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STI to cross 3000 boosted by long-term investors
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YongJiu
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07-Mar-2007 09:08
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yeah what a green green morning.... indeed I'm wearing light green today!! ^_^ |
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bradical
Member |
07-Mar-2007 09:08
Yells: "Strong TAbeliever but also on God's help & wisdom!" |
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I use FA to help me select the stocks to invest. However I have realised that from experience (bad ones), timing is still very important and that is where TA comes in. Analysts will tell you to buy the stock because of good fundamental of the company, but if you buy when the price is high and MAs are wavering and ACD/ CMF are turning down, you cud be unneceessarily tying up your funds when that stock turn down over the next 6 months. | ||||
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EastonBay
Master |
07-Mar-2007 09:02
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iPunter: like you said:
Hope it stays like this!!! Good/Green morning fellow forumers!! |
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iPunter
Supreme |
07-Mar-2007 08:53
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Standby to welcome another round of cheong, cheong and more cheong!!! |
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adrianpang05
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07-Mar-2007 05:39
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Good for you! Value stocks with sound FA way to go! |
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cashiertan
Elite |
07-Mar-2007 03:53
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i speculate on value stocks with good fundemental than growth stocks | ||||
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awchyeong
Member |
07-Mar-2007 01:34
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Kawaiiboi: my experience proof ed your last sentence " Buy foundamental stocks in long term only one answer = Gain", We should invest in stock,not playing stock. playing just like gambling. Chinese said " shi du jiu shu" .May offence some ppl. my apologise | ||||
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kawaiiboi
Member |
06-Mar-2007 21:39
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EVERY ONE ALWAYS EXPECT THE PRICE TO RISE OR DROP ACCORDING TO WHAT SENERIO THEY LIKE>. BUT A BRISTISH STUDY CONFIRM THAT USING THE SELL BUY TECHNIQUE DON"T REALLY EARN MORE THAN U HOLD FOR LONG... REASONS... 1) When stock drop you sell, and the moment u sell it rise.. so gurantee you don't wanna pick a more expensive stock right? So it will keep on rising until the one who hold earns more than u. 2) When the stock rise u buy, because u make a profit too fast too early while the one holding still hold.. therefore by the time u sell u still earn lesser cuz you pay more transactions. So unless you are damn lucky.. don't try sell or buy cuz when u normally sell is to cut lose, u don't always earn back at the moment u buy again. If not why would u wanna cut lose in the first place??? BUY foundamental stocks and in long term only 1 answer = Gain. |
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Livermore
Master |
06-Mar-2007 21:38
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The share cornering strategy I wrote earlier is not exactly dollar cost averaging. Let me explain. I am looking out for growth stocks in a consolidation phase or maybe sell out position. Let's just consider the consolidation phase.
Even in a consolidation phase, it is still best to be on the safe side. Before you buy maybe you can ask yourself how many lots you wish to buy. Let's say 50 lots. So your initial buy can be just 10 lots at 90c. If the price moves to 85c, maybe add another 5 lots, if it drops to 80c, maybe another 5 lots. At this stage you still have 30 lots to play. After a while, the price is "cornered". If it drops below 80c, I might consider to cut loss. But normally a good stock (ignoring bad sentiment) seldom goes down more than 10 - 15 c from its consolidated position. If it goes up from 90c, you can average up along the way. Of course average up bit by bit and maybe 10, 15, 15, 10 and not 10, 30, 10.
Of course you can get caught in this method. I got caught with ASL Marine. I average up all the way from 90c to $1 but instead of going up from $1, it turned back towards 95c. That's was when I decided to sell off 25 lots at 95c. This way you have 25 lots to "cover your positions" should the price drops further. This not a fool proof method but to be on the safe side I might not average up any more after $1 but if it goes to $1.10, you can buy a bit more (that is where margin trading comes in useful). The reason is because your earlier lots are in profit and "covered". If it continues to go up from $1.10, I don't buy any more and just let it ride. So I think this is in a way different from dollar cost averaging.
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Livermore
Master |
06-Mar-2007 21:25
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Hi Jackjames, This method is for if you intend to keep the stock for long term. Look at case 1 and case 2:) |
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jackjames
Elite |
06-Mar-2007 21:17
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Livermore, it is not easy to do until u realize , oh shit, the price can really go down "that much" oh well... you are right, but again, not easy to execute sometimes.. | ||||
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iPunter
Supreme |
06-Mar-2007 21:12
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Livermore... Yes, yes..., that's the whole idea ... :) |
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ROI25per
Master |
06-Mar-2007 20:54
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well said livermore. i actually hestiate on my sph, if not i can take out cash close to 5k fm during correction | ||||
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Livermore
Master |
06-Mar-2007 20:35
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I have learnt something from this correction. I have always thought of a certain strategy but somehow never implemented it. But after this correction experience, I think I am going to do things a bit different next time. This appplies if you are holding onto a stock for the long term. Case 1 Let's say you have 80 lots of a share and it has gone from $1 to $1.90. But despite the major corrections, you did not sell a single lot. Case 2 You also have 80 lots and the share price has also gone from $1 to $1.90. A major correction starts and your share price drops to $1.80. You decide to sell off half i.e 40 lots at $1.80. As the share price drops, you decide to buy back 10 lots at $1.70 (made $1000), $1.60 (made $2000), $1.50(made $3000), $1.40(made $4000). It does not matter where the share price goes down to and as long as you buy back the share price back at below $1.80, you have made money as compared to if you just held and did not sell a single lot as in case 1 If you use case 2 and the stock has great potential and will eventually go up in the long term, your gains will actually have increased using case 2 method compared to case 1. |
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iPunter
Supreme |
06-Mar-2007 18:53
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Jackjames... :) Aya... you, ah... Why this time, when I am really talking rubbish, but you didn't tell me so? :) |
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iPunter
Supreme |
06-Mar-2007 18:38
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A "Dead Cat Bounce" is a possibility. More so because there must be 'something wrong somewhere' to cause the big funds to dump so heavily in the first place (Shanghai not likely the reason). |
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red1721
Senior |
06-Mar-2007 17:38
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I've already said in previous post few mths back to watch out for this incoming drop esp from china, I'll say wait a few more days and monitor the market first. If it picks up with a more constant chart, I'll say go in and start grab some blue chip counters again. If it still goes see sawing....I rather stay out instead of vesting my $$ in the meantime...Good luck everyone... |
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jackjames
Elite |
06-Mar-2007 17:28
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iPunter.. Dow follow STI? sorry, I don't think so. | ||||
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goldcarps
Member |
06-Mar-2007 17:27
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Hi forumers, Any chances of a Dead Cat Bounce for the STI??? |
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bradical
Member |
06-Mar-2007 17:06
Yells: "Strong TAbeliever but also on God's help & wisdom!" |
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The ST Index is very close to its 100 day Moving Average . Looking at past trends, the STI cud dip below the 100 day MA before recovering, i.e. the possibility of a further dip in STI and prices. | ||||
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