Why buying stocks are like picking good fresh vegetables at the market?

As promised, I would like to talk about how you would trade a stock.. this is something I would like to re-affirm again..For those that have been following my blogs for quite sometime, I would always say this.. Pick a stock that is fundamentally good before you do any technical analysis on it..
Well, if you don't know how to read the financial reports, no worries..just make sure that on financial yearly basis, the stocks that you want to trade are making profits or so and have a good business sense that you think will be sustainable throughout the years.

What I consider on those stocks that don't fall into the categories above? I would say from my opionin, it as merely speculative trading which I admitted I did do that long long time back when I first traded the stocks..It could be based on "someone's" tips, friends' influence, stock brokers call, etc etc..

Hope this will give you more insight on how you would like to trade a stock..

Till then,
Star-Trader

Fundamental analysis vs technical analysis

Before we move on to another stock analysis, on and off will try to explain some other important elements.. Stay put..

Wilmar's Gap, what I mean by this?

During my last post, I mentioned about Wilmar gap open at 3.58. I have people asking me what I meant by that. You have also notice some stock forums, some contributed did mention about gap. But different people has different way of interpreting.

Let me explain here. From my own interpretation of meaning "gap", when it opens at certain price at a higher level then the previous closing price, it means that there are high volume pre-trading that willing to lock in at a high price in order to anticipate the stock will hit higher.

Certainly, Wilmar did go as high as 3.72 the next following day, and we will see a different pattern there after. Why did I say that? Because BBs that locked in during probable price of 3.58 on the gap, or price like 3.59,3.60,3.62 with high volume could have probably locked in some profit during the rally to 3.72.

Yesterday it closed at 3.58. So is that means that it is good to buy again to ride on the mini wave? That we will see again next week. So, from here.. I would also like to say that stocks characteristics are different from one another day even during the trading time to spot the signals.

Star-Trader

Noble at lowest point with ADX showing some trend..

Noble is very much similar to Wilmar with 2 mini peaks trying to breakthrough but unable to and believe it has already out from the selling zone.. ADX is about to show some sign on the trading range, 20 to 40 range..which uptrend soon persist soon. So, definitely a look out for this. 0-3months, out with a minor profits. Cut loss at 1.00 or trend below this price support.

Star-Trader

Subscribe to my newsletter..with ADX(Average Directional Index) in mind..

Hi, before I post Noble Group Technical Analysis, I will be sending out Lesson 12: ADX (Average Directional Index) which will use Noble Group as the real life example..

Meanwhile, stay put and relax..more to come..!

Star-Trader

Noble Group..next target? and JBFood IPO, someone asking me to give a view..

Would be posting the analysis on Noble Group soon as well as JB Foods IPO if I have some time on doing a much thorough fundamental analysis which I am still learning. Till then, let me post technical analysis for Noble Group soon, pretty soon..
P/S: Hope you made a little money with Wilmar during the mini wave if you managed to sell off today too. If not, 0-3months still applicable with the Cut-loss price of 3.45 which a price level support that indicate more downside moving towards below 3.45.

Star-Trader

Wilmar International

Willmar opened with 3.58 with a gap today and looks for the support price of 3.60. The mini-wave of the 2 peaks Jun 16 to July 13 has indication that it is looking for uptrend if the support is well maintained.. Looking at 0-3months. Cut-loss price 3.45.

Let's see.

Star-Trader

So, now I am back with analysis..what's next?

These are some to-do lists.. - I will be back to share my thoughts at sharejunction.com. - I will be sharing technical charts at the blog here instead. - I might be sharing fundamental analysis of the stocks as well. - I am only doing SGX Stocks analysis, if you want US Stocks, this is not the place. - I will only be concentrating here and won't setup another site to cater for technical analysis or so. - If more, I will put it down here.. Happy Trading! Regards, Star-Trader