Tuesday, May 31, 2011

Exit Strategy

Most people know how to buy, but do not know how to sell. Exits are important because your exit strategy will determine:
  • Size of your profits
  • Size of your losses
  • Length of your trades
  • Amount of your risk
  • Size of your position
  • Your percentage of winners
  • Your total return
For most traders exits are more difficult than entries. Why are exits difficult?
  • We have unrealistic expectations
  • We expect to sell at tops
  • We tend to apply too much hindsight
  • We sense lack of control
  • We can enter trades on our own terms
  • We must exit trades on terms set by the market
Solution: We need to have realistic expectations and take control of our exits. Sometimes the stock price immediately drop after we have bought it, accept the fact that we have bought it in the wrong time. Do not turn your short term investment into a long term investment.

Friday, May 20, 2011

Singapore on headline of Marketwatch!


Very seldom we see Singapore on Marketwatch headline, this time we finally made it! Expect caution trade ahead~ Watch your stoploss!

Tuesday, May 17, 2011

Bearish Stock

At the point of writing, S&P is in red at 1321 -0.58%, with US down for the last 2day. I think the chances that we have a green day tomorrow is quite impossible. hence i am looking at a few bearish stock that you might want to add into ur portfolio to balance the bull and bear.

Capitaland closed 3.15, Long term/midterm/ short term all down trend one of the most bearish stock in sgx. We have a Short signal in our system, can consider to short if it move 1bid below previous day low. Stoploss can put at 3.22, if can break below 3.08 i think there will be more meat below.

Citidev closed 11.20, also long term down, short and mid term fluctuating. I pick this stock because it recently hit resistance and bounce back after failing to break above. Can consider to short if it goes 1 bid below previous day low. Stoploss at 11.64

PEC closed 1.11, forming a Head and shoulder but yet to complete. Can consider to have a early short if break prior day low. Short more when it break the neckline. Stoploss at 1.15

Sunday, May 15, 2011

RafflesMG moving quietly

Did you notice that the healthcare sector is now out performing the other sector? You probably be making money this few month if you are holding stocks like Q&M and Biosensor. What about RafflesMG? In short-mid term view, it is uptrending because it is making a higher high and a higher low, few days ago just break the previous high. A stock you can look forward to buy on dips. P.s market can change anytime, remember to set your stoploss!~

Saturday, May 14, 2011

Learning from Guru - Paul Tudor Jones

Jones futures trading style and beliefs that i read from wikipedia, which i very much agree! - check out more here
  • Contrarian attempt to buy and sell turning points. Keeps trying the single trade idea until he changes his mind, fundamentally. Otherwise, he keeps cutting his position size down. Then he trades the smallest amount when his trading is at its worst.
  • Considers himself as a premier market opportunist. When he develops an idea, he pursues it from a very-low-risk standpoint until he has been proven wrong repeatedly, or until he changes his viewpoint.
  • Swing trader, the best money is made at the market turns. Has missed a lot of meat in the middle, but catches a lot of tops and bottoms.
  • Spends his day making himself happy and relaxed. Gets out if a losing position is making him uncomfortable. Nothing’s better than a fresh start. Key is to play great defense, not great offense.
  • Never average losers. Decreases his trading size when he is doing poorly, increase when he is trading well.
  • He has mental stops. If it hits that number, he is out no matter what. He uses not only price stops, but time stops.
  • Monitors the whole portfolio equity (risk) in realtime.
  • He believes prices move first and fundamentals come second.
  • He doesn’t care about mistakes made 3 seconds ago, but what he is going to do from the next moment on.
  • Don't be a hero. Don't have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.

Wednesday, May 11, 2011

Manhattanres and Z-obee Chart

Manhattanres closed 1.13 today, has been up for 5days since it hit bottom(support at 1.03). This stock have history of making 10-20% single day gain, not suitable for the weak hearts. However if you side a side some money to give a punt then you can consider to long it tomorrow if it break prior day high. Initial stoploss can place at 1.06 or 1.01. 2weeks-2month trade

Z-obee closed 0.285, also a very trendy stock that is capable to make 10-20% gain/loss single day. Also not for the weak hearts. Enter if it goes above prior day high. Stoploss can place at 0.26.

Tuesday, May 3, 2011

Gallant and Ausgroup chart

Gallant closed 0.430 today, has been down for many days after the wide range bar appear. It is now suitable to use our swing trade setup as the CCI is oversold -100 and price between 20 & 40ma. Can consider entry if tomorrow price break above 0.435, Stoploss can place at 0.415.

Ausgroup closed 0.445 today, same as gallant, this stock also have a wide range bar recently accompanied with big volume and the volume diminishes as price fall. In the pic beside, i drew a box for the area it consolidate. Ausgroup is now at the bottom of the box, risk taker can consider to long at support. It might have more upside if it breaks the top of the box.