Latest Posts By richtan - Supreme About richtan |
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09-Sep-2009 23:33 | Others / When did u reach ur 1st $100K Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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I was a real "stupid fool" last time, but now a "wise man" after having paid my dues for my laziness n foolishness..
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09-Sep-2009 23:26 | Others / When did u reach ur 1st $100K Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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U r most welcome. Trust me as I had gone thru the baptism of fire in trading, I truly speak from my heart, I started out just like tat naysayer, thinking trading is easy, no need n also lazy to learn, listen to rumours, buy based on guts, got burnt "chowtar", horrendous losses tat serves as a wake-up call n realise my foolishness n swear to learn TA (of course TA is not infallible, thus need to set stop-loss), I still have my fair share of losses n profits but abiding my 3 golden mantras, I cut losses short n let my profit runs with trailing stops, so net I m still in profits. So dun listen to those naysayers tat says trading doesn't need hardwork n learning. as talk is free n they dun pay u for your losses, u r ultimately responsible for your losses. Common sense will tell us, in any trade, u need to learn the ropes of the trade, so is there any different with trading, those naysayers have gambling instincts without knowledge, a very dangerous game.
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09-Sep-2009 23:06 | Others / Market News that affect STI Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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U.S. Stocks Advance as GE Leads Gains in Industrial Shares By Jeff Kearns Sept. 9 (Bloomberg) -- U.S. stocks gained for a fourth straight day as General Electric Co. led gains in industrial shares and investor Michael Price said he’s finding value in American equities. General Electric added 1.6 percent to above its highest close since January. EBay Inc. climbed 3.3 percent after Sanford C. Bernstein & Co. said the company’s core online auction business is “turning around.” MasterCard Inc. and Capital One Financial Corp. advanced after they were upgraded by Citigroup Inc. on expectations that credit spending will improve. The Standard & Poor’s 500 Index added 0.3 percent to 1,028.79 as of 9:58 a.m. in New York. The Dow Jones Industrial Average rose 27.89 points, or 0.3 percent, to 9,525.23. Europe’s benchmark index added 0.7 percent, climbing for a fifth straight day, while Asia’s slumped 0.6 percent. Price said the U.S. stock market resembles 1975-1982, when the S&P 500 doubled, and he’s finding value in small banks. “We made very good returns from ‘75 to ‘82,” Price, who managed some of the best-performing mutual funds during the 1980s and 1990s and now runs New York-based MFP Investors LLC, said in an interview broadcast on Bloomberg Radio and Television. “Pick your spots, pick your stocks, do your work, and somebody’s going to be selling something too cheaply.” EBay, owner of the most visited U.S. e-commerce Web site, advanced 3.3 percent to $22.56 after Bernstein raised its rating to “outperform” from “market perform” and lifted its share- price estimate 17 percent to $28. MasterCard MasterCard, the second-biggest credit-card network after Visa Inc., rose 0.4 percent to $208.32. Capital One, the McLean, Virginia-based credit-card company, climbed 3.3 percent to $36.61. “The credit cycle has begun to recover for U.S. credit cards,” Citigroup’s Donald Fandetti wrote in a report. Morgan Stanley climbed 1 percent to $28.07. The sixth- biggest U.S. bank by assets was raised to “overweight” from “neutral” by analysts at JPMorgan Chase & Co., who said they are “switching preference from investment banks to credit banks on regulatory changes.” The S&P 500 has rebounded 52 percent from a 12-year low on March 9 as reports from consumer confidence to home sales signaled the recession is easing and companies from Johnson & Johnson to Goldman Sachs posted earnings that beat analysts’ estimates. The Federal