Stocks Technical analysis 101: let's learn together

[mckoy_slipstream]

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im a newbie in the stock market scene. i dont even know how to choose what stocks to get. mga expert, i know naa na thread about trading stocks, but the thread is bloated with info's that are meant for veterans as well. what about the noobs?

what i'm getting at is that you guys need to start sharing the basics. like what considerations to look at when selecting stocks, understanding p/e ratio, understanding stock market index, etc.

i've been to countless websites but i just need to know how my fellow istoryan's are when it comes to technical analysis. links to websites that has helped you a lot will also be appreciated.

start sharing...

[quantuminplus]

sa stock picking......before u choose stocks try to research the company....look for their financial statements...... look their charts..... study study study.....and hear some news about the companies.....it's better to pick blue chips first.... like (SM, BDO,MBT, AC, AGI, JGS) nya kong confident naka sa imog skills pwede naka mag day trade..... pwde naka sa basura stocks..... dont be greedy.... kung naay good news about sa company.... basaha.... dayun para naa kay knowledge sa ilang lihok.... READ, READ, READ..... it's also better for u to read Investing the stock market thread....then after that adto na sa Trading the stock market

[MK]

nice topic here...
I guess this is more on trading and technical analysis..

In my case...just summary of what I usually do.
(dili ni sa mga highly speculative stocks ha or mga basura hehe nor stock picking for Investment portfolio)

1. Creating a Watchlist
- Look for potential stocks and arrange per sector
- In every sector, naa gyud na at least one diha nga mo standout or trending
- Check analyst reviews/concensus (for buy reco/intrinsic value/growth potential)..most broker carry and regularly update this info. Check Reuters website too. Some issues of news papers naa sad ni.
- Arrange imo watchlist per sector in a way na naa sa top ang mga potential movers

2. Conduct technical analysis
(you can do fundamental analysis sad...but since techy man ato topic, I'll stick to that)
What tools to use?
- depend gyud ni sa knowledge and experience sa trader...
- I see myself as a beginner always when it come to this topic...always hungry to learn more

Anyway, here's what I do:
2-1. I check for trends/potential momentum trades using moving averages
- my favorite indicator kay 5EMA and 20SMA (with modified bollinger band to provide me envelope range)
- I use 50 and 200 only to look for bigger trends but not a higher priority.

2-2. I check for Support and resistance...all possibilities
- previous high/low, congestion area, trend line support/resistance, using fibonacci retracements, ug uban pa.
- look for potential buy/sell zones/scaling area

2-3. I check for divergence
- I use MACD indicator ani with main focus on MACD-H and 2nd on MACD signal line for divergence.
- Sometime I also use FI indicator but I never use other indicators for divergence hunting aside ani 2.
- I check weekly data first then daily. If I plan to day trade the stock, I use intraday data (may be limited sa others na wala access on platform with detailed intraday data)
- I look for potential Buy/or sell/profit taking information

2-4. scan for chart patterns (need to familiarize on various chart patterns of stock)
- check on patterns with high probability (very subjective if not art hehe)
- potential support/resistance that can be extracted out of this patterns
- check for potential buy area and target area

2-5. do candle stick analysis

2-6. sometimes I run simulation/backtesting (I use amibroker for this kay mas familiar ko sa programming language)...

some situation calls for some specific indicators but I seldom use it labi na if it takes time and too much math involve just not practical IMO.

3. Feel the market..look for radio baktas news hahaha...see if it further backup your stock picks
again, analyst opinion, forums, gurus, and other source of information are very useful...pero don't take it as is, run it with your own analysis and see if it stacks up in your favor.

4. Update your list and review regularly for changes...dump those not worth your time hehe.


....sa sunod na pud uban hehe

[makie]

There's Google, that could be your best friend. I'm Google trained in terms of stock market trading.
So I suggest you do this, (yes, Google these terms in order)

1.) What is the stock market? What are stocks? How do I earn in the stock market? Why do companies go public?
2.) What is the PSE? What are the companies listed in the PSE? What is the PSE index? What are the companies listed in the stock market index
3.) What is stock market trading? Also "google" these terms: day trading, swing trading, buy and hold
4.) Japanese Candlesticks. Japanese Candlestick patterns
5.) What is technical analysis? How to read stocks charts? How to analyze stocks charts patterns? Put emphasis on this one as of now (meaning, use your best friend Google to search these terms): support and resistance, uptrend and downtrend, bullish chart patterns, bearish chart patterns.
6.) What is fundamental analysis? How to read financial reports? How to find a fundamentally sound/good company? Put emphasis on this one as of now: P/E ratios, EPS
7.) How to cut losses? -> This is very important yet very, very overlooked because most traders only focus on the gains. They scramble when the prices go the opposite way.

