MESSAGES TO YOUNG TRADER by Warren Buffet

'Stay away from credit cards and invest in yourself and remember:

1. Money does not create human beings. But man can create MONEY ....
2. Get your life as yourself. Important that you need COMFORTABLE ...
3. Do not do what other people say. Listen to their course, but just do what makes you comfortable (feel good). Do not follow The others!!!
4. Do not buy goods because Its Brands. Wears clothes that really make you feel comfortable.
5. Do not spend your money for goods that are not important.
Use your money wisely for the needs of the
you really need.
6. Finally, this is all your life. "Life is only once. Why do you need to give people the opportunity
to manage your life?. Live with your own style, which is you're happy, you're satisfied, you are comfortable, and you will be happier ...

Rules pay attention please:

• Pay attention to the 2% rule. do not let that one position in the loss exceeds 2% of total capital. This rule will be able to determine your stop loss level is at. Likewise this rule can help you how it is that the lot number associated with stock prices and associate with the 2% rule is

• Note the 6% rule. If all the losses have reached 6% of total capital, selling all and stop trading in the first month. Find the causes of the error so that the losses arising up to 6% of these. Try to fix the error and have to know if the error may be new trading again on the following month.

• Set the stop before you shop. Making trading plan contains what price that I need to buy, how does the what price that I need to take profit and how much will be cut loss and specify trailing stop (stop steps) if you want your profit be higher than your target. It is recommended not to make a purchase before trading plan is prepared.

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BUY NOW AT PULLBACK DO NOT BE AFRAID

Stock is still in BULLISH position, but you maybe feels afraid!! Looks picture carefully and looks The Fibonacci line if you bought any stock when Indonesia Stock Exchange (IHSG) price at 1461 you must set cut loss when IHSG price reach 1509. If move below it, could be worse for your portfolio!! The Fibonacci line like support line!!!

But don not be afraid looks the volume getting tight right??? And Momentum 200 line still in good position!!! While Candlestick moves below MA30 you must sell all your portfolio, because IHSG can slumped again!!!

As I saying now, its pullback time you can buy when IHSG candlestick at 50% - 61.8%, or it reach near 61,8%. You can buy starts tomorrow!!

Stock that you can Buy:

ANTM (Aneka Tambang) 1250-1280

SGRO (Sampoerna Agro) 1394-1535

BUMI (Bumi Resources) 1150-1200

INCO (International Nickel) 2800-2900

TINS (Timah Tbk) 1270

Technical analysis!!

1. Moving Average 30, 40 and 60 already crossed up by candlestick but MA line getting side ways!!!

2. GOLDEN CROSSS, GOLDEN CROSSS, what is that check here!!! If MA30 crossing up MA40!!!

3. Looks The Fibonacci line you can buy when reach 61,8%!! Fibonacci indicate support line, DANGER IF BELOW 50%!!!

4. Commodity Channel Index moves above 100 lines since Three weeks ago!! Watch its already go down below 100 aka profit taking!!!

5. Relative Strength Index still above 70% that’s still BULLISH!!!

6. THE MOST IMPORTANT THINK IS MOMENTUM200 LINE!!!

If Momentum200 line still above momentumMA200 line that’s still INDICATE BULLISH POSITION, 90% TRULY HAPPEN TRUST ME EASY RIGHT HAHAHAHA!!

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Buying Quality with Warren Buffet

• Management. Warren puts strong management on the top of his list. He likes to meet them in person and get to know them. That’s a little too much to ask of you. But, at minimum, you should read the CEO’s bio (which is typically provided on a company’s website). And google the CEO’s name. Nine times out of 10, you’ll get plenty of instant reading material. If you can, go to the company’s annual meetings and listen to the CEO and other executives speak. Or – if that’s not possible – listen to their

-in quarterly earnings report.

Just remember that there’s no such thing as too much direct and up-close exposure to the companies you’re investing in. The more you know about them, the better buy/sell decisions you will make.

• Quality products. As a general rule, the more high-end its products are, the better margins a company makes. Companies charge a premium for new technology, sleeker designs, more features, better packaging – which all go into high-end products … and customers gladly pay. The less high-end, the easier it is for China and other countries to make cheap copies and put your company out of business. ‘Nuf said.

• Understand the company. What does this have to do with quality? Not much. But it has everything to do with your ability to judge whether a company is in a class by itself or classless. You need to know at least something about the business. This is a relative requirement, because this kind of knowledge often falls somewhere between knowing nothing and knowing it all. But if you don’t have a clue about what makes a company’s

business tick, STAY away. Whether or not a company can grow its profits should not be a guessing game. Nor should it be a “follow the leader” game. Even if everybody in your bridge club is flocking to this business or a company in this business, still STAY AWAY. Who knows what they’re following or why? Bad advice is the ruination of many an investor.

