how to smart trade?

[cil]

i've metastock & osk's intraday now, i read about uptrend, downtrend, etc, from websites such as stockcharts.com, etc, but i'm still not sure where to start & how to get it right. i'm completely lost.

e.g. i usually buy at 0.30 when the price can fall to 0.25, & usually sell at 0.32 when the price can go up to 0.36. it means i usually wait for some time before the price will pick up from 0.25 & rise up to 0.32 & i sell, & then it rise up to 0.36. how can i know the target price?

then now i read about stop lost, & i include this in my trading. when i buy at 0.30 & if the price fall below 0.25, e.g. 0.24, i cut my lost. then, it shoot up to between 0.28-0.30, how can i minimise my lost by knowing that the price can go up a bit further? i find that i lose money when i apply stop lost in my trading.

anyone here can be my sifu by teaching me in person because i find it hard to apply the theory into work. let me know how you charge. i started trading since last month feb, i see my pattern of trading - always playing momentum, quick in, quick out. i earn, but could earn more if i hold on longer. i'll earn if i hold on, but since apply stop lost, i don't earn.

[oneman]

Determine the minimum -max range..in this case, minimum 0.25 max 0.36
Next time dont buy at 0.30, buy only at 0.25, sell at 0.36 or 0.35
In case wnhen you bought at 0.25, stock go down further to 0.21...so you know the stock hate you , sell the stock, take loss and find other stock, again determine min-max
in case when you sell at 0.35, so you profit margin 0.10, so thank GOD...if the stock go up further to 0.45, dont fret, its not meant for you...find other stock, again determine min-max...

Your style of trading is called range-trading, only suitable in flat mkt. You'll be richer but not super rich...
If market is bull up, hold your position to max your gain....

As you already know stop-loss hate you, dont use stop-loss. Dont repeat this act of 'booking your loss'. Range trading style always has this problem... the market try to take your deposit booking money...the professional knows that you are easy meat...

Thus, only after the loss is confirmed then you called your broker to stop....

This advice is free. No charge. And brother, bet small money first if you dont want to lose your car.

Read my answer at least 50 times,  before posting any more question 

[Maxforce]

This oneman...   

Stockcharts.com? Hmm, cil, were you from KLSEChat forum?
With that site, I supposed you re only using Indicators.

Yeap oneman assessment of you re using range trading is probably right.
Best in flat market, not like now.
But I disagree that stop loss is not needed.
Here s a suggestion to suit the trading style.
Identify Support and Resistance.
Buy on support, sell on resistance.
Stop Loss on certain ticks below support.

Can make some buck, cannot be rich - like oneman says.

Good luck and Happy Trading.

[oneman]

 

Just trying to motivate him la Maxforce...hahaha...yeap better use-stop-loss but
what point of using stop-loss if he is stop-loss killer...

maybe what he need is experience, and LITTLE mistakes to get the experiences

min=support, max= resistance, in case cil dunno what sup/res...

[cil]

thanks oneman. i usually look at the stock movement (closing & volume in osk) for the past 3 months, when the stock is going sideway, it's easier to determine its low, i usually earn money from here. but i'm unable to determine when the stock is going up, that its old high has become its new low. they said when it breaks the old high, it'll be the new low, but then i already sold at the old high. some stocks ding-dong a few times, some longer. and when i sold, it goes up, & i don't know how far it'll go. so i quickly enter & quickly come out again, & so i earn, but then it still continue to go up.

yeah, you're right, i earn by playing that way & won't become rich. if the price fall, i hold on & when it bounce back, i sell it off. maybe i shouldn't apply stop lost or maybe i didn't use it correctly, the price always go back to my buying price. so i guess i won't use stop lost for the moment. but how do i know if my lost is confirmed? you mean when the price stabilized at a range? what if the price never stabilized & continue to drop & make my lost bigger? in that way, how do i determine my support line? can metastock do that?

i usually cannot buy at the lowest, ie, 0.25 because i'm afraid the price might continue to drop, that's why i usually buy at higher price, ie, 0.30. and when the price ding-dong between 0.28-0.33, i quickly sell it off at 0.32 because i'm afraid it won't go back to 0.33 & may drop from 0.28. i thought i made a smart decision when i see it drops from my selling price, but when it starts to pick up & up to 0.35, i wonder why i didn't wait. so, that's why i want to learn technical analysis, whether it can help me.

