Stock Market Lesson Plans - An Easy Process With Candlesticks

Stock market lesson plans become very easy to follow when utilizing Candlestick analysis. Very simply, over the past two weeks while the Dow Jones was in the oversold condition, a few Candlestick bullish signals appeared. The Tweezer Bottom and the Bullish Engulfing signals illustrated that a bottom was forming.

At the same time, all the hype about Crude Oil prices appeared to be running rampant. $100 a barrel oil, what would that do to the US economy? The hurricane, how would that constrict the flow of oil? Gas lines, price gouging, spot shortages, all these things were being touted by the media. However, the Crude Oil chart was showing a Candlestick ‘sell’ signal. That information should have been put into the stock market lesson plans. Despite what the news indicates, the Candlestick signals tell you exactly what investor sentiment is doing.

Where did the big buying pressure come from this week? The signals had indicated over the last two weeks that an uptrend may be starting. Look for some consolidation , profit-taking after the big move Tuesday, but then look for the uptrend to continue.

Realizing that the market direction is being influenced by Crude Oil prices, stock market lesson plans can be oriented around that analysis. As discussed in the Thursday night training sessions on the Candlestick Forum website, being able to analyze what other market factors are doing becomes additional analytical information for projecting whether to be long or short in equities.

The ease in which Candlestick signals can be utilized for analyzing all trading entities allows the Candlestick investor to quickly evaluate whether their portfolio should be predominately long or short. Outside influences such as Crude Oil prices, interest rates, the strength of the American dollar, or a multitude of other trading entities will at times be the predominate influencing factors on investor sentiment. Being able to identify reversals in those trading entities becomes a valuable tool.

This post is shared by Hashini. Thanks dude...

PORTFOLIO UPDATE 12TH APRIL 2007

Bought MEGAN-WA @ RM0.30 x 10,000 units today after dispose DBHD @ RM0.615 on 10th April.
Property sectors still hot and plantation counters as well. For plantation, I am looking at UNICO-DESA (RM0.64). The counter will go ex-dividend on 3rd May. 1 share for every 15 shares held.
MEGAN is still hot as long as property counters still on the spotlight. I believe Pak Lah will announce further incentives tomorrow to encourage property growth in Malaysia.
5 counters (out of 15 counters) under radar:

1. SMRTECH (Target price RM0.62)
2. ISS (TP:RM0.44)
3. EDEN (TP:RM2.86)
4. EG (TP:RM1.01)
5. FLONIC (TP:RM0.66)

The target prices are based on 12 month expectation.

A Different View Of Life

This is one interesting reading for the weekend:

It's been 18 years since I joined Volvo, a Swedish company. Working for them has proven to be an interesting experience. Any project here takes 2 years to be finalized, even if the idea is simple and brilliant. It's a rule. Globalized processes have caused in us (all over the world) a general sense of searching for immediate results. Therefore, we have come to posses a need to see immediate results. This contrasts greatly with the slow movements of the Swedish. They, on the other hand, debate, debate, debate, hold x quantity of meetings and work with a slowdown scheme. At the end, this always yields better results. Said in another words: 1. Sweden is about the size of San Pablo, a state in Brazil. 2. Sweden has 2 million inhabitants. 3. Stockholm, has 500,000 people. 4. Volvo, Escania, Ericsson, Electrolux, Nokia are some of its renowned companies. Volvo supplies the NASA. The first time I was in Sweden, one of my colleagues picked me up at the hotel every morning. It was September, bit cold and snowy. We would arrive early at the company and he would park far away from the entrance (2000 employees drive their car to work). The first day, I didn't say anything, either the second or third. One morning I asked, "Do you have a fixed parking space? I've noticed we park far from the entrance even when there are no other cars in the lot." To which he replied, "Since we're here early we'll have time to walk, and whoever gets in late will be late and need a place closer to the door. Don't you think? Imagine my face. Nowadays, there's a movement in Europe name Slow Food. This movement establishes that people should eat and drink slowly, with enough time to taste their food, spend time with the family, friends, without rushing. Slow Food is against its counterpart: the spirit of Fast Food and what it stands for as a lifestyle. Slow Food is the basis for a bigger movement called Slow Europe, as mentioned by Business Week. Basically, the movement questions the sense of "hurry" and "craziness" generated by globalization, fueled by the desire of "having in quantity" (life status) versus "having with quality", "life quality" or the" quality of being". French people, even though they work 35 hours per week, are more productive than Americans or British. Germans have established 28.8 hour workweeks and have seen their productivity been driven up by 20%. This slow attitude has brought forth the US's attention, pupils of the fast and the "do it now!” This no-rush attitude doesn't represent doing less or having a lower productivity. It means working and doing things with greater quality, productivity, perfection, with attention to detail and less stress. It means reestablishing family values, friends, free and leisure time. Taking the "now", present and concrete, versus the "global", undefined and anonymous. It means taking humans' essential values, the simplicity of living. It stands for a less coercive work environment, more happy, lighter and more productive where humans enjoy doing what they know best how to do. It's time to stop and think on how companies need to develop serious quality with no-rush that will increase productivity and the quality of products and services, without losing the essence of spirit. In the movie, Scent of a Woman, there's a scene where Al Pacino asks a girl to dance and she replies, "I can't, my boyfriend will be here any minute now". To which Al responds, "A life is lived in an instant". Then they dance to a tango. Many of us live our lives running behind time, but we only reach it when we die of a heart attack or in a car accident rushing to be on time. Others are so anxious of living the future that they forget to live the present, which is the only time that truly exists. We all have equal time throughout the world. No one has more or less. The difference lies in how each one of us does with our time. We need to live each moment. As John Lennon said, "Life is what happens to you while you're busy making other plans". Congratulations for reading till the end of this message. There are many who will have stopped in the middle so as not to waste time in this globalized world.From my previous experience working in Goteborg, people there are niceand they don't even have the slightest 'kiasu' spirit that Asian people tend to have.
Wassalam.
Izwan Hafiz Ahmad - 8690

My Trading Plan (first week of April 2007)

On request by Shini (Gopeng panggil Shiman - macamana jadi Shiman? Dr. Shiman?), I will write down my trading plan..
actually i am not in the mood after reading a quite disturbing email from UK 'Independent'. As we all know, middle east now in a crisis after 15 Britons were captured by Iran. And I learned to know from 'Independent', Iran was actually retaliating to US actions of capturing 5 junior Iran government officials a week before that.US troops actually targeted to capture 2 senior Iranian officials, one is the head of special forces or spy agency and the other is a military general.However, they have failed during the raid at Kurds control area in Iraq last week. At the moment, Pelosi, a speaker of US senate (if I'm not mistaken) is in Syria and Bush is deeply mad at her visit. Firstly, Pelosi is an opposition to Bush and she is trying to make nice with Bush enemy. Secondly, US military complete with aircraft carriers are already in the Persian Gulf vicinity. And from reliable sources, the US had already plan to launch an attack to Iranian strategic nuclear installations on the April 7th.
Why am I so concerned about this? If the attack really goes as planned, obviously it will be brief. Americans cannot engage the same strategy to engage in a long battle with Iran because I feel that they do not have enough resources to do that any more plus Mr. Bush have run out of time and trust from American people. So the attack will be brief, hit and run. But Iran obviously will retaliate. Iran will fight back and this will create chaos in the Gulf, that is rich with black gold. Oil prices will spike up and inflation will rise globally including Malaysia. Petronas will once again report a historical profits but my shares will go to Holland. Share markets will collapse just like what had happened in 1991 when the US attacked Iraq when Iraq invaded Kuwait.
If this is going to happen, my advise is to cut loss. Sell whatever shares you have, and just take whatever profit that is still left or just cut your losses. If you dare, hold them further and pray..
But the good news is, Iranian President had just announced he will release the 15 captured Britons. He gave his words and thank God.
I am not creating any panic situation here and hopefully everybody will still hold on to their shares and guts. What I am trying to explain is that share markets react to what is happening surrounding us. You have to be alert and understand the situation globally..(Melayu glokal?)..
If anything goes well, no war, earth quake, terrorist attack what so ever, I am now praying that DBHD, EKRAN, PATIMAS-WA will rise at least 10% up from closing price today so that I can happily dispose them and make some money..
Some counters that can be watched: SMRTECH (TP:RM0.64), COMMERZ-CB (upside more than 100% if mother share goes up more than RM13.00.)
OSK will issue new call warrants tomorrow: DIGI (RM0.17), BURSA (RM0.10) & AMMB (RM0.14) Please contact your OSK broker to subscribe.
Till then.