Reserve will publish its Beige Book business survey today at 2 p.m. in Washington. The rally has pushed valuations in the benchmark index for U.S. equities to about 18.9 times the reported earnings of its companies, near the highest level since June 2004, according to weekly data compiled by Bloomberg. ‘Be Prepared’ “Investors should be prepared for some additional near- term corrective action,” Robert Doll, the global chief investment officer at BlackRock Inc., wrote in an e-mail to journalists yesterday. “Stocks are no longer as cheap as they were several months ago. Conditions may be overbought and there is still a great deal of uncertainty over the outlook.” Lazard Ltd. dropped 3.5 percent after the investment bank led by Bruce Wasserstein said some shareholders agreed to sell 5.22 million shares in an underwritten public offering. The shares declined $1.60 to $37.40. Lazard said it won’t receive any proceeds from the sale. Vivus Inc. soared 77 percent to $12.26. The developer of treatments for sexual dysfunction and obesity said its Qnexa drug helped patients lose enough weight in studies to allow the biotechnology company to seek U.S. approval to sell the treatment this year. To contact the reporter on this story: Jeff Kearns in New York at jkearns3@bloomberg.net. Last Updated: September 9, 2009 10:00 EDT |
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09-Sep-2009 22:34 | Genting Sing / GenSp starts to move up again Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Times - 09 Sep 2009 Update: Genting S'pore plans US$1b rights * Possible cost overrun at Singapore casino: AmResearch * Genting Bhd shares fall more than 3% in Kuala Lumpur SINGAPORE - Casino operator Genting Singapore plans to raise more than US$1 billion through a rights issue to help fund a casino and build a war chest for possible acquisitions, sources said on Wednesday. 'It's a big issue. Over US$1 billion,' a source with direct knowledge of the deal told Reuters. Genting shares were suspended earlier on Wednesday. Genting's fund-raising is set against a backdrop of casino firms keen to take advantage of rising Asian stock markets and tap investor interest in the region's growing casino business. Las Vegas Sands, the world's most valuable casino firm, plans to spin off its Macau operations in a Hong Kong initial public offering to raise as much as US$3 billion, while Wynn Resorts is expected to list its Macau business in the fourth quarter. Genting Singapore's rights issue was likely prompted by cost overruns at the Resorts World at Sentosa casino that it is building in the city-state, AmResearch said in a note. 'Our channel checks point to a potential rights issue. However, as Genting Singapore still has sufficient funds ... we suspect that development cost of Resorts World Sentosa could have exceeded its budgeted cost of $6.59 billion,' it said. Shares in Malaysian-listed casino operator Genting Bhd dropped more than 3 per cent, while the main index was off 0.5 per cent. Genting Singapore, about 54 percent-owned by Genting Bhd, is building one of the republic's two integrated resorts. It is also the largest casino operator in the United Kingdom. Genting Singapore shares have more than doubled this year, and closed at $1.19 on Tuesday. The firm has been reporting losses since it listed in Singapore in December 2005, hit by the cost of building the Singapore casino and writedowns related to its purchase of casinos in Britain. It posted a second-quarter net loss of $50.7 million. Genting's Resorts World at Sentosa casino has been plagued by cost overruns due to the escalating price of steel and other building materials. The latest cost estimate is about $6.6 billion ($4.6 billion), more than the $5.2 billion price tag cited shortly after the firm won the Singapore bid in December 2006. Genting Singapore's rights issue will be underwritten by about eight banks, including UBS, JPMorgan, DBS, Deutsche Bank and HSBC, sources said. -- REUTERS |
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09-Sep-2009 22:10 | Others / When did u reach ur 1st $100K Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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U r right.
