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
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