KLCI +1.2% at 1336.02 in heavy volume, buoyed by local funds ahead of Eastern Corridor Economic Region announcement by Petronas; market breadth positive with gainers leading decliners 481 to 231.
At this moment, market is unpredictable. So trade on your own risk.
Happy trading!
Back in Malaysia market, the KLCI closed 2.73 points or 0.2% lower to 1305.94 last Friday, weighed down by heavyweights like Maybank and Tenaga as investors locked in profits after 3 days of strong rebound.
Today Index Composite gain another 11.3 points closed at the 1317.24 points. Expected market will rise some more points this week.
No trade was made during last week. Our buy order didn't trigger.
Here is US news update because recently our stock market performance is very much depending on US market which is straggle in market crisis...
NEW YORK, Sept 14 (Reuters) - Wall Street expects Federal Reserve policy-makers to cut interest rates next Tuesday to help ease a global credit squeeze, a much anticipated event that spurred stock prices higher this week and could boost them next week.
Investors expect the Federal Open Market Committee to cut the federal funds rate in response to growing concerns that the U.S. economy is slowing and may be heading into recession.
Short-term interest rate futures on Friday indicated investors believe a half a percentage point cut in the federal funds rate is slightly more likely than a quarter percentage point cut when the FOMC meets.
Some investors say the stock market has priced in a quarter-percentage point rise, limiting any upside. But if the past is a guide, investors will react to the actual event, said David Bianco, chief U.S. equity strategist at UBS in New York.
"I think the market's going to have a positive reaction to it, I really do," said Bianco, who expects a 25 basis point cut in the federal funds rate and a 50 basis point cut in the discount rate.
"It will signal a response to what's going on, to try to prevent credit market troubles from spreading to the real economy," he said.
Reuters polls showed on Thursday that economists see about a 30 percent chance that the United States enters recession in the next 12 months should the effects of a housing slowdown continue to seep into the wider economy.
Major U.S. stock market gauges moved up this week in anticipation of a rate cut, with the Dow Jones industrial average Read more...KLCI plunged another 14 points today due to Dow Jones down on last Friday.
Today Inix never touch 0.12. So there is no trade today.
New Trade: Cocoaland current price ~ 0.855
Buy order: 0.685
Sell order: 0.730
We will see the result tomorrow.
Happy trading!
KLCI Daily Chart
As expected last week, KLCI gains with the white candle and closed at 1305.04 points. This week (tomorrow) cannot be expected because last week was our budget announcement but the Dow Jones Index plunged another 249 points due to jobs loss data. We will see it tomorrow how KLCI will react.
I forgot to mention that the new technical indicator Bollinger Bands will be included after this for every stocks anaysis. This is one of the most powerful tools to be included in my trading system. I will describe it later or I if you cannot wait me, just click the website in education column.
Happy learning and happy trading!
Hexza Daily Chart
In my last comment, Hexza was traded in it's trendline and symmetrical triangle. It already broke the trendline and breakout happened. New trendline already made and it retraced at 61% fibo line.
Scomi Marine Daily Chart
Scomimr already retraced at the lower trendline and bounce back to close above it. I don't have any idea how will this counter is trade. Since the market uncertainty and unexpected, I will stay away from it.
Yesterday we already put the Buy and Sell order for SCN as below:
Buy: 0.555
Sell: 0.620
But the actual range for today is 0.555 to 0.605. If you leave this without monitor you will lose your money because sell order didn't trigger and the price went back to lower BB.
But if you put sell order at 0.605 you will take profit RM0.05. Let's do some calculation.
Wednesday lower BB: 0.680
15% < BB: 0.580
Higher range today: 0.605 ;
0.680 - 0.605/0.680 x 100% = 11%
This is only for forward testing. We'll collect all the result for building a new trading system.
Today New Counter to test:
Inix current price close: 0.150
20% (new rules to adjust from 15%) x lower BB (0.155) = 0.031
Price to enter: 0.12
Sell order: 7% profit taking at ~ 0.13
This is my new trading system that I will implement during market sell off or any counter itself. Both technical indicator BB and RSI has its own characteristic especially when to measure overbought or oversold condition. The system still in test mode which still do not prove successful trade. At the moment I will put some selected counter that meet my criteria as follow:
Bollinger Band: lower than 15% from the lower band
RSI: oversold area around 20 / rsi support or trendline
Today paper trade No.1: (Please check the price chart at your own since my chart not available)
Buy SCN at RM0.555 ( price > 15% from the lower BB)
Profit taking or sold near the new (today) bollinger band at RM0.620 - parking
Start from tomorrow I'll try to post the result and the new paper trade.
Happy learning and happy trading!
The main focus of this article is to guide you through the process of developing your system. While it doesn’t take long to come up with a system, it does take some time to extensively test it. So be patient; in the long run, a good system can potentially make you a lot of money.
The first thing you need to decide when creating your system is what kind of trader you are. Are you a day trader or a swing trader? Do you like looking at charts every day, every week, every month, or even every year? How long do you want to hold on to your positions?
This will help determine which time frame you will use to trade. Even though you will still look at multiple time frames (go back to 7th grade if you forgot), this will be the main time frame you will use when looking for a trade signal.
