Be a General in the share market

In the shares market, you must treat yourself as a general fighting at war ground. Sometime you have a lot of soldier. Sometime you left one or two soldier.

On 5/5/08 (Monday), Keuro Bhd lose 8 cents and closed at 47 cent each. Tuesday it hit another low level at 40.5 but finally closed at 46 cents each.

On the same day (Monday), I was advised my friend bought at 46 cent. But following day sentiment of market not good brings us worry. Hence, he sold the shares at morning at 44 cents.

Today 7/5/08, on the first shift the shares hit 43.5 cents but also touch 52 cents. My friend felt regretted because the due date is on tomorrow. Actually he can make some money on this counter. WHY he made such decision?

If you convert the above trading activity to war story.

Beginning, a General received a message from radar. The message said in front is clear stage and also provided a lot of foods and weapons for you to collect. But, when general lead small team close to the said stage. The stage is surrounding by enemy flags. It seems like a trap.

Normally, General may sent a spy to check or wait. But recently he was lost few times in the fight. Thus, he decided quickly going back to home. In order run fast to avoid the trap, he decided left some weapon on the stage to reduce the weight.

Finally result is “Other army team manage to pick the weapons on the stage.”

The above story tell your, every decision you made does not match your imagination/assuming results. Sometime you are right sometime your are wrong. So, What is the right decision in the share market?

I trust history and present data. The data on the trading record like soldier movement on the ground. Try to convert data as your soldier and assuming you are a General. Maybe can help you understanding the shares trading game.

Of course it is not easy, practice is very important. On my observation, every single data move is full of meaning.

Everyday, the top 20 volume counter movement can guide you a lot of basic theory of trading. Are you learn it and understand it?