Friday, May 22, 2015

Nearly 6 years of hiatus from it even still the in-thing?

It is amazing how time flies...since the last post in 2009, it is about 6 years since i last shared on this blog. One day i will restart this mind is willing but body is weak. I lacked the resolve to stay up late nowadays. I have to choose between family, business, trading, friends and blogging.  Alas, blogging has to give way.

Trading has become reflexive after 10 years of doing it. There is a saying, mastery of a skill comes at the 10,000 hours mark which is about 10 year if you put in a few hours daily. Learning never stops so long trading never stops. I encourage you to keep trading. If you are losing, trade small but trade. Nothing beats learning from losing real money.

Perhaps i shall share more of what i observed from my own trading for the benefit of those who are learning... The last 6 years i continued to trade the SGX stocks. But at the same time, i started to explore more markets such as US stocks, stock Indexes like FTSE, Major currency pairs... This is only possible because i left my engineering job and joined ChartNexus.

 Each market has its own flavour. For example, I would first observe the price action and how it trades at support and resistance. Make some mental trades and once i am "in-sync" with the market, i would then place my trade. Another example is US stocks, you could observe what is the pattern? Does the market close weak after lunch? Or does it close strong? Weak opening but strong closing? Strong opening but weak closing? Understanding these patterns will allow you to better time the "when" to buy.

Do i use indicators? Yes i do. I know they are lagging but they represent some useful statistics if you understand the indicator. For example, if you are interested in stocks which are trading in tight range and there are more buying then selling...there is an indicator for this. Once they breakout from this indicator, it is a buy. The next direction is a result of what had happened before today. So if you have a screener which can pick up stocks exhibiting the price behavior you are looking for, then you could trade these stocks at the right moment.

 For forex, my approach is determining the direction of the pairs by comparing with other major pairs and then technically from bigger time-frame charts such as weekly, daily, 4-hour and then take my trade on the hourly and 30-min chart. This is called multi-time frame analysis. News is essential to know when trading forex as it can wreak havoc on the announcement days. A bullish chart can suddenly become bearish and vice versa. I recommend strong knowledge on chart patterns when trading forex.

Here are some of the moments i collected to share with you.  I hope you are inspired and encouraged.  Remember, i once started out as a losing trader.  You can read my posts in 2005.... If i can do it, so can you. Just keep trading keep learning.

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.