Sunday 17 February 2013

1. Don't know how to choose the right share to buy

2. Don't know when to bail out of a losing share

3. Don't know when to take profit on a winning share

4. Don't Know how to construct a proper portfolio


1.Don't know how to choose the right share to buy...

How does beginners choose what shares to buy amongst thousands of shares? You might choose to listen to your share broker, or listen to your "experienced" relative, or listen to free "share pick" on the internet...etc... and you will end up losing money.

Because individual share behavior is very complex, only the most professional full time traders have the right technology to make proper share pick decisions. Such experience and technology is simply not available especially to the beginner trader.

2.Don't know when to bail out of a losing share...

The deadliest killer of beginner traders is not knowing when to get out of a losing share. Too many traders hold on to their shares until it is worth nothing. Most beginners will hold on hoping that the share will stage a rebound because you simply do not have the technology to tell if a share will ever rebound! The only way for a beginner to prevent losing everything is for an expert to tell them when to get out of a trade.

3.Don't know when to take profit on a winning share...

How many times have you heard stories around you of people who hold on to shares which made them a lot of money until one day, the share turned around on them into a severe loss?
Too many people keep thinking that their winning shares will keep on winning forever and never knew when to take profit... until the shares crashed on them! The problem is again that telling when a share is losing upward momentum is extremely difficult.

4.Don't know how to construct a proper portfolio...

Do you know that many shares actually move up and down together no matter what? Do you know that there are shares that totally move opposite to each other? Do you know that many shares actually move exactly opposite to the way the market is moving? Do you know that there are shares that do not ever move? Do you know that there are shares that are on the verge of getting delisted?

If you do not know the above, how would you ever be able to intelligently put different shares together so that you can make money? What if you put a share together with a share that moves exactly opposite to it? Would you ever make money?

Market syndicates have been around for many decades and their stock manipulative activities have been felt in the United States, Singapore, here and every other market around the world. Their objective has always been to push up share prices and then unload the high-priced shares on punters.

There are several common aspects of stock manipulators, brokers said, and these are some of them:

Scenario one: The IPO route

These stock plays are pre-planned even before the shares are listed on Bursa Malaysia. As the major shareholder may be imposed with a moratorium from selling any of their shares, he would park some of his shares under nominees. The shares in the names of nominees would not come under the moratorium.

The major shareholder would then place out a block of the new shares issued under the initial public offering (IPO) to a stock operator. Let's say the operator gets the shares at 50 sen a piece.

On the listing day, the stock operator will whack up the price of the shares to say RM1 and a day or a few days later, start selling the shares. He won't be able to unload all his shares at the top, but could achieve an average price of say, 70 sen.

If the major shareholder and stock operator manage to distribute ?the industry term for unload ?30 million shares, they'd get to share a profit of RM6mil.

Scenario two: Sell pricey stocks to fund managers

In this kind of scheme, the syndicate will push up the share price from say, RM1 to RM3. The syndicate will then place out ?industry term for selling sizeable blocks of shares ?to fund managers. The fund managers would be induced to buy the shares with a commission secretly paid to them by the syndicate. If the commission is say, 20 sen on five million shares, the fund manager gets RM1mil.

Placing out shares to fund managers has the advantage of holding up the share price for a longer period of time. There would be an understanding with the fund manager that he should not immediately sell the shares into the market.

The syndicate would then continue to ramp up the share price. Inevitably, however, the syndicate will sell off his shares and they usually leave in a hurry. The fund incurs a loss but the fund manager has personally profited with the commission.


Scenario three: Sell pricey stocks to punters

This is the stock manipulation scheme that punters are familiar with. A syndicate gets a block of shares of say, two million from a major shareholder and churns a daily trading volume of say, five million shares. This is done by buying and selling the same shares over and over again by syndicate members and their nominees.

The churning is done in such a way that the share price goes up every day, irrespective of sentiment on the market.

The trading activity and rising price momentum gets the attention of punters. The more experienced punters usually recognise the share price is being ramped up. Nonetheless, they pile in to make a fast buck, and hopefully get out before the syndicate withdraws support for the share price.

There will be, however, punters who are newer to the game or have more greed and they stay too long in the stock. When the syndicate sells out within a day or two, usually causing the stock to trade limit-down, punters lose their shirt.

The profits of the syndicate are shared with the company's major shareholder. Usually, this involves companies that are loss-making in their business. Ramping becomes the only way the major sharehbelieve that most of us have heard of stock market operators. They are known by many different names and they are constantly the blame for our financial losses. In some parts of the world, they are known as sharks, syndicates, big bosses, speculators, liars, cheaters or stock market manipulators. Some of us cheer their existence and their operations while some cursed them as if they are the culprits to our financial ruins. Are they our friends or foes? As the famous saying goes, know thy foes and you will have the upper hand in battle. In this post, I will challenge and dare you to swim with the sharks and eat from the crumbs of their feeds and not to be their feed. Here I would like to bring out some of my personal thoughts on this question that most newbie has.

