Category Archives: Stock Trading

Stock Trading

Apple And Goldman Crash, But Is the High Still Coming?

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Stock Trading Patterns

On the 19 Jan the stock market bled out with a river of red candles. All of the recent gains vanished in one session. Strong selling volume sessions like this are typically a warning sign that distribution selling is starting to enter the market.

Distribution selling is when the big money players start unloading large positions in anticipation of a market top. They do try to hide it by selling into good news or earnings when the average investors are buying into all the hype of better than expected earnings on the news. As average investors jump into the market because of the good news, this extra liquidity helps the big money players (banks, hedge funds, etc..) sell large amounts of their positions to the eager buyers. This is why the “buy on rumor and sell on the news” saying is kicked around wall street….

To me, panic selling is typically seen as a bullish sign to enter the market simply because if everyone is/has rushed to the door to sell what they own, then really most of the down side risk has been taken out of the market. That being said after an extended multi month rally and higher than selling volume I look at it more like distribution selling and a shift in momentum.

I feel the precious metals sector will be starting something like this in the near futures, and possibly it has already started as seen in the rising volume on the down days.

Let’s take a look at the charts…

AAPL – Apple Stock 10 Minute Chart
Two days ago AAPL shares took big hit because of some medical issues with the CEO, the shares did float back up. But what is important here is the distribution selling which took place after Apple came out with much better than expected earnings. The general public loves to buy good news especially when it’s for a famous company. But large sellers stepped in unloading as much of their position as they could before making it look to obvious.

The average investor listening on the radio or catching snippets on the news do not pick up on these things which is why the big money players can get away with this over and over again.

Panic Selling
Panic Selling

GS – Goldman Sachs 10 Minute Chart
Goldman came out with average earnings being just above estimates and the share price took a beating with very strong volume.

Distribution selling looks to be entering the market and this is a bearish sign. I would not be surprised if we see the market top out in the next 5-10 trading sessions.

SPY – SP500 10 Minute Chart
Here you can see my green panic selling indicator spiking up much higher than normal dwarfing the past sell off spikes. This makes me think the big money is now starting to unload which will shift the current upward momentum to more of a sideways whipsaw type of price action. Eventually it will roll over and a new down trend will start.

As you can see from this chart the SP500 is trading down at a support level so a bounce is likely going to take place. If in fact today was the first distribution day then the big money should let the price inflate back up to the recent highs and possibly make a new high to help keep investors bullish before the hit their SELL BUTTON again… They like to play these games and understanding them is a key part of trading. Expect choppy price action for a week or two…

Silver Daily Chart – The Next Wave of Selling?
I look at silver and gold as one… so what I show here is the exact same for gold.

As you can see silver is trading under 3 of its key moving averages and todays bounce was sold into after testing the 14 and 20 period moving averages.

Take a looking at the bottom of the chart and you can see distribution selling volume as the spikes are all down days. If silver breaks below the $28 level then we could easily and quickly see the $26 and maybe even the $24 level.

Silver trading pattern
Silver trading pattern

The Mid-Week Market & Metals Trading Conclusion:
In short, the financial power players are pulling out all the tricks to shake traders out of their positions. A lot of people shorted the market in the past 2 weeks only to get hung out to dry and most likely stopped out of their short positions for a loss. Fortunately we did the opposite taking another long position in the SP500 ETFS because my market internal indicators, market breadth and simple trading strategy clearly pointed out that the average investor was trying to pick a top by shorting the market. As we all know, the market is designed to hurt the masses which is why I focus on the underlying trends, price action, volume and market sentiment for timing trend changes.

That being said, I still think the market could grind higher and make another new high. But any rally or new high will most likely get stepped on with heavy selling. Expect strong selling days followed by a couple days of light volume sessions where the price drifts back up into resistance levels. This could take a week or two to unfold so don’t jump the gun and short yet. It’s best to see more distribution selling before picking a top.
If you like this trading reports or if you would like to get my daily pre-market trading videos, intraday charts, updates and trade alerts be sure to join my newsletter:

Chris Vermeulen

Stock Trading

How to Stock Pick Or Choose the Best Share to Buy And Sell in Malaysian Stock Market?

