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yeemr112
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« on: May 01, 2006, 02:06:53 AM » |
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Under what conditions would you like to trade if you had your druthers? You would probably want to trade in a strong bull market, be way ahead so that a loss wouldn't hurt at all, and have a foolproof trading plan. In addition, you would want to have a mental edge. You should be in a good mood, alert, and ready to take action. We can't always trade under such ideal conditions, however. If you are a professional trader, for example, you may need to take advantage of ideal market conditions, even though you had to stay up with a sick child all night. We may need to trade when we aren't at our best, but failure is not a certainty. You come out unscathed if you plan your trade well enough, anticipate adverse events that may thwart your trading plan, and practice a response to deal with the setback gracefully.
When planning a trade, it is essential to specify conditions where you will exit the trade. If you trade by the seat of your pants, you won't be able to react decisively when you are not in an optimal mental state. Planning a trade can make all the difference. After you have outlined a trading plan, you should consider the worst-case scenario. If you are caught off guard, you'll panic. But if you anticipate the worst, and have a plan for coping with it, you will be able to respond gracefully.
Our expectations often control our emotions. When our expectations don't match what actually happens in our lives, we react impulsively. But it is possible to maintain control. If you are caught off-guard, an unexpected setback will throw you off. If you anticipate all possible adverse events, however, you'll stay calmer and you will be ready to take decisive, disciplined action to remedy the situation.
One of the best ways to anticipate and cope with unexpected events is through mental rehearsal. Mental rehearsal consists of pretending an adverse event is occurring while in a safe, quiet place, such as after hours, when no capital is on the line. It's much like making a videotape of a trading scenario and replaying it in your head. For example, close your eyes and imagine executing your trade. Observe the thoughts that go through your mind. Imagine trying to stay objective and unemotional. Next, imagine the worst-case scenario: the price goes down and reaches the point where you planned to exit and take a loss. Imagine how it feels to lose. What thoughts are going through your mind? Depending on your experience, you may tend to feel anxious and afraid, but ideally, you should remain calm, and ready to exit the trade effortlessly. The key to using visualization is to mentally experience a variety of scenarios. Run through the ideal scenario and the dreaded scenario. By replaying the events in your head at your own speed and under your own terms, you can learn to control your emotions, and respond decisively according to your trading plan. When you first replay the movie, you may feel anxiety and apprehension. Your breathing may be heavy and difficult. When this happens, you can "pause" the "video" and practice relaxation exercises. Take deep breaths and relax your muscles. By replacing anxiety with feelings of peace and relaxation, previously stress-inducing events will lose their potency. Through practice, you will soon be able to replay the movie without stopping and without feeling any sense of anxiety or uneasiness. With enough practice, you will be able to respond gracefully and decisively according to your trading plan.
Don't get caught off-guard. Carefully consider what might go wrong. Practice what you might do after hours, so that even when you are not in a peak performance mindset, you will trade according to your trading plan as if you are completely in control.
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asiatrader98
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« Reply #1 on: May 19, 2006, 08:06:26 AM » |
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Under what conditions would you like to trade if you had your druthers? You would probably want to trade in a strong bull market, be way ahead so that a loss wouldn't hurt at all, and have a foolproof trading plan. In addition, you would want to have a mental edge. You should be in a good mood, alert, and ready to take action. We can't always trade under such ideal conditions, however. If you are a professional trader, for example, you may need to take advantage of ideal market conditions, even though you had to stay up with a sick child all night. We may need to trade when we aren't at our best, but failure is not a certainty. You come out unscathed if you plan your trade well enough, anticipate adverse events that may thwart your trading plan, and practice a response to deal with the setback gracefully.
When planning a trade, it is essential to specify conditions where you will exit the trade. If you trade by the seat of your pants, you won't be able to react decisively when you are not in an optimal mental state. Planning a trade can make all the difference. After you have outlined a trading plan, you should consider the worst-case scenario. If you are caught off guard, you'll panic. But if you anticipate the worst, and have a plan for coping with it, you will be able to respond gracefully.
