The market did received some support from the 19000 level and the HSI has remain steady just above the 20000 level. So far since OCT 2009, the market had been moving side way, which is not going anywhere at all.
3 month Daily Chart
HSI has rebound from the lower border of the Bollinger Band and has move side way for the last week between the 20000 and 20500 level. Other way to say it is the HSI is consolidating. Both the 7 and 30 day EMA is down. The current 3 months trend is not clear.
1 Year Weekly Chart
There is a potential for double bottom to be forming but it will need the HSI to rally and close somewhere around 20800 level to confirm it. But my feeling on the weekly chart is the market is likely to go lower in the short term.
Overall, I am more prone to bearish in the short term but the long term is still bullish.
Article by Trading Room
www.tradingforreal.blogspot.com
Monday 17 May 2010
Sunday 9 May 2010
Hang Seng Index Market Outlook 09-05-2010
We have experience some severe correction last week, with the HSI dropping more than 1000 point. The market has been in a bit of a panic mode. The reason people say about the correction was because of the Debt crisis in Greece which might progress throughout the whole European market. In my opinion, the market had definitely overreact.
3 Months Daily Chart
On the daily chart, we can see wilden Bollinger Band which meant increasing volatile of the market. The HSI bar is currently outside the Bollinger Band, meaning the market in the short term has been oversold. It is likely we can see some support in this level.
1 Year Weekly Chart
HSI has dropped back to the recent low level of around 19000. Here we can see a potential double bottom forming if the HSI rebound from this level. If HSI continue to penetrate below the 19000 level, we might be able to see HSI to go even lower.
Currently the market is fill with uncertainty. If I am a buyer, I will start buying more security at bargain price, of coz there is no promise that the market won't go lower, but if the market goes lower, you can continue to average down your position. So don't eat too full, there might be more bargain ahead.
Article by
Trading Room
http://www.tradingforreal.blogspot.com/
3 Months Daily Chart
On the daily chart, we can see wilden Bollinger Band which meant increasing volatile of the market. The HSI bar is currently outside the Bollinger Band, meaning the market in the short term has been oversold. It is likely we can see some support in this level.
1 Year Weekly Chart
HSI has dropped back to the recent low level of around 19000. Here we can see a potential double bottom forming if the HSI rebound from this level. If HSI continue to penetrate below the 19000 level, we might be able to see HSI to go even lower.
Currently the market is fill with uncertainty. If I am a buyer, I will start buying more security at bargain price, of coz there is no promise that the market won't go lower, but if the market goes lower, you can continue to average down your position. So don't eat too full, there might be more bargain ahead.
Article by
Trading Room
http://www.tradingforreal.blogspot.com/
Monday 3 May 2010
Hang Seng Index Market Outlook 03-05-2010
Last Week the Market had fall more than I had expected. Reaching some support at the level around 21000.
3 Months Daily Chart
It looks like we are in a 3 months uptrend. With HSI suffering a recent correction. I think price will gain some support from the 21000 level.
1 Year Weekly Chart
With HSI staying right above 30 week EMA. In my view it is unlikely for HSI to drop further. If HSI continue to rebound well from the 21000 level. We should be seeing a new wave of upward move.
Article by Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
It looks like we are in a 3 months uptrend. With HSI suffering a recent correction. I think price will gain some support from the 21000 level.
1 Year Weekly Chart
With HSI staying right above 30 week EMA. In my view it is unlikely for HSI to drop further. If HSI continue to rebound well from the 21000 level. We should be seeing a new wave of upward move.
Article by Trading Room
www.tradingforreal.blogspot.com
Saturday 24 April 2010
Hang Seng Index Market Outlook 25-04-2010
The HSI had pull back from it recent high of 22200 to 21200 secondary to profit taking as we have suggested.
3 Months Daily Chart
The HSI has move under the 7 and 30 day EMA indicating the short term HSI is back to its value zone. It is like to attract more trader to buy at this price and it will should some support around the 21200 level. The HSI should rebound in the short term.