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09-Sep-2009 22:07 | Others / When did u reach ur 1st $100K Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Hi Thinkfirst, No one can really advice u which share is cheap n steady (unless tat person has divine powers, so dun trust them) as trading is a very personal decision depending on your strategy (short, mid or long-term), risk tolerance, my advice is set your stop-loss n if hit, dun hesitate to cut-loss and move on, and dun regret if it later goes up bcos wat if u dun cut n it keeps going down. If u r newbie to trading, below is my advice (whether to listen or not is up to u). To succeed in trading, my sincere n genuine advice to newbies: "Learn to master TA n u are the master of your own trades." - Learn how to spot reversal signs in candlestick charts for entry n exit "Learn how to fish n u can fend for yourself forever, relying on others n forever u r dependent on others n at their mercy" "There is no easy way n short-cut to success in life, including trading, all are own hardwork, u need to learn the tools of the trade" Depending on your inclinations and whether u seriously want to learn TA, I had created 3 threads dedicated to newbies under "General", "Trading Techniques": 1. "Learning TA" - websites where u can learn TA for free but of course, TA is not infallible, thus need to set stop-loss) 2. "Some recommended good Trading and TA books" - of course u can also buy TA books. Read as many TA books and money management books, it will definitely stand u in good stead. 3. "Advices to newbies" particular the 3 golden mantras. Take your time to read and learn, dun rush, remember "Rome was not built in one day" I self-learnt, see how analysts do it and practice by covering up the candles and test my knowledge and hone my skills till I m quite confident b4 start trading bcos the mkt is merciless. Those TA courses, wat they teach, all are from books, nothing new. For those paid software,even after the software scan, still need our analysis, cannot assume it is 100% correct, as nothing can replace the human brain and knowledge as analysis is an art of how individual interpret, no matter how much they input all the scientific knowledge into the software If u are not sure, post your charts n hopefully some forumers good in TA will exchange pointers with u. To know how to post, follow the steps on how to post charts in "General", "Trading Techniques", "Learning TA".
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09-Sep-2009 16:03 | Midas / Midas Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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From "Lim & Tan securities": We remain positive on Midas given its robust growth prospects, underpinned by its robust order books of RMB1.4bln as well as the robust prospects of its 32.5% owned subsidiary company, also underpinned by solid order books of RMB4.5bln. And this in turn reflects the government’s active efforts to support the railcar industry in China to reduce transportation bottlenecks as well as reduce transportation costs. Rail transportation is much cheaper than air travel and is much safer and causes much less pollution than automotive transportation. The company will be increasing their production capacity by 200% in the next 2 years to cope with the strong order flows. Its PE of 20x remains undemanding compared to its expected growth rate of 40-50%. |
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09-Sep-2009 15:17 | Midas / Midas Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Below is my chart analysis for sharing and exchange pointers. My TA chart is posted to share n exchange pointers with those TA practitioner whom believes in TA. If u are a TA detractor, plse just ignore n refrain from peeping at my chart posting n start making unconstructive comments and plse do not be so childish or lunatic as to abuse the rating system by rating it as "bad post", accumulating for yourself and your next generation, "bad" karma for your "bad" deeds. If u think it is a bad post, then be constructive and kindly post your TA for sharing. This is only my view n I may be right or wrong, so dyodd and SOBAYOR. |
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09-Sep-2009 15:08 | Midas / Midas Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Below is my chart analysis for sharing and exchange pointers. My TA chart is posted to share n exchange pointers with those TA practitioner whom believes in TA. If u are a TA detractor, plse just ignore n refrain from peeping at my chart posting n start making unconstructive comments and plse do not be so childish or lunatic as to abuse the rating system by rating it as "bad post", accumulating for yourself and your next generation, "bad" karma for your "bad" deeds. If u think it is a bad post, then be constructive and kindly post your TA for sharing. This is only my view n I may be right or wrong, so dyodd and SOBAYOR. |
