Golden Agr

Continue on my buying spree as STI falls

Buy GoldenAgr at $0.64 on 28th Feb 2011

Trade decision conditions:

1. As inflation goes up, expect the comodities to benefit from the increase
2. Technically, it had hit the support of $0.62. Expect the selling to stop at this level.
3. STI is at the verge of rebound after hitting under 2980 last Thursday.

Stop: long term investment

Singtel

Going into a shopping spree, this time is for long term trade

Buy Singtel at $2.88 on 25th Feb 2011

Trade decision conditions:

1. Main component of STI, and the main index is under 2980
2. Technically, the long term support is at $2.85
3. Fundamentally, Singtel give consistent dividends and dominate the local market

Stop: No stop - long term trade (for accumulation)

Is this the best that the bears can push (2965)? Show me the strength, can you push down to 2900? so that i can accumulate some cheap blue chips.

CityDev

Buy CityDev at $10.82 on 24th Feb 2011

Trade decision conditions:

1. STI falls below 2980 which i feel is the bottom, anything below this point is a long-term trade
2. Dividend of $0.18
3. Technically, the price is travelling very near to 10DMA($10.8). I expect it to cut across any time.
4. Keep for long term.

Stop: $10.54 or may hold for long term.

Rotary

Buy Rotary at $0.90 on 24th Feb 2011

Trade decision conditions:

1. STI almost hit 2980 which i consider as the bottom for the current correction.
2. Rotary is giving 0.38 cents dividends
3. Technically, Rotary had hit the support of $0.87 yesterday (refer to the chart)
4. Fundamentally, the profit and revenue are in uptrend status

Stop: $0.86 (Support at $0.87)

Wilmar update

Stop at $5.20 on 23rd Feb; buy at $5.36 on 18th Feb

Stop decisions:

1. Follow the strategy to execute the stop; discipline
2. Wilmar forms a new low
3. STI broke 3000 points.

Loss: -3%

I will say anything below 2980 for STI, it's the buy time. Let's wait n see, i will start to shop for cheap stocks.

Midas update

Stop at $0.78 on 22nd Feb 2011; buy at $0.83 at 16th Feb 2011

Stop decisions:

1. The consolidation bottom of $0.785
2. STI continues the third leg of short downtrend

Loss: -6%

Wilmar

Buy Wilmar at $5.36 on 18th Feburary 2011

Trade decision conditions:

1. Commodities - Inflation will push up commodities' prices
2. Break $5.35 (10DMA)
3. Break the consolidation top of $5.36
4. STI is very near to 200DMA, selling sentiment is at near end.
5. Singapore Budget Day is today!!! Expect STI to move.

Stop: $5.20 (Support: $5.25)
Target: Immediate target at $5.52; if break it, will continue to hold it

Midas

I decide to learn from Trader Alex to post more specifically on the trade.

Buy Midas at $0.83 on 16th Feburary 2011

Trade decision conditions:

1. Leading manufacturer of Aluminium Alloy.
2. Technically, it almost hit the bottom of the long term sideway pattern (refer to the chart). The risk of taking a buy trade is minimum.
3. STI is at 3075, the selling sentiment is at the near end.
4. Singapore Budget is 2 days away.
5. Long term trend: Bull

Stop: $0.78 (Support: $0.79)

STI downtrend status

The STI downtrend come down to a halt for a breather,

As stated on the above chart, there is 2 downward trend at the moment. I will expect the third one to happen in weeks time. As we can see, the 200MA is not tested yet. I will expect STI to test it's 200MA. And it is around 3040 at the moment. Personally, i feel STI will test 3000 major support.

STI support broken

STI support broken for the first time in 6 months,

3120 is a very critical support. Since it is broken, stop loss must be there to minimise the loss. Counters such as Noble, Rotary, Genting which i had mentioned yesterday did not drop much. So the stop will be minimum.

Now it's the time to predict the bottom which is a fun thing to do. From the chart above, it seems to be a free fall is in place. The first level of immediate support will be at 3069 & then come the major level (200DMA) at 3035 - 3040. I believe that the 200DMA shall be able to hold. Another bet can be placed near that level for a long term trade. Again, make sure a proper stop must be in place.

STI status

It's time to take a risk, the odds will be better at this time.

As i was writing this report, STI had hit a fresh low of 3127. It is very near to the support level as stated in the chart above (3120). The risk will be minimum and the odds of winning seem to be higher. This is supported by the PPO on the chart. So far, on this bull run, it hasn't break -0.4 level (12 days). The level has reached -0.3, which means a rebound is around the corner.

I am looking at some counters such as Noble Grp, Wilmar, Rotary. Trade at your own means. Wish everyone good luck and a prosperous year in the stock market. :)

Successful traders

To me, stock trading is just another form of gambling. Some view it as investing based on the companies' reports. Using the reports, you place your hard-earned money on the stock price. Personally, i view the reports as the odds which tell you how much risks you are going to take. Isn't it the same as placing your money on the casino tables? Same to the technical traders, we are using the charts as the tools (odds) to gamble on the stocks. There's no difference between investing and trading, just that the usage of tools is different.

To be successful in trading or investing, we must first train ourselves as professional gambler. In fact, professional gamblers have a clear vision in terms of mindset than traders or investors. The Pro gamblers will always accept losses as parts of the game. When they entered into the casino, they don't expect themselves to win a big windfall. They always keep their losses small. It's a probability game, so there is no sure-win kind of game. In trading, we shall adopt the same strategy as the Pro gambler in order to succeed. Ride the winners and leave when the loss is small.

Enjoy the trading process rather than the outcome. It has to be your passion. Something that you want to be in your life - a trader. Only your passion gives you the motivation. If not, you will find yourself giving up along the way. Don't let the trading outcome affect your emotions. In the long run, you may gain some outstanding rewards. In the trading process, mistakes are the invaluable components which help you to learn or become more experienced. The trading world will carry on changing - new ideas, new counters or new rules. We must always adjust our mindset to play the game.