1 Year Weekly Chart
The HSI is resting on the 13 week EMA. On the weekly chart, it seems very obvious to me the HSI was bound to the 22000 to 20000 trading range for more than 7 months. It is really time for the HSI to break out of this range and move higher.
Overall I am bullish on both long and short term. I am waiting for the second wave of market rally which will hopefully reach the 25000 level or more.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
The HSI has move under the 7 and 30 day EMA indicating the short term HSI is back to its value zone. It is like to attract more trader to buy at this price and it will should some support around the 21200 level. The HSI should rebound in the short term.
1 Year Weekly Chart
The HSI is resting on the 13 week EMA. On the weekly chart, it seems very obvious to me the HSI was bound to the 22000 to 20000 trading range for more than 7 months. It is really time for the HSI to break out of this range and move higher.
Overall I am bullish on both long and short term. I am waiting for the second wave of market rally which will hopefully reach the 25000 level or more.
Article by
Trading Room
www.tradingforreal.blogspot.com
Saturday 17 April 2010
Hang Seng Index Market Outlook 2010-04-18
As expected my from last comment, the HSI did received some selling pressure on around the 22000 level. Ending the week at around the 21800 level.
3 Months Daily Chart
On the Daily chart, the HSI had fall back to the 7 day EMA and staying above the 30 day EMA. The Bollinger band had get continue to get wilder compare to the previous week. In my opinion, the HSI is likely to fall to 21500 level and get support from there. Overall the three month trend is an up.
1 Year Weekly Chart
Both 13 and 30 week EMA are pointing upwards and HSI staying above both EMA. On the weekly chart, it seems to me that it is very likely the HSI will break above the 22000 level and go to probably 23000 level in the longer run. The current 1 year trend is UP.
Overall I am bullish on both short and long term. The HSI may fall lower but I think it is very unlikely to fall below 21000 level.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
On the Daily chart, the HSI had fall back to the 7 day EMA and staying above the 30 day EMA. The Bollinger band had get continue to get wilder compare to the previous week. In my opinion, the HSI is likely to fall to 21500 level and get support from there. Overall the three month trend is an up.
1 Year Weekly Chart
Both 13 and 30 week EMA are pointing upwards and HSI staying above both EMA. On the weekly chart, it seems to me that it is very likely the HSI will break above the 22000 level and go to probably 23000 level in the longer run. The current 1 year trend is UP.
Overall I am bullish on both short and long term. The HSI may fall lower but I think it is very unlikely to fall below 21000 level.
Article by
Trading Room
www.tradingforreal.blogspot.com
Saturday 10 April 2010
Hang Seng Index Market Outlook 11-04-2010
The HSI has reach out target of 22000. It been a very bullish week despite having only three trading days.
3 Months Daily Chart
On the daily chart, the HSI has move outside the Bollinger Band, indicating increasing volatility and showing the strength of the Bull. The HSI close on Friday at around 22200 level. The HSI has lift off from the 7 and 30 day EMA. Which seemed to tell me that in the short run, the HSI is a bit overvalue on a technical basis and it is likely to meet more selling pressure from traders next week. But the HSI will regain support if it fall back to the 30 day EMA.
1 Year Weekly Chart
The HSI has breakout from the trading range of 20000 to 22000. The HSI is staying above 13 and 30 week EMA with both EMA pointing upwards. All these are longer term bullish signs. I predict the HSI should be able to reach 25000 at the end of the year.
Overall I am bullish in the longer term, in the short term I mean few days to 1-2 weeks. The HSI is going to meet some selling pressure so I don't expect the HSI to move upward a lot. For me I will continue to hold on to my long positions.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
On the daily chart, the HSI has move outside the Bollinger Band, indicating increasing volatility and showing the strength of the Bull. The HSI close on Friday at around 22200 level. The HSI has lift off from the 7 and 30 day EMA. Which seemed to tell me that in the short run, the HSI is a bit overvalue on a technical basis and it is likely to meet more selling pressure from traders next week. But the HSI will regain support if it fall back to the 30 day EMA.
