Our STI index closed nearly 25 points in green! What an explosive day of trading. Bulls tried for the third time today the resume the uptrend after failed 2 attempts in the last 2 weeks. Buoyed by Rita's impotency and falling oil price, could this be a third time lucky and see us break 2325 Resistance? I certainly hope so! Tonight the US market will almost certainly rally and oil price will either maintain slightly below US$64 or even lower. I can't wait to see it goes below US$60, that will really move markets around the world. However I have to be realistic, it's nearing winter, oil price during this season will increase due to higher demand. We might have profit taking tomorrow. But the main thing to note will be whether there will be late buying before close. That is the traditional signs of a bullish market. Govt has delayed the RFP for casino to end of November. Watch your profits if you are invested in casino plays. Or maybe I should call them IR plays since this is the replacement word for casino in Singapore.
When I first started out in June'05, I traded rashly and was showing you more losses than wins. I even joked to rename this blog to how not to lose money blog instead of grow money blog. 3 month later now, finally growmoney blog has some really good picks over the last few weeks to benefit the 300 odd visitors. Singtel, Cosco, Starhub, TAC, Keppel Land, Capital Land, Comfortdelgro, SPH, Semb Marine, Bio Sensor, Ho Bee...the list will go on! (You can do a search for a stock's older chart analysis) All these are big movers and potential big movers. It showed me that being patience and have a longer term mindset will be rewarding. I gave up the fanciful cheaper sesdaq stocks to really focus on the charts of Bluechips day and night. 1 of the strategies i'm using is to keep a handful of stocks and look at them daily, follow them daily. Soon, you will be able to time it's movement more accurately. Although this is a boring way of trading, but the odds of winning is higher. You want fun or do you want to win more?
If you like fun, trade simsci! I was drawn to this trading derivatives as I noticed how closely it tracked the STI index. Trading in stocks requires a longer time frame than simsci. In Simsci, you can close your trade at the end of the day and earn decent profits. Hence I have taken a longer term investment strategy for my stocks and turn to simsci for fun. But be warned, this is extremely high risk. There was once I went for a coffee break which is only 10 mins, I ended up 10% poorer because I did not put a stop limit.
Today I managed to scalp simsci at 2728 and sold at 2733. On the back of my mind, I know underlying is bull sentiment, I am always looking at opportunities to get hold of a long contract. After cashing out, I got hold of another long contract at a lower level. This time round, I kept the contract overnight for I believe that with the US rally almost certain, I took a gamble that tomorrow, simsci will gap up. With the paper profits not mine originally, I am willing to risk it for a bet that this rally will last a few days.
Something is wrong with server again! I can't post charts.
Please find them here >>> Charts!
