May 19
In this series, we will explore technical analysis (TA) as one of the methodology that is commonly used in market analysis. In TA, we will study the balance of demand and supply ratio and its strength using various tools available. One of the common pitfalls of newcomer in this field is that they either attempt to use a single tool in isolation or crowding their charts with too many tools. You heard the common sense phrases that things don’t exist in a vacuum and too many cooks spoilt the soup. All we need is the tools that are working for us.
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Authored by Benjamin on 19 May 2008 with no comment.
May 14
Fundamental analysis (FA) is the methodology used to evaluate the fundamentals of any asset class such as business. Valuation will be perform on the business by studying the balance sheet, income statement, cash flow statement, gearings, competitive advantages, management team and many other factors that might influence the prospect of the company to derive to an estimated value. The derived value and other factors will be use in the investment decision making process.
Technical analysis (TA) is the methodology used to determine the balance and the strength of demand and supply of a particular asset class such as company shares. Evaluation is perform on the historical data mainly price and volume to interpret the direction of the stock prices and also to project the future prices. It works on the basis that history tends to repeat itself. Key concept of technical analysis would be the direction of trend and also the support and resistance level. As commonly phrased by any TA practitioner, the trend is your friend.
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Authored by Benjamin on 14 May 2008 with 2 comments.
May 14
Losing money in market is terrible. Yes, it is. But it depends on how you look at it. Truly everything is in the mind and how we perceive things around us. Many will remorse over the loss of money but now I am telling you that losing money in market may not seems that bad if you keep the following thumb of rules in your mind. Hammer it down to your brain if needed. It works.
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Authored by Benjamin on 14 May 2008 with no comment.
May 14
You got a trade setup forming. It looked like it was going to break out to continue moving up. Now what? You tell yourself that it is going to move up now. You got to jump in at a better price before anyone else get to know about the stock. You have a great deal of confidence in that particular stock. Quickly you called your broker and place the order in the early morning. Things are going smooth until you came back from lunch. The stock that you bought was drifting downwards. When the market closed, the stock price was at the low of the day. You started to question what was going wrong. You looked at the chart again at the end of day and you realized that you jumped right at the top. There was no confirmed trade setup. It was just hype. Does this sound familiar to you? That is why confirmation is so important in trade setup. In fact it is so vital that without it we are just taking too much risk with our trading capital.
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Authored by Benjamin on 14 May 2008 with no comment.
May 14
Many people are searching for the holy grail of trading and investing. Is there one out there? Surely there are techniques to give us a trading edge but that alone is not sufficient for us to be successful in the profession of trading. The way to be successful in this field is to take a holistic approach. I have break down the success recipe for trading and investing into 3 main pillars. They constitute the main ingredients for trading and investment success. Follow the recipe below to achieve your financial goals in the financial market.
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Authored by Benjamin on 14 May 2008 with no comment.
May 12
This is the common question and also the greatest confusion among many people in regards to trading and investing. Most think that they are the same and don’t even bother of the differences. Some experts even debate on it. I hope to lay down a few key points so that we could see that they are very much different in reality. In fact, failure to recognise this difference is one of the reason of why many people loses money in the financial market.
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Authored by Benjamin on 12 May 2008 with no comment.
May 11
As the first cry heralds the birth of a newborn baby, this first post heralds the birth of TradeOrInvest.com blog site. This is my passion and my quest for greater knowledge in trading and investment field. I am always amazed at the market and I am a student and participant of it.
This blog site is dedicated to the knowledge and wisdom of trading and investment. There are many differences of trading and investment and this blog will attempt to answer some of the questions along the way. I will cover various topics related to technical analysis, fundamental analysis, hybrid of TA and FA, risk management, money management, emotional control, mindsets, market timing as well as some other unconventional trading techniques of which few have spoken or even talked about.
I will also cover various asset classes such as equities, bonds, futures, options, commodities and forex in US, Asia, Europe countries.
Lastly but not least, I would like to wish you a big welcome to TradeOrInvest.com, the repository of various trading knowledge and investment wisdom.
Authored by admin on 11 May 2008 with no comment.
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