2 Rules

When my students ask how to trade:

1. Buy break resistance sell break support
2. Cut your losses short and let profits run

When asked which counter to pick:

It holds firm while everyone else dropping.
It runs first while everyone still setting up.

For rule 1, always look out for the "better setups".
It applies to all timeframes, even intraday. Eg SGX.


My students know by now I am quite against intraday or contra trading. You only make your broker rich trying to time the market in out in out. I said this so many times and I will say this again.

Huge profits is to be made from entering a good position and sit still for weeks to months. For the rare multibaggers that come only few times in a lifetime, you have to sit for years to reap full benefit.

Think about it, thats how our biggest losses happen. Sitting tight!

Hotshot

Private investors are significantly leading for top prize S$20k.

Final week. RallyArtist is SCG. Will I stand a chance to be top 3?

Buy Calls

Trades taken this round, still sitting tight. Posted CNA on entry.

If you look closely, they are "better setups" as per properties post.




Better setups satisfy two necessary conditions for bull rally:
1. bulls willing to come in to prevent more drop
2. bulls willing to chase stocks at higher prices

Negation?

Early this month, some people will think I'm mad if tell them I bullish bias when people are talking about head and shoulder breakdown. I just keep quiet and took up long positions near the low when I see bullish price setups. What's running through my mind?

1. After sharp run up from mar-may prices are able to hold ground dropping slowly instead of sharp dive. This hints market acceptance of high prices. If bearish high prices usually get short down fast.

2. After system z long in mar, there is no sell signal for indices and majority of counters. This suggest traders should look for long setups on dropping near system trailing stop instead of shorting.

3. After DJ breakdown head and shoulders neckline, it is unable to breakdown swiftly after few days. This is unusual. H&S breakdowns are often decisive after breaking neckline. "Just-cant-break" action.

Mon night DJ made me suspect negation in the making.


The indication is so clear to me for some counters that for first time I post to CNA forum and ask people to buy. Forummers who followed the 3 calls I made (Y02, G13, J10) would cashed in 5-8% profits.

I told them to lock in profit as anything can happen in market and I want to make sure they made money, not end up cutloss. I following the trend by sitting still in my positions. If this is not just a terrible short squeeze, upside reward is worth much more than the cp risk.

HSI Chart

Interesting.. Inverse H&S followed by H&S. Will breakdown of neckline followthru or be negated to form a double bottom?


Updated 19th Jul:
Turns out to be negation? I long HSI after it dived on mon.

TA Course

Been doing this for a while. What I like about this is in a very short time my students are exposed to trading techniques and know-hows which normally takes long time (and money) to acquire. The one-to-one interaction and structured syllabus make this possible.

Technical analysis is a broad topic. If we consider every factor from A to Z its very hard for us to make consistent decisions. In practice, half the factors will say sell other half will say buy. We need to know what's important and what's not.. That's where this course comes in.