Wednesday, October 25, 2006

STI 2700 is a thing of the past!

Hello hello hello! STI 2700, who would have thought? haha There isn't much pull back before we break 2700 and that is really a surprise to many. As per my article last week, i am still fully loaded with stocks. While my anticipation of STI to break 2700 was fully correct! However not all my stocks moved. And guess what? My ChinaStocks are giving me problems!!! What's NEW??? They are damn tricky! Often times, they just give you a one day wonder. The more I look like China Shares, the more it looks like they are taking turn to rally. The rotation must continue otherwise I will cut soon. It is extremely risky to be buying anything at this level, if you must buy, make sure you are nimble. As explained in my strategy class, I noticed since 2004, there is a particular time each year where it is a must buy! Let us all be patient for now and I shall chart to your heart's content when i think i want to buy. Otherwise, i will be a damned fool for listing out stocks that I myself dun buy and entice you to buy.

This blog is my trading diary, things i learnt from my trades, i wrote it down. Hence no way am I paper Trading. By the way, i have been observing one guru. It is so obvious that he keeps quiet when he is wrong and that he only talks about profits and never mention the risk involve in a trade. An example, "if you have bought so and so warrant, u have now a 10 cents profit and if you buy 20 lots, it's $2k in a day's work." What about the downside? What if the warrants move against you and you own 20 lots? Dudes, if you are new to trading, always consider your risk/reward. Do not be blinded by quick money!

It's been a long time since I have charted for you, my distinguished guests. Tonight I would like to share Cosco Corp, TatHong and ChinaSun.

Cosco Corp: The volume today break out and price close into the all time high. The previous times when Cosco Corp acts this way, it continues to head higher. $2 stock soon? I certainly hope so! :D For those interested to know why I bought in the first place, you may check my July Archives.

ChinaSun: Did you see the obvious Downtrend? 50Ma is cutting 200MA soon and this will bring ChinaSun into it's bearish phase. Did you also notice a positive divergence? Or how the price is now at support levels? I think support is going to hold and 50ma will find 200ma a support rather than break it. If i'm wrong, i will cut.

TatHong: 1.15 was a great catchment area. There is also a gap support at 1.17 . the pull back with light volume after breakout was a classic T.A buy signal. Let's see if there is further upside. Obvious uptrend.

DBS, Starhub & Noble. What do the 3 stocks have in common? They all have CandleSticks Reversal Patterns. My XpertTrader pick them up using the CandleSticks rules that i created to screen for Bullish Engulfing and Hammers. Did I buy them? Certainly not! I am and always will be a honest trader with a blog to share. Just look around you, how many "gurus" or analyst dare to show their losses? Mostly keep quiet and hope people don't remember. When they win, they will boast how easy it is. Deceptive marketing I call them because trading is never easy! As for me, my portfolio is open for all to see and comment. I have nothing to hide. It is a open secret that it is how much we win when we are right and how much we lose when we are wrong that matters! Ok ok back to the trades. It is the dilema of putting on a trade despite market trending higher. We know it's going to be risky and hence I decided not to put on a trade. Today they simply rock the roof. So do we just buy when we have a T.A buy signal? Don't we need to consider market wisdom? Hmm.... food for thought.

DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings. Copyright © 2006 GrowMoney Blog. All rights reserved.