All right bro! Forget about it! Let me share again. Pls note that what I share is not 100% but just higher possibility.

I am a short term trader or the common name is Contra Player. I do not hold stocks and can buy sell the same stocks within a day. Being a contra player, we need to know how to read a technical chart. You do not need to be a professional chartist. All you need to know from the chart is the support and resistance price of a stock. It is important because it gives you a guide when to buy or sell a stock which reduce your risk. Take the following scenario as an example.

Stock A – Previous day closing price is 0.077. Resistance price is 0.08 and next resistance price is 0.095, Daliy buy sell queue volumn is a few hundred lots.   Daily trading volumn is a few thousand lots.

Let’s say stock A runs up with high volumn and cross 0.08 resistance to come to buy bid price of 0.082, actually can go in by buying straight at 0.083. Reason is that it has cross the 1^st resistance and the next resistance is 0.095. it actually mean that it has potential to go up to 0.095 or higher. But of course, the move up will not be so smoothly. At certain price (for example at 0.085) you will see a wall of sell queue. A wall of sell queue will mean extremely high sell queue volumn e.g. 8000 lots. People with no experience will sell at 0.084 or 0.083 because they think it is hard to cross. Those with no chart as a guide will likely to throw first. BBs will be very happy to take your shares.   But bear in mind, there is no resistance until 0.095. I love to see this kind of sell queue. I will normally queue buy at 0.084 or 0.083. High chance 0.085 will be clear. Pls take note that it will not clear so smoothly. It may have to ding dong a few times before it clear. After it clear 0.085 and moves up, you will see another wall at another price until you reach the Greatwall of China sell queue at 0.095( example 13000 lots). This is critical. It is not easy to clear. Some may clear and some not. I will put it as 50-50. We need to see how how 0.095 is being ‘eaten up’. Buy queue MUST first build up at 0.094 to match the Greatwall of China sell queue. When it starts to eat up 0.095, it will eat a few hundred lots and later a few thousand lots. Here is what you have to take note. The last trade must be in thousands(since there are tens of thousand sell queue initially) and must clear 0.095 and 0.095 to become buy price. Even if this happen, it may not mean it has cleared and will move on. Quite a number are traps. The important thing I want to say here is…If the last trade doesn’t eat up all 0.095 and left maybe a few hundred to 1000 lots, it is unlikely to clear. BBs are not nice guy where they will leave some food for you to eat. There is no durian to pick. If I see this, I will sell straight at 0.094. Another situation is that the last trade eat up 0.095 and drop back to 0.095 as sell queue price, you will have to wait a while to see whether buying up at 0.095 is strong enough. If eventually 0.095 sell queue starts to build up again, it is likely that 0.095 can’t clear and BBs may throw down. Another important thing to look out for when 0.095 is being eaten up. Let’s say 11000 lots out of 13000 lots has been eaten up(balance 2000 lots), then 0.095 sell queue build up again to e.g. 8000 lots again, it will mean that BBs is clearing their holdings. Better sell at 0.094 straight else you will have no chance after a while.

Now, why knowing the resistance price is important?.   Let’s say someone who know nothing about the resistance price and chase up the stocks. If he buy at 0.093, his chances of making money is very slim because there will be a Great wall of China is just 2 bids away. Also, at the buy price of 0.084, someone may not dare to buy because he see a wall at 0.085 and thinking that is has already risen 7 bids. Knowing the support is also very important. Let’s say if the price of a stock keep dropping, he may cut near or at the support price which should not be done.

Anyway, there are many areas to look out for. It’s hard to explain in detail. But I think the above is the basic that one must know how to see. As I say, what I share is not 100%. I think got 60-70% should be good enough. Understanding a stock’s daily movement helps a lot. Technical chart is useful but in a market crash, it is uselsss.

Hope it helps!

Bro gelu2279, it is hard to help this poor newbie. If he has the power to hold the stock, he would not have to sell within 2 days. I don’t see there is anything he can do but to cut loss to save his marriage. If he buy some more and the price drop again, I think his wife will be gone.