Is looking into all this really necessary? Can so many people get it wrong? Warren, in fact, counts on so many people not getting it. That’s why he loves “cigar-butt” companies that are so out-of-favor nobody will touch them.

He stays away from the buzz-generators. As a “life-long technophobe” (as he confesses on the Berkshire website), he stayed away from the high-tech companies when they were the rage in the 1990s. How dare he?

“Warren Buffett should say ‘I’m sorry,’” fumed Harry Newton, publisher of Technology Investor Magazine, in early 2000. “How did he miss the silicon, wireless, DSL, cable, and biotech revolutions?”. That was the year AOL stock rose six-fold and Amazon.com had rocketed by 1,000%, while shares in Berkshire had climbed only 11%. But, as history proved, the “Buffett Way” won out in the end. The dotcom bubble exploded, leaving millions of Americans poor and in shock.

Source from http://www.scribd.com/doc/3828234/investlikebuffett

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How Expert Trader Sell Their Stocks

Is the best to learn to sell on the way up while your stock still advancing and looks strong to everyone else. By do that, you will avoid getting caught in 20% to 40% corrections which occur periodically. You never sell at the exact top, so stop says “Oh after I sold it moved higher!!”. The purpose you play stocks to get GAIN not GREEDYY. The old man saying is, “ Bulls make money and Bears make money, BUT PIGS DON’T”.

Here The Expert Trader Rule :

Rothschild’s Stock Rule, never buy at the Bottom and always sell too soon.

Joe Kennedy Stock rule, The object is to get out while stock is up, before it has chance to break down. Once the price has risen into estimated normal or overvaluation areas, the amount held should be reduced steadily as quotations advance.

Jack Dreyfus Stock Rule. He only bought when the price broke into new high ground. He was also beating the pants off every one of his competitors that depended solely on fundamental analytical opinions and ignored the market behavior of stocks.

Jesse Livermore, His method is AVERAGING UP, or PYRAMIDING, when stock moved up after purchase.

Profit Loss Plan. Not pyramid more than 5% than buy point, and sell when it reach 20% from break out point. Take 20% profits when you have them (except with the most powerful of all stocks) and cut losses at 8%.

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Warren Buffet and his simple method

Who is Warren Buffet? He is born in the Midwest of United States. He is known as the Sage of Omaha. His hair gray. His work not to follow crowd in The Wall Street. He became a legend, admired for his simplicity method for investing and he gain billions of dollars. Now He is the number two richest MAN in the world!!

What are His simple method :

1.He is not afraid to invest in unfashionable or unpopular companies. Do not underestimated companies does not popular. Its price does not move so fast but its safe and sure it have good VALUES.

2. He has to be excited about the company. He is talk about the company itself and the business that The company works, not the potential returns. He looks a company not like us. We buy stocks because the transaction as if we were buying into a private business. Mr Buffet buy as if He is going to partner up with it.

Mr Buffet does not depend on algorithmic models, modern software programs that use data and formula to create buy or sell indicators.

Before we buy something we need to figure out if we are getting a good price and good things. How does it perform? How long it can take? Who the owner? Which sector this company include in? Is this new?

You need to know what kind of a company that you buy its stock. If you do not know anything just know that stock price is cheap, you DUMBER!!! Sees The Company record for the last 5 or 10 years!! Watch its reputation and quality!

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Head and Shoulder Pattern

The head and shoulders pattern is good way to show that BULLISH will lead the way, and very famous among short sellers. Short sellers are people who get profit from downtrend, sell now buy next day!

It forms when candlestick creates three peaks, but the middle peak must higher than the other peaks, after that the candlestick drops. Then make line which connecting the bottom of the two points.

First stock is stay sideways. Investors start to buy when they think that stocks are undervalued, then they hurries to buy, because stock has run to high investors get fear and sell it. After that Investors realize get back again and buy more till get new high, then sell for profit taking. The last, buyer can not stand against seller so stock price has small tiny up and get down below sideways points. Looks picture below :

How to get gain from Head Shoulder pattern. You must used short sell. Short sell when price move below neck line, and buy it when it reach the bottom (Same distance between neck and head).

This can be GOOD for warning that stock will be BULLISH. MORE longer the periodic which formed The Head Shoulder Pattern more definitive BULLISH will happened!!

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Devidend and Capital Gain

In order to avoid events that arise due to systematic risk these investors are advised to always use the funds to invest in the long term. Because of the lessons that have been systematic-risk conditions are generally not continued long, let alone permanently. Remember when the monetary crisis, the stock prices fell, but in a matter of four years now-shares are stocks rising hundreds of times before the crisis rather than price. This is a valuable lesson that needs to know. Investors always use to invest in long-term. Moreover, the behavior of a capitalist who infuse capital in the form of shares in the capital markets that have a desire to increase investment and provide benefits. Therefore only the long-term fund investors can optimize the objective.