1 Year Weekly Chart
The HSI has breakout from the trading range of 20000 to 22000. The HSI is staying above 13 and 30 week EMA with both EMA pointing upwards. All these are longer term bullish signs. I predict the HSI should be able to reach 25000 at the end of the year.
Overall I am bullish in the longer term, in the short term I mean few days to 1-2 weeks. The HSI is going to meet some selling pressure so I don't expect the HSI to move upward a lot. For me I will continue to hold on to my long positions.
Article by
Trading Room
www.tradingforreal.blogspot.com
Saturday 3 April 2010
Hang Seng Index Market Outlook 03-04-2010
The HSI had continued to do well last week, reaching a even higher high level of 21500 for the last month. There is something I want to emphasis about this point, whenever a stock price or a index is reaching a higher high compare to the previous high level. We say the price is advancing well. Another well to put it is saying the bull is getting stronger because it was able to push the price up to a higher level. As I said before, an uptrend is characterized by higher peaks and higher troughs.
3 Months Daily Chart
It seems that the HSI is going to break above 21500 level and advance further to 22000. The HSI finished on Friday with a Bullish Bar. My definition of a Bullish bar is on that period the HSI open on the low end of the bar and close on the high end with price range having a higher high and higher low compare to the previous bar. I reckon this is quite a bullish signal on a daily chart. Some trader might see this signal as a trigger of entry for long position when this signal is associate with a short term uptrend (which it was in this case.) And also Bollinger Band had been narrow, so the premium for Call Option will be relatively cheap. On an option trader perspective, it can be a good opportunity to open a long Call on HSI last Friday. P.S. HSI had continue to stay above both 7 and 30 day EMA.
1 Year Weekly Chart
On the weekly chart, it shown a similar bullish bar last week. The distance between the 13 and 30 Week EMA had become more further apart. And both EMA are starting to turn up with HSI staying above both EMA. All these are bullish signs. In fact you can see the HSI has actually formed a trading range between the level 22000 and 20000 over the past 7 months. In my opinion, the Market was resting on this trading rest before it is going to form another big bullish move. Prior to this trading range, HSI had advanced from 12000 to 20000 which was a big move indeed. The market need some time to rest before it can advance further.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
It seems that the HSI is going to break above 21500 level and advance further to 22000. The HSI finished on Friday with a Bullish Bar. My definition of a Bullish bar is on that period the HSI open on the low end of the bar and close on the high end with price range having a higher high and higher low compare to the previous bar. I reckon this is quite a bullish signal on a daily chart. Some trader might see this signal as a trigger of entry for long position when this signal is associate with a short term uptrend (which it was in this case.) And also Bollinger Band had been narrow, so the premium for Call Option will be relatively cheap. On an option trader perspective, it can be a good opportunity to open a long Call on HSI last Friday. P.S. HSI had continue to stay above both 7 and 30 day EMA.
1 Year Weekly Chart
On the weekly chart, it shown a similar bullish bar last week. The distance between the 13 and 30 Week EMA had become more further apart. And both EMA are starting to turn up with HSI staying above both EMA. All these are bullish signs. In fact you can see the HSI has actually formed a trading range between the level 22000 and 20000 over the past 7 months. In my opinion, the Market was resting on this trading rest before it is going to form another big bullish move. Prior to this trading range, HSI had advanced from 12000 to 20000 which was a big move indeed. The market need some time to rest before it can advance further.
Article by
Trading Room
www.tradingforreal.blogspot.com
Monday 29 March 2010
Hang Seng Index Market Outlook 29-03-2010
The HSI has been moving sideway last week. With the open on Monday and the close on Friday at around 21000 to 21100 level. Which means it hasn't really moved at all.
