Max says: Sam is not a pure FA guy. He uses the most basic TA tool - price and volume quite well. Whereas you started off as a real hardcore FA guy - remember when you first started blogging around the time I started F Trader?
Sam says: Oppp!! wait wait ! Sam is not a pure FA guy, sam is using TA tool – price n volume quite well? This one I think u r wrong! U r absolutely wrong!
First, let talk about price, well. Of course price is d main concern b4 I jump in to buy certain stock, u can’t expect me to buy KNM @ 1.75 (PE >20 ), Parkson @ 8.00 ( PE >25 ) ! Do u ? How can a sense FA investor not concern about price? If d price is far too high, obviously its PE would be high also! Not that? Come on…max come on ^V^
Second , talk about volume , once again , it is also simple common sense ^V^ u don’t need to be scientist to know rain is coming if u see thunder in sky, same goes to stock mkt, if u see vol picking up, obviously it must be something on , not necessary she will goes up it may come down also, 4 example “ Iris N KNM , they were traded with huge vol @ 0.12 n @ 1.08 two months ago ! How now? Up or down? See? Volume coming doesn’t mean buy! It can be sell also! D key success here is FA! So how? .still think that vol stand 4 TA tool? Come on max..Come on!
Not convince enuf ? k..give u another example, Seng 's favourite stock Gpacket !
When seng called to buy gpacket @ 4.50 last year , it was traded with huge volume ! if based on TA method, it is a sign of buy , right ? but if u based on FA method, it is definitely a sell ! cos @ 4.50, Gpacket was traded @ PE around 30+- ! only fool will buy at this price !
Well, let take another look at Gpacket @ 0.63 in Nov 2008 , it was hanging around @ 0.63+- with very tiny volume, once again..if based on volume , TA will tell u not to buy..but how come it shot up to as high as 1.20 !? y ?
See ? volume only tell u something is "ON" ! it doesnt tell u "Up' or "down" ! if u see a stock selling u @ PE < 10 ( esp blue chips like Sime ) with huge volume , u stand a very high chance of gaining profit in short term !
Max, is my reasoning acceptable to u ? believe or not , I hv never use any TA for my stock picking since day one !