As we know the investment shares have the potential advantage in the two (2) case, the division of dividend increases and share price (capital gain). First, Dividend is a company that profits distributed to all shareholders. Usually conducted once a year. Form of the dividend itself, can be a form of cash or additional shares. Meanwhile, capital gain, obtained based on the difference between the selling price with the price of shares purchased. Where is the profit gained when the stock price is higher than the price to buy shares. So investing in stocks have two components that are expected to investors in an investment, first an income that can be received periodically, such as a dividend. The second is the form of income, the difference comes from the increasing price of purchased shares, usually called the capital gain or capital loss.

Two expectations are 'capital' of a major investor in investing. Two expectations are also at a time can be an investor in the stock market. Therefore, in a down market, investors should increase funding so that it can get a stock-stock with cheaper price. In other words increasing the number of shares held. Why do so. Because psychological market always associated with something that is not real (intangible event) an event that is triggered by something that are not real, that the price fluctuation is not due to factors internal to the company but something more systematic.

With the increase of ownership shares in itself to increase the potential for good income and a capital gain dividend, as market conditions do not recover this systematic risk , is not permanent. So the strategy in the investment conditions in the systematic risk is very simple that investors should always use the funds long-term, not short-term funds. Moreover, the funds obtained from the debt.

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BUY this stockkkkk!!!!

Stock still running up and your heart tickling very fast right. Many people said “OH NOOOO I am not buy anything, whether I should buy now when the price already up!!”. Do not worry market will go down again for profit taking or I say “PULLBACK”. Pullback happens when the market go up and back again near original state before going up, maybe about 5 till 10% of original state or BREAK UP point, after that it will back up again!!!

BUT the thing that you must understand that THAT CAN BE HAPPENS WHEN GOLBAL MARKET IN BULLISH CONDITION!!

Example stocks that you can buy :

SGRO (Sampoerna Agro) 1240-1280

AALI (Astra Agro Lestari) 13300-14000

ANTM (Aneka Tambang) 1130-1160

INCO (International Nickel) 2170-2370

TINS (Timah Tbk) 1080-1120

The stocks that I choose has very-very HIGH volume and The Best One or Two from its sector!!! I choose SGRO for example, looks picture below?

Technical analysis :

1. ALL MOVING AVERAGE crossed up!!

2. Two BIG CUP has formed and BREAK UP with HIGH volume!!

3. Look The Candlesticks move through Upper line of Bollinger Band!! Two Hits that indicates BULLISH trend!!

4. Relative Strength Index and Commodity Channel Index are in BULLISH position!!

5. PULLBACK TIME yeahhhhhhhh!!! Buy it at price 5%-10% from MA30 price!!

Buy it but set Cut Loss Point at MA30, but you must understand the condition that Indonesia Stock Exchange influence by Other world market like Dow Jones Industrial, Hangseng, and Nikkei!! Watch if Dow Jones Industrial Chart down near Moving Average 30, just buy with 25% of your total money!! HAPPY AND SAVE TRADING!!!!

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STILL BULLISH TILL THIS WEEEKKK

How much gain you receive this week! I already told you before right!! CHECK THIS link! Watch out profit taking will occurred next two or three days again!! My suggestion sell half your stocks and buy again when MARKET get down, do not worry its still in BULLISH TIME. BULLISH until when??? Wait after good news of G20 meetings that to give financial assistance to developing countries move away!! After that lets We see The Market go back down or up. I am afraid there is not good news after G20 meetings. Watch out HOLD half your money!

Positive market response to the perpetrators of the G20 meeting is also a momentum for the return to capital markets skittish. I expected on this week is still able to hold strongly following a positive sentiment that has emerged both from within and abroad.

Learn Technical Analysis below, and watch picture above:

1. Moving Average 30, 40 and 60 already crossed up by candlestick!!!

2. Line 1446 with candlestick formed “A BIG CUP”!!

3. GOLDEN CROSSS, GOLDEN CROSSS, what is that check here!!! If MA30 crossing up MA40!!!

4. Oho CANDLESTICK HIT TWO TIMES upper line of Bollinger band, that’s indicate trend is change to BULLISH!!!

5. Commodity Channel Index moves above 100 lines since two weeks ago!! Watch its will go down below 100 aka profit taking!!!

6. Relative Strength Index going up then it will reach 70%, watch for profit taking!!!

My suggestion buy mining sector and agricultural sector, like PTBA, ANTM, INCO, TINS, AALI, SGRO and INDF!!! BUY when Indonesia Stock Exchange (IHSG) candlestick back to 1446

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