Hidden inside every chart is a story. A story about where the price has been and where it might go in the future. Some stories are obvious. Others are a little more difficult to figure out.
Indices Updated : 06:59:05
Wednesday, January 30, 2008
SIDEWAYS
KLCI ends down 0.3% at 1384.08 in moderate volume, off intraday high of 1400.90 as investors locked-in gains and unwound positions. Decliners led gainers 501 to 228 as investors adopted cautious stance ahead of Fed rate decision. Benchmark tipped to trade in 1370-1400 range tomorrow. Judging by today's market action, investors are likely to sell into any strength tomorrow
KLCI ends +0.6% at 1388.50 in moderate volume with gainers outpacing decliners 422 to 287; gains on Wall Street overnight cited as main trigger for buying interest as investors pinning hopes on another rate cut by the Fed this week. Among gainers, plantation stocks, oil & gas sector and select index heavyweights led market's rise. Benchmark tipped to trade in 1380 to 1400 range tomorrow. Investors will continue to look at the performance on Wall Street to guide their investment decisions. The market is likely to remain volatile ahead of the Fed's decision on interest rates.
KLCI ends 1.8% lower at 1380.54, tracking declines in regional markets; Foreign fund selling of blue chips weighed on the market, but stocks that are considered less vulnerable to external conditions; thin trading volume of 727 million shares suggest investors still mostly on sidelines, awaiting clearer long-term market direction. KLCI to stay in 1370-1420 range near-term.
Profit taking may cap gains in the near term, capping the market's upside. Investors are likely to continue taking their cue from movements on Wall Street in the near term. On downside, expects firm support at 1380 (100-day moving average).
A respectable Wall Street writer, Mr. John Crudele wrote:
IT'S a miracle - two days in a row.
The stock market was going to hell again yesterday when suddenly - out of a cloud of dust and a hearty Hi-Ho Silver - someone came to the rescue.
You are going to read elsewhere that investors, at precisely 12:44 p.m. yesterday, got the urge to buy enormous amounts of equities because of some mass and simultaneous belief that stocks had gone down enough.
And you'll hear words like "capitulation" - which is the "I surrender" white flag that the pros say is the sign that the market is down enough and about to turn up.
I don't happen to share those opinions.
Let's just say that I don't believe in magic any more now than I did when I warned you in December that stocks would be up against it when cranky auditors made banks own up to their mistakes in year-end reports.
That was about 1,500 Dow points ago.
Don't get me wrong, I'd love to see stocks get back on track and the economy make a right turn onto Easy St. as quickly as possible. Who wouldn't?
But I'm not doing my job if I pretend that everything is suddenly alright because some guy in Washington decided to cut interest rates in a frantic move that - at best - won't be felt by the economy for months.
So I won't lie to you.
There's a lot of trouble ahead, starting with next week.
That's when the Fed meets for its regular meeting and when an insatiable Wall Street is expecting yet another cut in interest rates. The problem is, next Friday is when the Labor Department is scheduled to report employment statistics for January and that figure could be, as we are allowed to say only in a tabloid, f-ugly. More on that in another column.
Corporate earnings are another landmine next week. A hundred of the Standard & Poor's 500 companies are scheduled to report earnings, as are nine components of the Dow Jones industrial index, including American Express, McDonalds and Boeing.
With a stock market this skittish, any one of these reports could cause convulsions.
But the real problem may come in a few weeks when banks will be forced by the Securities & Exchange Commission and the Financial Accounting Standards Board (FASB) to acknowledge to the government in annual reports just how much (or little) some of their esoteric securities are really worth.
"Fair value" accounting probably sounded like a good idea back in bubble land but right now it's a pointy object aimed at a half-deflated balloon.
Next month is also when a good amount of Citigroup's Structured Investments Vehicles are maturing, probably with little hope that investors will re-up for another term. Not surprisingly Citi, along with a handful of European banks, continue to be the subject of distressing rumors in the investment community.
With all that sludge coming at us, who could have been brave enough these past two days to step in front of a falling market - or, as they say on Wall Street, catch a falling knife? The Dow did, after all, have a 625-point reversion in yesterday's session alone.
