The story of the bear

The technical aspect of KLCI after breakout from the heard psychological resistance level has indeed draw much attentions from the future unfortunate souls. It is suddenly many people seems to start to get interested in stock, where many traders are marching their capital frantically into the market. While i am still holding a balance view, on how true and genuine this bull run could last, i am already almost 75% invested in the market. I dun anticipate a bull market, and i need to know that as well as to do that; because to be successful, i must not anticipate any market movements, to remain poise and avoid emotional distractions to creep into my mind, be it consciously or subconsciously. When i was asked on the matter, always i would like to say, when you see the sky is gloomy and the wind is strong and you could smell the rain is approaching, most likely, a storm is awaiting you soon. However, be reminded that, not every gloomy sky will be accompanied by rain. Sometimes it does, sometimes not. That is exactly what happen to KLCI, when both the volume and price level rally together, breaking new highs for 9 years. I just saw lighting and i heard the sky roaring, i cant be sure if a storm is approaching, but according to my experience, if there are going to be any storm, the sky will first get gloomy often lighting will follow.

The technical analysis aspect of the chart is not the most important thing i think to be successful in stock trading. For any serious trader, he could easily learn all these technique by having a 1-year full time intensive guidance by successful mentor (Just pay RM20k first, and i can assured you there are many stock trading mentors in the market that are going to help you).

However, ability for a trader to avoid the trap of the bear is not something that could be learnt easily. The bear is cunning, and it cant be detected from any of the most sophisticated charting tools in the marketplace. At the first movement you gain a 5% return upon your entry into any investment, the seed of the failure is planted. From the very first moment of winning even small return from penny stock, hope and many other disastrous emotions spring into life. It is at this moment, your worst enemy, is born within you yourself. In stock market, it is called a bear, a invisible one.

to be continue...