Merry Christmas And Happy New Year !!!
2007 is going to the end and we will be meeting 2008 in
which we hope you benefit more from this blog/forum.
Merry Christmas And Happy New Year !!!
Merry Christmas And Happy New Year !!!
Labels: seasonal greetings
posted by scrt4u @ Monday, December 24, 2007
19 Comments
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19 Comments:
Scrt4u/Zorro,
"Merry Christmas And Happy New Year"
Long live both "STOCK GURU"S Wish you both Good Health and Wealth.
And.
Thanks all, especially scrt4u and zorro for helping us to solve some of the mysteries of the SET.
Here's to continued success in 2008by helping each other stay ahead of the alligators.
Peter C
Merry Christmas to the community as well.
Thanks for all your help and tips all the time.
Best wishes, and stay healthy always!
Merry Christmas and a happy and successful 2008 to all the contributor of this blog and especially a big hand to
scrt4u and
zorro
pau
A Merry Christmas to all of you as well.
Hi,
Congratulations on this extremely informative website. I am planning to begin my trading in the Thai stock market in January 2008. I have been reading through some of the previous posts and I was wondering whether one of the moderators of this website might be able to explain to me some of the terms that are frequently used when giving advice/tips about various Thai stocks. I list some of the terms below that I would like to understand. I apologize in advance, as I know that these are very basic terms that most of you will already understand. I do hope that someone is able to help with this as I would like to understand this terminology before I commence any trading:
1. Set Stop at [x]
2. LPP/Lock Profit Point
3. brokeout
4. Chase
5. RP or exit
6. looks cooking
7. if chase, use tight stop
8. Move LPP tightly
9. LPP to [x] or higher
Thanks so much
TJ
To TJ,
This website (blog/forum) is so informative because more and more contributors have posted their stock picks and advices. We warmly welcome your contributions (questions and your stock picks).
We will explain the terms frequently used in this blog/forum.
Happy trading/investing in 2008.
Thaistocktips team
To TJ,
To understand those terms you asked, please visit the following link (FAQ):
http://thaistocktips.blogspot.com/2006/01/frequently-asked-questions.html
To Scrt4u,
Thank you so much for explaning these terms so clearly. I will continue to read through the previous posts and let you know if I have any additional questions. I am sure that I will!
I am really looking forward to starting trading in early January. I plan to start out with five or so stocks and hope to trade on a regular basis - probably daily.
Wishing all of you great happiness and prosperity for 2008!
TJ
hi tj,
just want to give you a very important advice:
start slowly, don't invest (or gamble) with much money until you are more familiar with the trading. it can take a year or more.
don't follow the advise here blind. check the fundamentals of the stocks as well and read the news, especially the daily news regarding the stocks given by the stock exchange of thailand.
be careful with recommendations from the broker, they act many times in the interest of their big clients and often give buy recommendations because they want to sell the stock for their favorit customers. that's why we stick here more to technical analysis.
try to do some paper trading, which means you don't actually buy the shares but instead note down the trades you would have made and follow them up. this will save you a lot of money. do this for several month till you see that your trades would have been successful and outperformed the market.
you will need to learn about this market, even if you have trading experience in other countries.
there are many things to learn, like which stocks are only pushed up for 1 day and might fall back to where they came from, which stocks are played by foreigners, which by the locals, which by people from certain political groups, that a high bid volume is often fake and indicates a bearish stock and so on.
good luck.
Thanks, Zorro, for your very sound advice. I have a small amount of money, around THB500K, that I will use to play the Thai market. I will not invest any more than this. I just want to see what I can do with this amount in 12 months. Hopefully, I will make it grow with the help of this website. I'm very much looking forward to contributing on this website.
I have been reading through all of the various past threads on this great website and here are the lessons that I have learned and that I will use when "playing" the Thai stock market:
1. Never use more than 10% of my total investment amount for any one stock. That way, even if the stock goes to zero, the maximum amount I will lose is only 10% of my total investment amount.
2. Cut loss when still small. For me, this means a 10% loss. If a stock I purchase ever loses 10% on the price I purchased it at, I will cut my loss and sell it immediately. I will not "marry" the stock and hold on to it, hoping that it might go up again. I am only "dating" the stock for a short time and if it does not perform, I will break-up with it before I get hurt!
