Greed and fear is what makes the market move and the real player in the stock market. Players are like Institutional managers, stockbrokers, traders, investors and also yourself have these two emotions that drive force when trading in the stock market.
You may talk to yourself that greed and fear will be never in your way of trading, but believe it or not these emotion will appears once your finger want to make a online transaction whether click to buy or click to sell. These emotions of greed and fear are not something to be ashamed but something real you have to face to face with and admit to that they are around you.
What kind of greed and fear look like in the stock market ?
It is supposed you have analyze and watch a particular stock for some period of time. It has set up perfectly, so you pull the trigger. Then base on your analyze skill you bought a stock at the perfect price and now waiting it is moving higher and higher just as you thought it would.
On this moment greed steps up to the plate and tell you something through your subconscious mind, this stock price is going to be a rocket stock. Then you buy some more shares. On this situation Greed tells you again that this stock is going higher tomorrow so you hang on.
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Lets look at the example above, where your stock went through your get out price and you held on because greed was by your side. The next morning the stock price gaps down. Their is heavy selling all morning long. Greed is telling you to hang in there the price will come back. The price keeps going down, now you get a knot in your gut, and your knuckles are turning white. Fear is now by your side, but by now it is to late, your nice profit has turned into a loss.
Everyone goes through this until they have mastered the ugly faces of greed and fear. Master this and you are well on your way to becoming a successful stock trader.
Hope you get it now what “Greed and fear is what makes the markets move”.
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Stock picking is a very complicated process and investors have different approaches. However, it is wise to follow general steps to minimize the risk of the investments. This article will outline these basic steps for picking high performance stocks.
Step 1. Decide on the time frame and the general strategy of the investment. This step is very important because it will dictate the type of stocks you buy.
Suppose you decide to be a long term investor, you would want to find stocks that have sustainable competitive advantages along with stable growth. The key for finding these stocks is by looking at the historical performance of each stock over the past decades and do a simple business S.W.O.T. (Strength-weakness-opportunity-threat) analysis on the company.
If you decide to be a short term investor, you would like to adhere to one of the following strategies:
a. Momentum Trading. This strategy is to look for stocks that increase in both price and volume over the recent past. Most technical analyses support this trading strategy. My advice on this strategy is to look for stocks that have demonstrated stable and smooth rises in their prices. The idea is that when the stocks are not volatile, you can simply ride the up-trend until the trend breaks.
b. Contrarian Strategy. This strategy is to look for over-reactions in the stock market. Researches show that stock market is not always efficient, which means prices do not always accurately represent the values of the stocks. When a company announces a bad news, people panic and price often drops below the stock's fair value. To decide whether a stock over-reacted to a news, you should look at the possibility of recovery from the impact of the bad news. For example, if the stock drops 20% after the company loses a legal case that has no permanent damage to the business's brand and product, you can be confident that the market over-reacted. My advice on this strategy is to find a list of stocks that have recent drops in prices, analyze the potential for a reversal (through candlestick analysis). If the stocks demonstrate candlestick reversal patterns, I will go through the recent news to analyze the causes of the recent price drops to determine the existence of over-sold opportunities.
Step 2. Conduct researches that give you a selection of stocks that is consistent to your investment time frame and strategy. There are numerous stock screeners on the web that can help you find stocks according to your needs.
Step 3. Once you have a list of stocks to buy, you would need to diversify them in a way that gives the greatest reward/risk ratio. One way to do this is conduct a Markowitz analysis for your portfolio. The analysis will give you the proportions of money you should allocate to each stock. This step is crucial because diversification is one of the free-lunches in the investment world.
These three steps should get you started in your quest to consistently make money in the stock market. They will deepen your knowledge about the financial markets, and would provide a of confidence that helps you to make better trading decisions.
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Internet is one of technology products that used by many people in this world. Internet brings many benefits for education, communication, and business. Today, many people use this connection to get update with situations in worldwide. For education, this connection gives students easy access to download books, encyclopedia, looking scholarship, e learning, and many more. For media communication, internet serves low cost for calling, chatting, and e-mailing. While for business, internet provides fast connection to minimize the distance. Using internet, marketing also able to promote their new products to people in foreign country and export their products. Another function of internet is it can be used as a stocks watch.
Because of easy service and its accuracy, many stockholders equip their facility with internet. They can monitor the price and analyze the opportunity of their investment. To get accustomed with the service, you may learn from internet about buying stocks at the Web-articles.Info. This web will give you some tips to learn more about stocks transaction via internet using broker’s help. This web gives three steps to buy stocks from internet. The first is you have to register and make an account with the internet stockbroker. Internet stockbroker is like a server that operates the web programs. You have to give complete information and financial data to them. Some web may ask you to deposit your money as the guarantee of your business. After you done, you are allowed to involve in their activity. If you have found your interest, you may arrange fro the purchasing beforehand. Then you can do simply making order via online towards the webmaster.
Using internet, you will save more for the transaction. It is also simple and can be handled by one person only. If you do not want use website help, you may buy directly from the company using online transaction.
Read More...It was surprised to know that my superior want to make money online from index trading in Hangseng. In several small talks, he asked to teach him about how to make money online from Hangseng Index Trading. Actually, I'm not the expert one to teach about his request because I have just traded for 1 year in stock market only. Even the way to trader is not different in some way, but I did appologized to teach him.
Yes.. I am worried that what I will teach will make him bankrupt since I am not the expert one. But I suggest him to make money online from stock market in BEI first before jump to the Hangseng Index Trading.