HOW TO GET STARTED?

I have been asked so many times by enthusiasts and friends who wanted to get started and take a plunge to the stock market. I have posted why we should invest in Bursa Malaysia in 2007.It is not just for 2007 only that we will invest but it is rather forever as long as there is a 'peredaran of bulan, bintang dan bumi mengelilingi matahari'. The reason why I said 2007 is because our nation economy is in a good track plus most probably next election year in 2008 plus several other reasons that I've listed.

Ok so how we should start?

First we need to register for a CDS account.You can do this by visiting any brokerage available almost at any town in Malaysia.For example, I have accounts in Affin Securities (Affin Investment Bank) at Menara Boustead, Jln Raja Chulan, OSK Investment Bank (JB) and K&N Kenanga (now known as Kenanga Investment Bank). Why 3 accounts? All because of several reasons in brief: Affin the brokers are 'aweks..& cun..'OSK the broker is very kind with insider news & Kenanga is the boutique of all securities..no lah actually Kenanga provides me with a lot of latest research carried out by foreign funds such as Merill Lynch, CLSA, Goldman Sachs etc.

You need to fill up the CDS registration form, give them your copy of IC and RM10 for fee.
Wait for about 1 week and if you are clear from being a bankrupt, Bursa will send a letter with your CDS account no.
Call your broker, ask for your trading account no. Ask for any collateral required i.e.some brokers might want you to deposit a sump of money first in your trust account before you proceed with any buying or selling of shares. Besides that, the collateral will be used in case to cover the huge losses that you might incur during your first trade (hopefully not). The amount may range from Rm1K to RM5k. However, without the collateral you can apply for new IPO which nowadays you can apply via Maybank2u, RHB online banking etc. or at the ATM machines of selected banks rather than the old fashion ways of filling up forms. You just need to enter your CDS acoount no. that you obtained from Bursa/ broker. IPO is the best way to start for freshies.Personally I feel IPO is more secure and 8 out of 10 IPOs will create a wealth rather than disaster for your first day of trading.It's like giving your child a taste of honey during the first hour after they are borned (ini petua nenek aku, alasannya supaya anak kita dah dapat rasa manisnya dunia bila dilahirkan tapi since I am a smoker I can hardly feel the sweetness of honey nowadays, I only feel the joy and pleasure haha).
Ok..How to make a trade? Buy or sell: this is the most best part of all. Frankly, I am so nervous, my hands and voice were shaking when I first called up my broker to make my first trade (ye lah nak cakap dgn perempuan..maklumlah budak koleq mana biasa bergaul dgn perempuan..gigil beb)No seriously, because I feel that I am going to jeopardise my money into a new venture. So my advise is, look for the nicest broker which can guide you through the process.
Before you decide to buy anything, study first. Do some research. Few guidelines before you buy anything:
1. Do not be greedy. Remember this always: Jangan tamak. Always remember that you're not a pro in this.For most of us, trading or investing is a part time job. Whatever we achieve from this line is like a bonus to us.
2. Always instill discipline.
3. Do not buy shares that you cannot afford. Let say, you have only RM2000 to spend, so just buy the shares within the RM2000 limits. Eventhough you are so goddamn sure the share price will go a doubler within a week. Have discipline.
4. Check the history of the company. Who is the owner, directors, what kind of business they are dealing with. As muslim, I try to avoid anything that got to do with what people call as "sin stocks" eg: Genting, Guiness, Magnum, Berjaya, Tanjung PLC and even DGATE. Ha..nobody hear about DGATE kan ..Dreamgate (DGATE) is a company that produce softwares for casino games. The stock is so lucrative since Genting been awarded with Singapore casino contracts and analysts had a buy call which they say the stock can go more than 100% by year end. Almost got DGATE but I managed to hold the horses or else be burnt in hell instead of got my money burnt.
5. Check the history of the stock price. In almost all newspapers, there is a column of 52 week hi & low prices. Theoretically, and most recommended, and I practice it once in a while, is to buy stock that is nearing the lowest 52 week price. For example: 52 week hi: RM1.00. 52 week low: RM0.50. I will advise that if the price is nearing RMo.50 buy the shares..because even the price slid further down how bad can it go?Unless the company gone bankrupt. However, nowadays Bursa and SC (Securities Commision) have raise the statutory controls and will designate any counters that is badly performed or managed.In other words company that 'takda untung punya kompeni'. They will be labelled as PN17 counters and further PN4 for even worse companies.Those companies can be checked at Bursa website.
6. Do not invest in any PN17 companies. Companies that are in 'dire straits'.
7. Do not buy counter that has PE more than 15. I will explain this later. PE you can check in the newpsapers column as well.