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09-Sep-2009 14:49 | Midas / Midas Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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"Trade Summary" at this point in time shows extremely heavy buying-up (almost double the sell-down), but of course, nothing is guaranteed, may change, so dyodd n BOSAYOR: 5EN (MIDAS)
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09-Sep-2009 14:22 | Others / Market News that affect STI Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retail Hiring Shift May Show Growing Confidence in Recovery By Chris Burritt Sept. 8 (Bloomberg) -- U.S. discount, grocery and restaurant chains are hiring a larger percentage of job applicants than seven months ago, signaling confidence the economy may be improving, software maker Kronos Inc. said. Kronos analyzed the 8.9 million job applications received by 68 retailers in the first seven months of the year. In July, 2.99 of every 100 applications resulted in a hire, compared with 2.75 in January, a three-year low, the Chelmsford, Massachusetts-based company said today in a statement. “We are seeing a turnaround that reflects an increase in confidence by individual managers,” Robert Yerex, Kronos’s chief economist, said Sept. 4 by telephone from Beaverton, Oregon. “It may take quite a bit longer to come back than it did to drop off.” This is the first time Kronos has publicly issued a monthly retail labor index. The pace of hiring of cashiers, merchandise stockers and other frontline workers in July was less than half that of October 2006, Kronos said. U.S. unemployment rose to a 26-year high of 9.7 percent in August, according to the Labor Department. Retailers fired 10,000 people last month while all U.S. employers trimmed payrolls by 216,000 after slashing 276,000 jobs in July. Closely held Kronos makes software that businesses use to process hiring, payroll and scheduling and manage employees. It had 2008 revenue of about $715 million, said Steve Earl, 43, the director of product marketing. Discount chains, department stores, grocery stores, restaurants and home-improvement stores use the company’s products, said Earl, who is also based in Beaverton. He wouldn’t identify individual customers. 3-Year High Retail hiring reached a three-year high in October 2006, when U.S. unemployment was at a three-year low, according to Kronos. By early 2008, employee retention as tracked by Kronos began to rise as workers had less opportunity to change jobs in the tightening labor market, the company said. The July hiring data suggest “the economy will stabilize and gradually begin to pick up,” Yerex, 50, said. “Considering this is a leading indicator of the economy, the same holds true for the economy itself.” The Kronos index “provides insight into a very specific piece of the labor pool: frontline retail labor,” Adam York, an economist at Wells Fargo Securities in Charlotte, North Carolina, said in a Sept. 4 phone interview. “The question is how applicable is their data to the broader economy.” To contact the reporter on this story: Chris Burritt in Greensboro, North Carolina, at cburritt@bloomberg.net Last Updated: September 8, 2009 00:00 EDT |
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09-Sep-2009 14:13 | Others / Most - S-Chip get ready to get 10-20% Price Hike Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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China Growing 9.5% Evident as New Vehicle Sales Soar (Update1) By Bloomberg News Sept. 9 (Bloomberg) -- Look no further than Alcoa Inc. and General Motors Co. for evidence that the Chinese economy is poised to accelerate even after a slump in lending growth dragged down the nation’s stock market. Alcoa, the largest U.S. aluminum producer, is raising its forecast for global consumption of the metal on stronger demand from China. GM, the biggest overseas automaker in China, says the nation’s vehicle sales may reach 12 million, surpassing the U.S. as the world’s No. 1 market. The benchmark Shanghai Composite Index entered a bear market, or a decline of at least 20 percent, Aug. 31 on concern a slide in new loans in July might slow production and investment. Figures for August may allay the fears: Industrial output rose the most in a year and retail sales climbed at a 15 percent annual pace, median forecasts in Bloomberg News surveys show. “Credit tightening isn’t going to crash the economy,” said Tim Condon, head of Asia research in Singapore at ING Groep NV and a former economist at the World Bank. “It’s taking investors a little time to get their heads around this fact.” The Shanghai index rose for a sixth day yesterday, helping pare the decline from this year’s record close on Aug. 4 to 16 percent. The measure fell 0.3 percent as of 1:04 p.m. today. ‘On Track’ A boom in lending earlier this year will be enough to sustain a pick-up in the country’s economic expansion, analysts said. China’s gross domestic product may increase 9.5 percent in 2010 after an 8.3 percent gain in 