Here's where I'd like to introduce you to Robert Heller.
Heller was a governor of the Federal Reserve during the 1989 stock market collapse. I've brought him up be fore in this column because right after he left the Fed, Heller gave a speech proposing the rigging of the stock market during emergencies.
The speech was published in the Oct. 27, 1989 Wall Street Journal.
Heller was speaking of a situation just like ours today, where the Fed is being forced to cut interest rates even though there's little indication that people want to borrow.
Heller said "instead of flooding the entire economy with liquidity, and thereby increasing the danger of inflation, the Fed could support the stock market directly by buying market averages in the futures market, thus stabilizing the market as a whole."
"The stock market is certainly not too big for the Fed to handle," Heller added.
I've written about this operation before.
I've also written about how Treasury Secretary Hank Paulson has been very vocal about the fact that he has re-energized something called The President's Working Group on Financial Market - better known as the Plunge Protection Team. The Working Group, also formed in 1989, reportedly had an emergency session over the weekend.
Was the President's Working Group the Lone Ranger of this market? And was the group riding Heller's idea?
We will probably never know. But rigged markets have a tendency to be unstable. So if this one is being supported by Heller's notion, watch out.
KLCI ends down 2.2% at 1408.60 led by declines in foreign-favored plantation, banking and construction stocks, say dealers. Decliners trounced gainers 767 to 99 as concerns over impact of a possible recession in the U.S. prompted capitulation by some foreign funds. The sharp decline posted by Asian markets today is a clear indication that foreign funds are exiting Asian assets. The benchmark expected to trade in 1390-1410 range tomorrow. KLCI's technical indicators also bearish; daily charts indicate benchmark broke out of uptrend channel dating back to mid-August and now poised to breach 1400 psychological support. MACD, Stochastic turned bearish late last week while volume traded has been contracting. Next support at 1378 (100-day moving average).
As for myself no new position tomorrow. Still holding Integra bought at RM1.13 today.
Malaysian shares ended lower Friday as the market succumbed to the negative cue from Wall Street's fall overnight and profit-taking pressure ahead of the weekend amid continued concerns over the state of the U.S. economy. The weighted Composite Index of 100 blue chip stocks fell 1.5% to 1439.49, off an intraday low of 1423.83. Trading activity was subdued at 900 million shares compared with 1.2 billion Thursday. Decliners beat gainers 605 to 199. The losses in U.S. markets hit sentiment and prompted investors to continue taking profits from the market's rally to a record high earlier this month. However, it's still too early to say that the longer-term uptrend is over. The optimism that the Malaysian economy can withstand pressures from a U.S. recession because of greater domestic demand remains intact. Expectations the government may call for early general elections also lent support to the market. Prime Minister Abdullah Ahmad Badawi announced Thursday that the supreme council of the governing National Front will meet Jan. 21, a move considered by analysts as another sign he is preparing to call early elections, likely in March. Market direction next week will be heavily dependent on the performance of the U.S. and regional markets. Support is seen at 1400, and resistance at 1470. Plantation stocks, which were among the best performers in the first half of January, were among the leading decliners Friday as investors took profit in the sector.
INTEGRA Technically, due for a rebound. Cut Loss level RM1.10
The Plunge Protection Team - long kept secret - was last mobilised to calm the markets after 9/11. It then went into hibernation during the long boom.
Mr. Paulson reactivated it last year, asking the staff to examine "systemic risk posed by hedge funds and derivatives, and the government's ability to respond to a financial crisis'', he said.
It seems he failed to spot the immediate threat from mortgage securities and the implosion of the commercial paper market. But never mind. Where are they now???
Info about `Plunge Protection Team'
Is the legendary PPT just a myth, conjured up by a bunch of conspiratorial nuts? Former president Clinton advisor, George Stephanopoulos told “Good Morning America” on Sept 17, 2001, “There are various efforts going on in public and behind the scenes by the Fed and other government officials to guard against a free-fall in the market, what is called the “Plunge Protection Team.”
