Disclaimer!

This blog is created to help beginner learn about the stock market, in a easy way, and simplified way.

Stock market is about helping ourselves to achieve financial market faster, therefore we need not know complicated theory to succeed, we need to know what is important, and its all that matters.

Whatever stock suggestions here are purely the writer’s thought. if it lead to any disastrous outcome, the writer is not liable for it.

i will try to provide daily updates on the market, and the top gainer and loser, and the index movement, apart from that i will keep adding pages on different terms or things that we as investor need to know.

feel free to contact me, and i will provide you with as much as information as i can. leave me your email, and rest assured i will get back to you within 1 or 2 days time. =)

I know the feeling of starting out, and getting someone to guide you along is certainly less painful then hitting and banging around with no results.

regards,

paul

(on the left hand side, there are different pages that i wrote there to describe stuff that beginner need to know!)

update heh…

UPDATE!!

SIA should be at its market top now, and in short, people we should start to short SIA now. it might be a good chance.

SIA - July 17 - 2009SIA - July 17 - 2009 - close up

SIA - July 17 - 2009 - close up 2

we can see from the graph, the close up with the circle, that there is a tweezer top, according to technical analysis. hitting the resistance level of  SGD 13.5, which is the second time, that the price touches the line, previously, there are also two close ones at SGD 13.3, it certainly showed that the bull are losing their steam, for the time being.there is also a hangman, in the circle, it is trying to tell us that a potential top might be in the working, or is near. so we should get ready to cover our long position.

there are also divergence between the graph’s candlestick peak, and the technical indicators peak below. the peak are lowering, however the candle stick peak still remains the same, or a little higher, this infact shows that the strenght of the bull are losing, and is trying its best to stay at the price level.  it can be viewd from the volume, forced index, and the CCI

currently RSI is at 67%, and stochastic 14D is at 99%, which might be hinting together with the others indicators and the candlestick pattern, that the stock is finding a top.

the two blue circle, showed the two tweezer tops, and the red ones showed the hangman, inverted hangman, a near dragonfly doji, and a near graveyard doji. not really in a evening or morning position. however, if a few of these are being found together, with the indicators showing the possible over selling or overbuying, it might signify a top or bottom.

thus it also formed a flag like shape, its hard to see, however the bottom is moving up wards, and the top is a straight line, therefore the meeting point will form a triangle flag.

the 3 light green dotted lines across the images are the fibonacci retracement line. as we can see, its now hovering at the 68% retracement of SGD 13.1, it nvr went beyond SGD 13.5 for the past few weeks. (these lines can be viewed as support or resistance line.)

so in conclusion, for risk taker, we can star to short, for conservative traders, we shall look for a black candle for the next trading day for confirmation, because it might still have an upward swing. who knows!

I’ve been away for quite long, and a lot of things happened in the stock market. I recently found this site,

http://www.umoo.com

which allows you to trade virtual money, and there are some competition which we can join, however because of time zone difference, its a bit hard for me to do it.

welcome home

Finally back after so long, because of projects and stuff, haven been able to update this blog for a while.

I will try my best to put more information here, even though i know this is not yet a very comprehensive site. but soon. haha.

19 nov

STI closed 1665.59, lower by 26.96

Look at DBS today, closed at 9.5, open at 9.8. its definitely for a short sell.

it went straight down, closing at the lowest point of today.

the reason why i didnt immediately decide to short sell it when it drop below 10 is because i am giving it a room of 3% for whipsaw, which will be at 9.7, since now its below the expected price, i would advise investor to short sell it. =)

well, so generally the 3 local banks are of correlation of near 1, therefore, OCBC and UOB will be also sliding down.

when to buy it back? while, depend on your trading rule, which i will touch on the next time.

today lets look at other stock, SIA.

19-11-2008-sia-800x878

Alrite, I shall explain a bit of the lines i drawn on top

As we can see, one red vertical line which rest on $10.83, it is the recent support line,

and there is a trend line, light blue, which i identified, if its right, it will mvoe up and down, like a wave form, therefore tomorrow, we shall expect it to drop further down.

look at the EPS of this share, its 0.567, down from 0.747 of the same quarter last yr.