2009, the smallest in eight years, according to a Bloomberg survey of 22 economists conducted the week ending Aug. 28. “China’s economic recovery is well on track,” said Lu Zhengwei, an economist in Shanghai at Fuzhou-based Industrial Bank Co., China’s seventh-largest bank by market value. “With the explosion of loans so far, stimulus investment won’t be affected, even if lending declines for the rest of this year.” August new-lending figures are scheduled to be released Sept. 11 and may show a 10 percent decline to 320 billion yuan ($47 billion), according to the median estimate of nine analysts surveyed by Bloomberg. The July total was less than 25 percent of the June figure. Loans reached a record 7.7 trillion yuan in the first half of the year, spurring concern among Chinese policy makers that a credit boom would stoke speculation in assets such as stocks and property. While credit growth is slowing, some industries are continuing to obtain financing, helping ease any impact on the nation’s manufacturing, analysts said. Ample Funding Loans of more than a year, used for projects such as railways and power-generation plants, showed ample funding, said Wang Tao, an economist in Beijing at Zurich-based UBS AG, Switzerland’s largest bank by assets. Short-term credit, more likely to be used for speculative purposes, dropped, she added. Industrial production, due for release on Sept. 11, rose at an 11.8 percent annual rate in August, after a 10.8 percent increase in July, according to the median of 15 estimates in a Bloomberg survey. Retail sales figures the same day may show a 15.3 percent gain in August from a year earlier, the biggest rise since January, economists’ estimates indicate. To maintain the momentum, the central government has budgeted 487.5 billion yuan of stimulus spending this year and another 588.5 billion yuan in 2010 for work on projects from low-cost housing to reconstruction in Sichuan province, hit by a 7.9-magnitude earthquake in May 2008. Rising Demand All this means more business for Chinese and international companies. Alcoa expects China’s consumption of aluminum to rise 4 percent this year, compared with its earlier prediction of zero growth, because of demand triggered by stimulus spending, Chief Executive Officer Klaus Kleinfeld said in a Sept. 3 interview. GM sales in China last month jumped to 152,365 vehicles, a gain of more than 100 percent, as tax cuts and stimulus measures spurred demand. The Detroit-based company said its 2009 sales will rise more than 40 percent from 1.09 million last year. The total for all automakers may increase 28 percent this year to as many as 12 million, China’s top planning agency said Sept. 5. Auto production may account for 2 percent of GDP and aluminum output for 0.5 percent, said David Cohen, an economist at Action Economics in Singapore. China Railway Construction Corp., the builder of more than half the nation’s railroads, saw first-half profit jump 46 percent to 2.2 billion yuan, bolstered by government spending. ‘Definitely Exceed’ “We are the beneficiary of a once-in-a-hundred-years opportunity,” Vice Chairman Ding Yuanchen told reporters Sept. 2 in Hong Kong. The company “will definitely exceed” its sales target of 266.3 billion yuan this year, he added. Manufacturing expanded the most in 16 months in August, driven by the record lending in the first half of the year, the official Purchasing Managers’ Index showed Sept. 1. Urban investment in fixed assets such as factories and properties surged 32.7 percent in the first eight months of 2009 from a year earlier, according to the median estimate of 15 economists surveyed by Bloomberg. China is also likely to benefit from a recovery in global trade, which the World Bank expects will record the first contraction since 1982 this year. Chinese exports may climb as much as 15 percent in 2010 after shrinking this year, said Peter Redward, head of Asian emerging-markets research in Singapore at Barclays Plc, the U.K.’s second-biggest lender. Import Demand Trade figures this week may show that China’s imports, the world’s third-largest, fell 10.5 percent in August from a year earlier, the least in 10 months, according to the Bloomberg survey median. Excess capacity in a number of industries remains a drag on the nation’s growth for now. Li Yizhong, China’s industry minister, ordered steel companies on Aug. 13 to refrain from expansion for the next three years. Mills can produce 660 million metric tons of steel annually and there’s demand for only 470 million tons, Li said. Industrial profits dropped 17.3 percent in the first seven months of 2009 from a year earlier to 1.11 trillion yuan, according to the National Statistics Bureau. “Despite a more self-evident economic turnaround in China, the prospect for the world economy remains unclear and the downside risk to external demand remains significant,” the Commerce Ministry said last month. China still has ample resources to maintain its economic acceleration, analysts said. The nation has the world’s largest foreign-exchange reserves, at $2.1 trillion, and outstanding government debt of only 20 percent of GDP, compared with 87 percent in India, according to the International Monetary Fund. “The government will do whatever it takes to keep growth going,” said Huang Yiping, an economics professor at Beijing University and the former chief Asia Pacific economist at Citigroup Inc., the third-largest U.S. bank. To contact the Bloomberg News staff on this story: Kevin Hamlin in Beijing on khamlin@bloomberg.net Last Updated: September 9, 2009 01:10 EDT |
