Thursday, September 08, 2005

Directionless Market & the REVOLUTION

Yet another quiet day at the market. It's the school holidays. Maybe most of the people had went on a vacation thus the lacklustre volume in trading. I do see massive declines on some counters. However I will worry more if the decline has strong volume pushing it down.

Starhub and Singtel both gained. Keeping our STI in positive territory by 1 point. While the rest are restless. I advise not to trade stocks during this quiet times. Watch out for the volume. If decline starts to go down with volume, bad times ahead. Otherwise, just let it drift sideways. Starhub wise, I expect retracement. The volume of the breakout is not convincing. 2.05 would be a good initial buy and add on if price break 2.07 with big lots buy up. Cut if price close lower than 2.00 .

SIMSCI Strategy update: The line of least resistance seems to be trending down. I maintain the support and resistance level of 267.7 & 274.8 respectively. Made my virgin trade in SIMSCI today. : ) Bought at 2705 and sold at 2713. Today's actions was very similar to yesterday where intra day will hit a low only to leave a trail of lower shadow. From 2717 which is previous closing to 2705, I have some room to play with. Hence decided to long 2705, the high of the day at that time was 2714, i queued to sell at 2713. One reason I didn't hold my contract overnight is because of the directionless market. This is not a sure win strategy. It works today and doesn't it will work tomorrow. Experience in feeling the price and volume movement helps. Special Thanks to a guy call Pang. This fella really share alot with me. Thank You Ah Pang if you are reading this. : )

Since this is the last article of this week, I shall talk about my observations and site.

One reader had asked me a very important question. If I don't trade, how to grow money? Have a column to display by transaction. Let me address the first point. If you have followed by blog long enough, you should have seen how I was bleeding from over trade. I trade far too much and radomly picking stocks that I anticipate it's share price will appreciate. This style is suicidal. My last straw came when I dump HGM. You can read about it in August or July Archives. After selling my losing stake in HGM, I step aside from trading and read 3 books. I came back 1 month later and am now sitting on paper profits. Lessons I learnt are blogged everynight. I learnt that money in the stock market is not easy to scalp. Growing money slowly works better for me. Buying small quantity and then add on when the trade is moving my way works very well for me. I also focus on market leaders. Maybe it's coincidence, but i notice when my watchlist is quiet, STI is also quiet. There are 3 things you can do in a stock market, buy, sell or hold. There are also times when you should buy, sell or hold. I learnt to sniff and decipher the general market mood every night before I decide to trade. The most important of all, I don't lose money unneccesary anymore. Which to me, psychologically is important.

I will not publish my transaction because I am still learning. The intention of this blog is to share my "homework" which I do every night. Homework will include market sentiment, my analysis and hopefully it can help you along the way. Most importantly is sharing my mistakes. By avoiding my mistakes, you are avoiding a trap. Think of the stock market as a life long journey with many booby traps along the way. By knowing what I done wrong, your journey will be 1 trap less. And for those who believe in Karma, I have set out to donate 15% of my earnings from the advertisements that you click and read. If you are able to visit my advertisements once or twice everyday, you are doing charity at no cost to you. Very good for your luck in trading.

Growmoney blog is free and will always stay free. Your kind visits to my advertisements helps defray the costs and set up a R&D enviroment. You must be surprised! What R&D is this guy talking about? I am never satisfied just to blog and have an idea corner. As a small time trader, the operating cost of charting tool and data is expensive. It kinda put me off when I first start to trade. Listen up, Decipher is working to provide all this and more FREE for everyone. I intend to have LIVE free charts and live data feed, news feed...etc.. It will come one at a time. This should keep everyone happy. : ) It's not easy and can take a long time to develop because I'm doing a one man show. So the revenue from the advertisers help in a way as I will be able to contract out the programming part. Lastly, I hope to have your support for this ambition of mine. Truly a REVOLUTION! Tell your friends and have them tell their friends. Let's make this happen!