KH Tang's Blog: April 2014

I remember...

While I was working in the corporation more than a decade ago, I started some investment through hearsay, then studied some fundamental analysis on companies... It just did not workout.

Then, I studied some Technical Analysis and learn some technique on trend line, resistance, and support with some Moving Averages... It did not help much.

Then, someone told me that I needed to attend some professional course... And, I said Yes.

I happened to come across a course advertised by "Business Wxxk" for about USD3000 for a day course that come with internet-based Technical Analysis Tools Box with annual subscription of USD600. It promised (or I should use the word advertise, and reader perceive as promise) that after the training, the student would only need 5 minutes a day to successfully manage his portfolio for success!

What's made me more convincing was that, IF I don't satisfy with the course after the day, I can get my full refund!

The set up was great... More than 300 participants... At the end of the day, I didn't see anyone ask for refund! That's was a very positive sign (my thought at that time...)

So, what did I got to learn from the course in one day?

1. Some Fundamental Analysis Skill... Such as P/E, PEG, etc... (Things that you can find in Yahoo, and countless trading sites for free.)

2. Basic Technical Analysis - Trend line, Resistance Line, Support Line, etc.. (Any basic Technical Analysis books or website has this.)

3. MACD Indicator - Moving Average Convergence/Divergence with arrows firing at the crossing points telling people when to buy and sell... (Any first timer to come across this would be impress with it. And, it indicator is SO POPULAR that it is freely available in any trading website.)

4. Stochstics Indicator - A kind of momentum indicator that with arrows firing at some boundary saying buy on oversold and sell on overbought.. (Available in any trading website.)

And... The course comes with Video CDs for revision, and Self Study Course that cover Options.

That was basically ALL!

And, more importantly... It does not produce Result as stated... At least to far far majority of them...

Now. Looking back...

That's funny, but to any person who don't have any background or know someone who can share the knowledge, that's probably the path he needs to go through and price to pay.

----------------------------------------------------------------------------------------------------------

Recently, I come across a new book - New Frontiers in Technical Analysis. It is a compilation book with many authors with each author wrote a chapter.

What's interesting is that... In Chapter one, the author provide a statistics on what's the most popular indicators, charts, tools that used by the trader across the global at different regions from East to West.

And, I find the attached information worth THINKING!!!

Anyone who do some research know that, in long run, at least more than 95% of the public lost money in the stock market. YET, those trading courses out there are mainly consist of these few indicators for the beginners... Doesn't it sound more than Interesting???

Nevertheless, these indicators - as already learnt, believed, and practiced by a mass of traders - do have value and that's called the "Self Fulfilling Prophecy". I read a book quite sometime ago by Joe Ross (Professional Trader). Although he created his own indicators, he would also learn some popular indicators - for the reason of knowing what the Public probable Entry and Exit points in order to take advantage of it... So, knowing is good, but use it Creatively is the Point!