Did You Trade

Good Morning Everyone,

DOW ended weak yesterday despite Asian Markets ending strongly on Tues. Disappointment are likely to set in.

NK  and Mini S&P are currently trading below OP as we speak…

I’m expecting SIMSCI and TW to do likewise – Gap down and sell down. Therefore, do expect some profit taking on your Indonesian stocks early this morning. So I’m not too keen to buy immediately even if the counters trade above OP. I rather wait for the profit taking to come in first then if it breaks above OP again, that’s when I will buy.

Good Luck!

CK

Good evening everyone,

Here’s my stock pick based on KH Diff Technique. However, I would advise traders not to go heavy and to take quick profit tmr since JKSCI isn’t giving me a good signal. Note that Capital preservation is the key!

Stocks Pick based on KH Diff Technique:

1. Astra Agro Lestari (AALI): Above 20700
2. Semen Gresik (SMGR): Above 5900. Note that the volume on this counter is rather thin. Hence, the likelihood of it being manipulated is very high
3. Tambang Batubara Bukit Asam (PTBA): Above 12850
4. United Tractors (UNTR): Above 13250

Stocks on Watch List:

1. BISI International (BISI): Above 2010. This counter is consolidating. A safer buy would be to wait for the stock to close above 2050 (Diff R/L)
2. Unilever (UNVR): Above 10450. This stock is slowly accumulating although it is still below Diff R/L

Good Luck!

CK

Good Day,

As mentioned in my blog, we already expected a number of stocks to profit take yesterday especially those who traded on high volume last Thursday.

How did KH technique fare on 4 September especially since JKSCI ended flat? Note that we only buy if the counter open above the level mentioned and trade above OP by 1 bid.

Stocks to long today (4 Sep) based on Diff:

1. Aneka Tambang (ANTM): Above 2250 – Profitable
2. Bakrie & Brothers (BNBR): Above 130 -  No trade
3. Bakrie Sumatra Plantation (UNSP): Above 850 – No trade
4. Bakrie Telecom (BTEL): Above 141 – No trade
5. Bank Mandiri (BMRI): Above 4000 – Profitable
6. Bank Negara (BBNI): Above 1880 – Ended flat. Never hit our stop loss level
7. Barito Pacific (BRPT): Above 1500 – No trade
8. Bumi Resources (BUMI): Above 2775 – No trade
9. Darma Henwa (DEWA): Above 200 – No trade
10. Elnusa (ELSA): Above 340 – No trade
11. Energi Mega Persada (ENRG): Above 375 – No trade
12. Holcim (SMCB): Above 1270 – No trade
13. Indah Kiat Pulp & Paper (INKP): Above 1722 – Ended flat. Never hit our stop loss level
14. Indika Energy (INDY): Above 2325 – No trade
15. Indo Tambangraya Megah (ITMG): Above 23400 – Profitable
16. Indosat (ISAT): Above 5250 – Ended flat. Never hit our stop loss level
17. International Nickel (INCO): Above 4250
18. Medco Energi International (MEDC): Above 2825
19. Sampoerna Agro (SGRO): Above 1990
20. Timah (TINS): Above 2025 – Small losses. Never hit our stop loss level
21. Truba Alam Manunggal (TRUB): Above 163 -  Small losses. Never hit our stop loss level

As you can see, KH technique helps you avoid stocks that are likely to incur big losses. Those stocks that incur small losses didn’t trigger our stop loss position so in theory, we haven’t realize our losses yet.

The power of KH technique!

CK

The simple ans is yes.

A more complete answer would be “Yes It should on stocks with sufficient liquidity”

Yup. A technique is just a technique by itself. For the market to move, there needs to be sufficient interest on this counter – Interested buyers who are prepared to buy at a higher price as they felt that the prices are going higher. And interested sellers who are willing to sell to them.

Hence, my rule:

1) If the stock average volume traded is less than 10M, I wouldn’t be too inclined to trade the stock.

2) Price should ideally be more than 500 for sufficient trading range on a daily basis.

Let me show you how Diff works on a few Indonesian stocks for a start in my next few postings. (I will try to be objective as possible, you can always verify the data on your trading charts).

Stay tuned…

I never expect the day would come for me to start my very own blog on trading.

Since young, I was always captivated by movies depicting the rise and fall of stock market… How rags can turn into riches through the mysterious world of trading… Like most beginners, I would sign up for as many courses as possible. But the problem I faced was the more I learn, the more confused I got – Different trainers would use different parameters even for the same indicators. So who is correct then? Is there a holy grail system in trading? That was the basis of my “hunt for the holy grail”… And so I thought….

Just to give an example… I’m sure everyone is exposed to the concept of RSI and Stoch. While different trainers may set their parameters different for stoch (5,3,3 etc), there seems to be a common concensus: “Oh… If the Stoch can rise up above to 10 or 20 level (Vary between Trainers) from a low of 0, it is a good indication of buying the stock.” Of cos, it works initially. But magically, everything starts to fall apart: The moment I long when it breaks the 20% level, my stock price will magically stall there and started to slide down to trigger my stop loss before moving higher

So am I wrong to follow the technique? Are the trainers whom I faithfully idolize fail me? What went wrong?

Frankly, I begin to be disillusionised because of the losses I make – No matter how hard I tried to change the parameters to beat the market, Market somehow has this ability to elude me?!?!

It was only when I got to know Kelvin Han in Singapore – where he started to show me the actual psychology involved in the buying and selling of stocks – I begin to appreciate what is truly the stock or futures market. Exciting… Intriguing… And a CLEAR reflection of the human psychology namely Greed and Fear.

I will be showing you all one of his simplest technique, Diff Indicator. How to profit consistently from this technique? I realize that most traders are afraid to enter position despite the signal is clear. I hope that, through this blog, I will show the importance of consistency… That it is possible to make consistent $$$ from the market using very simple techniques…. That there is no need for you to be on the screen to watch “price action”

Of cos, Nothing is 100% and same for Diff…

Kudos to Diff!