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09-Sep-2009 10:51 | AusGroup / AUSGROUP: 1H09 revenue up 28.8% to reach A$260.5 m Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Below is my chart analysis for sharing and exchange pointers. My TA chart is posted to share n exchange pointers with those TA practitioner whom believes in TA. If u are a TA detractor, plse just ignore n refrain from peeping at my chart posting n start making unconstructive comments and plse do not be so childish or lunatic as to abuse the rating system by rating it as "bad post", accumulating for yourself and your next generation, "bad" karma for your "bad" deeds. If u think it is a bad post, then be constructive and kindly post your TA for sharing. This is only my view n I may be right or wrong, so dyodd and SOBAYOR. |
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09-Sep-2009 10:49 | Midas / Midas Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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To me, I trade more for the capital gains n not purely for the div, if have is just an additional bonus
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09-Sep-2009 10:29 | Midas / Midas Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Just checked with cdp, payable is $2.50 per lot today
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09-Sep-2009 10:19 | Midas / Midas Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Just to confirm is Midas dividend payable today n wat is the total amount per lot ( a bit confusing, if I dun remember wrongly, it declared dividend twice right n payable together?) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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09-Sep-2009 10:05 | Midas / Midas Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Vol in one hr trade had aredi exceeded yesterday's vol | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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09-Sep-2009 10:01 | Midas / Midas Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Below is my chart analysis for sharing and exchange pointers. My TA chart is posted to share n exchange pointers with those TA practitioner whom believes in TA. If u are a TA detractor, plse just ignore n refrain from peeping at my chart posting n start making unconstructive comments and plse do not be so childish or lunatic as to abuse the rating system by rating it as "bad post", accumulating for yourself and your next generation, "bad" karma for your "bad" deeds. If u think it is a bad post, then be constructive and kindly post your TA for sharing. This is only my view n I may be right or wrong, so dyodd and SOBAYOR. |
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09-Sep-2009 09:57 | Midas / Midas Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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"Trade Summary" at this point in time shows extremely heavy buying-up, but of course, nothing is guaranteed, may change, so dyodd n BOSAYOR: 5EN (MIDAS)
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09-Sep-2009 01:00 | Trading Techniques / Advices to newbies Go to Message | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Stop Making Emotional Decisions With Your Investments Three Ways to Stop Making Emotional Decisions With Your Investments
Dear Investment U Reader, "You think they're your friends, but they're not your friends." This was the frequent refrain from a landlord I had while in college. He was warning us on the danger of throwing parties and inviting people who we considered friends, but would think nothing of trashing the place. I guess it's not surprising that renting his house to college kids made him a little paranoid. He often showed up at random times to make sure there was no revelry taking place. Once, he chased away some of my buddies as we were watching "Monday Night Football" (I guess the keg in the corner didn't help our argument). This no-nonsense, unattached attitude is the perfect way to approach the stock market and your investments. After all, most investors have had stocks that we thought were our friends, but that ultimately turned on us and caused pain. The trick is to not become emotionally attached to them. This is easier said than done, so if you find yourself hanging onto stocks for too long, or investing more with hope and emotion than sound reasoning, allow me