Our expectations often control our emotions. When our expectations don't match what actually happens in our lives, we react impulsively. But it is possible to maintain control. If you are caught off-guard, an unexpected setback will throw you off. If you anticipate all possible adverse events, however, you'll stay calmer and you will be ready to take decisive, disciplined action to remedy the situation.
One of the best ways to anticipate and cope with unexpected events is through mental rehearsal. Mental rehearsal consists of pretending an adverse event is occurring while in a safe, quiet place, such as after hours, when no capital is on the line. It's much like making a videotape of a trading scenario and replaying it in your head. For example, close your eyes and imagine executing your trade. Observe the thoughts that go through your mind. Imagine trying to stay objective and unemotional. Next, imagine the worst-case scenario: the price goes down and reaches the point where you planned to exit and take a loss. Imagine how it feels to lose. What thoughts are going through your mind? Depending on your experience, you may tend to feel anxious and afraid, but ideally, you should remain calm, and ready to exit the trade effortlessly. The key to using visualization is to mentally experience a variety of scenarios. Run through the ideal scenario and the dreaded scenario. By replaying the events in your head at your own speed and under your own terms, you can learn to control your emotions, and respond decisively according to your trading plan. When you first replay the movie, you may feel anxiety and apprehension. Your breathing may be heavy and difficult. When this happens, you can "pause" the "video" and practice relaxation exercises. Take deep breaths and relax your muscles. By replacing anxiety with feelings of peace and relaxation, previously stress-inducing events will lose their potency. Through practice, you will soon be able to replay the movie without stopping and without feeling any sense of anxiety or uneasiness. With enough practice, you will be able to respond gracefully and decisively according to your trading plan.
Don't get caught off-guard. Carefully consider what might go wrong. Practice what you might do after hours, so that even when you are not in a peak performance mindset, you will trade according to your trading plan as if you are completely in control. good articles =D> |
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theng
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« Reply #2 on: May 21, 2006, 01:57:53 PM » |
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The best time to learn from mistakes is when someone else has made them. So, I've made a list of some of the most common trading mistakes that are made. Even I've made some of these. If you have already made some of the mistakes, you can rest assured that you aren't alone in making them. If you haven't made them, then here's a way to get around having to learn by making the mistakes yourself.
The first, and worst mistake that people make is that they believe trading is the easy answer, a way to get rich quickly. They will often expect to become wizards in the market overnight, but they fail to realize that trading is like any profession; you must learn how to do it first.
These are some common and quite basic mistakes. These next errors I'll mention are ones that are just as prevalent in the trading industry, but they often occur once traders have been around for a while. I have some personal experience with these mistakes. Let's call them the three most expensive mistakes I've made.
The first mistake I made was to search for the “Holy Grail” of trading. This was an incredible waste of both time and money. During the first three years of my trading career I spent over $25,677 on a library full of books, videos and seminars as well as spending thousands of hours in search of the perfect trading methods. Honestly, 95% of what I bought was pure junk… I should have listened to my mentor earlier and realized the “Holy Grail” of trading is simply excellent money management!
The second most expensive mistake I made was not having a predefined exit point. Early in my trading career I remember trading a stock I thought had a high percentage chance of rising. I was too confident. I fully leveraged the position. Unfortunately, when things did not go as planned, I did not know when to exit, and was paralysed. I kept rationalizing why I should hold onto that stock. As the stock continued to fall, I made more and more excuses. At the very end I remember thinking “I can't take it anymore”, and sold out. That, of course, was the point the stock turned.
I learned two very valuable lessons that day. First, always have your exit points predefined. Second, big losses once started out as small losses, and it is much easier to take a small loss than a big one.
The last mistake is not one that took money out of my pocket, instead it was a mistake that made me leave money on the table. In fact, this was a reoccurring mistake that cost me big.
Early on, I remember selling positions as soon as they showed a profit. I would not let my profits run, as I was too afraid to give the money back to the market. I figured the profit as mine. The result was that I ended up selling the stocks that were making me money.
It wasn't until my mentor explained to me that when you are trading, and showing a profit, that is the point where you should be adding to the position, not closing it out, that I began to understand what I was doing. Once I started following his advice, my trading profits soared.
