Tuesday, April 25, 2006

Birds and worms

"The early bird catches the worm"

means if we want to achieve our goals, then we must have an early start.

My say:
"Early worm gets eaten by the bird"

means if you do something too early, you may get caught up with extra unnessarry problem.

Example 1: Your project is in deep shit. Your boss found out about it after working hours. Next day, you are the first person to arrive for work. Your boss let go steam at you without waiting for others to be present.

Example 2: The stock you are stalking may be at the end of a downtrend. You wanted to maximize your profit, so you buy in. But the stock moves up and down with equal strength from the bulls and the bears. You waited and waited for yours to make the big move while other stocks are leaping and jumping. After waiting a few months, it finally confirm your analysis and starts moving. You may have missed other profits for getting your capital tied up with a trendless stock.

Just a stupid musing.....

Tuesday, April 18, 2006

Volume Rules

I have many trading rules, one of it is the volume rule. This rule is based on what I read and what I have observed.

Increasing volume with price increase is a good thing. This means more people are buying.

After a stock has increased substantially, it is time for it to take a rest. Why? Because some people may want to lock in profit to pay bills, have a nice dinner or whatever. Observe the reaction. If the correction occur with decreasing volume, it indicates that less and less sellers are willing to let go and may be waiting for bigger profits.

After the selling has dried up, the buyers may start to push it up again. If this push comes with increasing volume, then good probability for the continuation of the uptrend.

Beware of extremely high volume. This may indicates the climax of the uptrend. This rule may be ignored if this happens when the price breaks new high. Just maybe.

Any up move with low volume should be treated with caution.

But all these rules can be manipulated by the syndicate. It is easy to buy and sell between different accounts. This will need years of experience to differentiate manipulations and to be able to get a slice of the cake before everything is lost.

Thursday, April 06, 2006


What a rally! I did not manage to buy anything. No access to a computer. Maybe it is for my own good. I remember last time when I buy and everyone was buying, I got it almost at the high price. There is this saying: The crowd is always wrong.

Sunday, April 02, 2006


In out in out, at the end didn't catch anything.

Out of Oilcorp, back in now. Out of Liondiv, cannot get in now.

In out in out, when the stock is bull, it will stay there for quite a long time.

The key is to be patience. One word, but hard to do it.

Is the oil counters moving again? Dialog, Scomi?

Penny shares go sky high. Only around 100 Mesdaq counters. Buy and you may strike lottery. The odds are much better than playing Toto or Magnum. Look at Ifcamsc, DVM, Novamsc....aiyoh...and Iris keeps advancing.

Got a new job. So less trading now. Maybe it is better, then I cannot in and out so often. Only time will tell.