Sunday, May 31, 2009

You have Bad Habit or NOT for INVESTOR

Warren buffet suggestion , to become a better human being, try writing the list begins with the quality of people you admire, and also a list of the quality of the person who is not you admire. Then compare the two, and look for certain patterns therein. Then start to adopt the qualities of the person you admire before, be implemented in your life. Where, when this is done continuously, it can become your habits. If you do this again, your behavior will change. Develop your positive habits, and remove a bad habit.

Here are some question that you may often ask yourself, to ensure that you do not bring bad habits to invest in;

1. Do you make enough observations and analysis before deciding to buy a company stock?
2. Do you only check your stock prices periodic and avoid "noise" rumors of daily "people" who usually say nothing?
3. Do you always avoid tips on a stock, of any origin?
4. Do you avoid the "Crowd" and make your own investment decisions?
5. Would you show patience with the wait for a company value ?
6. Do you avoid investing in companies that do not you understand?
7. Do you act when people fear and sell on the greed of others?
8. Do you apply the rules Mark and Margin of Safety?
9. Consistent if you read the various magazines and newspapers or you can see at BLOOMBERG?

If you answer Yes to a minimum of 7, then you are a sincere pursuit Mr Buffett, and you are in the correct path in investing.


Tuesday, May 26, 2009

Is it better to invest or trade?

Is it better to invest or trade? Those of you are veterans of the market battle know if you are more inclined to trade or invest. But newcomers pften are perplexed about which road to take. Surprisingly, even some expert player are confused in their approach. They may consider themselves investors but actually have a trader’s psyche and therefore poorly.

Very successful traders are certainly scores of winning investors. What I do know it is easier for most market players to win big by following the investing path to profits. It involves less time commitment, less skill and is certainly easier on your emotions. So why should anyone even consider trading? Simple, traders need the challenge and the action. Whereas most investors are more conservative by nature and like to keep their lives relax and calm, traders lives on the edge.

Do not waste your time trying to choose trading or investing for the best way to make money. There is no best way; either approach can lead to success if skillfully applied. which approach you'd be comfortable with. Use a little introspection to find out what cloth you're cut from, and then become the best damned investor or trader that you can be! It leads to disaster if you decide to invest, but then get so angry because your stock dropped six or seven points that you end up dumping it just before the next upleg. So have an honest talk with yourself. If you obviously belong in one area or the other, then get there. Interestingly, there really are a number of market players who are in the middle and can adopt either approach.

A trader shouldn't wait for the 30-week MA to be violated on a sell off before selling. (In fact, if he can time the sale nicely when XYZ is well above the MA, me trader will often repurchase on dips back close to the MA.). trader should never stay with a position if it breaks below the MA 30 weeks by even fraction!

Investor always used 50 days MA or 100 days MA for checking The Trend! If breaks below that Moving average mostly investors sells it!


Sunday, May 24, 2009

Dow JONES is SIDEWAYS! Technical Analysis


Watch out everybody it can getting worst or better!!

Now Dow Jones Industrial at SIDEWAYS POSITION. Looks circle that shout “WATCH OUT”. The Index move between Top line 8602 point (100% Fibonacci retracement) and Bottom line 8234 point (Moving Average 30 days). Candlestick hits STRONG RESISTANCE (8602 point) two times, and hit STRONG SUPPORT (8234 point) two times that’s calls THE INDEX IS INSIDE THE BOX or SIDEWAYS. Becareful it can jump out UP or drop out DOWN. Dow Jones Industrial try to stabilize its position before take a chance!!

Fibonacci retracement lines show steps that candlestick will go or next target!! If JUMP UP next target will be 9092. If DROP DOWN next target will be 7810.

You must Understand!!

  1. The stocks still above Moving Average 30, 40 , 60!! And they are still move UP TREND!!
  2. Commoditiy Channel Index still above 0 line.
  3. Relative Strength Index still above 50%.
  4. Oil price Break out 60$. Now 61,5$
  5. Gold price Break out too! Now 958$

Still In Bull Position!!!

When I compare Dow Jones Industrial Market with the other big market like HANGSENG, NIKKEI, S&P, FTSE, dll. The result is only DOW JONES INDUSTRIAL THAT STAYS IN SIDE WAYS POSITION, BUT THE OTHER STAYS IN BULL POSISTION. It can be the other follows Dow Jones to be sideway, or Dow follow the others to be BULL again!! The last There is NO TECHNICAL CONDITION THAT SHOW DOW JONES BACK TO 6700 POINT AGAIN!! SO IT SAFE YOU can Buy whether Index touch MA30 line or near it. CHOOSEE MINING!!


