Snapshot

Bluechips have been quiet while pennies keep rallying. Classical sign of topping or will the chips awake next week? Time tells.



With regards to TP (target price), I think theres no such thing. Some people will say buy this stock it has 50% upside at target price. My thought is if theres clearly 50% to be made, why would other people and fund houses not rush to grab every share in the market? ...

Money dont sit on the ground asking us to pick them up. There's invisible risks in market, we can only take each day as it comes.


Updated 5th Sep:
This week market had a bad selldown and quickly rally back up.

This is the second method of using system z. The first method is entering a trade when its initial buy signal appear. The second method is when price drop back near system z trailing stop, it is entering a value zone with low risk at cutloss. This attract new bulls who miss out the initial rally with second chance to join in.

If you refer to the HSI chart above, for this mar-aug rally, everytime price drop near trailing stop it will quickly rebound. Of course, the trailing stop will eventually fail to support higher prices. That is the time to get out. It means the latest wave of bulls who enter market had given up their line of defense and decided to cutloss.

Sitting Still

My positions hit new highs this week. Is this the end?




In a good bull run, I think its best to just sit still do nothing. If not we end up sell and buy back at higher prices. Only broker make, not us.

101 things will happen in market (news like shanghai correction) to make us throw towel. We got to be firm with our trading principles. When principles are not good, its hard to stick to them. When that happens, our emotions take control. Usually thats not good thing.

Updated 5th Sep:
Sold ENERGY at 0.310.

New Highs?

Update on my trades.

Still sitting on GENTING and YONGNAM. No indication from their price and broad market development that I should cash out.



Sold CAPMALL 1.56 on weakness. Switched to ENERGY at 0.270.



Opportunity or bull trap?

Checkpoint 6

Last year I top citibank stock challenge and won 5k prize. This year
macquarie warrant top prize 20k. But I came in only second!

The top guy is good.. While I following greater trend trading HSI, he seem able to capture intraday big moves. Argh. Oh well..

Comments

Posted some general comments to CNA forum.

On my goal of trading.

I am still firm in my aim of trading stocks - quit for good one day. I believe the only real winner in trading is when made big and quit for good, theres no other way. Remember this, no matter how good we are, this is still a game of luck. Lady luck wont be there forever.

On my view of market.

In a bear market, very bullish setups will appear (like inverse H&S, double bottom etc). Sometimes they will follow thru, most times they will fail and we have more freefall. Current market is at a state of very bullish formation. This can lead to rapid rally in prices or reversal into nonstop dropping.

Actually I dont think well of market. I bought at low three weeks ago because I cannot afford to be not long on market in case it turns out to be real bull run. If its false run (a terrible short squeeze), I will exit my long positions when my paper profits drop 50% from its high. If its real bull rally I just ride the prices up.

My advice is learn how to short. In a few months time, this preparation work might come in handy. Recognise that trading is just a game of chance. Dont be too happy when make profits dont be too upset when losing streak. Think about it, what is the best signal for bears to come in short big time?

When a perfect bullish formation still fail to make prices run.