Trader

Friday, 5 September 2014

Jump Start Lesson 1

Jump Start Lesson 1

1. Visit the following website daily or every weekend, read the daily commentary, try to understand why and how the author form opinion whether market up or down for the following market day:

http://www.patterntrader.com/category/daily-market-analysis/

Can read other commentary too.

There is no right or wrong, everybody can form their own opinion.

We learn how they make such conclusion, so that we can make our own opinion when we are more mature.

2. Visit the following websites, if possible, daily, before 9.30pm (Before Market Open) Malaysia times:

a) http://www.marketwatch.com/
b) http://finance.yahoo.com/
c) http://money.msn.com/
d) http://www.forexfactory.com/ (go to calendar, filter US, red and orange news)

When read the news, need to differentiate the write up talk about fact or opinion. Fact is fact. We look for fact. Fact will impact the market or industry or individual stock.

Can visit other useful websites too.

3) after visit (2), try to form an opinion, whether market going up, down or side way.

Do this on every Friday..if can.

4) There are two things move a company's stock in the long term:
a) Interest rate - Fed interest rate policy/monetary policy.
For US economy, when interest rate up, market will down and later up; bank will make bigger profit.
b) Company performance: earning (sales and profit);

5) This is likely a short term mover unless their impact have long term impact affecting their earning: news:

a) Geopolitical issues (war, conflict,..)
b) Litigation
c) Disaster - earth quake, typhoon,... (occur in develop country..have major impact)
d) Election
f) Product launch (Samsung, Apple,...)
g) For drug/biotech companies => development phase file with FDA
h) Accident (aircraft => aircraft companies; ..)

The above prepare our self for understanding the market.

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For item 2(a), you may sign up and put alert on your company you work. then will received alert when there is news. We put up alert for the stock/industry we interested.

Tuesday, 26 August 2014

A Trader Life

I am just a new born turtle.. my shelf no longer support me, I am hungry and I am excited to explore my new world.

I look around and saw other beautiful turtle too, they are also hungry, excited.

Luckily I heard some familiar voice I can understand, .. ding ding ding, come on, you better learn like a span, absorb all the knowledge in the shortest time; know to long up trend, short down trend; buy low during dip at the support during up trend and short at resistance during down trend; delta, gamma, theta, vega, time, can be your enemy or friend, depends what position you are in; butterfly, straddle, strangle,..news, interest, FED, geopolitical, earning,... and many many more.

Always remember, pattern is your only friend. No one care about you.. you have to care about your own self. Learn candlestick to understand the psychology of traders, technical analysis to find support and resistance; you can control how much you loss, but you cannot control how much you are going to gain...

By the way, get to know some friends, support each other, this can ease your learning curve.

But,..

Sorry to say that many do not listen, they are selfish, greedy, easily lost control with anger, impatient, wrong timing, not follow wise advise, listen to tip without analysing, thinking it is fun and this is a big play ground, not persistent and break rules..