10CM Stock

Trade - ADRO 9/3/10

Yes!

The first stock I bought is ADRO (issuer: Adaro Energy Tbk). This company is sectoring in Coal Mining. Let’s look at the chart, I’ll explain you why I bought this stock at 9/2/10.

click at the picture to see its full size.

As you can see, i used lots of indicators on this chart, There are Candlestick, Volume, Moving Averages, MACD, and William%R (Wm%R). Well, I’ll explain to you later about how these indicators works.

There, on the chart, you can see that Moving Average (MA) 10 and Exponential Moving Average (EMA) 30 crossed each other at 8/31. Having the MA 10 crossed from above, the stock is having a deadcross or it will be bearish. Thus, what I need to do is waiting for the price to fall. This was confirmed by MACD (the MACD cross the signal from above and make a deadcross), and also a cross from MA 5 and MA 10 deadcross at earlier point (which indicates short term changes).

Now, looked at the Wm%R where it indicated that the stock will be in a bullish pattern shortly because the Wm%R graphic has gone below -80. This is contradictive to the other indicator since they were giving the signal that the downtrend is going to be long. But I think that I should believe this indicator and need to buy fast!

So, I simply give it a try at 1,750 for 2 lots and 1,780 for 1 lot for securing the benefit (since I have a class to attend and cannot follow the market movement). I was so sure that the market will touch 1,750 but unfortunately it stopped at 1,760 (damn!). So all i’ve got is a lot of ADRO at 1,780.

In the next day, the stock was opened and closed at 1,810 and 1,840 with the highest at 1,850 and lowest at its opening. This starting a pattern of candlestick, which indicates an upturn (bullish) movement (look at the green circle) at medium reliability. I only need to hope for the closing price at 9/6 higher than at 9/3. This approved the Wm%R indication that the market will soon go up.

The Wm%R also giving signal of it reaching above the -80 line at near its middle line. All I have to do now is wait until the Wm%R crossed the -20 line (marked with yellow circle) which I predicted will be at 9/6 simply by creating a straight line parallel to Wm%R.

Well, hope that you can reach 2,000 my little ADRO friend…

Fly! Fly up high, ADRO!

#2 - Newspaper’s Table (edited)

As we know, many traders are really loved to looked at newspaper. It’s clear that they were not just doing that for bluffing or playing crossword, they were looking at this table:

So, what’s so special about this simple table?

The answer is that the table shows them what happened last transaction period.The transaction period for JSX for Monday-Thursday is at 09:30-12:00 and at 13:30-16:00 and for Friday at 09:30-11:30 and at 14:00-16:00.

Day Session I Session II
Monday-Thursday 09:30-12:00 13:30-16:00 
Friday 09:30-11:30 14:00-16:00

So, how do we read the table?

First of all, the code indicates the stock code. it usually consist of four letters that represent the issuer’s name. The Issuers are the companies whose issued stocks at the capital market.

Prev column shows us the price of the stock two days before. That means if the paper was published at Thursday, then the Prev is the stock’s price in Tuesday.

The Hi and Lo shows us the highest and the lowest price the stocks reached the one day before (so if the paper was  published at Thursday, the prices are from Wednesday).

The Open is the starting price today (some are using Close or closing price from a day before, the same day as Hi and Lo) and the Chg indicates the changes of the stock price from Prev and Open/Close.

Being able to read the table can give us an overview of the stock’s condition. For example ADRO’s price increasing (bullish) and those who buy two days ago and sell today will get capital gain for the difference in price. And we can also see that yesterday the stock was able to touch the lowest price at 2.100 and then rose again to 2.175 which means the stock is in bullish trend and it maybe will rise again today since its closing price is at its highest point.

So, knowing how to read this table in newspaper has given you a new way to spend your time with your newspaper you bought isn’t it?

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Edit: The original post is leaved behind and will be crossed so we can learn from my mistakes.

Hm…

I think I made a little mistake here, so let me fix it okay? So, here’s the right table:

Previously I said that the sixth tab is Open right? That’s wrong! It should be Close and only Close! so, as I said before, Close is the closing price of the day before or the same day as Hi and Lo. The closing price is important for you to analyze where the price opened at tomorrow morning which is called Open.