to give you some tips... When it Comes to Emotions, Adopt the "Heat Mentality" I was fortunate that my stock market education started at a trading desk, where we executed trades according to how the market and stocks were performing. Period. Nobody cared if the stock had a low P/E ratio... whether the company had the next great biotech drug... or was run by a terrific management team. To us, stocks merely represented three or four letter symbols. That's it. In some cases, I didn't even know the names of the companies and couldn't have told you much about their businesses. Sounds a bit clinical, doesn't it? It was. And it served me well. I learned that you shouldn't get emotional about stocks. They're simply investment vehicles in which to park your money. Granted, you can be in a stock for five minutes or 20 years, but you should never form a relationship with them. As Robert De Niro's character said in the movie, "Heat": "Don't allow yourself to get attached to anything you cannot walk away from in 30 seconds flat if you feel the heat around the corner." Think about it. Many of us have owned a favorite stock - perhaps for years. Oftentimes, the longer you hold it, the more difficult it can become to sell it - even when you know you should. We form an emotional attachment to the business that often has nothing to do with how the stock is performing - or how much money we're losing from it. This can be an issue, particularly in the biotech and health care spaces... It's Easy to Form Emotional Attachments in This Sector One of the key price catalysts for a biotech or health care company is when a medical advancement is made. For example, a new cancer drug is approved, a company sees strong clinical trial results, etc. Not only are we happy that our investment is worth more, but we also feel good about being involved with a company that saves lives or alleviates suffering. For that reason, some investors form particularly emotional relationships with early-stage companies that show great promise. In The Xcelerated Profits Report, I recommended Medivation (Nasdaq: MDVN). The company is currently developing one of the most promising drugs to combat Alzheimer's Disease - Dimebon. When I made the recommendation in August 2007, I believed Dimebon would work and that the potential reward was worth the risk. Aside from the human issues surrounding Alzheimer's, it was strictly a financial decision. And if the drug is successful or not, the decision to recommend selling the shares will be made for financial decisions only. You Must Separate Emotion From Reality That said, I'll be terribly disappointed if the drug is a dud. Not only for my subscribers, but also for millions of Alzheimer's patients and their families. The disease runs in my family, so it's especially personal. However, I won't let those emotions get in the way of taking a profit or cutting a loss. If it doesn't work I'm not going to hang on to hope, looking for some morsel of data that justifies holding onto the stock. The bottom line is that if the drug isn't proven to be safe and effective, I don't want to own the stock anymore. Biotech investors often tell me that they can't/won't sell a stock because they've become emotionally invested, as well as financially. This isn't surprising -dreams of riches and a better world are wrapped up in these tiny companies. But you simply cannot allow that to happen, otherwise you risk taking a double hit if things don't pan out in your favor. So how can you remove emotion from the equation if you're not using a stop? Fight emotion with emotion. Three Ways to Take the Emotions Out of Your Investment Decisions #1: Write Down Your Reasons: Whatever the reason is, write it down on paper and stick it in a visible place. That way, when your catalyst hits, it will be tougher for you to justify to yourself why you're going against your original idea. #2: Phone a Friend: After all, you'll face some serious peer pressure if you suddenly change your mind and refuse to take profits or cut a loss. Outsiders aren't as emotionally involved as you because it's not their money on the line, so they should be able to make you see that your original reasons are still right. #3: Conduct an Annual Portfolio Review: Any time there is money involved, emotions run high. Of course, it's easier to get less attached to stocks in other sectors. For example, many investors have no problem letting industrial stocks go when their stop-losses are triggered. But it's your job to remove as much of it as you can and focus on decisions that will benefit your portfolio. Marc Lichtenfeld P.S: Letting emotions get in the way of your buy and sell decisions is a "two steps forward, one step back" approach to investing that is likely to hold you back from maximizing your profits. Instead, always base your decisions on sound reasoning, coupled with the powerful strategies that will help you beat the market - and the crowd. |
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