Stock Market to edge higher?

After a splendid week of 4 consecutive big gains, the question on my mind is, when is the run going to stop. When should i take my profit? What if I took my profit and then the stock continues to rally? Should I hold out the whole retracement and hope for it to rally high high? After a weekend of rest, a conversation with one veteran trader and some reading, i have came to a conclusion. I shall sell on weakness! Nevermind if i might miss out a big run because no one is able to sell at the exact top. Paper profits are money, where I should not risk it for guessing if it will go higher.

I was right in not acting to my own judgement that Friday will be a profit taking day. Look, STI edges higher on Friday even though there was profit taking. STI has broken the 2400 resistance and while it was there, i am wary of a potential double top. Rewinding back to year 2001, there was a double top spotted before the bear market of 2002 occurs.

Many people have told me it is very easy to win in a bull run. That really shake my confidence a little. I began to think, maybe they are right, I was lucky to be in this rally. I was deep in thoughts on Friday night and turned in early. When I woke up on Saturday, I changed my mind. In 2004, it was a bullish year yet I had my worst time in the stock market. I think the timing of buying even in a bullish year is important. I then read my own archives and saw my own journey from June'05 to 2006. I tried to find a magic formula that will give me almost 100% trades. Of course I failed, there is no such thing in stock market. Then I began to read alot and scaled down my risk and begin to note down what I did wrong when I lost money. From Sept - Oct '05, I missed out some of my own picks which became big runners. I had 20% to 50% paper profits reduced to 10% or less. Again I noted down why I missed so much of my paper profits. During the sideway and quiet trading months of November and December, i made some good stock selections and made some money here and there. Fast forward to today, again i am sitting on paper profits. Although luck is important, i believe my hardwork in learning from my mistakes and avoiding them plays an important part too. I'm not telling you these to impress you or to make you come back to my site everyday. Rather, my wish is for you to stop losing unneccessary money. Learning from mistakes is very important in the Stock Market.

For those interested, you may see what other visitors said about Decipher. They are really a cool bunch of people! Prosperity brings fortune! huat ah!! :D



Capitaland - Progressive Charting


DBS - Breakout last Friday


Starhub - Double bottom Formation

*Growmoney QuickPick*

DBS Group Holdings Ltd Ordinary Share 17.1000
United Overseas Bank Ltd Ordinary Share 15.2000
Creative Technology Ltd Ordinary Share 14.3000
Keppel Corporation Limited Ordinary Share 11.9000
Asia Pacific Breweries Ltd Ordinary Share 9.2000
Hongkong Land Holdings Limited Ordinary Shar 3.3400
Hyflux Ltd Ordinary Share 3.1600
Capitamall Trust Unit 2.2900
KS Energy Services Limited Ordinary Share 2.2300
Ascendas Real Estate Inv Trust Unit 2.0000
TPV Technology Limited Ordinary Share 1.7800
Hong Leong Asia Ltd. Ordinary Share 1.6300
Raffles Education Corp Ordinary Share 1.6200
Capitacommercial Trust Unit 1.5200
Suntec Real Estate Inv Trust Unit 1.1000
Smrt Corporation Ltd Ordinary Share 1.1000
Want Want Holdings Ltd Ordinary Share 1.0700
Pine Agritech Limited Ordinary Share 0.9000
DMX Technologies Group Ltd Ordinary Share 0.8700
Metro Holdings Limited Ordinary Share 0.8300
United Test & Assembly Ctr Ltd Ordinary Shar 0.8000
Celestial Nutrifoods Limited Ordinary Share 0.7700
The Ascott Group Limited Ordinary Share 0.7650
Food Junction Holdings Limited Ordinary Shar 0.6450
Surface Mount Tech (Hldgs) Ltd Ordinary Shar 0.6350
Eu Yan Sang International Ltd Ordinary Share 0.6100
Trek 2000 Int'l Ltd Ordinary Share 0.6050
ASL Marine Holdings Ltd Ordinary Share 0.5950
Pacific Andes (Holdings) Ltd Ordinary Share 0.5400
China Sun Biochem Tech GP Co. Ordinary Share 0.5350
Broadway Industrial Group Ltd Ordinary Share 0.5250
QAF Ltd Ordinary Share 0.5200
Midas Hldgs Limited Ordinary Share 0.5200
Singapore Shipping Corp Ltd Ordinary Share 0.5000
Boardroom Limited Ordinary Share 0.4600
YHI International Limited Ordinary Share 0.4350
Hup Seng Huat Co Ltd Ordinary Share 0.4300
Beyonicstechnology Limited Ordinary Share 0.4200
Ellipsiz Ltd Ordinary Share 0.3900
China Petrotech Holdings Ltd Ordinary Share 0.3800
Zhonghui Holdings Ltd. Ordinary Share 0.3600
ECS Holdings Limited Ordinary Share 0.3400
Asti Holdings Limited Ordinary Share 0.3300
Sunray Holdings Limited Ordinary Share 0.3200
United Fiber System Limited Ordinary Share 0.3000
Food Empire Holdings Limited Ordinary Share 0.3000

DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.