3 Months Daily Chart
The HSI test support level at around 20500 and receive good support from that level. With HSI ending at the level of 7 and 30 days EMA. HSI is likely to continue its upward move on this coming week.
1 Year Weekly Chart
HSI has tested the support level provided by the 30 week EMA. With HSI staying above both 13 and 30 weeks EMA.
Overall, both short and long term I am still bullish. The market is having a bit of a correction after a bullish run. It is taking a break before it is going to move to a higher level.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
The HSI test support level at around 20500 and receive good support from that level. With HSI ending at the level of 7 and 30 days EMA. HSI is likely to continue its upward move on this coming week.
1 Year Weekly Chart
HSI has tested the support level provided by the 30 week EMA. With HSI staying above both 13 and 30 weeks EMA.
Overall, both short and long term I am still bullish. The market is having a bit of a correction after a bullish run. It is taking a break before it is going to move to a higher level.
Article by
Trading Room
www.tradingforreal.blogspot.com
Saturday 20 March 2010
Hang Seng Index Market Outlook 20-03-2010
The Hang Seng Index had continued its upward move. Reaching a higher high compare to the previous week. Everything is going well in this current uptrend. The trend is slowly building its strength.
3 Months Daily Chart
The HSI is staying above the 7 and 30 day EMA. The market has been moving in a particular pattern which involved a big upward moved in one day then followed by few days of consolidation. As far as the current uptrend is concern, it was making higher peaks and troughs. Typical seen in an uptrend.
1 Year Weekly Chart
The HSI remained above the 13 and 30 week EMA. With the 13 week EMA started to slope upwards.
Overall both the current and long term trend are UP. The market is likely to test higher highs with the latest resistance on 22000 points.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
The HSI is staying above the 7 and 30 day EMA. The market has been moving in a particular pattern which involved a big upward moved in one day then followed by few days of consolidation. As far as the current uptrend is concern, it was making higher peaks and troughs. Typical seen in an uptrend.
1 Year Weekly Chart
The HSI remained above the 13 and 30 week EMA. With the 13 week EMA started to slope upwards.
Overall both the current and long term trend are UP. The market is likely to test higher highs with the latest resistance on 22000 points.
Article by
Trading Room
www.tradingforreal.blogspot.com
Sunday 14 March 2010
Hang Seng Index Market Outlook 14-03-2010
The HSI has continue to be strong last week, staying above 21000 point.
3 Months Daily Chart
The beginning of a short term uptrend is forming. 21500 points is a very likely to be reach in 1-2 weeks time. Continue to be bullish.
1 Year Weekly Chart
HSI has stay above both 13 and 30 week EMA. The direction of both EMA are going sideways. The market had continue to recover from the previous correction.
Overall I am bullish on both short and long term.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
The beginning of a short term uptrend is forming. 21500 points is a very likely to be reach in 1-2 weeks time. Continue to be bullish.
1 Year Weekly Chart
HSI has stay above both 13 and 30 week EMA. The direction of both EMA are going sideways. The market had continue to recover from the previous correction.
Overall I am bullish on both short and long term.
Article by
Trading Room
www.tradingforreal.blogspot.com
Saturday 6 March 2010
Hang Seng Index Market Outlook 06-03-2010
Look like the HSI has continue to strengthen over the past week. It seems like the beginning of a short term up trend is going to form.
3 Months Daily Chart
On the 3 months chart, HSI has made a new high up to 21000 points and it has breakout from the resistance line at around 20500. All this is looking bullish. It has been forming a higher low and higher high. With the lowest trough at around 19500 then a higher trough at 20000. And I think 20500 will form a good support line for HSI. One more point to look at is HSI has also move above the 7 day and 30 day EMA.
1 Year Weekly Chart
The HSI has continue to form a nice base of around 20000. The HSI is resting nicely on the 13 and 30 week EMA.