You don't need to understand everything about the stock market in order to start earning. The most important thing is for you to get your feet wet. Open an account and start trading even for just a minimal amount. All you need to have in stock market trading is a good strategy and that means a good entry and exit points (yes, that includes cutting your losses), some TA (tsismis analysis) because the PSE is rumor driven, and lots and lots of guts for a start.

In time you'll get comfortable with trading and you can start to classify yourself as to what kind of trader are you (day? momentum? swing? or an investor?).

[mckoy_slipstream]

salamat. copy-paste na ni tanan. murag ma-busy jud ko ani dah. will open an account soon with metrosec, kay naa man ko metrobank direct acct use to pay my dsl bill. hehe..

[neshem]

kung ganahan ka magbasa basa sulod lang ani na library og hinay2 lang...kay ang mata gamiton pa inig trade

/Trading Books/

[istoryamember]

i use volume and price action. Sometimes if maklaro nako ang formation sa elliot wave then I will use that para guide. MACD and RSI signals pud. Kana ra kay dili ko ganahan daghan tools Bitaw para nako pwede ra na experimentohan nimo ang mga tools nga imo gamiton. Set aside lang ug fund pang "tuition fee"

[nodols3]

I would recommend 1 ton of study 2 tons of research and 10 tons of attitude towards the market.

The 1 ton of study would include - reading books, I recommend books specifically for "Value Investing". Books from Warren Buffett and Benjamin Graham are a must. You can forget anything else. He if you want to invest, why not invest in the way how the best in the industry invests?

No other person portrays with utmost integrity and talent when it comes to investing other than Warren Buffett. If you plan to start, start by reading about the best. I figured you still have a lot of time to study and gather money to build your asset column. So while you are gathering money for investing in stocks, basa lang usa. Then later you will find out that much of Warren Buffett's strategy is heavily bounded on Benjamin Graham's strategy. So if you plan to know how the best in investing invest in stock, you should read what he had read also when he was still young. It's no other than the book "Security Analysis by Benjamin Graham"

2 tons of research. Later when you find out about them, You will know that they have their method on how to pick stocks or businesses. And that includes tons of research. Actually 2 tons is an understatement Warren Buffett at his age of 80 still reads everyday he has a voracious appetite when it comes to learning about the businesses that he likes. He's simple ideas of:
1. Investing only on the business that you know of
2. A business that has durable competitive advantage
3. A management that has integrity and talent
4. A fair price for a stock.
Has been his guiding principle all along,but remember in designing a simple system it is the designer's vast amount of time and effort and know-how that makes it simple. So do the 2-ton research.

10 tons of attitude would be about setting up your attitude towards the market. I have a friend who keeps losing money because he buys at rising market and sells at a going down market. As crazy as it sounds, it does happen a lot. So as what they all say, attitude is very very important when investing in stocks. It does not weigh ten tons if it were to be taken lightly.

[arclops]

I would recommend 1 ton of study 2 tons of research and 10 tons of attitude towards the market.

The 1 ton of study would include - reading books, I recommend books specifically for "Value Investing". Books from Warren Buffett and Benjamin Graham are a must. You can forget anything else. He if you want to invest, why not invest in the way how the best in the industry invests?

No other person portrays with utmost integrity and talent when it comes to investing other than Warren Buffett. If you plan to start, start by reading about the best. I figured you still have a lot of time to study and gather money to build your asset column. So while you are gathering money for investing in stocks, basa lang usa. Then later you will find out that much of Warren Buffett's strategy is heavily bounded on Benjamin Graham's strategy. So if you plan to know how the best in investing invest in stock, you should read what he had read also when he was still young. It's no other than the book "Security Analysis by Benjamin Graham"

2 tons of research. Later when you find out about them, You will know that they have their method on how to pick stocks or businesses. And that includes tons of research. Actually 2 tons is an understatement Warren Buffett at his age of 80 still reads everyday he has a voracious appetite when it comes to learning about the businesses that he likes. He's simple ideas of:
1. Investing only on the business that you know of
2. A business that has durable competitive advantage
3. A management that has integrity and talent
4. A fair price for a stock.
Has been his guiding principle all along,but remember in designing a simple system it is the designer's vast amount of time and effort and know-how that makes it simple. So do the 2-ton research.

10 tons of attitude would be about setting up your attitude towards the market. I have a friend who keeps losing money because he buys at rising market and sells at a going down market. As crazy as it sounds, it does happen a lot. So as what they all say, attitude is very very important when investing in stocks. It does not weigh ten tons if it were to be taken lightly.

I'm also recommending value investing to TS....less stress....

[MK]

para sa gusto na mag-practice sa ila skills on Trading/Investing, create an account on this site.
Very close to the real thing gyud ni.

PSE Stocks Trading Game...you start with 1 million cash

http://www.pse.ph/html/STG/index.html