“The Federal Reserve, big major banks, representatives of the New York Stock Exchange and the other exchanges have an informal agreement to come in and start to buy stock if there appears to be a problem. They acted more formally in 1998, during the Long term Capital Crisis, and propped up the currency markets. And, they have plans in place if the markets start to fall.”
On August 8th, 2007, President Bush hinted at government intervention in the US stock market. “Treasury secretary Paulson and his advisors are paying close attention, as the market begins to readjust its assessment of risks and are watchful for any downturn,” he said. “There is a lot of liquidity in our system and liquidity will provide the capacity for our system to adjust,” Bush added, alluding to the Fed's tolerance of double digit M3 money supply growth.
The big question is whether US Treasury chief Henry Paulson and Fed chief Bernanke are pursuing a more active interventionist policy than what was originally mandated for the PPT? The turnover of interest rate, currency and stock index derivatives rose 24% to $533 trillion in the first quarter, and that's a big time bomb that can blow-up at anytime. It requires constant surveillance and “vigilance” over the world's greatest casinos. Warren Buffett calls derivatives “weapons of mass destruction.”
If correct, then the PPT is “watching the markets closely”, (Japanese code words for intervention) and Paulson and Bernanke aim to prevent a 10% correction at all costs. There are glaring signals in the marketplace that indicate when the PPT appears to be intervening in stock index futures, and these signals were revealed in the August 3rd edition of Global Money Trends, with plenty of cool charts. If you expand your imagination, as Einstein suggests, and accept the notion that the PPT is “managing the markets,” you might become more successful in trading.
Wall Street's Da Vinci Code
If there is a PPT, it may be hiding in plain sight. Following the 1987 crash, the Reagan administration looked for ways to formalize responses to economy threatening market movers. The U.S. Executive Order 12631, signed on March 19, 1988, by President Reagan, established the “Working Group on Financial Markets.” The order states the purpose of the group as being “… to identify and consider: 1) the major issues raised by the numerous studies on the events in the financial markets surrounding Oct. 19, 1987… ; and, 2) the actions, including governmental actions under existing laws and regulations (such as policy coordination and contingency planning), that are appropriate to carry out these recommendations.”
Executive Order 12631 dictates that the Working Group be made up of the highest profile money types in the government, explicitly naming: the Secretary of the Treasury, the chairman of the Board of Governors of the Federal Reserve, the chairman of the SEC and the chairman of the Commodity Futures Trading Commission. To make sure this group has the resources to carry out its will, the order further made the Treasury responsible for providing the “support service” it needs-but only “to the extent permitted by law and subject to the availability of funds.” (No one at any of these agencies would comment for this article.)
So how did this team of crisis managers come to be viewed by some as a secretive fraternity of government and business interests, secretly manipulating stocks and gold and making a mockery of the concept of free markets? Brett Fromson, of the Washington Post, who went on to work for TheStreet.com and the Wall Street Journal, was the one who wrote the Washington Post story that came up with the PPT name. (He says a clever copy desk staffer came up with the name for a headline.) Fromson covered the Washington/Wall Street beat, which connected the ongoing relationship between the political and financial capitals. “I got the idea for the story after seeing that many of my sources were often in meetings together. I realized there was an enormous amount of planning going on.” He adds, “The story resulted from a lot of reporting and relied on the people I was talking with having a relationship of trust” with him. Fromson said no called him after the piece was published telling him that he got it wrong — or that he was insane.
Perhaps the only certainty about the PPT conspiracy theory is that it is not going away any time soon. While every rebound by the indices in the face of damning economic fundamentals and market technicals deepens the conviction of PPT believers; not even a market crash will likely convince them otherwise. After all, the market's massive slide from 2000 through 2002 didn't even unwind the theory. Either way, someone should make it into a movie. It might be called Wall Street's Da Vinci Code.
