MARKET TALK - PRICE ACTION TECHNIQUE

Hello Readers, 
I will be the speaker on the following topic at

Jupiter Securities Sdn Bhd ..

 Topic : Profitable Intraday and Short term trading

 Date : Dec 15th ,2012 ( Saturday )

 Time : 9.30 am to 1 pm

 Address : Level 9 , Menara Olympia ,Jln Raja Chulan 50250 Kuala Lumpur

 Do contact Customer service if you want to know more. 

Thank you

Chris Choo

chrischoo007@gmail.com

KLSE - My Opinion

Hi readers,

If you are a trader and you are facing a falling market and for various reasons you are still holding on to some speculative stocks ( did not sell earlier for various reasons ) what do you do ? The urge to sell off everything can be intense and real. 

But it be wise to sit back and perhaps consider the following....

- Are the stocks really heading into oblivion with no chance of recovery in a market reversal..ie a potential PN 17 company ?

- Do you have at least middle term holding capacity ?

- Is the fall in the broad market overdone and is due for a technical rebound ?

- Do you foresee an impending market meltdown locally or overseas in the near term ?

If your answer to the first and fourth question is a NO and a YES to the second and third question there is indeed no reason to panic in which case the better course of action would be to consider cost averaging or at the very least sell only when the technical rebound loses momentum.

Thank you for reading

Chris Choo

please email me if you have any queries. chrischoo007@gmail.com

KLCI....MONDAY DEC 03rd, 2012

Hi readers,

Stating the obvious....

There are some investors /traders who take a very microscopic view of the share market...trying to second guess or worse out with the market. As it will not take a genius to know that the quieter the market is the lower the chances of selecting a high performance stock...No matter how good or fundamental a stock is ,if there are few buyers.  How does one expect the share to go up meaningfully ? At best it may move one or two bids up but anything more would require a herculean effort. 

Conversely should it fall later the inverse would be true..with few buyers the fall can be exaggerated , possibly even more than the initial rise...that is why sometimes it may be better to let an opportunity go by than to catch a  subsequent falling knife ! Instead try looking for hidden gems within the broad market by identifying "real" collection patterns. 

The collection price might serve as a base price for a rally at a later date...

 Have a good day.

Thank you

Chris Choo

email me if you have any queries at chrischoo007@gmail.com

KLCI 27.11.2012

Good Morning

The market seems to have a problem finding a meaningful bottom...and everyone wondering whether the 1600 level holds...

 At such times, sometimes it may be wise to take a step back ,reflect and consider your next move...should you cut loss buy the same at a lower price, or do a cost averaging exercise or switch to higher beta stocks (or theme stocks ) which may rebound faster or all too common "do nothing " strategy..There is really no right or wrong answer ,the choice is really up to an individual's risk profile for shares and financial position...That said, doing nothing is rarely the best strategy ...

Have a good day

Thank you

Chris Choo

chrischoo007@gmail.com

KLCI 26.11.2012

Good morning everyone..

As expected ,the market has started off on a listless note..and except for newie IPO HHH corp which has a done volume close to 90 m by 10 am and hence accounting for close to half the KLSE volume !

The market is otherwise in deep slumber...perhaps a round of golf may be a better option to occupy time at this point.. That said value investors may use this window to "study" counters which are under collection mode and such data may be extremely useful when the market returns.... 

Till then...happy trading

Chris Choo
chrischoo007@gmail.com

p/s: This Thursday 29.11.2012 8.00pm, I will be talking about Financial data how to read & how useful is it in your daily trading use.  As well I'll talking about profit taking & cutloss. If anyone interested, please be free to drop an email to express your interest.

Good morning everyone,

 When the market is like this ie in the doldrums, perhaps we should take some time to reflect on some relevant but pertinent issues..relating to share market of course.

 Lets tackle the often over rated tendency to rely on technical charts for trading...many subscribe to the belief that somehow a chart is like a crystal ball ,guiding your every move leading you in and out (depending on whether you are buying and selling ) and paving the way to greater glory or lesser misery ! For all that it is worth and I mean no disrespect to diehard followers one must never delegate the "heavy responsibilities " of responsible market reading/ prediction to merely charts or any other investment or trading technique in isolation...The onus will always fall back on hard work and that simply means lots of selective reading ,careful analysis of data , cross checking with sources and so on...Share trading or investing is never a guessing game...

 Has anyone ever wondered about supposedly "simple " questions like the following?

 a ) When do I sell ? ..always at a gain or at least at breakeven ?

 If your answer is either of the above , you are clearly not ready to trade nor invest and you may be better placed  at either the secured markets like time deposits or property market where chances of losing are very much reduced !

I will be speaking on understanding financial data ,how to use them as well a topic on when to take profits or cut losses next week to my forum members.

Anyone interested to learn or join my forum membership, please email me at chrischoo007@gmail.com

Thank you

Chris Choo

Good Morning

Another dreary day..sigh ! 

Do you know what is the greatest "fear" to active investors and traders around the world? As opposed to what some of us are conditioned to believe ,a lack luster quiet market is actually much worse than a falling market ....We like to believe when a market is "defensive " like ours we will lose less or better still our capital is well protected and intact....My friends ,that notion cannot be more wrong...Being defensive merely means the CI has a lesser swing compared to others ..but many forget our CI are made up of just 30 big stocks and a few big moves on certain heavily CI weighted stocks can bring the CI to breakeven or even positive in an otherwise listless or substantially down broad market. 

Worse still , in any upturn overseas ,we will again be left out as being relatively resilient we are again deemed expensive vis a vis regional markets. This vicious cycle has been on for so long ( 15 years ? ) and even more pronounced recently.

All is not lost though. It is just that trader be more realistic in his /her expectations. Sometime 2 bids gain may be considered a triumph nowadays.

Thank you

Chris Choo
chrischoo007@gmail.com