Sunday, March 15, 2009

To hoot or not to hoot.

You wouldn't believe how empowering i felt when STI rallied more than 5% on Friday. The timing of my STI long couldn't been better. It means my anticipations of the market is right. I didn't bother how much i made on the STI long or how damn right i was about covering my shorts, rather i am already thinking how much to hoot on my next trade. This is because if i am right about the market, money will follows. However i still lack the ability to trade with conviction. Otherwise i would have whacked and made more money. Yet at the same time, i know what i am doing is right. Because i considered risk and the size i put on is what i can stomach. This is my dilema for the past 2 years. Whenever my opinion is right about the market direction, i didn't make a windfall. Those were the time i wish i could have HTT. Remember i always wrote i never had such luck. Those times when i hooted, market always squeezed me. When i no hoot, the market proves me right. That's why i often complained i had to make my money by blood and sweat. I wonder if there is an easier way? The last time i hooted big big, a substantial profits was wiped out by the merciless market. Then i had to build from scratch again.... it sound familiar isn't it? The boom and bust theory.

For the record, i have covered my STI by Friday closing... basket.. after i covered, it rallies up by 10 points somemore! haha Well i shouldn't complain la, still good profits. My take is market may pull back after such a strong run, so i don't want to waste my profits. I am toying with the idea that once the pull back is completed, HOOT AH! Anyway looking ahead... after such a fine performance and especially the rebound off major lows. I think buying dips may be the best strategy next as we look forward to a rally. But i ain't sure as of now, i would need to see how the market trades the following days. Remember to form ur scenarios and observe if you are right. Say you expect A to happen.... if A happens, B will happen and most likely C will happen. Hence when A and B happen, you know you are right and C is where you make your trade!

I really admire this friend of mine who was once an ex-wall street trader, yes he uses Technical analysis but his money management strategies are really what made the difference. He can be dead wrong about the market but when the market turned, he can make back all losses and more. The way he trades is what i often read from those books, convictions. When he develops a certain feel about what the market is doing, he would whack. Otherwise he will spar sparingly. He rather be dead wrong than to win peanuts for being right in the market. Those times when he hoot tio seh...wah WINDFALL! But he also cautioned me that this way of trading should only be deployed when one is risking profits and not capital. This brought me to the point... should i hoot or not to hoot. Since the turn of the year, i have been successful in accumulating profits. Hence if i am to follow my friend's strategy, my next trade should be to hoot tua tua and go for the kill. I am still deciding... because if i am wrong, then i have to rebuild my profits.... anyway just a sidenote to my wife: you grumble that i don't speak to u often enough and always deep in thoughts.... i assure you that i am thinking of my next move, formulating trading scenarios and not thinking about the babe who sat across me on the MRT.... kekeke

I have this trading idea to share. Did you guys realise many china companies are being suspended? They would lay quiet for sometime and then suddenly just died and went into hibernation? Many of the greats has fallen. If you mention Ferro, Sino, GuangZhao in 2006/2007 that these companies will fail, you be the joke of the town. More to come? I picture this, the chng kay may have left these companies and leave them to die? Hence there may be another company out there whose charts will look the same as those before they were suspended. I dare not list those i am eyeing here because it may be seen that i am spreading fear. But for those of you who are hardworking enough, i propose you to do two things:

a. Check the charts of those who are suspended, you should see common patterns.

b. Look for the next company which has the same pattern. Preferably in the same sector. Remember my favourite principle in trading sector is, if one company in a sector is in trouble, it will drag the rest down.

Recently i was giving a presentation on XPertTrader to a group of people. They very much like to know how to make money trading live charts... making money during intra-day. Let me share this with you: Would you be happy to make say 2k per month and you only need to make about 10 trades a month? Or you be happier to make the same 2k per month but you have to trade everyday? This is the difference between trading intra-day versus end-of-day charts.

For those ChartNexus graduates who are coming home from elsewhere... i would like to remind you of the below phrase :


Welcome back and i will see you at those FREE after course support! : )

DISCLAIMER: The contents in this website are for fun reading and must not be taken as a buy or sell advice. You must do your own analysis on top of my postings. By reading this blog, you agreed that i am not responsible for your trading.