KLCI ends +0.5% at 1460.71, well off earlier low of 1431.42, recovering in tandem with rebound in major regional markets. It's not surprising that the market posted a positive close as yesterday's 3.5% drop was considered overdone. Gainers beat decliners 468 to 324, with stocks that were among the biggest losers yesterday like Gamuda recovering as investors hunted for bargains; KLCI tipped to remain in 1440-1480 range tomorrow as investors stay cautious, awaiting clearer direction.
Malaysian shares ended lower Wednesday, in line with declines on regional markets, triggered by rising concerns over the subprime market and the rising risk of a possible recession in U.S. The ringgit's decline against the dollar further damped equities, pushing some foreign funds to unwind positions. The pair ended at 3.2580 from 3.2575 Tuesday. The weighted Composite Index of 100 blue chip stocks fell 3.5%, or 52.05 points, to 1453.66 after briefly dipping below the psychological support of 1450. Volume was moderate with 1.02 billion shares changing hands. Decliners trounced gainers, 752 to 95. Both foreign and local funds were net sellers in today's market, taking their cue from the sharp falls in regional markets. Sectors which led the KLCI to a fresh record high of 1524 were the worst hit, particularly large fall in plantation, banking and construction stocks. The KLCI may stay above the psychological support of 1450, but investors will continue to look to the U.S market for cues.
KLCI ends down 0.1% at 1505.71 in moderate volume off intraday high of 1524.28 on profit-taking; market breadth ended negative with decliners outpacing gainers 568 to 201 as investors took cue from softer regional markets to lock in profits from recent gains. Benchmark expected to trade in 1490 to 1510 range tomorrow. Investors are likely to take their cue from Wall Street's performance tonight. The market is undergoing a mild consolidation and this may persist for the next few trading sessions.
Palm-oil stocks may be hit by possible EU ban on imports of certain biofuels, Credit Suisse says in note today. If EU were to ban palm-biodiesel, there could be a knee-jerk reaction to plantation stock prices, as the key plantation stocks have run up by 16%-39% over the past month. But adds palm oil would still be imported into EU as a food stuff, palm-biodiesel only small fraction of EU imports. Reiterates Overweight call on Asia palm oil sector; "we believe that the underlying fundamentals for palm oil demand are still strong. Any weakness in plantation share prices is an opportunity to buy.
KLCI ends down 0.6% at 1507.04 in moderate volume of 1.05 billion shares, as profit-taking across a broad range of stocks drags market off intraday and record high of 1524.69. Market breadth ended deeply negative with losers trouncing gainers 630 to 222. The retracement considered healthy for market as corrects overbought position for a number of bluechips and index-linked heavyweights; tip benchmark to consolidate in 1500-1520 range tomorrow. The negative lead from U.S. over the weekend and falls in regional markets today weighed on sentiment but volume traded has shrunk. This correction is quite healthy for the market.
I met with Head of Research StanChart, Dr. Gerard Lyons today and he saids that US might push down the Fed Rate till 3.00% this year, however recession in US is unavoidable.
Stanchart revised downward the Malaysia's GDP from 5.2% to 4.2%. Inflation revised upward from 2.8% to 4.0% (expectation that Gov. would increase the retail petrol price in the 1 half 08). Ringgit might up to RM3.23 by March this year.
KLCI ends +1.7% at new record closing high of 1516.22 in heavy volume of 1.76 billion shares led by gains in finance, construction and shares of government-linked companies. Gainers edged out decliners 461 to 415 as pre-weekend profit taking narrowed gains, dragging KLCI off its intraday and all time high of 1521.56. Benchmark tipped to trade in 1500-1530 range next week. A combination of factors led to the market's rise, including the ringgit's continued appreciation, buying interest from foreign funds and continued support from local funds in what many are referring to as a pre-election rally. Ringgit last traded at 3.2610 against the US dollar, levels last seen in November 1997. Speculation government will call a general election in 1H08 continues to drive buying interest in government-linked companies.
