During my hibernation period, i read this great book "How to trade in stocks" by Jesse Livermore. It was a excellent book that was written by the man considered to be the world greatest trader.
It is ironic that the trading philosophy of a man which died in 1940 is still highly applicable. You have to adjust and filter certain ideas due to changes in regulatory and market environment. However, the main and important concepts are still highly applicable because greed, fear, ignorance and hope still exist in the market. (He is primarily a Trend / Breakout trader)
This is a must read book for any trader, trader wannabe in which i am sure you will gain valuable information on trading and i leave you with this quote by him
"Wall Street never changes, the pockets change, the stocks change, but Wall Street never changes because human nature never changes" - Jesse Livermore
Saturday, January 17, 2009
New Year, New Beginning
It has been a while since the last i blog. Been busy with a go-live of an oversea project as well as a long overdue 2 weeks holiday with my other half which i truly enjoyed myself :)
With the time away from the market, i come back certainly refreshed and recharged. However, i decided not to dive directly into it upon my return even though the market is charging ahead that period due to the following reasons:
1) I would need to ease back and form my opinion of the market (i.e. gain that "feeling") before committing the hard earned $$ into the market
2) The market has already charged up a fair bit and i would need the market to retrace and confirm the short term trend change before committing to go long. (I don't wanna make the same painful mistakes in which i basically chase mindlessly during rally fearing that i will miss out on the fun)
I have to admit i was extremely tempted to go long on a couple of counters to trade on the short term trend change when it start retracing 1.5 weeks ago. But i tell myself i need 2 criteria to be met:
1) White candle/hammer forming on heavy volume
2) Price bouncing off on key support level
And what a right decision that is!! The white candle never come and support level was broken!! That is the cue for me to take action finally... My first trade for the year!! I went short instead 3 days ago on 3 counters. It was already pretty late in the fall and therefore to increase my margin of safety, i selected counters with the next support level pretty far off
1) Suntec Reit
2) Keppel land
3) HKEX (listed in HSI)
It has been rewarding so far with all 3 positions in the money :)
A great start to the year which of course i hope will continue.. HUAT AHHHH
"The market does not beat them. They beat themselves, because though they have brains they cannot sit tight" - Jesse Livermore
With the time away from the market, i come back certainly refreshed and recharged. However, i decided not to dive directly into it upon my return even though the market is charging ahead that period due to the following reasons:
1) I would need to ease back and form my opinion of the market (i.e. gain that "feeling") before committing the hard earned $$ into the market
2) The market has already charged up a fair bit and i would need the market to retrace and confirm the short term trend change before committing to go long. (I don't wanna make the same painful mistakes in which i basically chase mindlessly during rally fearing that i will miss out on the fun)
I have to admit i was extremely tempted to go long on a couple of counters to trade on the short term trend change when it start retracing 1.5 weeks ago. But i tell myself i need 2 criteria to be met:
1) White candle/hammer forming on heavy volume
2) Price bouncing off on key support level
And what a right decision that is!! The white candle never come and support level was broken!! That is the cue for me to take action finally... My first trade for the year!! I went short instead 3 days ago on 3 counters. It was already pretty late in the fall and therefore to increase my margin of safety, i selected counters with the next support level pretty far off
1) Suntec Reit
2) Keppel land
3) HKEX (listed in HSI)
It has been rewarding so far with all 3 positions in the money :)
A great start to the year which of course i hope will continue.. HUAT AHHHH
"The market does not beat them. They beat themselves, because though they have brains they cannot sit tight" - Jesse Livermore
Thursday, November 20, 2008
Heart pain pain
Finally, turn on my charting software 2 days ago after a hectic week in Taipei and oh gosh... I have missed close to 25 strong signal from my setup to short last week!!! And i guess most of you who trade would know i have missed out on what could have been a great run :(
Notable includes Straits Asia, Noble, Olam, ST Eng and more and more... These are 20% move.. What a painful lesson this is, i promise i will scan every trading days from now on especially when i am not in the mood which is usually when i missed out on great trade (murphy's law??)