Monday, May 18, 2009


Now IHSG (Indonesia Stock Exchange) in very-very BULL POSITION!! Looks Black line between two lines (A and B). BULL trend has been formed. Line A has been touch 3 times and line B has been touch 2 times, and BLACK LINE MOVES UP, then it calls BULLISH TREND!!

Since 16 April The VOLUME of transaction getting TIGHT!! Far above 200 average volume. Set your cut loss position when Black line move below MA30!!

Now its second PULLBACK TIME, black line touch line B. You can buy now or you need to wait two weeks again!!

Stock that you can Buy:

ANTM (Aneka Tambang) under 1750

SGRO (Sampoerna Agro) 1670

BUMI (Bumi Resources) under 2000

INCO (International Nickel) 3150-3250

TINS (Timah Tbk) 1800-1900

Next target IHSG GOES TO 2300!! You can sell when it reach that points!!

Technical analysis!!

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

2. Commodity Channel Index moves above 100 lines since Two weeks ago!! Watch its already go down below 100 aka profit taking, you can buy there!!!

3. Bollinger Bands upper line touch two times!!

4. Relative Strength Index still above 70% that’s still BULLISH for about one months!!!



Sunday, May 10, 2009


The Company that He BOUGHT will be as good as possible, so that fundamentally improved the performance of the business, more financially healthy and well. Companies that previously will bankrupt, can be changed by the company to become a section like sugar that were very interesting for the investor. Do not wonder if the stock price of Berkshire Hathaway - - the company used as a tool for many companies to buy - - its prices continue to increase in the capital market.

However, the business strategy that Warren Buffett used, based on patience and the patience it may be more suitable in countries where the applicable exchange his stock system has a good and strong, which should be strong supervisory control and besides publishers share to be honest. But on this part of the world system, not all exchanges his stocks good and strong, because there is a supervisor exchange can be corrupted and the company that does not contain credible.

The core from Warren Buffett Selecting Stocks :

*.Buffett buy companies that are always simple business can be understood. The Company has a past performance is consistent and has a long-term prospects are promising. This is the basic make Buffett does not want to go to Microsoft. If you do not understand the business of a company, you can not make a rational assessment of the value of investment. In addition, the management company must have three requirements, ie must be rational, open to the shareholders, company management does not imitate others, and must allocate money to investment companies that have added value for shareholders.

*. Buffett buy companies that have highest equity (ROE) good, not income per share. Difference between high and have to return every dollar that is put by the company, the company can create a minimal market value one dollar company.

*. Buffett buy stocks only if the price attractive. That is, when stock prices are falling to the bottom of the price reasonable analysis, the primary company that operates continuously and healthy. Difference between market price and the price reasonable this function as safe margin (margin of safety), which can reduce losses due to miscalculation. Margin also be a source of profits if the stock price back to normal.

Monday, May 4, 2009

Benjamin Graham and Philip Fisher

Warren Buffett bought a stock in companies that fit with his criteria, not giddy with tables, graphics and technical analysis formulas. This is more in His analytics is The Company Fundamental. His favorite book is The Intelligent Investor Ben Graham works, their teachers. according to Graham, are investing in connection with how to understand the big picture, and not glued on the technical details.

Two teachers' claim to the Warren Buffett also, besides Benjamin Graham, is Philip Fisher. Two people who are considered as BEST Teachers by Buffett has a different Investment character. Graham is well known as a value investment strategy. When choosing stocks, Graham always build on the fundamental analysis of corporate financial strategy and diversification.

This means, Graham emphasizes the quantitative criteria, always looking for the stock market price is below fair price. Instead, Philip Fisher put more emphasis on qualitative criteria. According to Fisher, before buying a stock, first see the management team managers, how the company is managed. Buffett see, there is similarity of the two people are experts. Both successful and equally long-term thinking for each investment.

For example, Graham recommends that investors choose stocks that are feasible, although the stock market is suddenly closed tomorrow. Meanwhile,

Fisher gives the example through the way he holds a Texas Instrument shares, purchased since the beginning of the company is doing private placement.

Well, Buffett is brilliant, trying to merge strategy and Graham Fisher. You can used too!!