AIRASIA
Heh.. heh.. last friday. I did collect AirAsia, thinkin that it would rebound soon. My cut loss level - 1.55. The main problem with this counter is program sellin by foreign funds - because wrong decision in speculative crude oil hedging - With oil price touching US$100 per barrel and AirAsia’s short call option at US$82.60 per bbl, foreign investors sold the stock due to what some felt was speculative hedging. AirAsia has since covered its short positions with new long call options which should cover it at least until June 2008. AirAsia has since covered its positions by buying Call options for 350,000 barrels at US$82 per bbl and also 200,000 bbl per mth at US$79.50 per bbl between January to June 2008. It also said that it has room to negotiate on the Short Call options every 6 months.
Asia-Pacific currencies are likely to gain further against the U.S. dollar in 2008, with even the smaller regional counterparts to the greenback holding promise for investors.
Proximity to China and India is the common denominator. The Indonesian rupiah, the Thai baht and the Malaysian ringgit stand good chances of maintaining recent gains, bolstered by strong demand for exports. Widely traded currencies, such as the Japanese yen or Australian and New Zealand dollars, will also advance, thanks to the China-India influence, among other advantages.
"Asia in general will outperform Western economies, and the yen will appreciate on the back of it," says Robert Fullem, head of corporate foreign exchange sales at Bank of Tokyo Mitsubishi in New York.
The greenback had a miserable 2007, declining against 14 of the 16 most actively traded currencies. The subprime crisis, the Federal Reserve's need to stay accommodative on interest rates, plus longstanding concerns about America's ability to finance its massive trade and current-account deficits all hurt the currency. More of the same is expected in 2008.
China and India are still recording close to double-digit increases in gross domestic product. That provides big support for the economies -- and currencies -- of their neighboring trading partners. Some countries simply supply raw materials, while others, such as Japan, South Korea and Taiwan, profit considerably through projects to expand infrastructure and improve technology.
"China and India will act as a critical mass for the regional economies," says Marc Chandler, head of global foreign exchange at Brown Brothers Harriman in New York. "Countries in their orbit will benefit."
With the dollar now around 110 yen, the Japanese currency is close to its fair value, measured by purchasing power parity, says Fullem. Bank of Tokyo-Mitsubishi anticipates the dollar will shrink to 105 yen by the end of December.
The Australian and New Zealand dollars have been among the bigger beneficiaries of the yen-carry trade; that shouldn't stop this year. Australia's benchmark rate is 6.75% and New Zealand's is 8.25%. While analysts debate the size of the Fed's next rate reduction, speculation in Australia centers on rate hikes. Moreover, the Australian dollar wins on demand for its commodities, such as gold, iron and copper, as well as foodstuffs like wheat and meat.
The outlook for smaller A-Pac currencies is positive, though gains won't match recent years'. The Thai baht rose about 15% against the dollar in 2006, causing the country's central bank to impose capital controls. The controls have been relaxed, and today the baht is stronger than it was at the end of 2006. But Thai authorities, like their counterparts elsewhere in Asia, want to protect their exports by keeping their currencies in line with regional rivals'.
The yuan presents a special case. It will continue to strengthen steadily, closely guided by government control. Non-deliverable forwards, the primary means for investors to gain exposure to the yuan, indicate an 8.5% appreciation for the Chinese currency in 12 months.
"There's no doubt about [the yuan's] direction," says Chandler.
For Barron's subscription information call 1-888-BARRONS ext. 685 or inquire online at http://www.barronsmag.com/subscription/subscription.html.
KLCI ends +0.1% at record high close of 1491.66 in heavy volume of 1.7 billion shares, led by gains in property stocks, blue chips and government-linked companies. Market ended off record intraday high of 1498.86 as investors locked-in gains ahead of the Muslim holiday but the benchmark likely to extend gains Friday, possibly breach 1500 psychological resistance. Both local and foreign funds were net buyers today while retail investors focused on government-linked stocks on speculation the government may call snap elections in 1H08. Ringgit's continued strength against USD also cited as catalyst; USD/MYR at 3.2650 from 3.2710 late yesterday, lowest since November 1997.