maxforce, i think i can determine the downtrend & uptrend of a stock, but i don't know where to find its support & resistance it's up, up, up, & down, down, down. i can only see the support & resistance when it ding-dong at the same place for some time which i can see in the chart. when it's going up, it's not going to come down, so i'll catch it & come out quickly, i don't wait for it to come down to its support to buy because it's so hot & everyone is buying, & i don't know where its target price would be which was why i came out, what if i waited & it comes back to my buying price, right?

no, i visited few blogs & only been to 1 chat room, the "wisdom wise", chatted with you. just bought the data from bizfun & installed my metastock. i'm still trying to figure out where're the target up & down, so that i won't sell early & cut my lost earlier.

[Maxforce]

Read the forum.
There are numerous support and resistance identification methods as I remember.
If you cannot identify the support and resistance, then you cannot apply stop loss or take profit target.
If you cannot do that, then you cannot make money.

[Trademore]

Cil, why don't you search the e-book from any website and learn about:
1- Market/traders psychology
2- Swing Trading Strategy
3- Normal western rule like MA, MACD, Stochastic, RSI, ADX and many more..
4- Candlestick Charting
5- Elliotte Wave + Fibonacci
6- Chart pattern
7- Simple fundamental study like book value per share, PE ratio and bla, bla...

I suppose by understanding the above techniques or knowledge, we've started to be a novice trader. The expert traders of course come with experience which buy or sell base on their TA + guts feeling/instinct.

I never think trading in Bursa is easier like people say buy low sell high or buy high sell higher. It is easier to say than done. 

[Maxforce]

Skip the Elliott Wave for now.

[Trademore]

Why skip EW bro Maxforce? Anything that really scare you using EW for today's market? Are you sending a negative signal about EW? I believe we should let to traders to decide what they want to do. Anyway, maybe you want to suggest for a novice trader to not using EW for earlier stage. I think that suggestion can be right. Just a perception. 

[Maxforce]

Yes. Simply because if others are not strong, EW difficult to understand.

[oneman]

Yes. Simply because if others are not strong, EW difficult to understand.

 

[cil]

thanks, thanks. i'll try to read again. i actually printed a whole file, seems easy to understand, but when i try to apply.... *sigh*... will try again this weekend.

[rayns]

I also still learning. Never trade before. But i tink its the time to try. Anyway need to strenghten my knowledge first. Esp the technical analysis so confusing. I bought a book and read it... by the way i donno wat the hell the author trying to say..... since i cannot afford the price of "learn from mistakes" in this sharemarket, with this little knowledge i had, i pretending buying the shares and trade it as i really own the real share... then will record whether i make profit or loss. although the excitement is not there, at least im safe :buck2:but if i think i can make continuous profit alreday, then i will jump into it. hopefully good luck will continue and not the opposite way. choi 5x

[Sciencegto]

Hi..I also beginner, start trading last March. Thanks to Maxforce for his ebook in his blog, I have a little bit knowledge about candle charting and that teach me a bit about support and resistance for each stock that I want to buy. So far I have done 10 trade with 8 winner and 2 loser, but 2 loser is a huge loss. Same with u Cil, quick in and quick fast. I still searching and apply techique that suit to me, there are trade that I enter at late trading session around 4.30 - 5.00pm (becos i had experience buy at early morning to see that price drop in the afternoon!) and put exit price around 3-4sen gain only before market open on tommorow trading day. Actually to skip pay more for brokerage rate if i day trade. I manage to buy late afternoon and sell early morning.

About elliot wave, i find it quite interesting to learn also. But now I still learn about candlestick which I think the easiest to learn.

*sorry for bad english

[swingtrader100]

Trading is a game of probability. To succeed you need:

1. A method to identify trading opportunities with reasonable reward-to-risk ratio (typically at least 2) and good probability of positive outcome. Swing trading of "buying normalcy and selling mania" as described by Dr Alexander Elder his book "Come Into My Trading Room: A Complete Guide to Trading" is one of possible method.
2. Money management to manage risk - need to know how much of your capital to risk (typically 2-4% of your trading capital per trade) and where to set your stop-loss (typically not more than 8% below your entry price).
3. Most importantly the discipline to follow your method and money management rules.

I would highly recommend that you read Dr Alexander Elder book "Come Into My Trading Room: A Complete Guide to Trading".

Good luck.