Hong Yuan Holding Group (HGYN)

[KeepsMeSwingin]

Doc's words of wisdom (3rd revision)


Doc's chart template: stockcharts.com/h-sc/ui?s=CERP&p=D&b=5&g=0&id=p09932629355

My target is still the same, .175 - .19.

How Doc called the bottom: investorshub.advfn.com/boards/read_msg.aspx?message_id=84935998 MUST READ

Also found at the bottom of this post.



Education


I only use stockcharts.com free version, nothing else, I don't search for patterns, I search for stocks with good volume going down, and, analyze one by one. I've learned all I know on [stockcharts.com], I did not read any book, I read all the info there, and, practiced many hours per day.

This is a great link to begin with, but, click also all the links under ChartSchoolContents.

http://stockcharts.com/school/doku.php?id=chart_school:glossary_a



Methods


Because I calculate the risk before to buy, and, the profits I will make, and, I stick to it, because at the bottom I will make more money, if I buy more at the dips, my average will be higher, and, I am increasing the risk, also, I will make less profit with the money I would use to buy the dips.

I chose the money I want to make in a stock, and I am happy with it, pretty simple, suppose, only suppose, that I bought 5M shares at an average of .01, and, I sell them at .18, I will make $850,000 profit with an investment(I hate this word) of $50,000, it is a very good profit, so I will be happy with it, and, I will search for the next victim.


Charts is the only thing that works with any stock.


My experience tells me that T/A is very simple, do NOT try to complicate, do not try to reinvent the wheel, use the standard, practice, and, you will be able to recognize supports and resistances in some time, very easily.

Do this, try to correlate the volume with the correspondent candle, interpret what it says, and, this is 90% of what you will need to know. Volume accounts for 90% of my T/A, I caught the bottom on CERP only based on the volume.


Anything that make us understand how something works, it has great value.

Everyone of us have his own "system", if it works, go with it.


[T]hat's what intelligent people does, buy the supports, sell the resistances.


The weekly chart is more important than the daily one, because it's the one that gives you the "big picture".


Exactly, buy when there is blood in the streets.


95% chart, 5% DD, if you can call DD to only verify if something very bad, like a R/S or a BK is possible in the very short term.


I clean the house(I mean I never let freebies), I like to have a clean portfolio, without garbage.


[F]ollow the volume.


Action


I tell you this, if you see lots of trades at the bid, and, the stock holds the price or goes up, those are buys, not sells.

The opposite are sells.


The action will come in a natural way, it's the kind of action I am talking about. If it is not natural, it wont last.


It's simple, if the stock is near a strong support point, as closer the close to that support point, any small buy pressure will put the stockgreen(above the previous close).


[F]alse breakouts and breakdowns of the PAR SAR happen all the time


This is what I like, high volume, yessssssss :)


Member: every time we start to rally a bunch of shares get sold.
Doc: Patience, every pull back is like this.


Technical Indicators


When I learned T/A, I did this, I "lost" about 2 or 3 days to try every number as MA, since 1 until 1000, only to discover if all of them are correlated with the price, of course they are, but, they work? Of course not, because nobody uses them.

On the internet, here on ihub, and, other forums, I already saw people using lots of MAs, 3, 6, 12, 13, 14, 18, well, there is one MA to every taste, but, this is garbage, they only work, IF they are used by many people, then if they are used, they will be used as support or resistance, so people will buy or sell there, and, then they will work.

The only MAs that work are the MA200, MA50, and, sometimes the MA20, the rest you can forget.


I use always the same chart template, it means I NEVER change anything. I never used non-logarithmic charts, IMO, they are garbage.

Member: Do candlestick patterns work on the weekly, or just the daily?
Doc: In both, exactly the same, but, the patterns are not the most important, the candles yes.


MMs


[T]he MMs will let the stock run when it is time.

[MMs] play games [on L2] all the time, put an order at certain price, only to remove it a little later, showing walls of MMs at a certain price, suddenly they all disappear with a little buy pressure, I tested level II for about 3 months, about 13 years ago, and, this is my opinion, it is pure garbage.


News


Rumors are good to stocks, so if you say technicals mixed with good rumors, I agree, but, news always bring sell pressure, even if they are good[.]


My opinion is the same, nothing changed.


Charts precedes news, you can see many things in the charts, go back to Enron time, I remember the chart with a very strong down trend, BEFORE anyone out of the company knowing what was happening, but, for a chartist, it was obvious that something very bad was happening there, and, I tell you more, charts are the only thing that works with ANY stock.

Of course that charts do not known that kind of unexpected things, nor should do.



Character


Yes, for sure, positive thinking is the first step.


Of course I am human, I love adrenaline lol , but, I've taught myself to control my emotions.


Don't give attention to the noise, and, you will be fine.


You know that T/A for me is a passion, it's not only about making money, I feel really happy when people makes money with my picks, not even 1 million dollars pays this feeling.


Patience is the most important quality of a trader, even more than knowing T/A, because without patience, you will let much money on the table, due to wrong timing buys and sells.



How Doc called the bottom:


Very easy, this is the weekly chart until the latest black weekly candle, before the long white candle, look at the volume, it has passed from an average of about 10M to over 40M.

Now correlate the volume with the correspondent candle, let's study the latest four weekly candles.

The white candle with the close at .0312 was the first attempt to rebound, but the volume was the same, a little over 10M.

The next candle closed near the low of the previous one, and, the volume increased to almost 20M, it means the stock was not yet ready to rebound, and, still had much sell pressure.

The next week, the stock has broken the low of the white candle, and, made a long red candle, BUT, watch the volume, 47.5M, WOW, almost 5 times the 10M average, this is a volume alert, it means that many people is selling, but, also many people is buying, absorbing the shares sold, however, the sell pressure is still stronger than the buy pressure.

The last black candle went only a little bit lower than the previous candle, and, closed slightly above the low of it, this means STABILITY, the buy pressure is EQUAL to the sell pressure, so if it is equal, next week it will be stronger than it.





Now let's see what happened on the next week, WOW, big explosion to the up side, 200M shares were traded, 20 times the previous average of only 10M.





This information that I am giving here for free, worth millions of dollars, not only for the 30 minutes I took from my Saturday night, but, for the years it took me to learn this the hard way, working 14 hours a day, and, that turned possible to make about $50,000,000 on the stock market during the latest 16 years, I am giving my little secret for free, follow the volume, this is a gift for you guys.