NAGAMAS - DUAL TIME FRAME

DIGISTA

TOMORROW WILL BE CRITICAL FOR DIGISTA, WHETHER TO HOLD OR TO FOLD.  IF IT BREAKS BELOW THE LOW OF TODAY, THEN BETTER TO GET OUT. ALTHOUGH THE CANDLESTICKS COMMENTARY SAYS THE TREND IS BEARISH, HOPEFULLY TODAY'S SUPPORT WILL BE STRONG ENOUGH TO PUSH IT BACK UP.  OTHERWISE BETTER RUN.

THE IMPORTANCE OF USING DUAL TIME FRAME CHARTS.

DIGISTA IN OVERSOLD TERRITORY

STOCKWATCH

STOCKWATCH

VOLUME DRIVES PRICES!

WHEN WE SAY BIG VOLUME DRIVES PRICES, HOW DO WE DEFINE VOLUME?  HOW MUCH VOLUME DO WE THINK WILL BE ENOUGH TO DRIVE PRICES UP?

CAN VOLUME BE RELATIVE?  TAKE A LOOK AT THE TWO CHARTS OF HARTA BELOW. UP TILL 23RD DECEMBER, 2011, HARTA WAS MOVING SIDEWAYS AND THE SIGNALS WERE NOT SO PROFITABLE BUT AFTER THE BUY SIGNAL ON 23RD, THE PRICES JUST UP UP.  THIS IS AN EXAMPLE OF HOW GOOD PROFITS CAN BE MADE BY TREND FOLLOWING.

BEWARE OF OUR EGO. PEOPLE WANTS TO BE RIGHT SO THEY TAKE PROFITS QUICKLY AND HOLD ON TO LOSSES HOPING IT WILL TURN INTO PROFITS.  TO QUOTE  VAN K. THARP’S   “ CONSERVATIVE-WITH-PROFITS-AND –RISKY-WITH-LOSSES BIAS”  - PEOPLE WANT TO TAKE PROFITS QUICKLY AND GIVE THEIR LOSSES SOME ROOM.  THIS GIVES THEM THE ILLUSION OF BEING RIGHT, BUT WHAT THEY ARE REALLY DOING IS CUTTING THEIR PROFITS SHORT AND LETTING THEIR LOSSES RUN.

JCY AGAIN!

Looked up an old friend (indicators and system) and doing further analysis to see if it is really good for longer term trade.

JCY - TO ENTER OR TO WAIT?

SOMETIMES REQUIRES LADY LUCK.

THE FOUR MOST EXPENSIVE WORDS

The four most expensive words in the English language are “this time it’s different.”

-                Sir John Templeton

The perfect speculator must know when to get in; more important he must know when to stay out; and most important he must know when to get out once he’s in.

Since last night, I have listened to Kenny Rogers’ song The Gambler about  fifty times.  Guess it’s time for me to find out what (counters) to throw away and what (counters) to keep for monitoring. This is not going to be easy though.

To quote, “Every gambler knows the secret to surviving is knowing what to throw away, knowing what to keep. “  Also, you’ve got to “know when to hold them, know when to fold them, know when to walk away, know when to run.”  Money management is essential to success in trading.

AIRPORT

APPARENTLY STILL CANNOT BREAKOUT.  ALSO LOW VOLUME.

THE GAMBLER

I like to post something from Larry Williams' book "Long-Term Secrets to Short-Term Trading." There are many lessons which I like in that book but obviously cannot post all of them othewise I will be guilty of copyright infringement.  So those of you who are interested should get his book. Maybe you people may also like to listen to Kenny Roger's song in Youtube:

http://www.youtube.com/watch?v=6q2mFiN7GIc

The following is from one of  Larry Williams' newsletters Commodity Timing:-

THE FARMER, THE GAMBLER AND THE SPECULATOR.

It's An easy game, this business of making money trading.

There are only three or four rules to follow. But . . . you and me . . . we

overdo the game . . . and end up pouring money in, good after bad.