Since one of our goals is to identify trends as early as possible, we should use indicators that can accomplish this. Moving averages are one of the most popular indicators that traders use to help them identify a trend. Specifically, they will use 2 moving averages (one slow and one fast) and wait until the fast one crosses over or under the slow one. This is the basis for what’s known as a “moving average crossover” system.
In its simplest form, moving average crossovers are the fastest ways to identify new trends. It is also the easiest way to spot a new trend.
Of course there are many other ways traders’ spot trends, but moving averages are one of the easiest to use.
Our second goal for our system is to have the ability to avoid whipsaws, meaning that we don’t want to be caught in a “false” trend. The way we do this is by making sure that when we see a signal for a new trend, we can confirm it by using other indicators.
There are many good indicators for confirming trends, but I really like MACD, Stochastics, and RSI. As you become more familiar with various indicators, you will find ones that you prefer over others, and can incorporate those into your system.
When developing your system, it is very important that you define how much you are willing to lose on each trade. Not many people like to talk about losing, but in actuality, a good trader thinks about what they could potentially lose BEFORE thinking about how much they can win.
The amount you are willing to lose will be different than everyone else. You have to decide how much room is enough to give your trade some breathing space, but at the same time, not risk too much on one trade. You’ll learn more about money management in a later lesson. Money management plays a big role in how much you should risk in a single trade.
Once you define how much you are willing to lose on a trade, your next step is to find out where you will enter and exit a trade in order to get the most profit.
Some people like to enter as soon as all of their indicators match up and give a good signal, even if the candle hasn’t closed. Others like to wait until the close of the candle.
In my experience, I have found that it is best to wait until a candle closes before entering. I have been in many situations where I will be in the middle of a candle and all my indicators match up, only to find that by the close of the candle, the trade has totally reversed on me!
It’s all really just a matter of trading style. Some people are more aggressive than others and you will eventually find out what kind of trader you are.
For exits, you have a few different options. One way is to trail your stop, meaning that if the price moves in your favor by ‘X’ amount, you move your stop by ‘X’ amount.
Another way to exit is to have a set target, and exit when the price hits that target. How you calculate your target is up to you. Some people choose support and resistance levels as their targets. Others just choose to go for the same amount of pips on every trade. However you decide to calculate your target, just make sure you stick with it. Never exit early no matter what happens. Stick to your system! After all, YOU developed it!
One more way you can exit is to have a set of criteria that, when met, would signal you to exit. For example, you could make it a rule that if your indicators happen to reverse to a certain level, you would then exit out of the trade.
This is the most important step of creating your trading system. You MUST write your trading system rules down and ALWAYS follow it. Discipline is one of the most important characteristics a trader must have, so you must always remember to stick to your system! No system will ever work for you if you don’t stick to the rules, so remember to be disciplined. Oh yea, did I mention you should ALWAYS stick to your rules?
Read more...
Hexza Weekly Chart
From the price chart showing that Hexza rebounced at the trendline and at 61.8% Fibo line. Currently it take breath at 50% Fibo line. The last black candle indicate that investor still doubtful due to US market crisis and be careful of the market action. On the technical indicator RSI showing that overall price decline/reflect to downtrend line (I forgot to to make RSI trendline). RSI bounce on the previous support and still stick down. My impression is it will follow the market which I can assume that the downtrend line only will break if overall market showing good picture (KLCI>1300).
KLCI Weekly Chart
After market sell off last week, market slightly recovered. KLCI retrace near the 50% Fibo line and bounce to 23% Fibo line before closed at 1273 points. If you see on the daily chart, we can saw long lower shadow candle existed (hammer) two weeks ago which I assume the pullback occurred. On the technical indicator RSI showing that KLCI at the moment is downtrend. The sell off two weeks ago tested previous RSI support and bounce back to 50 level. At the moment, not only our market but the most of the world major indices depend on the US economy. The sell-off was triggered by renewed concern about weak housing, consumer confidence reports and ongoing credit and mortgage market woes in the US. All eyes now focusing the US index especially Dow Jones. Tomorrow I expected KLCI will open higher since the US market on last Friday gain 119 points.
This is an extension of Secret #6. Trading is stressful no matter who you talk to. Money is stress. So do everything you can think of to eliminate this stress. You will be happier and you'll be more successful. I have met hundreds of successful traders and one thing they all have in common is their lack of stress. They all have hobbies, families, friends, sports, and leisure activities that allow them to follow their rules without stressing about every move. It's amazing! I explain the stories in my book but I can tell you right here that my trading results went through the roof once I took a break from trading to pursue other activities. For years I thought I needed to spend every waking hour thinking about and developing my trading career. I became so stressed when the results were poor and so happy when the results were good. It was a roller coaster of emotions and stresses. I needed a break so I took a sabbatical for several months (but I left my rules intact and on auto-pilot with my broker). I returned to the best results of my career. I realized that my constant presence was only hurting my chances. From that point on I realized that I needed to make trading only one (of many) facets of my life.
The seven secret of the highly successful trader articles already completed which I took from the other website. Hopefully we can gain something on this beneficial articles.
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