In conclusion, in both short and long term, I am very bullish about the HSI with a short term target of around 22000.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
On the 3 months chart, HSI has made a new high up to 21000 points and it has breakout from the resistance line at around 20500. All this is looking bullish. It has been forming a higher low and higher high. With the lowest trough at around 19500 then a higher trough at 20000. And I think 20500 will form a good support line for HSI. One more point to look at is HSI has also move above the 7 day and 30 day EMA.
1 Year Weekly Chart
The HSI has continue to form a nice base of around 20000. The HSI is resting nicely on the 13 and 30 week EMA.
In conclusion, in both short and long term, I am very bullish about the HSI with a short term target of around 22000.
Article by
Trading Room
www.tradingforreal.blogspot.com
HSBC and Pacific Basin Company result analysis
It was a pretty good week for the HSI. It has gone up to 21000 points then come back to end at around 20700 points. To be honest I am quite disappointed with the result of HSBC and Pacific Basin. Especially to HSBC result. So before I go on with the market outlook, I will talk about the result analysis briefly. With HSBC (5), it shown a decline in Profit before tax of about 20% compare to year 2008. Despite this, the company had made a pretty good job in reducing its tax. Thus making it Profit after tax of $6.6 Billion which was a slight increase compare to year 2008. So it other words, you can say its net profit after tax is almost the same as the year before. But if you look at the EPS, you can see a decrease from 41 cents US to 34 cents US. It is mainly due to the share right issue, which cause a dilution effects on the EPS. For the year 2009, HSBC is pay DPS of 34 cents US. Which means it is giving out 100% of its profit to its owner/shareholder. And for Pacific Basin (2343), its shown a decline in profit of about 70%. Which is expected by most brokers because of the effect of economic crisis. I hope this is going to be the least profitable year for Pacific Basin and with the ongoing economic recovery, I am still very optimistic about the company future. With a DPS of 0.23 cents HK, considering my buy price of $5.35, I should be getting a dividend return of around 4.2% p.a. In conclusion, I will continue to hold on to these two companies.
Article by
Trading Room
www.tradingforreal.blogspot.com
Article by
Trading Room
www.tradingforreal.blogspot.com
Sunday 28 February 2010
Hang Seng Index Market Outlook 28-02-2010
It seems the market had made a good recovery from 20000 pt. to 20600 pt. The double top I spot last week on the daily chart has been rejected coz the HSI failed to go any lower than 20000.
3 months Daily Chart
We can see the HSI is still in a downtrend but it had definitely slow down. The HSI is forming a base between 20500 to 19500. It seems to me HSI will continue to rise in the short term especially with the help of HSBC. On the short term I am aiming at 21000.
1 year Weekly Chart
On the weekly chart, HSI has continue to consolidate around the 20000. It is still close to the 13 week and 30 week EMA. With both MA close together. It seems to me HSI is about to turn back up with a goal of 22000 pt. The consolidate around 20000 has formed a good base for HSI to move up further.
Overall I am still Bullish with the market. With the announcement of result for HSBC (5)on coming Monday 1st of March 2010, as I have said before. I am confident that the result will continue to improve. And on the 2nd of March 2010, Pacific Basin (2343) is announcing its final result as well. I am also confidence that it will be a good one. I currently had holdings of both stocks I have mentioned.
Word of the Week: Keep learning, the more you learn, the better you are in any given field. At the moment I am committed to spend 1 hour a day reading books about shares, real estate and wealth creation.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 months Daily Chart
We can see the HSI is still in a downtrend but it had definitely slow down. The HSI is forming a base between 20500 to 19500. It seems to me HSI will continue to rise in the short term especially with the help of HSBC. On the short term I am aiming at 21000.
1 year Weekly Chart
On the weekly chart, HSI has continue to consolidate around the 20000. It is still close to the 13 week and 30 week EMA. With both MA close together. It seems to me HSI is about to turn back up with a goal of 22000 pt. The consolidate around 20000 has formed a good base for HSI to move up further.
