Often times, we heard someone lament how he/she wished that they are wealthy or came from a rich family. They often spend most of the time thinking and dreaming what they would do if they are loaded with cash. I believe most people do think of that at least once in their lifetime. After much toiling and failure to accumulate wealth, they started to think that financial independence is beyond their reach. They gave up their dream to pursue financial abundance. There were also stock investors and traders that had lose their fortune in the stock market. They too, gave up their hope to make their millions and started to see the impossibility to beat the market. Quite contrary to popular belief, financial abundance is actually within the reach of every single human being that is financially literate. If you are one of them, fasten your seat belt and join me in the journey to uncover one of the most wonderful discovery of the world and that is the discovery of the "Secret of Compounding Interest".
Stock market trends offer the best profit opportunities. Position traders like to size up their investment holdings at the beginning of the trend and pyramiding it along the way as the trend continues. Stock market traders begin to dispose their equity holdings in stages when near the end of the trend as well as the beginning of the trend reversal stage. That is one of the profitable ways to trade the stock market. Financial markets trends also exist in various time frames simultaneously. Regardless of the types of strategies used in trading or investing in the financial markets, trend analysis is the core fundamental work of technical analysis and therefore it is our objective to spot trend as early as possible for maximum benefits and to reverse position once we have the confirmation of trend reversal.
In response to Moody comment, I decided to write a blog post to review the crude palm oil commodity trading from 2007 to 2009. Is there any different between the 2007 Bull Run and this coming rally at the beginning of 2009? If you look at the chart, I have placed a question mark there for us to consider what could be the Elliott wave count. How about chart pattern analysis for FCPO March contract? Let’s analyze the chart.
Many fundamental analysts discredit technical analysis as a financial market analysis tool. Some of the claims against technical analysis come from celebrity investors and their strong opinions have caused many newcomers to discount the credibility of this wonder forecasting and market timing tool. I am going to share one powerful and yet basic concept of technical analysis. I called this concept "The Highway Journey."
At present crude oil is trading around $47 per barrel after heavy rallying from the bottom. Crude palm oil March 2009 contract closed at RM 1,740 last Friday on the first trading day in 2009. So, has the market bottomed for commodities like crude oil and palm oil? I would believe the price charts more than anything else. Generally I believe that the global stock market had bottomed for the moment. So, the short term market outlook will be looking bullish. What I mean by short term could be months to a year. What would be the trading strategy for us to adopt in 2009? Let’s check out the trader’s chart.
First of all, I like your blog. But I have to disagree with your opinions that commodity futures and options are superior investment and speculation choice compared to stocks. Here is why I think so.
I guess many people are wondering where does the global stock markets are heading as 2008 is ending its note for 2009 to step into center stage. Some said that the stock market had bottomed while some said gloomy news still looming ahead till 2010. TradeOrInvest would like to address this from the perspective of investing and trading as these two businesses are different in nature. So, is it true that the market big move is coming soon after days of consolidation? After many days of waiting for the market trend to unveil itself, I would say that another opportunity to short is coming soon. Why I say so? Just look at the hourly candlestick chart for FKLI Dec contract.
Losing money in investment and speculation is part and parcel of this business. However, most of the time, these losses can get carried away too far and too big for anyone of us to handle. When we see negative returns on our investment, we tend to just forget about it and ignore all the pain that this financial disaster brings to us. This would not help us and in fact it might just compound to the problems that we have. So, in this blog post, I would like to talk about when the exact moments that these huge losses come knocking at our door. If we would just learn from our experiences and take heed on the advice of my experience, we would save ourselves from big losses. Are you ready to know when are the 3 moments of time when our investment and trading capital are at huge risks?
You and I can agree that there is such thing called the Law of Gravity. You throw an apple up into the air and it will eventually fall down to the ground. That is the law of gravity at work. Fibonacci is one of the wonderful codes that consistently appear in the nature, universe and even the stock market. It seems hard to believe that there is mathematical relationship that exists in the stock market that seems to be random. In fact the equity market is far from being random or chaotic. There is order to it just as there is order in the solar system. Time has proven again and again that Fibonacci, a sequence of numbers discovered by Leonardo of Pisa, works its magic by repeating patterns in the financial markets. It is a sequence of numbers beginning from 0, 1 where the next number is the sum of previous two numbers thus yielding a sequence of 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and etc. If you look deeper, there is a ratio between the numbers of a fixed interval that approach the Golden Ratio of 0.618 and its inverse of 1.618. You can also discover Fibonacci Sequence of Numbers encoded inside the Elliott Wave Count. Again, you may be skeptical about this. Don’t push the theory aside until you really look deeper inside. I was once a skeptic but now am a believer and student of this wonderful stock market analysis tool called Fibonacci.
Authored by Benjamin Lee on 12 December 2008 with no comment.
I write this post for skeptics. If you are one of them, then please read on. Many beginners in the stock market don’t believe that market analysis techniques taught in the books, internet or any training from financial consultants or stock analysts do really work in the financial markets. In their mind they said that if it works, why are they teaching it and not keeping it unto themselves. To add to the doubts that they have, the methods taught seem to be strange and have little to do with the Main Street businesses. Well, I was one of them before but I do my homework to find out what really makes the financial market ticks. Here I will present 10 market analysis methodologies that work in the stock market and it also serves as a learning guidance for those who want to explore more of the equities, commodities or even forex markets. Anyway, it works.
How many of us want to dance around the world like Matt? He got sponsor but most of us are self-funded. So, one of the ways we should go about is to trade and invest for our financial freedom. Well, stock markets, commodities and forex are some of the most profitable markets in the world. All we need to get there is thru the mastery of technical analysis. Once we master this charting skill, we could trade in any financial market in the world. Ok, remember that the most important thing is that we get there eventually. Finally, remember to do the Matt’s moves when you are travelling round the globe while trading in your hotel room. Enjoy your success.
Authored by Benjamin Lee on 7 December 2008 with 3 comments.
Today was indeed a violent day for United States financial markets. Dow Jones Industrial Average (DJIA) fell by 679.95 points (-7.70%) after official announcement that United States confirmed in recession. NASDAQ fell by 137.50 points (-8.95%) while S&P 500 plunged by 80.03 points (-8.93%). It is another day with huge movement. I said in my last post that a new beginning is possible. I guess I am wrong on this looking at the market behaviour today. Anyway, we trade by the chart and self-opinion could be wrong. For now, I turned to short position as trading signal was triggered for Malaysia FKLI.
Wild swings in share prices have more to do with the lemming-like behaviour of institutional investors than with the aggregate returns of the company they own.
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