Anyway, i have decided not to look at the past with sorrow and look forward positively. Enter 2 short positions today which retrospectively is kindof forcing the issue as they are already in the downswing when i pull the trigger and the risk reward ratio is kindof low. So let's see how it turns out...
1) YZJ
2) Wingtai
Monday, November 10, 2008
Quick thoughts to share
Currently in Taipei for project with no mood nor time to analyse the market.. Just wanna share a quick one with you guys my thought with the recent rally..
"Patience is a virtue because it's much wiser to miss out on the best if it helps you avoid the worst..."
Looking at the current market... Using another quote from some old wise man..
"If it looks like a duck and quacks like a duck, chances are it's a duck."
Happy trading :)
"Patience is a virtue because it's much wiser to miss out on the best if it helps you avoid the worst..."
Looking at the current market... Using another quote from some old wise man..
"If it looks like a duck and quacks like a duck, chances are it's a duck."
Happy trading :)
Friday, November 7, 2008
Important couple of days going forward
Just did a scan of the end of day (EOD) of today charts. As expected the resistance level of many counters works like magic and most of them retreat around their resistence points. Now the next couple of days will be fairly important in determining the short term market direction. If it can
1) make higher low = short term bull
2) retreat from resistence and close below 8 EMA = short term bear
As a swing trader, i will go with the trend which is down.. I have identify a couple of counters which are favorable shorts from a risk reward prespective.. Here goes..
1) starhub
2) straitasia
3) wilmar
4) SIA
5) Sembcorp
6) DBS
7) Noble
Remember.. Set your stops with enough width to cater for the volatility to prevent false shake out which also means proper position sizing must be consider b4 you pull the trigger... LAI LAHHHH
1) make higher low = short term bull
2) retreat from resistence and close below 8 EMA = short term bear
As a swing trader, i will go with the trend which is down.. I have identify a couple of counters which are favorable shorts from a risk reward prespective.. Here goes..
1) starhub
2) straitasia
3) wilmar
4) SIA
5) Sembcorp
6) DBS
7) Noble
Remember.. Set your stops with enough width to cater for the volatility to prevent false shake out which also means proper position sizing must be consider b4 you pull the trigger... LAI LAHHHH
Wednesday, November 5, 2008
Singtel?
Time to give Singtel a kick down?? :P
StarHub as well?? Well, has a higher risk as it is showing signs of going sideway with rsi trading above the 60 range as well as low vol on the pullback.
Olam looks yummy as well @ 1.15 range to gun down
Monday, November 3, 2008
5 seconds
Was up late last night catching F1 final race and boy what a race it is.. My heart goes to Massa who totally deserved the championship this year.. But guess life is fair and unfair in certain ways.. Well some might feel the winner is Lewis who totally deserved it last year.. The sight of joy turning to tears of sorrow in a matter of a 5 seconds swing disturbed me.. Somehow that swing tells us the power above acts in a strange way...
Back to stocks.. 5 mins and not 5 seconds in this volatile market can makes a difference btw a winner or a loser for intraday trade.. This rally is really kicking.. Noble grp broke 1.08 and move up higher b4 pulling back and closing at 1.08.. If it broke and closed above that tomorrow, we could be looking at it moving to the next resistence which will be around 1.30.. Hmmm.. Should i go for a quick intraday trade?? :P Finger getting itchy to pull the trigger..
"God gave rock and roll to you, gave rock and roll to you. Put it in the soul of everyone" - Kiss :*
Back to stocks.. 5 mins and not 5 seconds in this volatile market can makes a difference btw a winner or a loser for intraday trade.. This rally is really kicking.. Noble grp broke 1.08 and move up higher b4 pulling back and closing at 1.08.. If it broke and closed above that tomorrow, we could be looking at it moving to the next resistence which will be around 1.30.. Hmmm.. Should i go for a quick intraday trade?? :P Finger getting itchy to pull the trigger..
"God gave rock and roll to you, gave rock and roll to you. Put it in the soul of everyone" - Kiss :*
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