Weekend.... Time to have fun & get a bit lesson

Today, as I promised, weekend will be additional information that you can gain from my blog. Now, we'll talk abvout the TYPE of INVESTOR/TRADER inside the market.

As most people know that, there are only two types of trader inside the market. But actually, a lot of people didn't realized that actually there are 3 types of trader based on the style of trading. What are they??

1. Short-Mid Term Trader (0-1 year)

This type of trader usually doing a trade from a day-trade (intra-day) up to a swing trade for a year. Most of this type of trader only consider technical analysis to enter the market, even some still consider a bit about fundamental analysis. This type of trader usually quite 'greedy' and a bit 'fearless' but still they are not that greedy & not that fearless. They are quite consistent with the system they use and chart seems to be their language. Usually, the profit made is not more than 75% of their capital.

2. Mid-Long Term Trader (> 1 year(s))

This type of trader usually looking for a long term prospect company before they invest their money inside the company. Fundamental looks like everything for them, without fundamental report, they won't invest on that. But once they invest they will keep checking out the fundamental report of the company to ensure that they are in a 'good boat'. Usually they have no entry & exit system, everything is based on calculation & valuation of the stock. But most of the time, they are quite fear when the price has gone up, as they believe "What goes up will eventually goes down", which is sometimes are not believed by Short-Mid Term Trader. And most of the time they invest in a defensive stocks which will not be affected so much when crisis come. Finally, the profit usually more than 75% of their capital.

3. Speculator (gambler/scalper)

This type of trader is the most dangerous one & yet this type of trader is also the fastest to get the return of their speculation. This type of trader usually using their feeling to enter the market, when it goes up, they will follow & when it goes down they will short. Mostly, this type of trader 'die' in the middle of the war as they are doing a high risk thing which is not suppose to be done, but low-medium risk is expected. We can call them as scalper as they don't expect too much on the profit margin, they just think that if the profit is enough for them, then they will liquidate immediately. Usually their profit is not more than 10% of their capital. Yet they believe that High Risk will bring high return, which they don't realize that it will also bring high losses.

Based on the method of trading , there are also 3 types of trader:

1. Fundamentalist

This type of trader usually counting a stock using financial statement to know whether their stock is cheap or expensive. Ratio mastering is a must for them, like P/E, PBV, etc. A lot of ratios are required before they buy the stock. Cheap & expensive is again determined using ratios and sometimes becoming very subjective. Some people think that 10x P/E is cheap, some think that it is expensive (5x P/E is cheap). Can be said as quite no standard when determining the cheap or expensive of an equity.

2. Technician

This type of trader usually determining the price using chart, which is believed to be a language that will expressed the price whether it is cheap or expensive. This type of trader usually don't consider about fundamental data, but some still need it to ensure their picks. Usually, they are quite discipline to the chart, when the chart says enter, they will enter & they can be said as a systematic trader. There are two types also of technician, Traditional & Modern Technician. Traditional Technician usually using lines, trend lines & chart pattern to look at the chart, modern technician usually using indicator to determine the chart. But most of the time there's no pure traditional or pure modern one, most are double checking toward each other. Usually, a technician states their trading plan very clearly.

3. Feeling trader

The most dangerous one, who do their trade using feeling as a decision. They believe that their "Feeling Analysis" is the best, yet after they lost they will say that the 'BIG' player has bully them, which actually because they have no plan in their trading. This is the worst one, don't follow this type or you'll 'die' in the market.

Decide which type & method you are NOW!!! Have a great weekend....

Happy Investing^^

Disclaimer ON!!!

Current Position

Bank BJB (BJBR.JK)

This stock is now forming a same pattern as a previous formation before it continues its increment. This can be a good consideration for us to still holding this position as long as the support is not broken.

Rating: HOLD, S/L: 1530-1520

Media Nusantara Citra (MNCN.JK)

After being quite long time forming a "pennant" pattern, now it looks like that it will go up soon. Don't reaccumulate, but hold your position, once broken 435, we can add up or enter.

Rating: Hold & Accumulate if break (Entry: 440-445), S/L: 395-390

Mitra Adiperkasa (MAPI.JK)

After being accumulated, MAPI is becoming stronger, as the last day trade we can see that now it formed a Bullish Engulfing Pattern after being in balck for 4 days, which means it is a very strong reversal, a long big candle with a volume shock.

Rating: Hold & Accumulate if break (Entry: 2475-2500), S/L: 1990-1980

Sorini Agro (SOBI.JK)

After going down some days, seems that SOBI is now well accumulated & ready to continue its bullish movement. See the almost same pattern as previous one.

Rating: HOLD, S/L: 2575-2550

Bank Nasional Indonesia (BBNI.JK)

This stock is really good, even index went down, it still can hold the position as defensive as possible. Just hold until the Right Issue if there's NO sell signal.

