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Chatting and charting in "Evening with AK and friends".

Saturday, October 7, 2017

I hope that everyone had fun at "Evening with AK and friends" and, of course, I hope it was helpful in one way or another.

"Evenings with AK and friends" are chit chat sessions of epic proportion and this was probably the largest ever session as we had almost 100% attendance (160 strong audience). It felt a bit crowded and very warm!


We chatted about stocks, CPF, insurance, real estate and dieting. Yes, dieting too. Basically, anything I have blogged about was fair game.




I was surprised that almost everyone stayed until 10 pm when we called it a night. So, I guess it must have been fun. Learn nothing, never mind. Must at least be fun. Right?

A few readers made me work overtime. You know who you are. Ahem.

I also spent quite a bit of time talking about Technical Analysis (TA) this time. Here is the blog with the recommended books:
http://singaporeanstocksinvestor.blogspot.sg/2012/12/recommended-books-for-fa-and-ta.html


More recommended books in the right sidebar of my blog under "Food for thought".

A recent example of TA in my blog:
http://singaporeanstocksinvestor.blogspot.sg/2017/09/technical-analysis-of-comfortdelgro.html





I am not trading ComfortDelgro per se but the chart is helpful in showing where the supports are.

If we want to make some money trading stocks, we should learn TA. If we don't know TA, we are fighting blind.

Having said this, remember that TA is not the Holy Grail although some might think it is. 


TA gives us a glimpse into Mr. Market's psychology. 

TA is about probability and not certainty.

A stock can stay oversold or overbought for a long time. Refer to MFI.

A negative or positive divergence can have longevity. Refer to price, volume and MACD.

Always pay attention to the trend.

Fibonacci lines show us the support and resistance but not if they will hold or break. Look to the golden ratios 38.2%, 50% and 61.8%.





I joked that talking too much about TA diluted my reputation as an investor for income. Some might remember that I have revealed in my blog that I made a bit of money as a trader before. So, it really shouldn't be surprising.

Trading was helpful in growing my capital.


Refer to point number 5 in this blog:
http://singaporeanstocksinvestor.blogspot.sg/2015/06/how-did-ak-create-6-digits-annual.html





Finally, remember, that not everyone has the temperament to be a trader.  I feel that it is fair that I say this again after sharing about TA and trading in this session.

TA and FA are useful but the most important knowledge is self knowledge. We have to know ourselves.

Related post:

When to buy, hold or sell?

6 comments:

E-commerce said...

thank you AK! hope you have a great rest after a great sharing!

AK71 said...

Wrapping things up before I can sleep.

I am slightly OCD which also explains my sleep disorder.

Glad you enjoyed the session. :)

AK71 said...

Reader:
gd morning AK ☘️. I attend your talk yesterday and forget to ask u how do you do fund management on your stocks? how many trades did u go in for each stock and what is your cut loss %?


AK:
I think you are probably asking about portfolio management. You want to read this blog from 2013:
http://singaporeanstocksinvestor.blogspot.sg/2013/07/motivations-and-methods-in-investing.html

As for trading, I bought and sold based on signals. How many times would depend on the frequency of those signals. You need to learn TA for that. Cut loss % is personal. It depends on our stomach for volatility. 10% is common but some go for a tighter 5%.

AK71 said...

Reader:
Hi Ak, you answered a question on insurance. You did not mention about disability insurance. In your opinion, do you think it is essential for most adults ?

AK:
Oops. Read this:
http://singaporeanstocksinvestor.blogspot.sg/2017/09/total-and-permanent-disability-tpd.html

AK71 said...

Hyperlinks:

Motivations and methods in investing.

Total and permanent disability insurance.

AK71 said...

Hi The Snowball Investor,

I did not publish your comment because the site looks like a commercial site partnering commercial brokers.

We can borrow the book from a public library if we do not wish to buy a copy. :)

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