Overall I am still Bullish with the market. With the announcement of result for HSBC (5)on coming Monday 1st of March 2010, as I have said before. I am confident that the result will continue to improve. And on the 2nd of March 2010, Pacific Basin (2343) is announcing its final result as well. I am also confidence that it will be a good one. I currently had holdings of both stocks I have mentioned.
Word of the Week: Keep learning, the more you learn, the better you are in any given field. At the moment I am committed to spend 1 hour a day reading books about shares, real estate and wealth creation.
Article by
Trading Room
www.tradingforreal.blogspot.com
Sunday 21 February 2010
Hang Seng Index Market Outlook 21-02-2010
Well it has been another volatile week for the Hang Seng Index. The HSI reach a peak of around 20500 point then fall back to around 19900.
3 Months daily Chart
On this chart, the HSI is still in a down trend. Its has recently formed a possible double top with the top at the level around 20500. Its seems like the HSI will drop further to around 19000-19500 in the short term.
1 Year Weekly Chart
The HSI remained below both 13 week and 30 week EMA. It was consolidating around the 20000 level for the past month. The distance between the 13 week and 30 week EMA are getting closer. If the 13 week EMA crossed down from the 30 week EMA, that will be a death cross. Which signalled possible bear market. That's what the technical side look like.
Overall I believe the economy is recovering well and I don't think a market crash will come in the near future. So what does this means, it means the current market correction is providing us with a good opportunity to buy good company at a fair price. Also HSBC is going to announce its final result on the 1st of March 2010. I am very confident that the result will be a good one. I think HSBC will go back to $100 within this year.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months daily Chart
On this chart, the HSI is still in a down trend. Its has recently formed a possible double top with the top at the level around 20500. Its seems like the HSI will drop further to around 19000-19500 in the short term.
1 Year Weekly Chart
The HSI remained below both 13 week and 30 week EMA. It was consolidating around the 20000 level for the past month. The distance between the 13 week and 30 week EMA are getting closer. If the 13 week EMA crossed down from the 30 week EMA, that will be a death cross. Which signalled possible bear market. That's what the technical side look like.
Overall I believe the economy is recovering well and I don't think a market crash will come in the near future. So what does this means, it means the current market correction is providing us with a good opportunity to buy good company at a fair price. Also HSBC is going to announce its final result on the 1st of March 2010. I am very confident that the result will be a good one. I think HSBC will go back to $100 within this year.
Article by
Trading Room
www.tradingforreal.blogspot.com
Monday 8 February 2010
Hang Seng Index Market Outlook 07-02-2010
Well well it has been another bearish week for the HSI. The market had already corrected by about 14% from its top at 23000. The next supporting level will probable be 19000 and maybe 18500.
3 Months Daily Chart
On the three months daily chart, the market is in a confirm downtrend. It is very likely that the market will go even lower this coming week.
1 year Weekly Chart
The HSI is staying below the 30 wk EMA. The 13 wk EMA and the 30 wk EMA are both turning down. All these are bearish signal. Despite all this, I believe we are still in a bull market. This is a correction that needs to be happen after the HSI had rally from 12000 to 23000. The overall economic fundamental are good. So it there is some good company at attractive price. I will recommend buying those company.
Remember Buy when others are selling and Sell when others are buying.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
On the three months daily chart, the market is in a confirm downtrend. It is very likely that the market will go even lower this coming week.
1 year Weekly Chart
The HSI is staying below the 30 wk EMA. The 13 wk EMA and the 30 wk EMA are both turning down. All these are bearish signal. Despite all this, I believe we are still in a bull market. This is a correction that needs to be happen after the HSI had rally from 12000 to 23000. The overall economic fundamental are good. So it there is some good company at attractive price. I will recommend buying those company.
Remember Buy when others are selling and Sell when others are buying.