Trading is not an easy profession, but it is one that can give you great rewards. Avoid these common errors, create a simple, well-designed trading system, and learn your market. If you take the time to study the market, and learn from other's mistakes as well as your own, you will become a successful trader.
The above was copy down from David Jenyns article
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The Real Teacher Is The Market
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Francis
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« Reply #3 on: June 09, 2006, 12:20:44 AM » |
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The first mistake I made was to search for the “Holy Grail” of trading. This was an incredible waste of both time and money. During the first three years of my trading career I spent over $25,677 on a library full of books, videos and seminars as well as spending thousands of hours in search of the perfect trading methods. Honestly, 95% of what I bought was pure junk… I should have listened to my mentor earlier and realized the “Holy Grail” of trading is simply excellent money management!
The last mistake is not one that took money out of my pocket, instead it was a mistake that made me leave money on the table. In fact, this was a reoccurring mistake that cost me big.
Early on, I remember selling positions as soon as they showed a profit. I would not let my profits run, as I was too afraid to give the money back to the market. I figured the profit as mine. The result was that I ended up selling the stocks that were making me money.
It wasn't until my mentor explained to me that when you are trading, and showing a profit, that is the point where you should be adding to the position, not closing it out, that I began to understand what I was doing. Once I started following his advice, my trading profits soared.
The above was copy down from David Jenyns article
hi theng, i have some question to ask you. "During the first three years of my trading career I spent over $25,677 on a library full of books, videos and seminars as well as spending thousands of hours in search of the perfect trading methods. " ~ theng What is your’s suggestion to people who is new to the market? Go for seminar? Read from books? If not books or seminar then where we can learn the skill from? What kind of trading you suggest to new trade people? "Early on, I remember selling positions as soon as they showed a profit. I would not let my profits run, as I was too afraid to give the money back to the market. I figured the profit as mine. The result was that I ended up selling the stocks that were making me money." ~ theng can you give an example of when to sell and when not to sell? when the stocks making money. thanks |
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theng
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« Reply #4 on: June 09, 2006, 05:34:55 PM » |
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What is your’s suggestion to people who is new to the market? Go for seminar? Read from books? If not books or seminar then where we can learn the skill from? What kind of trading you suggest to new trade people?
If u have read all my post I think U should know my trading strategies. For new trade people: Don’t listen to the rumors, check for the company background before u buy, under value stock is a best buy, try to set a cut loss position, don’t play contra. Now learn charting TA. The best way of learning is pick 20 to 50 counters to draw your own chart, after 3 mths u will see your result(many people will say now a day there are so many software for stock charting why should go back to olden day use hand to draw, but this is the right way to learn charts analysis) Read some books about chats pattern (for reading books of some expert in trading or fund mangers is not that important, because the fund manager they are using other money to trade the market). Try to forecast some counter see what result u get if u are wrong find out from the chart Why u r wrong, this is the way to learn.
"Early on, I remember selling positions as soon as they showed a profit. I would not let my profits run, as I was too afraid to give the money back to the market. I figured the profit as mine. The result was that I ended up selling the stocks that were making me money." ~ theng
can you give an example of when to sell and when not to sell? when the stocks making money.
thanks
For me I will clear those counter with 1. High indicator 2. Price far away from short term MOV, 3. Short term MOV is far away from mid term MOV. 4. Price cross down to short term 5.MOV, short and mid term MOV cross, etc. Read my today I reply to sudie in FUTURE thread this is how I forecast, spotmth move as what I predict too. |
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The Real Teacher Is The Market
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Francis
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« Reply #5 on: June 09, 2006, 09:22:07 PM » |
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thanks, i keep this in mind.
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Francis
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« Reply #6 on: June 12, 2006, 08:43:29 PM » |
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theng i have some question. "check for the company background before u buy" ~ Theng check from KLSE website? example, http://www.klse.com.my/website/listing/pn17cos.htm" under value stock is a best buy" ~ Theng how to check this??? |
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theng
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« Reply #7 on: June 12, 2006, 10:22:22 PM » |
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Yes, or if from sin chew news paper Monday issue they have list down all the company NTA and earning or from rhbweb(may be from other like OSK ,CIMB) the live quote Go to general info, u can get the info of the company as below: 
" under value stock is a best buy" ~ Theng
how to check this???
