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XAO Technical Analysis

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Re: XAO Analysis

Lots of post on here today. I wounder if that's because everyone is now in cash? Nothing to do? Not buying not selling?
 
Re: XAO Analysis

Temjin said:
Well, that's my own belief Trade_It.

I understand investing and trading are two very different approaches. How about I reword this, I don't believe in the term "long term investing" because I never liked the idea of invest, diversify and then sit on it without doing anything regardless of the market condition for the long term.

I have an exit plan when I "invest" for the long term. I exit my positions if my original assumptions are wrong, that is, the market is no longer bull for the short term and there are too much uncertaintely in the market. Of course, I may be wrong in this, but I am just exercising my own plan I have had in mind.

My definition of long term trading is one may invest for the long term but he/she is always better off to have a proven plan (you can call it investing/trading/whatever) to enter or exit the market whenever deemed necessary to profit and cut losses short.

What's the difference between investing and long term trend trading anyway? (long term as in years)

That is why when people say they invest for the long term, and they exercise trading techniques (sell, wait for correction, go back in again later with fundamental confirmation), are essentially long term trading.

Hope that clears up things a bit. Of course, you may have your own belief in the definition of investing and trading. To me, only trading make senses because everyone does it subconsiously anyway, though not necessary in a disciplined way and with a plan.
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I see your points.

You are talking about having a plan which every Investor / Trader should have.

Investors that do not have a plan and buy in with hope and nothing more, are gamblers in opinion.

There is a chapter in Market wizards on David Ryan - Investment as a treasure hunt. That really defines what investing is all about. It also shows with the right plan and approach how financially rewarding long term investing can be.

Good trading.
 
Re: XAO Analysis

trembling Hand said:
Lots of post on here today. I wounder if that's because everyone is now in cash? Nothing to do? Not buying not selling?
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Temjin,

One of my observations is when ever we have a sell off or correction the thread heats up and once the market stabilizes it quietens down.
 
Re: XAO Analysis

Trade_It said:
Temjin,

One of my observations is when ever we have a sell off or correction the thread heats up and once the market stabilizes it quietens down.
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Heh, doesn't that explains alot already? Cos a massive sell off or correction is exciting or alarming (dependant on one's current position) and obviously attract people coming in here to look for other opinions.

It's important that everyone should be responsible for themselves and don't take anyone else opinion here without consulting YOURSELF first.

If you made a mistake, then learn from it and try again later. If you made the right decision, then also learn from it and try to do it again next time.

Do anyone else notice a change in their general "atmosphere" in your own office? (if u are working) You can obviously tell certain people are fairly paranoid or stressed at the moment. At the end of the day, it's always good to have a plan because it detachs you emotionally from being one of them.

Going way off topic anyway.

My opinion is that there are just too much uncertainly going on right fundamentally wise right now. I have not seen anyone who could give a definite answer on how all this credit bubble will affect the rest of the market or even down to the individual companies. While the politicans say it's all ok and encourage everyone that everything will be fine because we have a strong economy, the economists/seasoned investors will say the credit market may be worse than expected and have already started affecting other industries. (with problems still hidden from the general public)

So what I am going to do is to listen to my own technical reasons and take a cash position regardless of the fundamentals for now.

(P.S: and no, I'm not day trading the equity market right now, and don't plan to do so for this particular occasion yet)
 
Re: XAO Analysis

trembling Hand said:
Lots of post on here today. I wounder if that's because everyone is now in cash? Nothing to do? Not buying not selling?
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This is the time to be trading indices in my view. Other than that i haven't even had time to short individual stocks.

Cheers,
 
Re: XAO Analysis

One of my observations is when ever we have a sell off or correction the thread heats up and once the market stabilizes it quietens down.
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The makings of a new indicator.

Tim
 
Re: XAO Analysis

Temjin said:
There is no such thing as "long term investing", only "long term trading".
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Where to start with this stunningly ignorant assertion. A long term investor does not worry about market dips, corrections or crashes, hence why they are called long term investors. They do not mind seeing 10, 20 or 30% share price drops. In fact such market pullbacks afford them the opportunity to load up on more of their chosen stocks.

They are not interested in trying to time their entry and exit levels perfectly. If they have purchased companies with good economics at reasonable prices there is no reason to worry.

Although we shouldn't be too hard on Temjin without people like him it would be more difficult to make money.
 
Re: XAO Analysis

dhukka said:
Where to start with this stunningly ignorant assertion. A long term investor does not worry about market dips, corrections or crashes, hence why they are called long term investors. They do not mind seeing 10, 20 or 30% share price drops. In fact such market pullbacks afford them the opportunity to load up on more of their chosen stocks.

They are not interested in trying to time their entry and exit levels perfectly. If they have purchased companies with good economics at reasonable prices there is no reason to worry.

Although we shouldn't be too hard on Temjin without people like him it would be more difficult to make money.
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Everyday the market drops adds another bunch of long term investors!:D

Cheers,
 
Re: XAO Analysis

dhukka said:
Where to start with this stunningly ignorant assertion. A long term investor does not worry about market dips, corrections or crashes, hence why they are called long term investors. They do not mind seeing 10, 20 or 30% share price drops. In fact such market pullbacks afford them the opportunity to load up on more of their chosen stocks.