KLCI ends +1.3% at new record high of 1489.74 in heavy volume of 1.26 billion shares led by gains in construction, finance and property stocks. Market breadth positive; gainers beat decliners 597 to 245. The benchmark may rise to to test 1500 psychological resistance tomorrow. Buying interest from local funds lifted shares of government-linked companies and banking stocks. The ringgit's continued strength (USD/MYR at 3.2710, level last seen in Nov. 1997), attracted fresh buying interest from foreign funds. Notes also rise in volume traded, supported by increased participation by retail investors.
KLCI ends +0.3% at new record closing of 1470.77; trading choppy throughout the day, with KLCI fluctuating between positive, negative territory; The losses on Wall Street and around the region weighed on the market, but this was offset by buying interest in defensive sectors like plantations, oil and gas and construction, which are more insulated from external factors; decliners beat advancers 484 to 312; KLCI tipped to move in 1460-1480 range tomorrow.
Malaysia shares end +2.2% at new record closing high of 1466.67 driven by gains in plantation stocks, select government-linked companies and Telekom; market breadth positive with gainers leading decliners 642 to 206 with volume picking-up in late trade to 942.2 million shares. Strong buying momentum may lift benchmark higher Monday, possibly to around 1480; psychological support pegged at 1450. The ringgit's fall to a 10-year low of 3.2810 against the dollar was one of the key triggers for strong performance in equities. Bullish outlook for crude palm oil prices boosted plantation related stocks while Telekom's 5.2% surge to MYR12.10 added close to 5.4 points to the index' rise. But the worst may not over just yet.
KLCI ends almost flat, shedding 0.3 points to 1435.38 after trading within tight 1432.83-1438.19 range in thin market. Breadth ended negative with decliners outpacing gainers 494 to 262 as profit taking weighed across a broad range of stocks following Wall Street's steep pullback overnight and record high crude oil prices. The benchmark likely to stay locked-in tight range of 1420-1440 tomorrow with downside bias. Gains in a handful of plantation stocks helped to mitigate some losses but there was very little commitment from retail players. The 'sell-into-strength' stance was maintained with very little interest in committing to fresh investments.
Would you allow an 8-year-old to run your financial matters?
Have you ever wondered why some traders make a lot of money and others do not?
Have you ever seen two traders with similar strategies and tools, yet one is successful and the other is not?
Why do you think this happens? On the outside, it might look like bad luck, a bad market or possibly a lousy system.
On the inside, it's a different story.
Have you ever heard of lottery winners who within several years go bankrupt? Most people do not have the internal capacity to create, hold and manage large amounts of money. Any success for them will be short-lived.
Your internal capacity is based on the programming you received as a child.
When you were born, you did not have independent thoughts. You were taught how to think about money by your parents, siblings, friends, schools, authority figures, communities and cultures. That programming now forms the basis of your current thoughts, beliefs, fears, actions and emotions having to do with money.
Before your teenage years, your programs and beliefs were already in place. Your success will be based on them, until you decide to change them.
Most people are using programs that they were taught as a young kid. Would you allow a 6- or 8-year-old to run your financial matters?
Let me illustrate this to you. Please respond to the following questions with the first thing that comes to your mind.
* How do you feel about money? * When you think about money, what are you focusing on? * your opportunities or * your debts * When you think about wealthy people, what is the first thing that comes to your mind? * Do you believe that there is enough for everyone? Or, do you think there is a zero sum gain? * How much do you think you are entitled to?
What did you come up with?
If you truly feel that there is enough money to go around, you deserve as much as you want and that there is no ceiling to your income, then you are a super trader.
However, if you feel one or more of the following:
* Money is dirty * Rich people are: - Dishonest - Cruel - There's not enough money to go around - I do not deserve it
Then I would imagine that you are experiencing some challenges with your financial situation.
How can you increase your internal capacity for money and success? Let me introduce you to a simple, yet powerful formula. Understanding this formula is the key to your financial success. The formula is:
T-> A-> R -> H
Thoughts to Actions.
Actions lead to Results .
Repeated Results Lead to Habits.
If you want to change your results, your will also need to change your thoughts. Albert Einstein said, “The significant problems we face cannot be solved at the same level of thinking we were at when we created them.”
