Wednesday, December 03, 2008
Crawling my way out of the rut
This week is supposed to be volatile due to lots of data coming out from the US. A quick check on the Dow revealed that the there was a bullish divergence in macd histogram and this tells me that there is a possible rally coming up. The 600 points drop on Monday is as bearish as it seems but i do not rule out the fact that a bottom is being hammered out. If we don't go test the November low, chances are we break above 9k in December. I see RSI is going to challenge the resistance soon. I will be observing that and use that as an indication of where is the likely direction.
I wrote about how i got into a losing streak after my holidays. How do i deal with this morale dampening moment? My plan is to trade smaller size than usual. This serve 2 purposes, number 1, i can slowly gain back my momentum and increase the size when the winning streak begins. Number 2, if i continue on this losing streak, i won't hurt my capital. To stop trading totally is avoiding... which to me is the loser way. I looked back at those losing trades and realise the mistake i made. I was too complacent and lazy. I took signals easily and was too eager to make money and that lead me to choose my trades loosely. The discipline must return if i were to go back to winning ways. By the way, as far as i remember, my last losing streak was actually way back in 2006 if my memory serve me correctly.
Trades i made today plus last night incude a short position in Amazon Inc and Ascendas Reits. Both stocks triggered my TT2 short sell screening rule. Amazon is listed in Nasdaq, i am using CFD to trade which is so much simpler and easy as compared to options which i used to do. Placing the trade is relatively easy as i am already familiar with the platform. No need to choose strike price, check IV and stuffs... how cool can it be? I said i am going to hunt for all sorts of money making opportunities and i mean it. It's time i fund my lifestyle from trading. With the petroleum price decreasing and the COE coming down, it is tempting to buy a car... but i'm still resisting it unless neccessary. Somehow quite silly as i spend most of my time infront of the computer trading and charting... I don't even mind taking MRT as i can read my book during the long journey... otherwise where to find time to read or think about strategies? Anyway, i'm still holding on to my capitaland. As for the only stock pick by TT2 last night, it really came down. I hope tonight Amazon join Ascendas to head south. keke
Today i got my staff to sort out participants whom i have coached since 2006. Gosh the number is astonishing. I'm itching to organise a seminar just for these folks as they made my dreams possible. Without their support in the old days, i wouldn't have left my IT job and own a business, T.A author and trading full time. Along the years, we have fine tuned the course training and now finally came out with 6 screening strategies that made trading so much simpler. People used to ask me why i no longer conduct seminars. I feel flattered when some of the old participants are still asking about me. The truth is, with a team of trainers, we can achieve so much more. In 2008, while my team of trainers have taken my role of training, i have been working on trading strategies and how to improve the technical analysis training sessions. Most importantly, we have established a sound after-course support commited to help graduates.
For those of you who are trading US stocks, i am re-starting my engine... so the growmoney quickpick list will come soon... give me some time to find back my midas touch. : ) Best is Amazon go to $35!
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