Ok, here is the short answer. Yes, you are right. They existed and their operations are hidden from most people especially the newbie in these financial markets. I believe if we know them and how they operate, we could actually move along with them. In fact, the whole purpose of technical analysis is to determine the balance of demand and supply and the stock market operators are some of the powerful and rich individuals or groups with much buying and selling power. If we are able to track their movement, we will be able to profit from their operations. However, if we are ignorant of their existence, we could be their next meal.


Basic facts of stock market operators are listed below for your reference.

**They work individually or in a group.
**They rely on the market trends to help them in their mission.
**The general publics are their big customers.
**They together work with the public listed company owners or insiders.
**They have a main mission objective to accomplish.
**The bulk of their operation revolved around the accumulation and the distribution of stocks from / to the general publics.
**They are rich and powerful figures but they are also humans that have emotions like all of us.
**They have extensive credit facilities and lower transaction costs than the retail investors.
**They do make mistakes like any one of us. Their mistake costs millions in dollars.
**Market news, stock market analyst, corporate announcements, word of mouth advertising, price bidding and order queues are some of their tricks and tools that they used to achieve their main objective.
**They don’t try to pick the bottom or the top like most retail investors do. Again, some of them try to do this and it costs them much sorrow and dismay.
**They do attempt to manipulate the chart to trick the chartist whether you like it or not.
**They are both the buyer and seller in the queue order at any given time.
**They are not doing charity work. They existed to make your money.


It is important to understand them well as they are big volume buyers and sellers. They can tilt the balance of demand and supply. Understanding the above traits of stock market operators will help to clear some of the myths that we have of them. Remember, they are humans like us. Some of the above points deserved to be elaborated further to bring out the secrets of trading methodologies that we will employ in our technical analysis.

Primary market trends are very important to their success and failures. If they judge wrongly on this, they could go bust easily as the power of leveraging will work against them. Remember this, they cannot fight against the trends and they don’t have the strength to do so. Don’t ever think that they can swim against the tides.

If their mission objective is to acquire stocks, they might push down the prices to cause temporary market panics to squeeze out the stocks out from the speculators and investors and this is especially true in certain countries where short-selling is not allowed. The success of this technique will depends on what sort of people that are holding the stocks. This will get rid of the intraday and short term traders. However, they will try to maintain the prices around a certain range as to keep the sellers motivated. Usually the public listed company owners and insider will work in tandem to collect the shares from the general public. After they exhausted the fearful speculators and investors, they will then turn their eyes to the stronger speculators and investors by pushing up the prices higher to catch their interests.

If their mission is to distribute stocks, they will push up the stock prices to catch the attention of speculators and investors. They will work with market analyst to create beautiful pictures of the company prospects. They will work with the public listed company owners and insiders to create scarcity of stocks. At this moment of time, they will also announce all the good news while pushing up the stock prices. They will queue up as buyers and sellers in the order queue. They will buy their own stocks to create volume to entice the crowd to follow. As they bid up and down the prices, stocks were distributed without the awareness of the general public.

I believe that this write-up will increase our trading knowledge and make us a wiser trader. I will continue to write of how we can profit from their operation in future posts whenever I managed to get my time organized.

older can make a profit.


BASICALLY AS A TRADER U MUST GET YOUR MINDSET ORGANIZE LOH.....U R PLAYING TREND, MOMENTUM AND CROWD ACTION....!
SOMETHING TRADING INDICATOR MAY FAIL U.....IF THAT HAPPEN.....U MUST RUN QUICKLY LOH....!

WHEN CAN U SEE TREND FAIL ?

MOMENTUM SLOWED
CHART REVERSAL
CROWD ACTION.....!
"I have a lot of respect for Warren Buffett, but I disagree with him on this one." -- John Doe