If a company having a par value of 50c and now the price is 10c is under value or Par value is 50c now price is 50c but the NTA is RM1.50 is under value too. |
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The Real Teacher Is The Market
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Francis
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« Reply #8 on: June 13, 2006, 12:28:12 AM » |
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NTA = Net Tangible Assets -( correct me if wrong.)
can tell me which company u using "the picture" ?
because i just can find par value from OSK, can't find NTA in OSK.
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JapaneseDog
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« Reply #9 on: June 13, 2006, 10:48:19 AM » |
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yes... you are right, NTA = Net Tangible Asset...... From my opinion, if you wan to searh for under valued company, you cannot simply compare par value with NTA. NTA is a good measurement for companis with tangible assets like in Property Industry, Bank.... , It will be very challenging, if you intend to value company in service industry, technology ...... Hence, again from my opinion. .. To identify undervalued or overvalued company, you got to use different measurement tool/model in different industries. You must have great understanding of that industry to perform these duty because the nature of different industries are totally different. Well, just assume I was  {|= , if you do not agree with me. Think and you shall grow rich,
JapaneseDog |
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Think and You Shall Grow Rich
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Maxforce
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« Reply #10 on: June 13, 2006, 12:26:55 PM » |
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Er, allow me to express my opinions.
Sometimes I see NTA and buy just like that. E.g. previously bought Proton for RM5.00 cos their NTA is about RM10.00
Theoritically this means that if Proton goes bust that time (I dont care, since I sold them already!!! Maybe will buy summore) I would get back RM10 for my mere RM5 investment. Theory oni ar.
But KLSE is determined by supply and demand.
Supply and demand is determined by future prospect perception
So:
Perception of future ---> Supply & Demand ----> KLSE price
Note - no mentioning of NTA. SOme shares are cheap cos their lousy. Note Benjamin Graham (sifu of Warren Buffet) loves value investing. He did not make it too well - compared to Warren Buffet - cos Ben Graham see cheap cheap he buy buy.
NTA lower than share price so buy buy?
Then you die die.
See other indicators plz.
thanks thanks
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"Ren fa di, di fa tian, tian fa tao, tao fa zi ran"
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JapaneseDog
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« Reply #11 on: June 13, 2006, 01:20:07 PM » |
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No doubt, Technical Analysis is becoming more and more popular especially for trader....Active Day Trader loves fluctuation..... However, if you are an passive investor, you should be looking at funtamental like P/E, both book value and econimic value, then compare to the industry norms to see if it is under or over-valued. In the long run, company's P/E tends to converge to industry's P/E....
We are now discussing how to identify under-valued stock, right? Ben Graham's value investing : consistently buy low P/E.... (that was his time, now 2006, MIGHT be same.)
Company's P/E < Industry's P/E : Undervalued.
Comapny's P/E > Industry's P/E : Overvalued.
Of course, theory only.................
Think and you shall grow rich,
JapaneseDog
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Think and You Shall Grow Rich
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Maxforce
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« Reply #12 on: June 13, 2006, 01:27:13 PM » |
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heh? P/E investing still exists today?
I alwiz find it ... er ... nvmmind
ok, so passive investor is investingh for a period of ? How long?
P/S My portfoilio is only 3-6 mths, so P/E does not work for me.
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"Ren fa di, di fa tian, tian fa tao, tao fa zi ran"
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JapaneseDog
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« Reply #13 on: June 13, 2006, 01:32:43 PM » |
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Lol, for that, we would want to learn from Portfolio Management. Yo, Life Long Learning! Come on, Max... Tell us your opinion.... You've forgot to complete your statement. I alwiz find it ... er ... nvmmind |
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Think and You Shall Grow Rich
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Francis
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« Reply #14 on: June 13, 2006, 02:20:34 PM » |
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thanks JapaneseDog and Maxforce
i got it.
"Company's P/E < Industry's P/E : Undervalued.
Comapny's P/E > Industry's P/E : Overvalued. " ~ JapaneseDog
what is P/E ? what is the different of company P/E and Industry P/E?
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