Wednesday, May 30, 2007

Never catch a falling gem?

It has been a long time since I last posted on my blog. Please accept my sincere apologies as i have been very busy with work. I truly hope that i can start posting more regularly going forward but after my June holidays to Japan... hahaha... The blog will make me more disciplined to look at the market each day for attractive set ups.
Gems TV is one gem which you should avoid once it breaks 118 and it is still heading to new lows today and is near the technical breakdown objective of 70 cents. You can see that once a gem loses its shine, the RSI and the stochastic and remain in oversold position for a very long time.
The above chart reiterates a few points which i would like to highlight:
1. The Trend is your Friend
2. The importance of having a stop loss in your trades. Make sure your stop loss is tight.
3. Technical indicators are just as its name imply, an indicator. It would be good to know what are the fundamentals of this company, whether analysts like this company and their fair value for this company as well, As you can see, the technical indicators can remain 'oversold' for a long time so it would be wise to have some FA skills as well.


Blogger Gotham Gastronome said...

I'm a big fan of your website--you educate so many people and that's exactly what I'd like to do with my upcoming book, An American Hedge Fund. I'd love to send you an advance copy for your review.

The hedge fund industry is now a $2 trillion industry and yet, due to industry regulations, the general public knows little about them. This needs to change and that's why I've written, "An American Hedge Fund," due to be published on October 1, 2007. I promise this not the typical boring finance book!

My claim to fame is that I turned $12k into $2 million trading waaaaay too many microcap stocks from 1999-2002, created a hedge fund, became the #1 Short Bias Hedge Fund from 2003-2006, starred in the TV documentary Wall Street Warriors (500 airings now!!), and began appearing regularly on CNBC all before the age of 25.

This is no BS "How To" book--its the true story of a hedge fund created from scratch. People need to realize the hedge fund industry is not just about billion dollar blow ups and huge funds created by investment professionals who are already wealthy. My 'Rocky'-like story will surely inspire generations to come to take part in our true national sport, finance.

If you like it, I'd love to print a blurb from you on the inside or back cover and hopefully you could post a review around press time in October.

10:51 AM  
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