We started with a bang and ended with a fart. Yes, that's how the STI daily chart looks like now with a big black candle with breakout volume today. Incase you didn't realise, we are quite similar to how US ended previously. However, upon completion of my daily sentiment scan of the market, more buying than selling. Most noticeable is tech sector. I was correct in anticipating that it will lead the next rally. It really feels good to know my thoughts and analysis is insync with the market. This should enable me to make informed decision.
Even I was tempted into selling my DBS babies today. After considering for a few minutes, basic trading rules reminded me that I should sell. My reasons were, DBS had tried a time too many to break $16.50. Also the babies I bought expires in Feb'06, the time decay effect will kick in. I am tempted to wait for 0.30 to sell but I tell myself this is babies and not a share. The time decay will corrode the price. So in the end, I decide a profit is a profit. Only fools wait to sell right at the top because no one can do that!
I noticed many of my friends had a similar problem. They are only concerned with "Have you make money overall?" My answer to them is honest and simple. "No" Then they will think they are speaking to a fool who losses money in the market. But what they did not know is the amount of hardwork I put in to research why I had lost. Infact, the bleeding stopped this year and I have been winning consistently in recent months. It is not how much you lost in the past that decides your future. Rather, it is how much you are going to make! Be forward looking, why bother to look bad and judge? They will not understand the whole trading psychology and hence I stop short at that. So one day, I hope when they hear about my growmoney blog from their friends, they will realise I am no fool in trading. Meanwhile, I will continue to be a student of the market.
No breakout counters today because they are way above my buying levels. If you scroll down or read the November Archives, you will notice most of them rally today. This is the importance of my trading system, chart formations + volume breakout == high chance of profits!
If you don't already know, I have 2 more sites to help the trading community.
freecharts.blogspot.com
begintrading.blogspot.com