How come? what can we do about it? At last weekend's seminar in Florida,

Jake Bernstein shared a very telling story. lt goes like this:

Several years ago Jake was speaking to a brokerage firm gathering of farmers,

ranchers and a few speculators. After his speech he was asked if he’d like to

meet the one customer who made money. They said he wasn't very bright, but

made money. Always.

The old farmer and Jake hit it off pretty well, so the gent asked Jake if he'd

like to learn his system. "Sure," Jake replied. "l'd like to see what you do.”

With that, the crusty, aged trader opened up his chart of pork Bellies and

brought out a pendulum on a string . . . held it over the belly chart and advised

Jake, "lf it swings up and down on the page, I buy ‘em . . . if it swing cross ways,

I sell 'em. There it is, ,Jake, now ya seen my system.”

Jake stepped back, thought for a minute, and then asked, “That’s all, there’s

nothing else to it?"

"Mmmm," mumbled the market wizard. “There is one other thing, but it

don't mean much, I think. lf I got a loss at the end of the day, I get out of them

things."

I mulled over this wisdom on the delayed flight home (a bomb threat forced

us to switch to another airline) and, while driving up l-5 listening to Country Western

music at 1:15 r.v., heard-l mean really heard-Kenny Rogers, song “The

gambler."  lt struck me that everyone else has focused on his words, "Know when

to hold them, know when to fold them" . . . but the real message I heard was in

the refrain, "You gotta know what to throw away, know what to keep.”

That dumb old farmer must have written Kenny's song. A gambler knows

what to throw away . . . bad cards. Traders might want to listen to the farmer’s

and the gambler's work the next time they want to play speculator.

Proving the Point

To drive this point home I tried an interesting experiment. . . my thought was to

develop a trading system for bonds that had three simple rules.

Rule one was to buy today's close if it was greater than the close 8 days ago.

No magic here, just a demand the market is trending higher. The next step was to

know when to throw them away . . . so I placed a stop of $850. Anything beyond

that would be bad cards.

Finally, all cards . . . trades . . . would be held until a profit of about three

times the stop was tested. The best was a profit of $3,500.

With just those rules, one could have made $36,500 trading one Bond since

they began trading. The worst drawdown was a little large, but the average profit

per trade, after $50 commissions and slippage, was an attractive $l60.

This "system" was not based on magic or fancy math. The only strategy was

that of money management. Kenny Rogers was right.

 

TREND FOLLOWING REQUIRES MONEY AND THE ABILITY TO WITHSTAND LOSSES

TREND FOLLOWING IS NOT EASY BUT IT IS STILL A VERY GOOD WAY TO INVEST!

YOU DON'T HAVE TO TRADE ALL THE TIME!

The perfect speculator must know when to get in; more important he must know when to stay out; and most important he must know when to get out once he’s in.

IMPORTANCE OF CONFIRMING DAILY AND WEEKLY SIGNALS

CIHLDG

INCKEN & PELIKAN

AS YOU MAY HAVE NOTICED, I HAVE TAKEN AWAY MY PERSONAL MODIFIED INDICATORS AND REPLACED THEM WITH THE INDICATORS THAT ARE NORMALLY PACKAGED WITH CHARTING SOFTWARE SO THAT VIEWERS MAY BE MORE FAMILIAR WITH THE INTERPRETATION OF THE CHARTS.

KEURO

KEuro to buy 15.8 pct of West Coast Expressway, raise stake to 80 pct

KUALA LUMPUR (Feb 17): Kumpulan Europlus Bhd has proposed to raise its stake in West Coast Expressway Sdn Bhd (WCESB) to 80 pct a move to strengthen its control of WCESB after it secured the RM7.07 billion west coast highway concession.  -  THE EDGE MALAYSIA.

A LOOK AT SOME STOCKS BELOW RM2

LOOKING BACK OCTOBER 2011

THESE ARE THE STOCKS THAT I PUT IN MY LAYOUT AFTER I ATTENDED ECMLIBRA'S TALK IN OCTOBER 2011.