FARMBES

Some stock picks from UOB Kay Hian

Some of the stock picks by UOB Kay Hian's Head of Retail Research, Lester Chin in his presentation “Discover Winning Stocks in Malaysia”

DARVAS INSPIRED!

Nicolas Darvas

Nicolas Darvas was a world famous American dancer back in the mid 1900′s. After making a profit in some stock of a Canadian mining firm (which he bought from the proprietors of a Canadian dance venue), Darvas was hooked on chasing a quick buck in the Stock Market.

Like many before him, Darvas was convinced that having made an initial profit, he was some kind of natural born stock market speculator. However (again like many before him) Darvas took loss after loss on the Canadian stock market after buying in and out of the market on the advice of brokers and newsletters.

Telling himself that the Canadian Stock Market was for small fry, He changed course for the New York Stock Exchange. Here (again) he took loss after loss, buying in and out of the market on the advice of brokers and newsletters. Always seemingly buying at the high – then witnessing a sharp retracement – and selling at the low.

Sick of buying on the high and selling on the low, and in a fit of desperation, Darvas ploughed his money into a couple of stocks that that had been hitting their 52-week high. He was utterly surprised that the stocks continued to rise and subsequently sold them to make a rare profit.

Darvas decide to regroup to assess this remarkable occurrence. And it was here that Darvas came up with his plan for trading stocks that was to see him achieve a multi million dollar fortune in just a couple of years – his theory that has become known as Darvas Boxes.

From now on Darvas would execute his famous trading plan. Selecting stocks with new 52-week highs and suitable spikes in volume coupled with favourable fundamental company research.

This method also showed Darvas remarkable insights into a stocks price behaviour, often revealing the signs of ‘inside buying’ before a companies release of favourable news to the public.

After accumulating his fortune, and also being exposed in Time magazine, Darvas was to document his actions in the book How I Made 2,000,000 in the Stock Market, which of course, is well worth a read if you too are interested in learning more about his techniques.

INSPIRED BY THE ABOVE ARTICLE, I DUG UP TWO OLD INDICATORS TO SEE IF I CAN USE THEM PROFITABLY.  FEEDBACK AND COMMENTS APPRECIATED.

TSH UPDATED

HUPSENG UPDATED

NOTE THAT IN CHART 1 (TOP CHART), THE TWO BOTTOM PANELS ARE IN CONFLICT.  LET'S SEE WHAT HAPPENS TOMORROW.

TAMBUN

PELIKAN

MTDACPI

GUH

STOCKWATCH

Donchian or Tau Kua Chian?

Found an old chart with the Donchian Channel and my own.

Decided to take a look at the old friend against some of today's gainers.

SKPETRO

OLD IS GOLD!

Create new systems  but don't forget the old. One is silver, the other is gold.  Today, dug up an old system and test it and boy, was I surprised by the results.

What the Heck!

When I showed this type of charts in my first post in FaceBook, someone exclaimed “What’s this? Keep It Simple”.  Since then I have tried to simplify my charts but then what the heck!  Like Ricky Nelson said in Garden Party, “Learnt my lesson well. Can’t please everyone so gonna please myself”.