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Stock Picks
Stock Picks

How to stock pick or choose the best share to buy and sell in Malaysian stock market?

By Martin Wong

Honestly speaking, it is difficult to stock pick the best share to buy in the bull market as most good counters/stocks have raisen a great deal. While in the bear market nobody can guarantee that the current low stock price has reached its bottom already.

For the typical investor, says Mr. Joe Average, he who regularly chooses the best stocks based on hearsay, analysts’ stock reports or economic forecast. He watches local & international business channels or listen to well-dressed people talking on TV who thinks they are very knowledgeable. And finally, he believes them – else they would not be on TV, right???

The average investors/traders pick a stock no one has really heard about and hope it would make them really, really rich! However the chosen stock could go in any direction. This is highly risky not knowing whether the company can produce future earnings and profits. How to choose the best stocks usually involves blue chips stock that are household name companies or fairly well known companies in Malaysia or globally. You can choose the best stock over the markets or the best sector they are in.

Subscriber can email me for stock-pick-the-best list.

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For most average investors/traders I have interviewed, learning to stock pick the best share to buy or sell can be difficult because they either have little or no plan at all as to why they are buying at the first place. The first question we need to ask ourselves is “why are we buying or do we have investing stock goals or trading strategies” but unfortunately many traders and investors cannot even provide an answer. If you are a long term investor (I do not support buy, hold & pray), you would have a very different buying system criteria to a short term trader who buy and sell within very short period of time. So it is very important that you need to be very clear of your investing goals and trading objectives. Make sure you can differentiate between your long term investment goals and short term trading strategies.

From my own experience having been in this online stock trading business for years that the simpler the system for stocks picking the better, and the good news is you do not need to rely on stock market experts or stock market gurus to tell you what to buy or sell. All you need is some effort, hard work and lots of practice with a few tools available for a very low cost. The process I use to pick the best stock to buy is largely a technical analysis which includes many elements of fundamental analysis at the macro-economic level. The process is fully explained in my investing & trading course, but the principles are as follows.

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We start to look at the Bursa Malaysia Saham stock market companies as a pool. We begin to make selection on the individual stocks or the best sector and at this stage the very simple and common indicators are used. Using a technical analysis tool, I would identify some possible prospects for the best stock to buy and are placed on a watch list and monitored daily. How long they remain in the watchlist folder depend on the daily stock price chart.

We wait for clues in changes in the technical analysis landscape to trigger our buy signal and buy order. After placing the buy order we always put a stop loss in case the price trend reverses suddenly. The stock market is so uncertain that we have to protect our capital. The only technical analysis tool that I use for the above analysis is a simple end of day charting package called MetaStock software which I have written technical codes (filtering the required best sector or by price movements) to do just the stock picking.  

In short, the process to choose the best stocks to buy starts with the macro level and moves down to combination of using both technical and fundamental data. Although it sound very complicated, it is very easy to use as many of our course graduates have used them for years with great success. For new traders and investors, it is better to start off paper-trading to allow you to overcome the steep learning curve e.g. various trading strategies, unpredictable stock market behaviour and comfortable with placing order online for online trading.
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To be successful, you have to model after successful investors and traders who been through the blood and sweat who know how to pick the best stock to buy. Success lies on yourself and the effort you put in at the start – I hope the above article would help to put you into the right path. For more information, goto www.traderstruthrevealed.com for the Malaysian stock market.

Stock Trading

THE CHINESE Stock Market: Showing Signs of Tremendous Growth

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The NASDAQ is the world’s largest stock trading hub. Investors, brokers, traders all have their stakes running from a few cents to billions of dollars established here. Along with the New York Stock Exchange, this is the bread and butter stuff the world looks up to.