Article by
Trading Room
www.tradingforreal.blogspot.com
Sunday 24 January 2010
Hang Seng Index Market Outlook 24-01-2010
The HSI had breakdown from the support level at 21000. Overall it has been a bearish week last week.
3 Months Daily Chart
On the daily chart, HSI was in a trading Channel between 21000-22500. It had just broken the support level at 21000. Its is possible that is will hit 20000. The current 3 months trend is sideway trend and possible break out from 21000.
1 Year Weekly Chart
On the weekly chart, the HSI is lying on the support level of 30 wk EMA. Meaning the current index is relatively undervalue or oversold. A possible big rebound will be on the way. The current 1 year weekly Trend is UP.
Overall the long term trend is UP but the current 3 month trend is sideway. I think the index will rebound very soon.
Article by
Trading Room
www.tradingforreal.blogspot.com
3 Months Daily Chart
On the daily chart, HSI was in a trading Channel between 21000-22500. It had just broken the support level at 21000. Its is possible that is will hit 20000. The current 3 months trend is sideway trend and possible break out from 21000.
1 Year Weekly Chart
On the weekly chart, the HSI is lying on the support level of 30 wk EMA. Meaning the current index is relatively undervalue or oversold. A possible big rebound will be on the way. The current 1 year weekly Trend is UP.
Overall the long term trend is UP but the current 3 month trend is sideway. I think the index will rebound very soon.
Article by
Trading Room
www.tradingforreal.blogspot.com
Thursday 21 January 2010
Wealth Creation
So what is wealth creation, it seems like very broad topic with many different paths and vehicles to wealth and abundance. With this article, I am going to simplified the road to wealth creation into three main paths and they are as follows:
1. Real Estate
2. Shares
3. Business
To me it is really that simple, that's the road to wealth creation. People create wealth either through Property, Shares or Business. With shares, I didn't intend to mean only the share market, but also the currency market, bonds market and commodities market. There is no true answer to whether one is better than another. You can achieve great wealth by just focusing in one of this field or you can choose a combination of all of them. For me, I have invest most of my capital in the share market. And when I have achieve enough capital gain from the market, I will move my capital to the Real Estate market. And business is something for me to consider later on. You might have notice I didn't include the word Job in the path to wealth. That is something everyone need to think about. To me I don't think the salary from the Job position will be enough to make me Rich. Quote from Robert Kiyosaki Rich Dad "Who is going to pay you 1 Million a year? What about 5 Millions a year? and What about 10 Millions a year?" So if you want to obtain great wealth, it is my opinion that you need to work on at least one of this field. Keep learning and reading about the field you choose to be in and keep taking action. Then great wealth will follow.
Article by
Trading Room
www.tradingforreal.blogspot.com
1. Real Estate
2. Shares
3. Business
To me it is really that simple, that's the road to wealth creation. People create wealth either through Property, Shares or Business. With shares, I didn't intend to mean only the share market, but also the currency market, bonds market and commodities market. There is no true answer to whether one is better than another. You can achieve great wealth by just focusing in one of this field or you can choose a combination of all of them. For me, I have invest most of my capital in the share market. And when I have achieve enough capital gain from the market, I will move my capital to the Real Estate market. And business is something for me to consider later on. You might have notice I didn't include the word Job in the path to wealth. That is something everyone need to think about. To me I don't think the salary from the Job position will be enough to make me Rich. Quote from Robert Kiyosaki Rich Dad "Who is going to pay you 1 Million a year? What about 5 Millions a year? and What about 10 Millions a year?" So if you want to obtain great wealth, it is my opinion that you need to work on at least one of this field. Keep learning and reading about the field you choose to be in and keep taking action. Then great wealth will follow.
Article by
Trading Room
www.tradingforreal.blogspot.com
Sunday 17 January 2010
Market Review 17 Jan 2010
This is my first market review on this blog which I will talk about my opinion on the Hang Seng Index in general.
