Trading Q&A

Happy New Year to all! This will be a profitable year for all! Huat ah!! :D
Trading is often a lonely game, no one around us can understand the ups and downs we are facing. Especially when I first started out, i got teased by my losses and my wins were discounted as lucky. I really was very frustrated and decided to get good at trading. Sound familiar? If you are in my situation, welcome aboard! Let's learn together! :D

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1 Jan 06, 02:21tom: Not really a question here, just a compliment. I think you've been a great help to everyone, dude. I'll be getting the books for some fundamentals. And i hope you keep it going!

Ans: You bet I will keep it going with people like yourself so supportive! Thanks! : )

30 Dec 05, 23:06Archer: u keep on saying about psychology ...can u enlighten me on ur methods employed by u to make money in the market...?

Ans: Archer, my psychology can be followed or even read from the archives at GrowMoney Blog . Yes, to all new to trading, understand psychology first even before you begin. Atune yourself to losses and read all the trading books you can find. If the trading system confuse you, read the psychology part of the book. That's how I improved. Everyone should have a different set of methods to overcome your psychology in trading. Let me give you an analogy, given your favourite food right in front of you and you are hungry, what would you do to not eat the food? Psychology in Trading is such. You must be able to separate your yourself, your mind from the market as and when you want. Also, you must be able to sell and not hold in hope when you know it's time to cut loss. You should also sell when you have profits and not be greedy to hold out for a larger profits. Of course, buying and selling decision should be followed with trading system. I was so engrossed in trading that I almost lost my girlfriend. This is how important psychology is to me as I began to understand trading everyday. Sometimes i wonder, isit because of my massive losses when i started trading woke me up and all the psychology bits and pieces fall into place. I meant, can psychology really be taught without personal experience? All the painful losses came back to me everytime a similar situation appeared and that allows me to avoid dubious trades. So if you just started out....do not focus on profits, instead, trade small and understand the game. As you get good at getting it correct, I GUARANTEE you that profits will come to you. My logic is, if I am still learning, why should I risk so much capital? Everyone has to pay "tuition fees" to the market as they learn, why not make yours a cheap one?

29 Dec 05, 22:59marc: Hi Decipher, i saw your charts but i do not know how to decipher whether it is up-trend or a down-trend. Any simpler ways to understand your charts? Thanks!

Ans: Marc, I do not chart downtrend chart. : ) This should save you the trouble. haha However if I do chart downtrend, I will show it clearly. Otherwise, it's uptrend, be it short term or long term.

29 Dec 05, 12:52Archer: how much will it cost to buy from Amazon..apart from the price of the book...the cost of shipment , handling ,etc to Singapore?

Ans: I bought mine from Singapore hence am not aware of the handling charges. Why don't you ask amazon?

28 Dec 05, 12:02Quest: how do you conclude if gap covering is a bearish or bullish or neutral sign? if a chart gapped downwards but was quickly covered in the next few days, is it a bullish sign?

Ans: Gaps are overeactions to news. First understand it's psychology. When it gaps up, a huge crowd of buying power occured, they helped pushed the stock up. Very bullish indeed. But it will also mean it will run out of buyers sooner. In Singapore's market, intra day trader will contra. And when contra period is up, profit taking will take place and the stock will retrace. Infact, some of the retracement will close the gap. We must then look at the volume at which the gap is closed to determine if the move is completed and exhausted. I prefer stock not to gap up and instead, edges up steadily and slowly with very slightly more buying then selling triggering a very balance demand and supply situation. If everyone wants to buy and no one selling to them, what will happen? They will turn into sellers themselves.