 In the investing world, those have to be some seriously overused last words. And yet time and again there's someone on TV, or in the papers, or in some new, flashy book, talking about how Buffett has been very successful in his years running Berkshire Hathaway (NYSE: BRK-B ) , but that for some reason or another, his investing views are dated and no longer of much use. But every time, just like Dr. Dre showing up on some hot new album with a speaker-thumping beat and some dope rhymes, Warren Buffett dances all over naysayers' graves and his insightful value-oriented wisdom wins out after all. I was reminded of this once again when I stumbled on an old Buffett article in Fortune from back in the halcyon days of 1999. In the article, Buffett notes: A Paine Webber and Gallup Organization survey released in July shows that the least experienced investors -- those who have invested for less than five years -- expect annual returns over the next ten years of 22.6%. Even those who have invested for more than 20 years are expecting 12.9%. But what did Buffett see ahead? This talk of 17-year periods makes me think -- incongruously, I admit -- of 17-year locusts. ... What could a current brood of these critters, scheduled to take flight in 2016, expect to encounter? I see them entering a world in which the public is less euphoric about stocks than it is now. Naturally, investors will be feeling disappointment -- but only because they started out expecting too much. You may recall that Buffett was taking some serious slings and arrows at the time as the hot, young tech fund managers were raking in big returns. But are investors less euphoric today? Maybe feeling disappointed? Um, yeah, I think so. More importantly I could go on to review just how right Buffett was back in 1999. I could tie that into today and talk about what it means that 34% of Americans seem to think gold is now the best investment while only 17% think stocks are. But Buffett said something else in the article that I think is much more important. The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. The products or services that have wide, sustainable moats around them are the ones that deliver rewards to investors. When Warren Buffett utters a phrase like "the key to investing," is it really possible to focus on anything else? At the time, Buffett was specifically wagging his finger at the technology industry as investors bid up anything and everything tech. He illustrated his point by talking about how much the auto and aviation industries changed the world and yet how dangerous those industries had been for investors. While it appears in retrospect that some tech companies were able to carve out some sort of moat, many were not. Names like Alcatel-Lucent, AOL, Gateway, Lycos, and Compaq no doubt still send shivers down the spines of investors and strategic acquirers. But that's the negative side If I wanted to continue from a bearish angle, it'd be pretty easy to do that. Jumping right to mind is the solar industry, which I think will eventually bring big changes to our energy production, but has thus far proven a brutal minefield for investors. However, I'd rather take the positive side of Buffett's "key to investing" and look more closely at companies with those "wide, sustainable moats." So what exactly does it mean to have a moat? Imagine you're a sprocket manufacturer (not Spacely Sprockets, because that has brand power). To not have a moat means that you just have a standard sprocket factory making run-of-the-mill sprockets. Because your product is standard and undifferentiated, if you suddenly start making handsome profits selling sprockets, it's easy enough for competitors with access to capital to build a factory just like yours and compete with you until your profits are hammered back to a marginal level. To find the opposite, we don't have to look any further than Berkshire Hathaway's portfolio. Here are a few notable examples. •Coca-Cola (NYSE: KO ) . A Google search can actually bring up a whole bunch of different cola recipes and with enough money you can build a factory that will churn out gallons upon gallons of the stuff. But you're not going to have the same signature taste as Coke, nor will you have the iconic brand, nor will you have the global presence and massive distribution network. As a result, you're not going to have anywhere near the 41% return on equity that Coke does. If you want to find the moat to end all moats, Coca-Cola might be it. •Procter & Gamble (NYSE: PG ) . This is very similar to the deal with Coke. You can make a safety razor, but it won't be a Gillette. You can concoct some toothpaste, but it won't be Crest. And you can put together a disposable diaper, but it won't be Luvs. Through decades of marketing, consumer research, product development, and expansion all over the globe, P&G is a brand machine that Joe Schmoe is not going to be able to compete with. •Wells Fargo (NYSE: WFC ) . Size is a key component here, but it's more than size with Wells. As competing "too big to fail" banks like Bank of America (NYSE: BAC ) and Citigroup (NYSE: C ) were busy trying to build businesses that were highly risky and all things to all people, Wells was building a culture around simply being a really good big bank. What that means is that it's going to take more than cash, some ATMs, and an in with the Federal Reserve and FDIC to compete effectively with Wells Fargo. To be sure, the moat is thinner than with Coke and P&G, but it's definitely there. •Wal-Mart (NYSE: WMT ) . Love it or hate it, you have to admit it: Nobody swings the kind of bat that Wal-Mart does in retail. Brand power can be a fantastic moat -- and Wally World has some of that, too -- but bargaining power and sheer size can also be a very significant competitive advantage. It hasn't stopped Wal-Mart from shooting itself in the foot a bit, but it's because it has such a strong moat that I believe it will be able to recover its stride. Back in 1999 when Buffett offered up his thoughts in Fortune, even very mediocre companies commanded premium stock valuations. Today it's a much different story. Wal-Mart's stock sells for less than 12 times its trailing earnings while investors are giving Wells Fargo an earnings multiple of just 9.3. If 1999 was a time of starry-eyed optimism that drove down the prospect of future returns, today's environment is very much on the opposite end of the spectrum and a much better time for investors to be picking up quality, wide-moat companies. It all boil down to relative value of investment.




Be yourself, because everybody else is already taken!

Being yourself isn’t a difficult task to do. Especially when everyone else is taken. Why would you waste your life trying to be someone your not when the person you really are is right within you. Remember, the person you are is who you are meant to be so live your life good while being yourself!

Becoming free is not changing yourself into someone
you think you should be. Becoming free is falling in love
with who you are—right now.

Why try so hard to fit in when you’re born to stand out.

Why Blend In?….. When I Was Born To Stand Out.

Be what you want to be, not what others want to see.

If you walk in the footprints of others, you wont make any of your own.

I never wanted to be different; I just wanted to be me.

“Be you. Find you. Be happy with that.”

It’s never too late to be who you might have been.”

Instead of wishing you were someone else, be proud of who you are. You never know who has been looking at you wishing they were you.”

Cling to your imperfections... They're what makes you unique.

Today you are You, that is truer than true. There is no one alive who is Youer than You.

Be yourself. Above all, let who you are, what you are, what you believe, shine through every sentence you write, every piece you finish.