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Trade smaller might be better

September 16, 2010 Leave a comment
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Categories: trading, video Tags: ,

Rule 1. Never lose money

September 6, 2010 1 comment

I’ve spent half a day at NLB going through some of the trading books especially on Trading Systems, Master of Trading Systems by Joe Krutsinger.

What is really useful is the last page which the strategy has been backtested with relevant statistic. What I realized is most of the strategy has 30-50% profitable trade. Meaning 50% of your trade will fail!

trading system

Masters of trading systems

What it is saying is cutting lost is the most important thing of trading! It is to help you preserve your capital.

What’s more interesting is that one of the strategy has a 1000% ROI but 30% profitability!

Now I’m truly enlightened!

Another link I would recommend on how to get out of losing stock. Interesting method. You should give it a try.

Categories: trading Tags:

HL Asia

Downtrend forming a horizontal base but still within the down channel. Now trading in a tight range of 20 cents. Volume is expanding and hence there might be a good chance that it will break upwards of the horizontal range as well as the downtrending line.

RSI is is moving out of the oversold region. Other indicators like MACD and Stochastic is having a bullish divergence. ADX- is losing momentum but a break below 3 might signal the trend will continue.

Alert: Will 6.90 hold for NYSE:UNG?

Looking at UNG daily candlestick, it look really bearish. If it break, downtrend will resume.

8% lost in a single day accompanied by high volume in 30 min chart. It doesn’t really look good.

Daily Alert

STI halftime:

Ho Bee , Yanlord, Genting rebounding.

Analysis on Ho Bee

PE 3.6 EPS 0.457 NAV 1.63

Fundamentally, this stock is very delicious indeed.

Today has made a pivot point accompanied by good volume these 2 days. The downward pointing trendline might be broken soon. Macd Histogram turning up with Stochastic and RSI all pointing up. Put your cutloss point 4% below 1.63

Analysis on Genting SP

NAV 0.354

High volume breakout. Double bottom established. Volatility is coming back. This is a high risk play. Better to wait for 0.91 for resistance turn support.

Analysis on Yanlord

PE 10 EPS 0.167 NAV 1.22

Pivot point with trendline broken. However volume doesn’t look very convincing. RSI, MACD histogram, CCI and Stochastic all turning up. This looks to be a perfect setup though.

My take:

Property sector seems to be supported. Yanlord, Ho Bee, CityDev and Capitaland downward movement seems to be slowing and turning soon. I’m more interested in UOL since this one fundamentally will be one targeted by value investor. This helps to lower my downside risk!

May is coming. After that is world cup. And then government is pressing the property pricing down. It its a tough call whether to continue to stay in this sector.

First sign of weakness

WASHINGTON (MarketWatch) — The Business Cycle Dating Committee of the National Bureau of Economic Research met last Thursday and decided it would be “premature” to declare the end of the recession, according to an NBER statement released on Monday. “Many indicators are quite preliminary at this time and will be revised in coming months,” the statement said. The NBER is the non-profit arbiter of recession dating. The recent recession began in December 2007. Many Wall Street economists informally believe that it ended in the middle of 2009, making it the longest recession since the Great Depression.

Many stock form doji ahead of quarter 2 report. Other than Yangzijiang and Cosco and a few other special stock, broad market movement is seeing signs of profit taking. Can it be people is trying to pre-empt something?

Ezra had good news yet still dropped by 10 cents. When you have good news and yet the stock can drop so much, it is a sign of danger ahead. Ezra is trading in a channel, if it breaks, shortist will come in for a run. Keep a tight stop as lots of divergence is already showing is many sector.

Alert: Tat Hong breakout

Tat Hong breakout to 90.5 cents at noon. If it closes above 90 cents by today, it will be a good confirmation that resistance is broken. Recently newspaper stated that the target price is $1.06. Hope it’s true.

Vested.

– The Trader –