3. Do not be greedy. For profit, a 10% profit is excellent. Don't hold for more profit unless it really looks cooking and the chefs are really busy. This one I am not so sure about how to decide how long to hold on before locking the profit. I see some of the tips here have gone up sometimes 100% or 200% - but if I was holding them I do not know if I would wait around to realize such big profits. I would probably sell long before then when the profit was much smaller. Similar to cut losses when small. Lock profits when not too big. Or is this not right?
4. Understand the resistance levels for 25, 50 and 75 days. Where can I get these from?
5. Read the papers and the SET reports. Study the companies. Don't always believe brokers. Actually, rarely believe brokers. They win no matter whether you win or lose.
There are many more lessons to learn.
depending of what type of stock you bought (blue chip which is not so volatile or a volatile gambling stock) you might hold longer than taking profit after a 10 % gain.
this depends on many circumstances, like the overall market trend, news that are coming out, etc. but the most important point is a technical resistance or other technical indications, like a certain candlestick in the chart, volume peaks, etc.
when you set a general stoploss of 10 % and get stopped out many times, you will not make much profit when you sell every winner after reaching a 10% gain. The big money you can make only with holding on to stocks that have a good run.
better would be to increase your lpp and let it run.
also the 10% stoploss rule is only a general rule, the stoploss should be set according to the technical supports. if you buy a stock that is more than 10% above a support, you might cut the loss at 10% and a few points below it reaches support just to turn around and later start a run. therefore it is better to cut loss already much earlier and buy back at the support when you bought a stock that seemed to be on an uptrend. or better select stocks that are close to their support, so you will only lose a small amount. usually i look out for those stocks and post them here. in these cases you might lose 1-2 % but can gain much more or take a 10% profit quick.
your broker you are trading with should provide online charts where you can watch the most common tools like avarages, rsi, macd, etc.
Thanks, Zorro. Can you explain, maybe with an example, of what you mean in your last paragraph above?
Also, where can I find the technical supports for each stock? I am planning on opening an account with Kim Eng.
I will not be trading the blue chip stocks. I plan to play the more volatile gambling stocks.
Sorry if my questions are dumb.
Cheers
TJ
Thanks, Zorro. Can you explain, maybe with an example, of what you mean in your last paragraph above?
also the 10% stoploss rule is only a general rule, the stoploss should be set according to the technical supports. if you buy a stock that is more than 10% above a support, you might cut the loss at 10% and a few points below it reaches support just to turn around and later start a run. therefore it is better to cut loss already much earlier and buy back at the support when you bought a stock that seemed to be on an uptrend. or better select stocks that are close to their support, so you will only lose a small amount. usually i look out for those stocks and post them here. in these cases you might lose 1-2 % but can gain much more or take a 10% profit quick.
Supports are found by technical analysis. i think we have some links in our collection that lead to sites which explains how to do the analysis.
each broker give a daily analysis for a couple of stocks. if you teach yourself about it you can do it by yourself, though it takes some time to learn it.
an example for my paragraph:
a stock is trading at 2.00 Baht.
the technical analysis shows that there is a support at 1.6 and the resistance at 4.
you think the stock will move up from now and you buy it at 2.00
if you use 10% as a stoploss, that would be 1.8.
now there is a weak day after you bought and the stock drops to 1.78 which is more than 10 % and you cut loss when keeping the 10% rule.
then the stock falls a bit further and reaches the support at 1.6, bounces back, starts a run and reaches 4.
you missed out on a huge gain because you stopped out instead of waiting for the stock to reach the support.
two possible strategies would have been better:
the first would have been that you sold immediately when you saw that the stock fell the next day and instead of going up as expected. you could have sold maybe around 1.95 and would have lost about 3 %.
then you could have re-entered around 1.6 and made at the end the profit.
the second strategy would have been that you set your stoploss lower to 1.6, which is 20 % and when the stock fell to that level, bought some more stocks (average down).
i prefer to buy a stock that is close to the support, so i have a small loss when i have to sell when the support is broken but will earn a lot when the next resistance is high.
hope this cleared it a bit for you.
Thanks, Zorro. That is very helpful. You explain it very well and even I can understand it!
Thanks,
TJ
To TJ,
zorro has disclosed hard-guarded secrets to you. Please value it and practice it with paper trading first and then do real trading with small position. Walk before you run.
Some sites would charge you a lot for this mentorship.
thank you, scrt4u - I do appreciate very much the advice, even if I do not yet fully understand it all. I will take small positions first to see how I go. I won't do any paper trading - I'm too impatient for that - but I will be careful and will only go in small first.
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