Determined to be Patient

Global Markets are showing signs of reversal. What was expected to be a quiet trading session for our local bourse turn out to be a rally. I had said on Sunday, a rebound was on the cards however I had never anticipated it to be of such magnitude but i'm not complaining : ). Since the bull run is still intact, what really triggered the selling past 3 weeks? Well, I don't want to know anymore. I prefer to be more forward looking. Stock market is never straight forward and easy. I will just make sure I am out of the way when it's a falling knife. Given the massive gains so far this week, there should be some form of retracements before pushing past the 2300 level. But i will be looking out for higher highs or lower lows to confirm the trend.

Throughout the years I have used and tested many forms of trading system. So far I like breakouts the best. I am never good at picking bottom. It never fails to show me that the low gets lower. Cosco Corp & Hyflux are good examples of what was perceive as expensive continues to get more expensive. Price of the counter is just a number. I rather spend more time thinking if it is going up then be bothered by i could have bought at a cheaper price. This is human psychology where we are tuned to buying at cheaper price. Who doesn't like a discount? If you are an investor, getting cheaper is good as you can increase your holdings. But if you are like me, a trader, I rather be sure that the moment i buy, it will be going the direction i anticipated. Otherwise sitting on paper loss affect me psychologically and also illiquid my funds. To win in trading, you have to separate yourself from the crowd. This is what I always heard and read, so this is what i'm going to follow closely. Hence I'm going to get rid of the "you can get it at a cheaper price level " mentality.

Trading breakouts require 2 conditions. The patience to wait for it and the discipline to cut loss if wrong. Also I only Technical indicators to judge the buying/selling sentiment of the stock.
I would never buy blindly when the indicators shout buy at me.

Last session, i shouted breakout for BeautyChina....the volume surpassed it's 50 day average. It closed up with a 6 cents gain. Let's see what unfolds.


Capital Land


NOL


MediaRing - The future of telecommunications


Cosco Corp - Titanic to be? Not anytime soon!


Hyflux



Ho Bee