced upon your site by accident & found it really

interesting. Although, I am in the stock market for a

few years but still had not made much profit, thus I hope

to learn & seek a few pointers from you. May I ask a few

questions? Thanks so much for your time.

 

1. May I know which TA software do you recommend to be 

useful, right now I am using chart nexus free software. 

 

Ans: I am using Metastock with daily end-of-day data.

It is perfectly Ok to use the free Chartnexus as we are 

looking at the the same stock chart, but the main issue

is HOW and What can you interpret from the chart.

2. Is there any useful & practical courses that I can go for

in the market because I saw a lot of advertisements on the

newspapers proclaiming easy profits for stocks which I know

is not true, as there is not free lunch in the world. I know stock

investment requires a lot of homework. Can recommend any 

books or newspapers I can read up on also? 

 

ANS: Well, all that I can say is that Stock Trading is simple

but not easy. To be a good doctor, lawyer and even an actors

take years to perfect the skill and technique, and it is the same

case for a good stock trader. I am not saying that I am a 100%

every-trade-is-a-winner stock trader, and I am still learning

from Mr Market everyday. 

 

Aspiring Investor and Trader can start off by reading a couple

of books like, "Why am I Always Losing in the Stock Market" by

a local writer who is also a remisier at a local brokerage.

Wiliam O'Neil's 'How to make money in stocks', Nicolas Darvas'

"How I Made 2,000,000 in the Stock Market". Further studies can

include Larry William and Alexander Elder books as well.

 

A website that is a must to visit everyday is SGX announcement

page. I normally have a explorer window pointing to the site

and I will visit the site at least 3 times a day, before the market opens,

while I am taking my lunch, and at night together with the chart

reading. I will also just pop-by at anytime during the trading hours.

 

3. If I want to do full time trading on my own, targeting 2 to 

3K a month, how should I start preparing? (Sorry, if you think

the question is stupid.)

ANS: In my opinion, no question is stupid. The one who withheld

the question is the most stupid. I will answer this question tomorrow.

 

4. While doing trading, any websites that I need to monitor

for important news coming in? Because I always notice 

towards 3 pm, the market usually fluctuates I guess is due

to the Dow Jones futures, right?

It is good that the sender observed such a "strange" market

behaviour which many retailers simply ignored or never realised.

This occurance is actually partially because of the US indexes

futures and it is also due to the opening of the European bourses.

And also, some traders or funds like to close their stock positions

as intra-day trades and that also add to the volatility and swing

in the market."

 

Hope that my answer to the sender's question will also help

other readers as well. If you have any question on the stocks,

market behaviours, just email me. I may not be able to answer

anything on the market, but trust me, I know where to look for it.

Enter any position with a Cut-loss level & Trailing Stop,
and Please practice strict Money(Risk)-management.
If you don't like what you see in the market,
simply don't trade.

If you have Skype, and would like to chat with me about
stocks and all others, you can ring me at my
email address: stocklobang@yahoo.com
I have currently a couple of members skyping with me
everyday,and they are having good trading results.
See their comments here:
http://stocklobang.blogspot.com/feeds/comments/default

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

市场生存座右铭: 风林火山 

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