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In collaboration with ChartNexus, Pauline Yong has incorporated her unique trading strategies into ChartNexus XPertTrader charting software so that subscribers can apply the strategies to buy and sell blue chip stocks and other general stocks in Bursa Malaysia as well as other foreign stock markets. Benefits of Subscribing the ChartNexus XPertTrader Charting Software After subscribing ChartNexus, you can use Pauline Yong’s proven trading strategies – Sigma Wealth (SW) Blue Chip Buy Signal, SW Blue Chip Sell Signal to scan your watchlist, preferably the blue chip stocks list regularly for any buying or selling opportunities. The SW Blue Chip Buy Signal is designed to scan for buying opportunities for blue chip stocks that are intended for medium term to long term hold, hence speculation is not encouraged here when applying this strategy. On the other hand, the SW Blue Chip Sell Signal is to scan for weaknesses in the market so that investors will not hold on to the losers in a severe do...

According to Tversky and Kahneman, the prospect theory explores how an individual behaves when face with a risky situation. This theory suggests that when we are presented with choices, we consider the effects of each option relative to our present circumstances. Will we gain or lose relative to our current status quo? Definitely, we prefer gains because it is always better to receive money than to lose it. Hence, Kahneman and Tversky’s crucial contribution was the recognition that losses and gains are not weighed equally - for the same amount of gains and losses, losses hurt more than gains. Below is the diagram showing the difference between the human perception on gains and losses. As shown, gains and losses relative to the current status quo are measured on the horizontal axis, and the perceived value of these gains and losses is presented on the vertical axis. As indicated, losses produce a greater change in value than equal size gains: losses hurt more than gains. Similarly, many...

Under the paradigm of traditional financial economics, decision makers are considered to be rational and utility maximizing. The assumption of rational expectations is simply an assumption - an assumption that could turn out not to be true. Behavioural Finance has the potential to be a valuable supplement to the traditional financial theories in making investment decisions. For the past few weeks I have introduced several behavioural finance concepts including: Availability Bias, Representative Bias, Anchoring Bias, Mental Accounting and Framing Effect. Next, I’m going to tallk about “Overconfidence”. Overconfidence is a very common behaviour whereby investors tend to think that they know more than they actually do. They often overestimate their predictive skills and believe they can time the market. One classic example is listening to rumours. Investors who make investment decisions based on listening to hearsay rumours tend to be overconfident about the situation. Personally, I know ...