So once you made up your mind, call your broker. Talk nice especially to a lady..be a gentleman even you don't know whether you are making a good decision or not, have control and be confident.
Tell her that you want to buy the share that you want for example:
'darling, I nak beli UEMWRLD at RM4, 1000 units'. please make sure the price and units are right, sound clear and crystal.
Always que (beratur untuk beli atau jual) at lower price to buy or higher price to sell. Let say UEMWRLD now is at RM4, don't simply buy at RM4. Go to que to buy at RM3.99 or below. Unless you are so goddamn sure and don't want to miss the boat to happiness, you may 'up' the price to RM4.01.
If you are confirmed that you sucessfully got the shares that you wanted, the broker will confirm it to you say that is done. Please double confirm with him/ her whether you manage to get the stocks or not. Sometimes it may take a while for you to que, and most of the time you might also miss the boat, didn't get the shares you want at desired price.
What they actually do is when you call to buy is that the broker will key in the price you wanted in the terminal. Once the share price reaches your target, they will be highlighted and they will call you to confirm.
For example, if you call your broker to buy UEMWRLD at RM4 before 9 a.m. i.e. once market open, but the price does not drop to RM4, your que will be there in the line until 12.30 p.m. where the market is close for 'chow'- as what American for 'makan'. Your que will then be erased from the line unless you give a new instruction to your broker to continue the que after 'makan' that is 2.30 p.m. until 5 p.m.
For selling the same procedures apply.

Ha..so that is how it should work folks..

For Kude: frankly, kalau ada duit, instead of unit trust, baik laburkan dalam ASB. Gunakan duit EPF shj untuk unit trust. Kalau ada duit lebih, duit terpijak atau terjumpa - baik pulangkan semula..hahaha.

ANALYST REPORT: MRCB (TP: RM3.10)

Amresearch has uppgraded MRCB to BUY with target price of RM3.10.Currently the stock price is at RM2.18.
This is due to government approval of EDL (Eastern Dispersal Link) which cost RM1 bil.
The EDL is 8.5km from new JB CIQ to Tebrau highway, which then connects to the PLUS highway via Kempas. And of course there will be a toll and MRCB will manage it.
The project will double MRCB orderbook to RM3bil.
MRCB also eyeing other projects such as Bakun power transmission EPC, Penang Monorail, Madinah transport hub in KSA and land sales around KL Sentral.
Personally, I feel that MRCB is a good GLC company and buy on dip if opportunity persists.
52 week hi:RM2.18 low:RM0.52 (but don't bother to wait the price to dip below RM1.00.)

INSIDER NEWS: DBHD

Damansara Realty Berhad (DBHD)

Rumours received: KPJ will build a hospital in Middle East (most probably Dubai) and DBHD will get the contract.
Besides that, Johor Corp the major shareholder of DBHD & Johor Land (JLAND) wanted to merge both the companies..but still on the table. Most probably, Tan Sri Ali Hashim will make the announcement on 6th Apr 2007.
Pak Lah will announce further IDR incentives on 14th April. As DBHD & JCORP has quite a number of landbanks in Johor, the announcement will help boost the investor confidence in IDR related/ property counters.
Another plan for DBHD is also to make it private and replace with REIT (real estate investment trust).
DBHD initial rumours target was RM0.50.However, that had already been achieved and the next target rumoured to be RM0.80 by year end.

Once again, buy at your own risk and please look for the best buy price..