Sorry boss... I hope you do understand about thi. It is not easy to make money from trading in stock market or index hangseng even we have knowledge about it at all. The psychological have a big contribute success in trading so just prepare first about trading mind. It is wiser than just jump to the crowd without preparation.
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Wew... This is the first biggest potential gain of my stock ever since I lost my stock in Y2008 until 50%. What's guide me to choose TRUB as my investment in this week..? I thing it was guided by the almighty of God as substitute of my kindness in last several week a go.
What I have done is to give more to others and I will get the most of the more :). So give first and we will get much more.
As a third liner in stock market, TRUB gives significant of 67% gain not more in a week. So today BEI give TRUB a predicate as Unsual Market Activity which has brought down form 119 the highest of the day to 101.
Look at the chart of TRUB below..
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Hari Jum'at kemarin hectic banget jadi ga bisa curi-curi waktu untuk review chart. Tapi sore harinya ada ada email dari bro passion4u tentang pencerahannya mengenai index harga saham gabungan di bulan April 2009 yang cukup singkat namun bergizi. Lalu saya coba buatkan analisa skenario IHSG untuk 2 minggu kedepan sebagai referensi pribadi.
Chart dibawah saya gambarkan sebagai bahan referensi dimana jika kita melakukan trading menggunakan MA 5 & MA 20 paska periode pengamatan, maka pada penutupan hari Jum'at, 17 April 2009, ada gain sebesar 30%. Itu kalau kita tidak ingin bersusah payah melakukan analisa yang detail dan mendalam.
Saya sendiri merasa bersyukur ternyata beberapa saham yang sempat tidur ternyata sudah bangun bahkan koleksi saham hantu justru memberikan The First Biggest Gain Ever In Stock Market.
Apakah saat ini sudah dalam kondisi reversal...? Yang pasti saat ini sudah keluar dari sideways. Bahkan jika diperhatikan dari nilai transaksi yang cukup besar sejak beberapa minggu lalu yang menunjukan adanya money in flow, pihak asing sudah melakukan akumulasi.
Terinspirasi dari bro passion4U, Apakah asing akan rela pasar dibiarkan jatuh lagi sedangkan mereka baru saja masuk..? rasanya sih tidak akan rela dong. Jadi kalau pun ada koreksi minggu depan... saya akan mengamatinya sesuai dengan analisa skenario chart IHSG dibawah ini
Yukk.... kita tunggu.. bagaimana aktualnya pastinya tidak setepat diatas lantaran saya tidak pernah terpikir untuk menjadi TUHAN YANG MAHA TAU.
:)
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Kring.....................................!!!!!.
Sumpeh dah.. kaget banget tuh pas alarm kantor berdering kecang dan asap ngepul dari lantai ground.. wah.. ada kebakaran nih ... kata saya dalam hati. Tapi.. baru aja beli PGAS di 1770.. nanti kalau terjun ga bisa stopp loss.. :)
Akhirnya.. mau ga mau saya tinggal aja tuh monitor.. dan kebenaran juga jadi salah satu anggota tim evakuasi. Pas .. liat kebawa.. asepnya kok kuning... (harusnya kalau kebakaran asapnya hitam dong...). Ternyata selidik punya selidik... lagi simulasi tanggap darurat. Tapi tetap aja kudu keluar dan ngumpul di muster point.
Pas.. jam 03.30.. langsung ngebut keatas.. dan buka monitor... eng-- ing.. eng... Blessing in Disguise.. PGAS ijo euy.. ke 1870.. Akhirnya ga pake tunggu langsung jual..., harus cepat-cepat diakui dulu tuh untungnya hehehehehee.. karena paginya stop loss terlalu dalam hingga minus 18%.. Hitung-hitung ongkos belajar.
Nah.. buat besok.. naga2 nya PGAS masih kuat untuk ke 2000an. Ada yang bilang kalau penurunan yang kemarin-kemarin itu tidak menunjukan sebuah pola perubahan trend..karen meskipun dalam.. tapi volumenya tipis.. beda dengan hari Selasa ini, bisa membal dengan volume yang cukup tinggi bahka kalau dilihat dari frekwensinya... paling tinggi dari semua emiten. 
DISC ON
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Hari ini...meskipun index merah dan mayoritas saham-saham unggulan merah darah. Saya masih bisa mendapatkan gain... dari saham lapis kedua. Senang... pastinya dong... siapa yang ga senang kalau gain....hehehehee....
BLTA beli di 610 berhasil close with gain dan average up di 660 , beberapa masih pegang untuk jual dihari senin. Senang BLTA bisa close Auto Rejection 20%. Thanks to Risyadmum & Ucin untuk sharing info tradingnya hari ini.
Siang... saat istirahat dapat info tentang penurunan suku bunga Bank Central nya Jepang, wah.. bisa jadi sentimen positif nih.. pikir saya.. ada kemungkinan rebound di sesi II. Kemudian cari info Top Losser di sesi I, setelah di list saya pilih ETWA sebagai wacth list di sesi II yang close di sesi I di 97. Saat sesi II mulai.. sekitar 1 jam kemudian.. ETWA benar terbang.. dan saya kejar hingga ke 117.. , DONE.....!!! Emang dasar lagi dikuasai oleh Greedy...hihihihi... pas dapet langsung terjun.... cape deh....!!!! belum di stopp loss..karena nilainya kecil...ah.. ya sudah nunggu hari senin juga deh... :)
Watch List buat senin depan.... :
Itu aja kali ya.. moggo kalau ada yang mau nambahin... :). Kalau ada bandar yang sempat mampir sini..(PD banget ya...hihihihihi).. tolong diguyur ya.. saham-saham pilihan saya diatas..
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