Buy BUMI or NOT????

What share that is good to buy in December 2009?? Indonesia Stock Exchange (IHSG) getting more volatile or unstable. Bakrie group which RULE IHSG in 2007 – 2009, now it does not happen again. In 2007 BUMI (Bumi Resources Tbk) became pioneer stock market rise, but in this December or last months it still stuck in the low level.

What will you do NOW?? BUY it again n hope it will rise in 2010?? Because many people say it’s cheap!! Cheap can go cheaper, HIGH can go HIGHER. AS I SAID THERE IS NOW LOW OR HIGH in stock market, only GOOD PRICE or BAD PRICE.

GOOD PRICE. Do not care even if the price of the purchased on HIGH level or LOW level but the price going UP after you buy it. Good analysis.

BAD PRICE. Do not care even if the price of the purchased on HIGH level or LOW level but the price going DOWN after you buy it. Need study again.

Many friends of mine asked me like this “is BUMI still worth to buy or not?? ” As I said for a short term is still good but not buy in the middle of political mess. Compared with the other stock in the same sector (COAL), BUMI now in LOW LEVEL and the other like ITMG and PTBA in HIGH LEVEL. Looks pictures below:

Many person when see this picture they think like this. PTBA and ITMG had returned to above price, and BUMI had not, so I will buy BUMI and hope it will go to 8000 point. That is wrong decision, there must be something wrong with BUMI fundamental, if it leader of IHSG so it must reach 8000 now, but it don’t.

My suggestion buys BUMI but not wait till 800 point to sell, play save and just sell it when it reach 3500 point. THE LAST DO NOT CHOOSE ANY STOCK LIKE THIS FOR LONG TERM!!

THANKS VERY MUCH HOPE IT WILL HELP YOU OUT, HAPPY TRADING MY FRIEND. Read More....

Get out from LOSS

One right plus one again and again!! To many people think that because they have a lot of money in their trading account, that let them to buy a lot of contract five or more. THIS IS BAD, you are wrong! If you just pick one at a time and get successfully, you can add one more, success add one more. Do not be greedy, that can kill you. If you lose lower your trade size!

Get out from loss quickly. You are a loser if you do not get out of the losing trade once you recognize that trade is no good. You can use technical analysis like relative strength index and moving average to help you! Or if, in your mind that the trade is no good then you can get out, and do not regret it when you are wrong, just learn from it.

What your BEST LOSS, THE FIRST ONE. Once you come to the realization that your trade is no good it. is best to exit immediately. .It is never a loser until you get out. and .Not to worry, it will come back. are often said tongue in cheek, by traders in the pit. Once the phrase is stated, it is an affirmation that the trader realizes that the trade is no good, it is not coming back and it is time to exit.

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Be a WINNER not a LOSSER

Always lower your trade size, when you are trading poorly. All good traders follow this rule. Why continue to lose on five lots (contracts) per trade when you could save yourself a lot of money by lowering your trade size down to a one lot on your next trade? If I have two losing trades in a row, I always lower my trade size down to a one lot. If my next two trades are profitable, then I move my trade size back up to my original lot size. It is like a batter in baseball who has struck out his last two times at bat. The next time up he will choke up on the bat, shorten his swing and try to make contact. Trading is the same: lower your trade size, try to make a tick or two . or even scratch the trade and then raise your trade size after two consecutive winning trades.

Never turn a WINNER into a LOSSER. We have all violated this rule. However, it should be our goal to try harder not to violate it in the future. What we are really talking about here is the greed factor. The market has rewarded you by moving in the direction of your position, however, you are not satisfied with a small winner. Thus you hold onto the trade in the hopes of a larger gain, only to watch the market turn and move against you. Of course, inevitably you now hesitate and the trade further deteriorates into a substantial loss. There is no need to be greedy. It is only one trade. You will make many more trades throughout the session and many more throughout the next trading sessions. Opportunity exists in the marketplace all of the time. Remember: No one trade should make or break your performance for the day. Do not be greedy.

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Be Disciplined Every Day

You have to be disciplined in The Market. Trading with discipline will put more money in your pocket and take less money out. The one constant truth concerning that discipline = increased profit. Not claimed that you are disciplined if you are not 100 percent every day!! Being disciplined is of the utmost importance, but it.s not a sometimes thing, like claiming you quit a bad habit, such as smoking.

If you claim to quit smoking but you sneak a cigarette every once in a while, then you clearly have not quit smoking. If you trade with discipline nine out of ten trades, then you can.t claim to be a disciplined trader. It is the one undisciplined trade that will really hurt your overall performance for the day. Discipline must be practiced on every trade. When I state that .the market will reward you,. typically it is in recognizing less of a loss on a losing trade than if you were stubborn and held on too long to a bad trade. Thus, if I lose $200 on a trade, but I would have lost $1,000 if I had remained in that losing trade, I can claim that I .saved. myself $800 in additional losses by exiting the bad trade with haste.

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Three Important Thing

First, The most important type of content is internal market information (IMI). IMI simply is time and price information as disseminated by the exchanges. After all, we all make our trading decisions in the present tense based on time and price. In order to .scalp. the markets effectively, we must have the most live and up-to-date time and price information seamlessly delivered to our PCs through a reliable execution platform and/or charting package.

Without instantaneous time and price information, we would be trading in the dark.

The second spoke is mechanics. Mechanics is how you access the markets and the methodology that you employ to enter/exit your trades. You must master mechanics before you can enjoy any success as a trader. A simple keystroke error can result in a loss of thousands of dollars. A trader can ruin his entire day with an inadvertent trade entry error.

Once you have mastered order execution, though, it is like riding a bike. The process of entering and exiting trades becomes seamless and mindless. Fast and efficient trade execution, especially if you are trading with a scalping methodology, will enable you to hit a bid or take an offer before your competitors do. Remember, the fastest survive.

The third and most important spoke in the Wheel of Success is discipline. You must attain discipline if you ever hope to achieve any level of trading success. Trading discipline is practiced 100 percent of the time, every trade, every day.

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