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Showing posts from October, 2009

Trader's Technical Analysis

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Below are the summaries of a course that I attended in one of the workshop. What are the 5 common mistake done by trader? 1. Buy Cheap A trader need to know what's the current trend for a stock, be it up tread, down trend or side way. A trader will do better if trade in the same direction as intermediate and longer terms trends. Do not simply buy cheap, as tomorrow can become cheaper. One of the example is Flag Formation break up, then it good tendency the stock will go up. 2. Holding onto hope This is another mistake done by trader, even he already plan when to cut loss, but when the stock price move down, he just can not follow the plan and hope one day it will rebound again. No body know when it will rebound and in this case, a trader will lost the opportunity to find another potential stock and lock the capital in one stock. 3. Ignoring about Risk Management If a trader trade without a strategy, then he will not able to control the risk and emotion. When the sell signal appe

Why you want to buy a stock now?

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When you heard about Dow fell 203 point, would you rush in to buy? If most people think the answer is yes, then you will noticed the Dow index close higher on October, especially the first two days. However, this is not the case, it's probably good time for those trader to log in some profit right now and wait for one to two weeks for more clearer direction. For those who want to buy a stock for investment now, may be you need to ask a question why you want to buy a particular stock. A proper plan need to develop, don't wait until its price goes up or down to think about it. Many investor not sure why they bough a stock, so when the price down suddenly, they are not sure what to do next. Every investor and every stock present different indicator or reason, one need to carefully consider before open the position. Just ask yourself if now the stock fairly value? What's the price would you want to sell and the reason is due to stop loss or the company report lower quarte