Performance of June Historical Calls! (Negative)

This is my first losing month since i re-constructed my trading strategy a year ago. I have sustained a net realized loss of -$1,527 , a -2.81% down of my full year portfolio. STI has retraced -11.2% during the month. In the month, we see 8 winning vs 10 losing trades. Of the 10 losing trades, 5 of the trades are long positions made before 23/5/13 sell down of STI. The remaining 5 losing trades are counter trend trades against the sell down. The 8 winning trades are all trades made on the short side. Below are some of the mistakes I’ve made: The 5 counter trend trades were made when the formation of bearish flag were clear. However, I took the risk and underestimated the bearish sentiment and took the trade upon a bullish reversal candle formed just from a single day of rebound. I traded even when environment are not ideal. I took trades while i was in Malta and USA knowing I will only get my wifi when I am back in my accommodation. As a result, OUE stop loss was triggered while I was out without internet and I could only stop loss at a price lower than my pre-determined stop loss. This is a lesson of how a $400 loss turn to a $920 loss. I did not stay discipline and took losses too early for Golden Agri! I sold Golden Agri at 0.54 when my stop loss was at 0.535 to prevent from triggering my stop loss. However, Golden Agri has since supported well at 0.535 and rebounded to 20D MA resistance. From my...

STI Weekly Update!

STI has been supported by 3059 last week with high volume as mentioned on 22/6/13, http://stistockstrading.com/2013/06/22/sti-weekly-update-19/ , and continue to rally up with low volume and upper shadow on every trading day. This may continue to signify that retailers are still uncomfortable in holding overnight position and closing their trades before the closure of market. We are currently witnessing a bullish double bottom formation in the index. Indicators such as MACD bullish crossover and Stochastic bullish crossover with RSI turning up are giving us signals that there are still rooms for the run up of the technical rebound. A breach of 3240 resistance with high volume is required for a breakout of this double bottom and the lower high formation established 2 weeks ago. This breakout will also see the price action breaking the 20D and 50D MA resistance, convincingly. During the week, I have only took a trade in FraserComm that is posted in our Facebook Group! Congrats to those that followed the call! Currently trading at $1.38 with a small paper profit and I will not hesitate to close my trade before my profit target as I am still skeptical of the rebound in the market. A technical rebound is always imminent in any bear market to lure traders for liquidity. Was packing up my books for my flight back to Singapore and wish to share some of the short summary in a the book ‘High Probability Trading’ by Marvel Link. Some of the rules are pretty applicable to my losing trades and I am currently exploring and adjusting them to secure a higher win-loss ratio. Will update my...

Comfort Delgro: Bullish Setup!

  Most of the counters in STI are displaying a double bottom formation and comfort delgro is one of the few that could breakout potentially on the next trading day! Await for high volume and break of entry price for confirmation! Entry price: $1.835 with volume exceeding 7 million by 12pm! Stop loss: $1.74 Profit target: $1.96 Reward to Risk ratio: 1.3...

Blumont Group: Bullish Setup!

Bullish Signal: Resisted well during retracement period. MACD histogram 4r2g, RSI and Stochastic bullish crossover turning up! I am back in UK from USA! Was a fantastic rest for myself during the retracement week. Plenty of counters have shown bullish signal such as Stochastic bullish crossover, Bullish divergence in price action and MACD 4r1g histogram. However, I am very uncomfortable to go long on those counters as most of them exhibits a Bearish flag formation with retracing volume. Many of those counters also display a selling pressure during intraday as traders are only seeking to hold the counters for a few hours of profit. STI have rebound from the mentioned support posted on 22/6/13, http://stistockstrading.com/2013/06/22/sti-weekly-update-19/ with low volume. This signify that the market may be only undergoing a technical rebound. If the resistance is not broken, we could see a lower high formed. Currently, I am still holding HongFok, Sheng Siong and Lian Beng in long position. They have resisted very well during the retracement and I will continue to stay discipline to my Profit and Stop loss target. I have also finally open my facebook group to everyone as there are too many request for the group to be created earlier than later. The group will be set private as I wish to have constructive discussion and sharing in order to ensure everyone in the group is learning the right information! If you are keen to join the group, leave me an email with your facebook email...

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