WHY YOU SHOULD INVEST IN BURSA MALAYSIA IN 2007

Welcome!!

Intro: This blog is specially designed by zaki yamani & myself so that 8993 batch will have a platform to get together and discuss everything..yes I mean everything..eventhough the blog titled 'SAHAM8993' but as you can see there is a chatbox being provided..I love to see everybody to come and visit the blog to have a chat..not just matters related to any stock market tips, rumours, insider news etc. but also regarding futsal match, weddings, newly births etc..this blog is about LIFE...

So why am I promoting to invest in Bursa Malaysia???As most of you know, I am not an acountant nor a financier, and I don't know shit about accountings..But I have the desire and lust to MONEY..(by the way, I am not writer, please excuse the bad grammar or spelling..eh..what do you expect from an engineer..)..what matters most is I love the stock market..and I would like to share my experience with all of you..and I am not selling anything to you..please bear in mind..my experience and thoughts are for free and I have never assigned anybody as an agent to collect any consultancy fee for me (hahaha..I will collect them from MOI only..zaki you'll know what I mean..)

WHY WE SHOULD INVEST IN BURSA MALAYSIA IN 2007??

First, I'm sorry to tell you guys I don't believe in Get Rich Quick Scheme or any 'Skim Cepat Kaya' to name few (you know lah)..and I don't believe in commodity tradings as well, especially the ones that are based in any fancy or gambler's haven island eg: Macau, Bahamas, Jamaica, Hong Kong etc..why? it is simple...you don't know where you invest your money in the case of the 'Cepat Kaya Skim', whether the returns are 'halal' or not...for commodities, you're actually not buying anything..for example Forex Trading..you're just buying numbers based on charts..and furthermore, Islam does not practise the selling or buying of money..it is haram as in RIBA'.

So why in stock market especially Bursa Malaysia?

Easy..tolonglah company dalam Malaysia kawan..do you know why company going public? It is all because of they need money.. as simple as that..they need money to expand, they need our money to pay of debt etc. etc. In return to investors, they will give dividends, bonuses or capital repayments as token of gratitude to shareholders like us..Most of you should've known about it anyway..especially the guys that working directly under Zeti, Keng, Q, and bankers like Reza, Kintobi etc. etc.

Why Bursa 2007?

First: Election is expected to be near..as far as most of analysts predicted (minus Razak Baginda), the election should be held in the 1st quarter 2008..so that another old boy will not have the chance to compete..Based on previous history, (by the way, in stock markets..history will always repeat itself..remember), the market will go up prior to any election..the political parties need money..and a huge pile of money will come from the market..

Second: 9MP just rolled out..contracts already awarded to contractors..and by end of 2007, simply the contractors will be paid accordingly to the progress of projects..these will be reflected in their ledgers or apa org panggil..tanya accountants lah..every thing will look good..instead of red record book semua jad hitam balik...when the projects rolled out especially the IDR (Iskandar Developed Region or SJER) demands for cements, steel, timber, pipes, everthing that related to hardware supplies, increase.This will create a feel good factor among rakyats expecially commoners like us..true?

Third: Malaysian market has been lagging behind other market in Asia..for example Indonesia, Phillipines and the Vietnam..what I mean is for example Indonesia..they have increase more than 150% up to date since Mambang (opps Bambang) took over..where else, Malaysia market only up to about 40% level if I am not mistaken..thus this make our market still not overheated or overbought..

Fourth: Trust me and have faith..I have talked and attended many lectures..even the most experienced remisiers in town are expecting Bursa Malaysia to not to have a 'Bull Run' this year..instead they expected a Super Bull RUN!!just like in 93(that is why they say 1993 is the best year!!hahaha..and for your info..in the beginning of 1994, the market crash so bad...I will tell you about it later..so many stories that is so brutal and sad..so that we will learn from it..)

Fifth reasons and so on: Ada banyak lagi reasons..tapi dah tak larat nak type lagi..

On the contrary: US economy is a bit of slowdown this year..housing markets are slowing down in the US, the fear of recession is even heatened up by statement from the ex Fed Boss, Alan Greenspan, Americans econonomy is slowing down and number of jobless rising..

It is up yo you guys to decide...Till then.