Like I always advocate in my course, keep things simple. The truth is, the simplest Technical Analysis will work. In the example above, when Hiap Seng was being sold down, it caught everyone by surprise. It was the only oil gas company that was being sold when we see a broad market rally. Armed with just an oscillator (RSI) and classical T.A, I found a "growmoney line". This is nothing more than a trendline which i drew. keke In 2006, I give all time high a name, blueline...so here we go, another new name! :D haha My perceived support was about 80 cts, and I found 200 SMA trading nearby, fibonacci 61.8% was near too and last of all, my growmoney line. Even a gap support is nearby. I drew a conclusion that this must be a very strong support. There is no guarantee that I will be right that this stock will hold at my perceived support. Fear about it going down after buying? What if it goes up and I don't have a position? All I need to do is to put in a position size that is subjected to my money management rule. The GOLDEN RULE is, when i am wrong, i lose small, but when i am right, i win big big. Dare to pull the trigger! The longer i am in the game, the less feels i have for wins and losses. I was trained to focus on the craft and not the money. The old saying goes like this, "You get good at what you are doing, money will take care of itself".
I anticipate red chips play to be back this week. Most of them are forming flags or what we call short term price patterns. This week i will be pretty tied up at work, 1 workshop and a seminar at SGX happening. Hopefully I don't miss the breakouts!!!
There are so many stocks listed in the market, why Hiap Seng??? I am no superman. I just had a great companion in XPertTrader. I ran one of my rule to screen for stocks trading near Moving Averages for support. Hiap Seng came up. : )
Free online tutorial about Trading Moving Average can be found here >>> http://www.chartnexus.com/support/tutorials/xperttrader/CaseStudy_MA.php
I saw a couple of request for the mandarin version of T.A training. I think it is about time, I should help the chinese educated community. Let me see if can slot in a 2 hrs introductory special in December and close this amazing year at a high!
GrowMoney Growth Fund
HLH
Jasper
LC Dev
Ausgrp
YangZhiJiang
Jiutian
ChinaHong
ChinaWheel
HiapSeng
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.