Rating: HOLD, S/L: 3600-3575

Intiland Development (DILD.JK)

Even our index went down around >1%, this stock still able to keep its level at around the resistiance. I'm expecting an upward movement of the stock, as a big gap is waiting at the top, yet the MFI is showing a Bullish Convergence that support my opinion to buy this, the other supporting idea is the price is expected to be more limited to decrease further.

Rating: HOLD, S/L: 445-440

Tunas Ridean (TURI.JK)

We can see some accumulation is still taken place, the stock isn't let ti be decrease, but still in progress to increase. The decrease is also become more limited as we can see that the MFI is now oversold.

Rating: HOLD, S/L: 810-800

Hotel Sahid Jaya (SHID.JK)

This stock had just made a new high again which is an all time high. We can see that this stock was very strong yesterday. As we can see that even index was going down, the stock is at the level & increase in price, which seems to be very strong & soon to break another high again next week.

Rating: Buy On Break of 1110 (Entry; 1120-1130), S/L: 960-950

Bank BTN (BBTN.JK)

This stock was distributed by some 'BIG' players, this made the stock back to the down trend channel. But still we can see that this stock has consolidated quite a long time. But I'm still optimistic to the stock that it will increase soon, as the MFI is showing a Bullish divergence.

Rating: Buy On Weakness, S/L: 1800-1790

Happy Investing^^

Disclaimer ON!!!

Reddish but Defensive

Today, honestly saying that my portfolio is not healthy, but yet, the stocks are defending. We can see some of our stocks even yesterday skidded  down, but still our stock today is at almost the same level as yesterday, which I think that they are netting on those stocks.

Just be patient & cool. Remember to seal your downside. Cut your losses & protect the profits.

Happy Investing^^
Disclaimer ON!!!

EZ Stock List (Oct 6, 2010)

Stock list for today as I said just now, will be from Construction, Infrastructure & Banking. Why I chose this sector? Because today the announcement of BI Rate is as expected which is staying at 6.5% (un-change). This will make the performance of Banking firm will not far away from the analyst prediction. The other sector is Construction & Infrastructure. Why those two will follow?? Because the bank lending rate will be the same, so the sales of those sector which are also very depending on the BI Rate is also affected, automotive will also probably be affected.

Bank Nasional Indonesia (BBNI.JK)

Today it has broken the resistance level of 3350, yet after the shock of bank stress test which pulled it down, is also considered as a correction. Now it has been quite calm yet analysts said that Europe Bank stress test will not affect so much toward Indonesian Bank. Also we must remember that this bank is in uptrend position, so it is very suit for us to collect. Today a lot of foreign brokers accumulate this stock.

Rating: Buy; Entry: 3775-3800, S/L: 3575-3550; TP: 3975-4000 (if broken, HOLD is the best)

Bank BTN (BBTN.JK)

Today it is accumulated by Credit Suisse and also CIMB in a great amount, this can be the indication of good prospect or news might be gained. Beside the good news of BI Rate is maintained.

Rating: Buy, Entry if break price >1890 (1900-1910), S/L: 1800-1790, TP: 1990-2000 (if broken, HOLD to 2200)

Intiland Development (DILD.JK)

The property company that might be affected, with the BI Rate. The price has been consolidated a mean while outside the Linear Regression line, which had happened last year. This might make the History repeat again. After consolidated outside linear regression and then back to the track & go upward faster. Yet the gap we can see at April which was a gap down is closed very fast, now there's still a gap after the news of placement, this will bring an advantage for us, as the GAP is still exist. Most indicators are oversold & some are golden crossing today like MACD 21 days.

Rating: Buy, Entry: 500-520, S/L: 480-475, TP: 640-650 (if broken, probably will go further to 770-780.

PT PP Persero (PTPP.JK)

This stock after a shock last month, it consolidated quite a long while. But seems to day it did a bottom reversal, but I can say that it is not quite valid yet after it touch 990. So, if it touched 990, then it is a good sign for us to re-enter at this stock.

Rating: Buy, Entry: 990-1000, S/L: 880-870, TP: 1020-1030 (if broken, probably will go to 1300-1350)

Astra Int'l (ASII.JK)

After consolidated quite a long time, ASII seems to be quite strong with the current position. It holds very strong at this level & yet still accumulated but only soft distribution is seen.

Rating: Buy if break 60400 (60450-60500), S/L: 58650-58600, TP: 62000-63000

Tunas Ridean (TURI.JK)

The other automotive company that is included here which is still consolidated is TURI. This company hold BMW, Daihatsu & Toyota reseller license also. We can see after the strong upward motion of TURI, it seems that it will continue again.

 

Rating: Buy if break 950 (960-970), S/L: 860-850, TP: 1080-1100 (If broken, just hold)

Happy Investing^^

Disclaimer ON!!!

Infra, Construction & Property

Tomorrow is the day of these 3 sectors.
More hints will be given tonight...
You can have your own notes & if you want to consult, later ask me... These 3 sectors only or might be more, together with some automotive ones.

Happy Investing^^
Disclaimer ON!!!