Wednesday, June 30, 2010

Human tends to over-complicate things. It is in our nature to try and improve what we have but most of the time we overcomplicated things and forget about the simple solution.

In my previous post, I posted a chart of a basic system. It consist of candle stick chart, moving average and macd. Only 3 indicators and it is a very simple system rite?

The answer is, it is not so simple actually. Candle stick alone tell you 4 things that is, open, close, high and low price. MA tells you direction of trend, entry point, start and end of trend. Macd tell you trend, entry point, reversal point.

From only 3 indicators there are actually 11 information cramp into that small chart. Too much info and decision making is a hard job. Though i filter comments, no one has actually ask about the amount of information on chart. It seems people can accept 11 information at once. Can you manage 11 input at once and make a decision out of it??

Trading is actually much simpler. It is actually possible to make profit with only 1 information. Believe it or not??

Action Insight Mid-Day Report

Wednesday, June 23, 2010

Mid-Day Report: Sterling Surges as Sentence Voted for Hike, Canadian Dollar Lower on Retail Sales Disappointment

Sterling rises sharply today as BoE minutes showed that policy Sentence voted for a 25bps hike in last meeting. The minutes revealed that the Committee voted 7-1 to keep the bank rate unchanged at 0.5%. This was the first time in almost 2 years that a rate hike was proposed.

Investment Herd

Sunday, June 20, 2010

10 Complimentary Lessons to Separate Yourself from the 'Investment Herd'

"Successful market timing depends upon learning the patterns of crowd behavior. By anticipating the crowd, you can avoid becoming a part of it."

I pulled this quote directly from the opening paragraphs of the free Elliott Wave Online Tutorial. It's critical to your understanding of how markets really work.

Now some might say, "What's wrong with following the crowd? I'm just following the easy money, right?" The problem with this logic is that most investors follow the crowd (or herd) all the way up the mountain ... then right off the cliff.

Look at today's situation: How many people you know got out of the stock market before the October 2007 top? Heck, how many you know cut losses and cashed out even six months after the top?

If you're like most people, your answer ranges from "zero" to "very few."

Being a successful investor over the long-term means you must always strive to be part of that "very few."

Famed market analyst Robert Prechter, the leading practitioner of the Elliott wave method of market analysis, once said, "Missing a market move may be a shame, but getting caught on the wrong side of one means you lose money. People who have gone through the experience know there's a big difference."

To be a successful individual investor, you must understand what it means to take risks when the probabilities are behind you and shun risk when they're not. Robert Prechter's method of analysis, the Elliott Wave Principle, is designed to help him and his subscribers do just that.

Buy and hold is dead. Trading isn't any easier. Having a big-picture outlook doesn't mean you must "set it and forget it," as the late-night infomercial guy says. And it certainly doesn't mean you must be in and out of the markets every day. It simply means you can see the forest for the trees.

You can go long when the markets are behind you, short if you have the guts, and stay out completely when the risk is too high. Simply put, adopting an independent, unbiased method is the very best way to ensure you don't get caught up in the investment herd.

Elliott wave analysis is not for everyone. It's highly technical. And it presents probabilities, not certainties (there's no such thing as a black box trading system). The most successful investors and analysts - the guys who are still around after 30 years like Prechter - are able to assign probabilities and assess risk; and they act only when probabilities are high and risk is not.

I encourage you to learn more about the method that has kept Robert Prechter out of the herd and in the game for more than three decades. His company, Elliott Wave International, has an extremely useful Elliott Wave Tutorial for free online. It's broken up into 10 lessons across 50 pages, so it's easy to read and review at your leisure.

Check it out at the link below, give yourself some time to digest it, and decide for yourself if Elliott is a method you should add to your investment arsenal.

Separate your investments from the herd; get started with the free Elliott Wave Tutorial today.

Action Insight Weekly Report

Swiss Soared as Intervention Ended, Sustainability of Risk Rally in Question

Swiss Franc was the undisputed winner last week after SNB signaled end to intervention. Euro was lifted by solid bond auctions in Spain and strengthened against dollar and yen. Commodity currencies were even stronger as supported by risk appetite on rally in global stocks. Dollar was generally soft with dollar index extended recent pull back to as low as 85.45. However, we're skeptical on the sustainability of risk rally as yen didn't showed corresponding weakness as dollar in last week's trading. Gold has indeed jumped to new record high of 1263.7 while US treasury yield hovered in tight range above near term low. Risk sentiments are vulnerable to reversal.

Action Insight Daily Report

Saturday, June 5, 2010

Daily Report: Dollar Maintains Post FOMC Losses

Dollar remains soft in Asian and maintains post-FOMC losses against major currencies. Asian markets are generally higher on news of resignation of Australian's PM Kevin Rudd but gains are mild so far. New Zealand dollar is the better performer in a quiet market today as supported by solid data which showed GDP rose 0.6% qoq, 1.9% yoy in Q1. Other data released today saw Japanese trade surplus narrowed to JPY 416b in May, corporate service price index dropped -0.8% mom in May. Focus will turn to durable goods orders and jobless claims from US.

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