In order to change your programming or your thoughts, you first have to be aware of them. Many things we do are based on habits. We are on autopilot most of the time. We need to figure out where those habits are coming from and whether they are serving us.
When we first acquired these beliefs and programs, they served a purpose. Now that we are in a different place in our lives, we need to examine them to see if they still service our needs or whether we need an upgrade.
How do we receive our programming? There are three primary ways in which our thoughts are influenced.
1. Verbal: This describes what you "heard" when you were young. You may have listened to things like:
* Money is the root of all evil. * Rich people are greedy. * You have to work hard to make money. * You can't be rich and spiritual. * Save your money for a rainy day. * We can't afford it. * Money doesn't grow on trees. * What am I, made of money? * Money doesn't buy happiness. * Money talks. * The rich get richer and the poor get poorer.
Most of the statements you heard when you were young are still with you today in your subconscious mind. They are also running your financial life.
Have you seen traders who make a lot of money and cannot keep it? It may be because they believe it is greedy to have so much money.
2. Modeling: What did you "see" when you were young? How did your parents or the people who were close to you manage their money? Were they spenders or savers? Did they invest their money or gamble it away? How were your beliefs shaped by what you saw?
It reminds me of a story.
A young bride is preparing a pot roast for dinner. Her husband watches as she carefully cuts each end off the roast before putting it in the roasting pan and placing it in the oven.
“Why did you cut the ends off the roast?” he asks.
“I don't know,” she replies, “that's just the way my mother taught me.” The next time the young woman talks to her mother, she asks about trimming the ends off the pot roast.
“I don't know why,” her mother answers, “but that's how your grandmother always did it.” On a visit to her grandmother, the young woman asks about the pot roast.
“Oh,” replies the grandmother, “I had to do that simply because my roasting pan was too small to fit an entire roast.”
Have you ever done things without knowing why you do them?
If you are not getting the results that you want, there is good news for you. You do not have to do things the same old way. You have a choice. You can change the rules and do whatever works for you.
3. Specific Events: What did you "experience" when you were young? Did your parents have fights over money? Did you associate money with anger or pain?
One of my clients associated money with being very mean and greedy. He associated not having money with being nice and spiritual. We worked on those issues and now he has a new set of programs that serve him. He realizes that money by itself is a form of exchange and that it is neutral. How he deals with it is a choice.
Beliefs are neither true or false or right or wrong. They are merely opinions that have been passed down to you from generation to generation. Knowing this, you can choose to release any thought, belief or way of being that is not supportive to your wealth and replace it with one that is.
You can adopt new and more successful beliefs. Remember, thoughts lead to actions which lead to results. Repeated results lead to successful habits.
You can choose to think and act in a way that will create the results that you desire . Develop a super trader mentality and fulfill your own expectations.
Here is to making success your habit™,
By Nazy Massoud
PS. For more Mental Edge tips and reports on how to have more profitable trades, go to www.MentalEdgeTrading.com .
ABOUT THE AUTHOR : Nazy Massoud, a Wall Street Insider, shows traders, investors and hedge fund managers how to develop the mental edge to execute trades more profitably. For more tips and a FREE report on "The 3 Biggest Psychological Triggers That Can Make or Break a Trader," go to www.MentalEdgeTrading.com .
I'm a hardcore Technical Analysis Trader in the Malaysian stock-broking industry. This is a personal weblog, reflecting my personal views and not the views of anyone or any organization. THIS BLOG ALSO DEDICATED TO MY SUBSCRIBERS WHO HAVE ENCOURAGED ME AND TO THE THOUGHTFUL TRADERS WHO DESIRE TO FOLLOW PRACTICAL RULES FOR TRADING INSTEAD OF GUESSWORK AND GAMBLING METHODS.
KLCI ends down 0.3% at 1384.08 in moderate volume, off intraday high of 1400.90 as investors locked-in gains and unwound positions. Decliners led gainers 501 to 228 as investors adopted cautious stance ahead of Fed rate decision. Benchmark tipped to trade in 1370-1400 range tomorrow. Judging by today's market action, investors are likely to sell into any strength tomorrow
