The story of the baby whale

Yes....I went to Waterloo Temple to pray pray and also to ask for guidance for my luck. Got a chaim see....No 2 and it was about the story of the baby whale.

POWER.....really understand what the story is all about esp in relationship with my stock / forex trading. How the baby whale is dependent on the mother whale and to better protect itself....it must swim in shallow water and not to venture too far out and away from the mother whale. Must always remember that since it's a baby, it has not enough experience to deal with dangers from other bigger fishes eg killer whales & sharks and men!!! esp from Japan hehehe!
In it....is the warning about losing money if doing any form of gambling /investment esp if have not proper understanding of the whole situation. And true....to it, immediately the Hong Kong stock market went south. In fact....I had time to react but I didn't do anything. In the end....I lost!

By today....I lost back what I made last week plus 20% more. Just in 2 days....lost a total of 28+% of my total funding. Well....at least, this made me realised that it is also possible to make the same if I do the right trade. One of my mistakes...was to open too many counters and that made it hard to monitor. The thing is....when the market turns down....even the good counters went down with it, yes...maybe in small %age. Same thing for up market....even rubbish stocks will go up too in bullish market.

Now that I understand this....I will do my trade accordingly to market condition for that day. Also to trade up to max 3 counters.....easily to monitor and to re-act accordingly to situation faster. Trading right is all about fast decision and no regret. In fact....if can trade with no emotion then, half the battle is won!

Now it's time back to the drawing board and to re-think what I should improve my trading better and to pick the right stock.

Blue chips or index stocks

Yes....came to realise that it is much better and safer if trade only with blue chips or Index stocks. This is due to the fact....better margin and easier to be in/out of a trade. The same applied to SGX and HK stocks.

Now...I traded mainly on HK stocks. So many stocks to choose by and in high volume too.
That way....also safer as can get out faster.

I want to learn about Swing trading and Day trading. I have read-up and printed out quite a few great ideas about both. Yes....esp at this moment, I cannot strictly depend on what was taught at T3B....that method would have work-out well during the early bull-run ( esp from Mar to Jul 09 ) but since now we are at the "toppish" end of the trend....gotto stay nimble and not too greedy. Still....should have another nice run-up before the whole bull-run runs out of "gas" which I predict should happen around Feb or Mar since everyone had said that the next Qtr GDP...should be on the high end, then follow by lower close qtr by qtr until the last Qtr. Well...base on that and looking around....that should be about right!

Now...must plan to trade according to the above which means that I should be "shorting" stocks at about the end of the 1st Qtr or around Apr....let the whole situation become clearer. A falling market....should be a profitable market too.

Monday trades

Yes....remember that the Dubai thingy would be the main theme for today's trading, so I didn't do much trading. In fact...when the HK stock open for biz at 10am, the market just went into a tail-spin of 200+ points and continue till 300+ by 11am, luckily since I have clear most of my positions on Friday...I went for a swim and sauna at 1130am.

By the time...I was back at 1.40pm, the HK market had recovered and added some 30+ points to the positive. So...when the market re-started after the lunch break, I started to monitor the market and lookout for good buys. Since it recovered so fast, I keep my distance....and true enough after 1 hr of the re-start, some stocks started to fall back into negative. So....scan the HK Index stocks for buys. Spotted a few stocks with a nice upwards trend lines.

So watch out out the list and finally I went in for a couple of cheapo stocks. Johnson Elect and Global Bio-chem at just before the close as the Dow futures is showing a nice
up day.....70+. Learned for past experience, if Dow can closed higher....then most other markets would follow the following day esp at the open. And since I decided to do day-trade....this method can work out well.

So....shall up-date on my finding for above tomorrow.

Friday trades

Wah....not bad as I clear most of my outstanding trades by the morning. Managed to swing back in the black.

And also with very little load to worry about over the weekend. I read about the swing trading method that which I tried out. So far....got positive result.

HK market - Thu

The market started very well....shot up from the start but after nearly 45 mins of trading it started to "tank" and it just went straight down. Again....rumour of the Dubai debt issue re-surfaced together with Greece and Spain. The 2 later countries are also into trouble with debt repayment. By then....seem that the whole Asia's market went "south" by different degree.

At the 1st 30 mins of trades....my portfolio shows a $400+ gain but by 1+hr of trading it was showing a $100 loss. By noon....increased to $500+ loss. So....I bought again a couple of stocks.

I went to sleep and at 4pm, woke up to pee. Just go and check on my stocks....wah lan, got one went positive by HK$1600....so just key-in to sell. Last min....sold. At the close of HK market...which was at 4pm our time, the market has somehow recovered most of the loss and my portfolio shows a couple of hundreds positive lor.

The HK market has went down for the past 4 straight sessions....still there were some stocks doing very well. In the T3B mentor's session....we are urged to trade that market and I understand why. It is really a casino....never a boring moment but die also faster if not prepared. Luckily with what I have learned....I ensured that my trades are always covered by "stop-loss" in place the moment I traded. That way...no
nasty shock.

As why use CPF money to trade in SGX? Well....esp armed with this trading knowledge, I am super confident of making money. If the trade....went up during inter-day, can always asked the remiser to change it to cash, that way....can contra and take out the money immediately. If the trade is wrong....then leave it as cpf but even so after some time...it will make money. Just treated it as growing the cpf. Still a win-win situation. I believe this is the faster way of growing the money....in cpf or cash.

down day for stocks and forex

Forex - stated in the news that the USD is getting stronger vs the majors but in actual, it is getting choppy which made trading call "tough".

Stocks - maybe due for a 20% correction which has not happen yet since the bull run from March. In my opinion, this could happen if there is another "Dubai like problem" in near future or it will come in Jan 2010 after the New Year. If it does...then the market can continue with it's up-trend again from March onwards. I don't see a major sell down any time soon esp the so-called double-dip thingy!

Trading the Hong Kong stock thru using CFD

Yes....a fairly good start esp when the HK market going down 173 points and that I managed to have a HK$500+ in my unrealised P & L report. I was stalking the market and waited till it came down and I made my moves. In fact...I was a bit too early already or less I would have double that amount.

Bought just 1K of OOIL and 10K of Global Bio-Chem for a total of HK$50+K with me having to foot out less than S$2.5K as capital for part of my leverage buy.

Let's the winning run start with these trades!!! Cheers!!!