Note: Mr Ooi is one of my favourite mentors
Rule 1 - Long or buy up trending stocks only (KLSE)
Author: Ooi Teik Bee | Publish date: Fri, 20 Jul 23:47
This article is for educational purpose only.
I had read many books and also learned through during my past 19 years experience as a qualified remisier attached to KLSE, I like to share these important time-tested proven market rules or tips to all valued investors. I will write each rule on weekly basis so that all valued investors can learn them slowly.
What is up trending stock ?
The following charts are displaying up trend stock.
1. Look at last 3-month chart, the price displays higher low and higher high in the chart.
2. Using GMMA chart, the Red lines are higher than the Green lines.
3. The price crosses 20 days EMA line and stays above it.
Please note that the stock price goes high tend to go higher, the stock price goes low tend to go lower. History always repeats itself as far as technical chart is concerned.
If you buy or long up trending stocks, the chance of losing money is lower and thus enhance your probability of winning in the market. Eventhough you are wrong, the loss can be small if you compare to long or buy down trending stocks.
Please remember rule 1 - do not long down trending stock, always buy up trending stock only.
Very important rules to follows
"Human can lie, chart never lie."
"The harder you work. the luckier you will get."
"The most successful executive is not necessary the one who is most original but the one who knows how to add on to the original knowledge by using the successful ideas of others."
"We are trend traders, hold the bull by the hones, ride the trend until it ends. Follow the entry and exit rules, adopt the correct psychology and practise prudent money management."
"You don't have to be right all the time in the market; in fact you could make a fortune only being right 50% of the time as long as you have the sense to always cut short your losses."
Paradigm shift
Buy high, sell higher = follow the uptrend
Thank you.
Best regards always,
Ooi Teik Bee
"Human can lie, chart never lie."
"The harder you work. the luckier you will get."
"The most successful executive is not necessary the one who is most original but the one who knows how to add on to the original knowledge by using the successful ideas of others."
"We are trend traders, hold the bull by the hones, ride the trend until it ends. Follow the entry and exit rules, adopt the correct psychology and practise prudent money management."
"You don't have to be right all the time in the market; in fact you could make a fortune only being right 50% of the time as long as you have the sense to always cut short your losses."
Paradigm shift
Buy high, sell higher = follow the uptrend
Thank you.
Best regards always,
Ooi Teik Bee
Rule 2 - Stop loss at 10% Maximum
Author: Ooi Teik Bee | Publish date: Sun, 29 Jul 13:00
This article is for educational purpose only.
I had read many books and also learned through during my past 19 years
experience as a qualified remisier attached to KLSE, I like to share
these important time-tested proven market rules or tips to all valued
investors. I will write each rule on weekly basis so that all valued
investors can learn them slowly.
Why is stop loss so important in our trading ?
Please note that stock price drops faster than it goes up. When the
price is dropped 50%, e.g. from 1.00 to 0.50, it needs 100% gain to
cover back the loss on the same stock, i.e. from 0.50 to 1.00.
Assume you buy a stock, the trend is up trending. If the stock price
dropped 10%, it means the current trend is changed from up trending to
down trending. Hence it is very important to cut loss because the trend
may be reversed.
Please note the below quote.
"You
don't have to be right all the time in the market; in fact you could
make a fortune only being right 50% of the time as long as you have the
sense to always cut short your losses."
Saying is easy than done. I found that this rule 2 is the most
difficult rule to follow among investors. I had conducted T3B training
course, SharesXPert training course and US stock option training course
for more than a thousand students in Malaysia, Jakarta and Hong Kong.
Some of my students are CEO, bankers, qualified accountant, engineer,
doctor, lawyer, lecturer and people in the street (etc). I always like
to check the major losers in their portfolios during my training, to my
surprise most of them especially qualified and successful businessman,
cut loss is the major weakness in them. Hence I always say, cut loss is
the most difficult rule to follow among investors.
When you cut loss, you must cut it fast. Once the loss is too big like
30% to 50%, it is not possible for you to cut anymore. In my rule 1,
always buy up trending stock only. Now you are holding down trending
stock which is not following my rule 1.
Please remember rule 2 - Stop loss at 10% maximum.
Very important rules to follows
Ooi Teik Bee
Ooi Teik Bee
======================================================
Aug 1, 2012 04:33 PMDear all,
Rule 3 - When the index rises 100%, this level is the major resistance.
I will cover this topic in my blog in this week.
Please note that the current uptrend for KLCI started in Oct 2008 from the low of 801.27. 100% increase for KLCI is 1,602. Once 1,602 is broken, bull market had started. Hence I am very optimistic for a bull run in KLCI provided 1,602 is not broken again. I will be less optimistic if 1,602 is broken again.
Likewise, the current uptrend for DJI started in Mar 2009 from the low of 6,470. 100% increase for DJI is 12,940. Once 12,940 is broken, bull market had started in NYSE.
I believe DJI had broken a new high of 12,940 provided this level is not broken again. If it is broken, bull market cannot be formed.
I strongly believe DJI will lead the world especially KLCI to a bull market may be at the second half of 2012 or beginning of 2013.
Hopefully, I am right here so that every one will benefit from this bull run and make a lot of money.
Let us hope and pray hard.
My opinion based on Technical Analysis.
Thank you.
Ooi
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