China is a rising name in world economy. The pace at which this country is working towards strengthening its grip on world affairs relating to politics, economy, sports, and culture, is astonishing to say the least. The number of Chinese corporations, from small and medium enterprise companies, all are making their presence felt across the globe. Whether it be hardware for manufacturers in the automobile, consumer appliance sector or software for IT firms, China is ahead of every one else. The list Chinese Stocks NASDAQ exchange outnumbers those of any other country in the world. The Chinese Pink Sheet Stock traders are considered the more aggressive among their counterparts from other countries. Investing is more intense and there seems to be a higher willingness towards risk taking among the Chinese.

The Chinese Stock research has shown a rising number of investors riding high on the country’s stupendous economic performance during the last one decade. Markets are bullish most of the time of the year thanks to the encouraging GDP figures. The recent financial meltdown had many nations seeking desperate countering measures. China however had its crucial sectors fairly well knit together and this helped the country sail through those tough times with minimum fuss. China is a heavy investor in defense equipment and this constitutes a considerable share of its expenditure. Stocks of arms and defense equipment providers are noted to be quite preferred among the Chinese investors. With share prices among the highest in the market, they are among the most tempting of all investments.

The Chinese have always maintained a strictly communist approach towards its political dealings at the international level. This reflected in its economic outlook as well. But that was up till now. From everything state-owned, China has finally let itself, its approach change according to the changing world order. There is now an increased public-private interaction. The public sector has rid itself of much of economic dealings and has allowed booming Multi National Corporations to set up station in its so far state controlled market. No wonder this ‘transfer of power’ coupled with the robust economic past guarantees China a much envied position in world markets in the near future. The tag of a “Superpower”? Well, it’s just a matter of time and China will see this title in its kitty too.

Stock Trading

Stock Market for Dummies – How Does The Stock Market Work?

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Stock Market for Dummies – How Does The Stock Market Work?

Stock Market for Dummies – How Does The Stock Market Work?


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Home Page > Finance > Investing > Stock Market for Dummies – How Does The Stock Market Work?

Stock Market for Dummies – How Does The Stock Market Work?

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Posted: May 06, 2010 |Comments: 0
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How does the stock market work? What is a stock? both are logical questions to ask before deciding to put your money in the stock market. To help you understand a few important concepts about stock market, in this article we will cover:
• What is a Stock?
• Why does a Company issue a stock?
• What is the benefit of owning a stock?
• Stock Market for Dummies – How does the stock market work?

What is a Stock?
A stock represents shares of ownership in a company. Anyone who owns a part of ownership in a business is called a shareholder or a stockholder. As a shareholder, you will receive a stock certificate that shows you own a piece of a company.

Why does a company issue a Stock?
To raise capital a business can borrow money from the bank or sell (issue) shares of its ownership interest (equity) to the public.

When you own a piece of a company you’re called a shareholder or a stockholder. The proof of shareholder’s ownership in a company is documented in a paper called a stock certificate.

What is the benefit of owning a stock?
If you own shares in a profitable business you can make money in two ways: by receiving dividend or by selling your stocks at higher values.
A dividend is a share of corporate profits that is paid (often in cash) yearly to a stockholder. Not all companies pay dividends. Stocks of company that pays no dividends are called growth stocks. Income stocks are stocks of company that pay dividends.
Stock Market for dummies – How does the Stock Market work?
A stock market is the place where the activity of trading (buying and selling) stocks and other securities (like bonds) takes place. A stock market is orguanised in stock exchanges where the trading of stocks physically or virtually via a computer takes place. There are few major stock exchanges in the world./div>

There are three major stock exchanges in the United States:

The New York Stock Exchange (NYSE).
The American Stock Exchange (AMEX).
The National Association of Securities Dealers Automated Quotation (NASDAQ) .