P/E ratio of 18.28, well, some ratio i can’t really get it yet because i need a full year report of 2008, haa.

this showed that the company is undervalued too, or facing some kind of trouble, but from the fundamental of SIA, i will think its undervalued. Net profit down ard 26%, thats a bit huge isnt it.

and also, SIA operating income since to drop by 36.6 percent depsite an increase in revenue. which means the core business generate not a lot of profit from it, its only 495 million, but its total revenue is 6954 million, so does that means that the core business isnt generating enough??

18 november

STI close at 1692.55 today, down by 57.12

its still going down, among them, i would like to talk a bit on DBS, which is a stock that have been hovering ard the $10 mark.

Technical point of view:

18-11-2008-dbs-800x878-edited

Alright lets look, the two black arrow is pointing the two lines that made up trend area, lets not look at the long white candle because the close of the day still stay within the area of $10 and $12, now, when price reaches $10, it will slowly go up to $12, and after that down to $10 again, much like a wave, if everything remain the same. However, if either line is broken, it will lead a price increment or decline.

Now what is certain is that if $10 is broken, we shall “short-sell” because the support line is broken, and it usually lead by a decline in the price.

After that take a look @ MACD indicator, red line signal increase, blue indicate decrease. If red line cut above blue, it signal that the prices will go up, if it intercept and go downwards, its time for us to sell, as it signal a decline.

ROC, it is the same thing, green line indicates increase, and blue line indicates decrease, when Green cut above blue, it indicate a increment, and vice versa. However, roc is more volatile, and there is more study towards the green line movement. i will introduce it next time.

RSI usually i take it with a pinch of salt, its quite volatile, and is not a good indication to depend on to sell or buy

stochastic, on the other hand, to me is the more reliable one, blue for increment, and red for decline, and the way to interpret is the same.

its important that more indicators act in the same way, and give the same signal, look for more confirmation, and evidences that do not confirm. do not just look at the confirming factors.

Therefore obviously the price will not face major price movement upward in the near term, from the current technical point of view.

DBS now currently with EPS 1.05 down from previous 1.7 from previous quarter.  clearly just from this, it isn’t really a good choice. P/E ratio is only 9.4, which is low, and P/B ratio, if its calculated correctly is only 0.6, which all showed that DBS is maybe undervalued, or facing some kind of trouble, but rule out the latter, i believe its undervalued because of the current crisis, and it greatly affected all the finance institution.

therefore the picture might provide a chance for the entry for DBS, but when is the right time? it might not be now, if the support line at 10 is broken, it might plunge further. =)

updates!

updated on terms we as investor need to know, and also the pros and cons of technical trading!

=)

First thing first

What do most beginner like to know, it all depends on whats their purpose of learning how to trade in the stock market.

I would suggest that beginner know about index, should about various terms which can be found @ http://www.sgx.com

to add on, its better for them to have some basics in accounting, and also economics.

reading is also important for beginner, my first book was “how to make money in stock market – william o’neil”

its also recommended to force ourselves to read the news paper, and think further and see how does each factor affect others, we need to train our brain to not be lazy, so whhen faced with a pile of balance sheet, we can still get some information from there.

gd luck traders!

my first post

anw, lay down my thought first..

i wanna make this my own finance blog, about financial stuff, finance itself is a gamble to many, and an art to many others. to me, its both at times.

why do i even start to learn it? becuase i see chance and opportunities for me to achieve what i want faster, let me just clarify, stock market is a merciful place, its not some get rich shit, and certainly, it will hurt u more if you think you can beat them, market always teaches the arrogant a good lesson.

I myself starting reading and learning at the start of the year 2008, trying to find some one to guide me, or as a mentor, but unfortunately, i cant. therefore i resort to books, and forums.

even now i still do not know a lot of stuff, and i hope, but having this blog, people can give me their 2 cents, exchange pointers, and teach each other more, and help each other.

i will head to my bed now, =)

i do not want beginner who got no where to go, feel the same kind of shit feeling that i had when i tried to start learning it. PEACE!

success comes with hardwork, effort and diligence. its cliche i know.

Hello world!

Welcome to WordPress.com. This is your first post. Edit or delete it and start blogging!

this is not my first post, this is the wordpress.com first post. damn!