WHY CONSULT STOCK CHARTS or TA ?
U must have money to enter the stock mkt. n u want this money to work for u perpetually in the mkt !
Before U ever buy any stocks, 3 most important parameters U need to know.
They r i. The Stock Name u want to buy
ii. The Price
iii. The Time
All these 3 variables r found conveniently in a stock chart.
Before n after u buy, the stock prices r always dynamic. n again it is found niceely drawn in the stock chart. Will u now consult or look down on charts ?
So do u agree that there is no way to analyse its dna to help track n forecast the future price performance of stock? No or no ?
The trouble is there r so many ways to read charts.
Some say science n some will say arts.
U also can have charts in different time period, from month charts to week, day, hour, 30 min, 15 min, to even 5 min real-time charts.
To complicate matters, u have so many supporting indicators; candle sticks, ma, multiple ema, macd, rsi, sar n more... Just to name a few popular ones use by TA.
There r many gurus marketing their systems n strategies in the mkt today.
I can safely said they all work except that u have to make sure that their strategy to predict good stock price increase can last long enough for u to continue lauging for awhile. Do they also have high level strategy, the likes of 'Zhuge liang game plan' to identify the next greatest winning stocks in every cycle of the country ?
TA has its limitation. Syndicates r specialists in operating penny stocks. They will 'manufactured' the charts to draw in suckers. Usually they will negotiate for a nice block at good price from the plc owner. Once the block crossing is confirmed, they will ram up the price very furiously in just 2-3 days to corner up more shares from the free float. Thereafter depending on the mkt sentiment, they will spin n churn the stocks for another 2-5 weeks max till they r sold out completely laughing to the banks. If u r 'tiger' enough to play with them then I suggest u track them using hr n 30 min charts. The hr macd must stay above 0 axis. Failing which, ran! Usually pennies will not have 3rd wave up. The syndicates will never n very unlikely to play up 2nd time for the retailers to get out !
As a matter of fact, TA goes very niceely with FA stocks.
All great winners have very beautiful charts = like Ms U, it's rare.
William O'Neil advised us to study the past great winners.
Livermore said, 'what had happened will happen again'.
Good case study to do will be the past great rise of KNM, MUHIBAH n WCT in last bull run in 06-07.
Keep staring at their charts n u will certainly see a similar pattern developing in all of them.
Then design a chart template to strategize your winning stock selection. Best of all, U can use this simple skill in any stock mkt or country U trade in. So quickly that U'll have a good list of prospective strong stocks to begin with. With FA, U take weeks to months to do that 1st step of your investment journey.
Word of caution from O'Neil 4th edition,
'Most of the greatest winning stocks once crashed will go down to 10-30% of its highest record price'.
Put in quants, it is frightening vs essay such as, 'Do not fall in love with stocks'.
For decades, I used to spend lots of manhours everyday understanding n working so very hard on FA, yet missed out the Ms Universe stocks. There r so many variables n coefficients U need to guess all the time in order to calculate those FA #s. Truly playing GOD.
Besides, ENRON edi taught many plc owners that those #s can be easily n niceely 'engineered" for stocks to ran up for a good while, maybe 2-3 years.
n 1 biggest weakness in FA is, it has 0 Timing device = hold forever = close to plan to fail in this fast pace mkt.
All stocks r not good, unless it goes up in price. That's exactly what we want as traders or investors because we r not the owner n will never receive any of the co. perks enjoy by the plc owners.
Lately, I have found out that TA supersedes FA n applies well on FA stocks.
With TA, we can be decisive n act fast when its trend is abt to change or bend over the curve.
A long loss buddy always said, Charts never lie, some human do. Today he forgets to say all this but talks too much about FA n neglects the all important charting trend. Sadly, he got hit niceely by the country's shrewest broker. u know who !
I always hear this,
' Charts can tell tomorrow's news today '.
I repeat again, DO USE the motivating words/model of GURU :
G SOROS -
"Economic history is a never-ending series of
episodes based on falsehood and lies, not truths.
It represents the path to big money.
The object is to recognize the trend whose premise is false,
ride that trend, and step off before it is discredited"
More HERE ,
http://klse.i3investor.com/servlets/forum/900000315.jsp?fp=2
http://klse.i3investor.com/servlets/cube/post/purebull.jsp
http://purebull-bursatrader.blogspot.ca/
"Economic history is a never-ending series of
episodes based on falsehood and lies, not truths.
It represents the path to big money.
The object is to recognize the trend whose premise is false,
ride that trend, and step off before it is discredited"
More HERE ,
http://klse.i3investor.com/servlets/forum/900000315.jsp?fp=2
http://klse.i3investor.com/servlets/cube/post/purebull.jsp
http://purebull-bursatrader.blogspot.ca/
Always stay with purebull stocks,
PureBULL
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