We have seen from the last three chapters how manic the stock markets of the world can be and that the Malaysia/Singapore market is particularly so.’ Worse than being merely manic, the Malaysia/ Singapore market is very unpredictable—it can collapse in the midst of prosperity...
Stock Trading
Cause,Pre-Conditions,Some Reasons for Speculative Manias & Their Aftermaths-Part.3
THE AFTERMATH Once the crash has begun, the stampede in the opposite direction occurs and the mad rush to sell is as fierce as the original eagerness to buy. Most speculative manias end in roughly the same way. It is interesting to note how they...
Cause,Pre-Conditions,Some Reasons for Speculative Manias & Their Aftermaths-Part.2
FORMATION OF A SPECULATIVE CROWD The existence of certain pre-conditions is necessary for a speculative mania to take place but they still do not explain why it should take place in a particular place and time. After all, such conditions do exist in many countries...
Cause,Pre-Conditions,Some Reasons for Speculative Manias & Their Aftermaths-Part.1
A crowd think: in image: and each image itself call: up a fantasy’ of other image: though the} may have very distant relation with the observed fact: . (Le Bon) After going through the history of the six episodes of speculative mania as detailed in...
The History: 3 Local Stock Market Crashes-Part 3
THE CRASH OF 1981 Whom the God: wish to destroy, they first praise highly ~Ancient Greek saying The Crash of 1981 occurred eight years after the Crash of 1973. in magnitude, it is almost as severe as the first Crash. It would seem at first...
Examanition of past Stock Market Movement of Malaysia and Singapore Part-2
CAN THIS KNOWLEDGE BE APPLIED? Some of you may be tempted to think that it is easy to carry out market timing after having read the previous section. They may think that all one has to do is to take an index chart and draw...
Examanition of past Stock Market Movement of Malaysia and Singapore Part-1
By using an index, we can very quickly have an idea of how much the market has moved within a noted period. For example, if the index stood at 600 at 31 December 1982 and it is now standing at 800, we can say that...
Is Correct Time To Buy and Sell in Stock Market?
In previous chapter, it has been mentioned that the fundamental approach to investment requires one to work out the intrinsic value of a share before its purchase. Some readers are likely to ask: “Why don’t we just wait until the whole market is low enough...
Why Does the Stock Market Move up and Down? Part -4
ANALYSIS OF THE PAST GROWTH OF THE MARKET With the fortunate favourable combination of these three factors, the total profit of the listed companies in Malaysia/Singapore has increased by many times. (It is not possible to state precisely the number of times since no one...
Why Does the Stock Market Move up and Down? Part -3
WHAT DETERMINES THE LONG TERM STOCK PRICE TREND? In previous article, very strong proof will be given to show that Over the long run (three years or longer), stock prices are almost wholly dependent on the growth of their underlying earnings and dividend. Let us...