They are not interested in trying to time their entry and exit levels perfectly. If they have purchased companies with good economics at reasonable prices there is no reason to worry.

Although we shouldn't be too hard on Temjin without people like him it would be more difficult to make money.
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I think you need to read between the lines... He was maybe trying to say that in the end people only look out for their wallets and really don't care about the company they invest just as long as they make them money...
 
Re: XAO Analysis

Ahhhh, it doesn't matter. :rolleyes: You have your own beliefs on how to make money in the market and I have my. You can invest for the long term and buy more when it is at the bottom of a correction because you believe in the fundamentals of the companies. And I can trade for the long term and exit when a correction occur and buy back when the trend resume.

At the end of the day, don't we all invest or trade for the same reason, and that is to make money?

The differences between us is we have our own individual style, you play on fundamentals, I play on technicals.

P.S: I didn't expect this long term trading and investing would evoke such a reaction from some of you. How about we just do our own ways and get along? Not to mention get back to the thread topic.
 
Re: XAO Analysis

CanOz said:
Everyday the market drops adds another bunch of long term investors!:D
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That is very true. A friend of mine is now an ultra-long-term "investor", having lost at least 15% of his money in the past half a year. :cautious:

I think I'm a bit of both... I have a portfolio that I'm going to hold for a long time - they are ones which I'm interested in the long term capital growth, and I won't sell them unless there are major changes in the economic conditions and/or the fundamentals of the companies.

I also have some money allocated for short term opportunities, mostly speculative buys/sells.

I've closed out of everything in the short term portfolio for quite some time now, and I've even sold some of the long term stocks as it now appears that the credit bubble is bursting.
 
Re: XAO Analysis

Temjin said:
Ahhhh, it doesn't matter. :rolleyes: You have your own beliefs on how to make money in the market and I have my. You can invest for the long term and buy more when it is at the bottom of a correction because you believe in the fundamentals of the companies. And I can trade for the long term and exit when a correction occur and buy back when the trend resume.

At the end of the day, don't we all invest or trade for the same reason, and that is to make money?

The differences between us is we have our own individual style, you play on fundamentals, I play on technicals.
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Temjin,

I understand what points your making.

Some long term investors are hope junkies they hold and hold and hold thinking its gunna go up its gunna go up.

Little do they realize they bought in at the top of the bull market and it may take 5-10 years to get there money back. If they bought blue chips lots of penny dreadfuls drop off the board in bear campaign's, that is a stupid waste of time and money. but the smart astute long term investors see the bottom buy in at acumilation patterns and take the whole whack of the bull run sell just after the top and make a killer% they do not need to worry about all the minor ups and downs they use the bigger ones as adding points. they also enjoy a much more relaxed trading experience. But I am like most I love the rushes!

I would advise any one wanting to see what long term investing is all about, read chapter in Market wizards on David Ryan - Investment as a treasure hunt.

Really changed my opinion about long term investing.
 
Re: XAO Analysis

Trade_It said:
Temjin,

Little do they realize they bought in at the top of the bull market and it may take 5-10 years to get there money back. If they bought blue chips lots of penny dreadfuls drop off the board in bear campaign's, that is a stupid waste of time and money. but the smart astute long term investors see the bottom buy in at acumilation patterns and take the whole whack of the bull run sell just after the top and make a killer% they do not need to worry about all the minor ups and downs they use the bigger ones as adding points
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Could you clarify your second sentence above? i.e. "if they bought blue chips lots of penny dreadfuls drop off the board in bear campaigns...."
Sorry, but I'm really not able to make sense of what you have said.
 
Re: XAO Analysis

Julia said:
Could you clarify your second sentence above? i.e. "if they bought blue chips lots of penny dreadfuls drop off the board in bear campaigns...."
Sorry, but I'm really not able to make sense of what you have said.
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No worries Julia I wrote it in a hurry.


Only if they bought blue chips, lots of penny dreadfuls drop off the board in bear campains...."


More on that, don't get me wrong blue chips bite the dust as well eg Enron.

My point is: if you buy in the top of a bull market and the stocks you own are all .10 - 1.20 stocks

Be very careful applying the old buy and hold strategy as a lot of these penny dreadfuls can fall of the boards in bear markets.

Hope that makes sense Julia.
 
Re: XAO Analysis

Trade_It said:
I would advise any one wanting to see what long term investing is all about, read chapter in Market wizards on David Ryan - Investment as a treasure hunt.

Really changed my opinion about long term investing.
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Understood Trade_It. I will reread that chapter again cos I have already read all of the Market Wizards. Just some wizards catch my attention (and suit my style) more than others.

Again, you can only trade/invest what you believe in. Hell, even some people may find day trading more "comfortable and relaxed" than others.

tcoaates_au said:
Settle down peoples. Its only a discussion. A nice simple explanation can be found here -

http://www.qwoter.com/college/Tradin...vs_Trader.html
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Make sense to me. :)
 
Re: XAO Analysis

Do you hear that? That's the sound of a 222 point drop... it's so quiet now... I wonder if the Yank Markets are going to tank tonight? :cautious:
 
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