haha. NO ONE know the 3rd until it is form so why bother to know the two in the first place. You wouldn't know the second after it is formed. Just observe when it changed as the TA is always UP and DOWN and DOWN and UP isn't it ? WHO knows the next could be UP and away ? (It is about probability and of course its FA as basis for consideration.) IF you think the 3rd is DOWN with higher slope of degree just AVIOD it.
Chinsoonyuen: So what is your advice of the 3rd channel ? UP or DOWN and WHY ? It is pointless to let other guess what is your take since you are the expert why not share it out ?
chinsoonyuen wrote: yes, remember the tech chart with 2 declining channels, one -ve 10deg n 2nd -ve 45deg? i ask ppl to guess the 3rd.
Last edit: 11 years 1 week ago by elbert. Reason: add message
Courage Marine stock price has almost doubled since the starting of this year whereas Eratat stock price has fallen 40%. So did you become richer or poorer for being "rational" buying Eratat?
newbiestock wrote: Courage Marina up 40+ % yesterday. P&L at loss n no dividends given out for the past few years. Shipping earnings fluctuate with the BDI.
Yet it trades much higher than Eratat at 12+ cents, which has stable P&L and gives dividends.
Market is irrational lol...
if u will to choose between only Eratat vs Courage Marina, which one will u prefer to buy n hold?
Actually it is all after the events when people make such comments. The same question will be asked : Will you buy Courage Marina when it was at 6cents about 1 year ago and now 12cents ??? I am sure at that time same critics on the stocks FA will be bursting the forum.
botak, courage marina is just an example. If courage marina can achieve 40% up in a day, it shows that Eratat also have that potential upside as well. of course, before that happens, Eratat management must address all major shareholders' concern first.
For stocks tat i plan to invest and hold, I follow these three FA rules.
1) First, the quarterly result must be profitable.
If it makes any quarterly loss, I will not hesitate to sell it. I will not touch any company that is still making a loss.
If it is a turnaround company, it must demonstrate at least two consecutive quarters of profits before I will consider making any entry.
2)I prefer it has a core business with earnings that is easy to predict. Not those one off or extraordinary earnings. That's why I don't hold property or shipping or any cyclical stocks for long. If I ever buy cyclical stocks, it's probably for short term trading.
3) I prefer stocks that I can see the cash balances grow yearly in a predictable manner and have a track record in giving consistent dividends every year. Preferably, the business requires minimum investment / setup costs needed to scale up. FCF is one FA indicator that I look at too. Some stocks I buy and hold before include Lee Metal group and kingsmen creative etc, which I hold for years before selling off.
so, one yr ago, even if courage marina is at 6 cents, i probably won't buy and hold. For trading, maybe, but that will depend on TA at that point of time.
so far, these three FA rules did work well for me... provided I have the patience.
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