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.

STI

After days of gains, people have been waiting for the pullback

I must say that this period is meant for traders, as it was pretty choppy from last Oct till now. For STI, 3218 is the point where i will look for support. Although the wave had been choppy, some stocks still moved well. Just have to be careful on the selection, you should be able to make some profit.

Rotary Eng

Fresh from the oven, a newly breakout counter

Rotary is a slow moving counter. It has just broken out of the resistance price of $1.05. More significantly, the resistance is broken out with strength. You can observe it from the volume. Accordingly to the theory, a true breakout has to accompany with volume. Rotary has fulfilled this criteria. Again, trade at your own risk.

Midas

Try to pick some stocks that broken out of the consolidation,

I will be looking at $1 as the next resistance for Midas. And again, this is based on my own analysis. Trade on your risk.

Happy New Year

Wish everyone has a good year in the stock market for year of rabbit

The H&S is not valid, very lucky indeed. I managed to get some stocks at 3120 point, particularly the index stocks. Now as i am writing this, the STI is trading above 3220. It will become a bit tricky as the trend now is a sideway trend. It has been hanging around between 3120 & 3220, in a narrow range. But i have seen some stocks moved quite a substantial amount e.g. Gallant, Kep Corp etc.

The index may be hanging around the same range, it will take some skills to earn during this tough period. Again, trade at your own risk. Always keep an eye open during this period.