The overall market trend is UP and we are still in the Stage 2 of a bull market. On the daily chart, HSI had fall below the 30 day EMA indicating a pullback from the recent high. Which I expect the HSI will retest the 22000 level very soon. The closest support level for HSI will be 21000. On the weekly chart, HSI had fall back to the 13 week EMA. This MA should provide some support to HSI. The HSI is still well above the 30 week EMA which is at the level around 21000. The 30 week EMA is the key weekly moving average that we use to different between overall bull and bear market.
Article by
Trading Room
www.tradingforreal.blogspot.com
The overall market trend is UP and we are still in the Stage 2 of a bull market. On the daily chart, HSI had fall below the 30 day EMA indicating a pullback from the recent high. Which I expect the HSI will retest the 22000 level very soon. The closest support level for HSI will be 21000. On the weekly chart, HSI had fall back to the 13 week EMA. This MA should provide some support to HSI. The HSI is still well above the 30 week EMA which is at the level around 21000. The 30 week EMA is the key weekly moving average that we use to different between overall bull and bear market.
Article by
Trading Room
www.tradingforreal.blogspot.com
Friday 15 January 2010
Return On Investment (R.O.I.)
I have used the term ROI on one of my option trade with BCM which you can see on the lower left corner. So what does ROI means? It means Return on Investment which is how much return you get from your investment compare to the capital you used as investment. Let say I invest $100 and my ROI on investment is 20% which mean I profit $20 from my original investment of $100. And on my BCM option trade, I calculate the ROI a bit differently. As every time I write a Put option, I always put up the capital required if my option does get exercise and I need to buy the share at that price. So for my BCM trade, my capital outlay will be $9 per share. That i will put is as my original investment. My return is -$0.03 when I closed the trade. So the ROI will be -0.03 divided by 9 times 100 which is -0.3%. Which is minimum compare to the potential profit I can get with Pacific basin stock. That's why I do the switch. "One of my opinion about wealth creation is you get to be flexible in your approach to investment. "
Article by
Trading Room
www.tradingforreal.blogspot.com
Article by
Trading Room
www.tradingforreal.blogspot.com
Monday 11 January 2010
Investor VS Trader
So what is the different between an Investor and a Trader on the sharemarket. In my opinion is the main different between the two is the time frame. Usually trader will have a much shorter time frame on holding their trades compare to investor. When I meant short it can range from Seconds to days or at most a few weeks. On the other hand for Investor, their usually time frame is probably from months to few years or even a decade. In my opinion, it is easier to be an investor.
Article by
Trading Room
www.tradingforreal.blogspot.com
Article by
Trading Room
www.tradingforreal.blogspot.com
Wednesday 6 January 2010
Pacific Basin 2343
Today the price of Pacific Basin went up to $6.3, which will give me a return of 6.3-5.35 = 0.95 or a ROI of 17% if I sell the stock today. Which is ROI of 17% in 2 weeks time. It is a very good profit. But I didn't sell my stock. My mind is telling me to sell it now and get the fast return which a quite a good profit. However I keep reminding myself that I am a Investor not a Trader. If I am a trader, I will definitely close my position. As an Investor, I buy the company share because I want to own part of the company. And I will hold onto it until it reach my target of $15.35 which might take 1-2 year or even more. Also the company is going to announce its 2009 annual result on the beginning of March 2010. My opinion is it will be a good result which I base my opinion on 1) the BDI index which had continue to be strong on the 2nd half of 2009 and also the high contract coverage with more than 90% for the year 2009. And for people with shorter time frame, I will suggest hold the stock until it announce it result. Another advantage as a investor is I also enjoy receiving dividend from this company. The dividend policy of this company is a payout ratio of 50%, which means they will give me 50% of there net profit. So the more profitable the company, the bigger my dividend payment.
Article by
Trading Room
www.tradingforreal.blogspot.com
Article by
Trading Room
www.tradingforreal.blogspot.com
Subscribe to:
Posts (Atom)
Subscribe To Trading room
Posts
All Comments