The other major stock exchanges are:

London Stock Exchange (LSE) in the United Kingdom.
Frankfurt Stock Exchange in Germany.
Euronext which contains the stock exchanges of Paris (France), Brussels (Belgium), Milan (Italy), Lisbon (Portugal) and Amsterdam (The Netherlands).
The NYSE and the EURONEXT have merged and is now called NYSE EURONEXT.

This concludes the basic knowledge about stock market for dummies and how does the stock market works. To learn more about investing in the stock market visit our section of “stock Market Information”

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Christian Bayonne –
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Christian Bayonne is a do-it-yourself investor, who has been investing in stocks for the last decade. He is also the co-founder of Stock Picks Canada, Europe, US.

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Stock Trading

Toronto Stock Exchange – Significant Things You Ought to Be Aware of

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Toronto Stock Exchange – Significant Things You Ought to be Aware of

Toronto Stock Exchange – Significant Things You Ought to be Aware of


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Home Page > Finance > Toronto Stock Exchange – Significant Things You Ought to be Aware of

Toronto Stock Exchange – Significant Things You Ought to be Aware of

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Posted: Jan 08, 2011 |Comments: 0
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Looking to buy stocks in the mining sector? What about from the oil and gas industry? Then, you’re in luck. This article is about the world stock exchange leader where the mining and oil and gas segments are concerned: The Toronto Stock Exchange. It lists more of these companies than any other stock exchange in the world.

While not as known as the New York Stock Exchange or the NASDAQ, the Toronto Stock Exchange is the largest stock exchange in Canada, the third largest in North America and the eighth largest in the world in terms of market capitalization. The Toronto Stock Exchange or TSX is headquartered in Bay Street in Toronto, the largest city in Canada and is owned and operated by the TMX group for the trading of senior equities. However, the TSX does not only trade conventional securities. It also dabbles in exchange-traded funds, split share corporations, income trusts and investment funds.

It currently lists more than 1,300 companies not only from Canada, but from the United States, Europe and other countries as well. Trading hours are from 9:30 A.M. to 4 P.M., Monday through Friday. They have a short post-market session from 04:15pm to 05:00pm, all times on ET.

Historically, the Toronto Stock Exchange can be traced from the Association of Brokers. However, the TSX was officially created by a group of 24 businessmen who congregated at the Masonic Hall on October 25, 1861. Formal incorporation of the exchange happened in 1878, through an act of the Legislative Assembly of Ontario. Since then, the TSX has grown continuously both in size and in shares traded. In 1914, however, the TSX was shut down for three months for fear of a financial panic that would ensue because of the impending First World War. It has not stopped trading after that. On April 23, 1997, the Toronto Stock Exchange switched to virtual or electronic trading.

As the leader in the trading of mining, oil and gas stocks, the Toronto Stock Exchange had listed 434 oil and gas companies by the end of June 30, 2007 that held a total market capitalization of 4.9 billion. The combined market capitalization of the 1,498 companies in the Toronto Stock Exchange has reached ,105,570,021,017.

If the NYSE has the Dow Jones Industrial Average and the NASDAQ uses the NASDAQ 100 as its benchmark indices, the TSX utilizes the S&P/TSX Composite Index, formerly known as the TSE 300 as its stock market index. The S&P/TSX gives an overall view of how well the Canadian market is performing based on the companies included in the benchmark.

The Toronto Stock Exchange is also dubbed as the center for banking in the country since it is home to the CIBC, Bank of Montreal, Bank of Nova Scotia, Royal Bank of Canada and the Toronto-Dominion Bank. These are known as Canada’s Big Five commercial banks. Other companies listed in the exchange include Cameco Corporation, Canadian Natural Resources Ltd., Canadian Oil Sands Trust, EnCana Corporation, Husky Energy Inc., Imperial Oil Ltd. and Nexen Inc.

Lastly, read these DecisionBar reviews and find out the truth behind the Decision Bar trading system.

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Shane Vliet –
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Long-time stock and options trader, happily married father of two, and world traveler.

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How is the stock exchange market conducted ?
How many companies are listed on the london stock exchange ?
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