040111 - StraitsAsia Mid-Day Chart Follow-up from previous post.

Hi

If you missed my previous post on how I trade StraitsAsia, the techniques and why I took the trade?

Pleas refer to the earlier post below:

http://volume-price-spread-for-metastock.blogspot.com/2010/12/281210-i-decided-to-trade-straitsasia.html

04/01/11 - mid day update

Click on image to zoom

281210 - I decided to trade Straitsasia when the momentum is RIGHT

Hi Traders

Referring to my earlier post on 24/12/10 where I explained the strategy that I would use to trade Straitsasia.

If you have missed the post, check it out below link:
http://volume-price-spread-for-metastock.blogspot.com/2010/12/241210-road-to-riches-depending-on-how.html

Straitsasia has been meandering within channel since May until today. The angle of the slope is above 45 degree which provides me with the clear indication that this stock has been a favorite by many
professionals. I had advised that I would be watching this stock for the next 1-2 weeks to make sure
that the base support is strong enough for the price to move up north again.

Today, the price displayed strength and I decided to take a speculative stake with calculated risk. None of my expert indicators has triggered positive buy signal yet. With past experiences, if price continues to move up for the next 2-3 days with average volume, I am sure that one of my indicators will trigger me to go long with this stock.

I hate this guts feeling to buy before my expert indicators say so, but sometimes it takes GUTS to stand up for what you believe and be responsible for the outcome. In this case, I chose to go with my GUTS feeling and please pray for me.

During the course of my trading years, I have developed numerous calculators such as Risk to Reward, Pivot Point and Fibonacci.

Below is one of the calculators that I use when planning a trade.

As an example, I use StraitsAsia for illustration.

Lot Size: 10lots (1 lot = 1000shares)

Buy Price: $2.51 (above pivot level and moving averages)

Cut Loss: $2.43  (below recent's support level)

Target: $2.75 (past known resistance level)

With the above information, I will be able to obtain an estimated rewards ratio for this trade.

If the ratio is less than 2, I would not consider to take trade.

Till then, cheers

Wishing you and me alot more profitable trades in the New Year 2011.

241210 - The Road to Riches depending on how you draw the Trend Channel.

Hi Traders

A well drawn channel lines that are touched numerous times as price meandering between the top and bottom channel lines provide very  solid trading experience and rewarding treats if handle with surgeon's
precision.

As price moved forward with time, the expert indicators will automatically reveal the activitiy of the professionals. By exposing what the smart money is doing next, does provide abundant of trading
insights and opportunities to an average trader.

Armed with these expert trading indicators and scanners,  I would feel like sitting besides a
professional trader, watching him performing his daily trading plan and follow him closely
with every precise trade execution with calculated risk to minimise error.

Knowing what to expect next does provide better opportunity and probable outcome. But nothing is
far from the truth that trading is just a probability game. How to increase once's opportunity to win consistently with mimium losses is the dream of every trader.

I am lucky to be blessed with a logical mind that can put trading ideas into programming codes and successfully created a series of time tested scanners which assist  to pick, pull-back stock,
advancing stock, shorting stock and more. My stock analysis has really took a quantum leap after
completed the first version of  this propietary scanners and indicators early this year.

Back to the chart now, as we can see that the price has been meandering around the lower channel
line for past one week with "Reduced Selling Pressure" expert indicators.

This is to tell me that the selling has subsided for past one week and sellers are not pushing hard on
the price. Even though the price is well supported above the channel low, does not command a
Buy Order. We need more confirmation to make sure that the price is ready to move higher in
this so-called "Buy Zone"

I would like to see that the price bar turns "Green" and the trend cluster which is below the volume
bar turns "Green". With both trend indicators showing identical direction, will I consider that the
price trend has changed from down to up.

For now, it is best to stay patience and watch how the price bar will evolve for the next 1 - 2 weeks
before deciding a trade to the Long side.

Don't rush to lose money, the market is always ready for losers. Stay alert and patience, when
opportunities come, strike like a wolf  onto the sleeping herd of sheep.

• Eight years of trading experiences, I learned that being patience is a virtue many times.
• Trying to catch a run-away stock is like digging my own grave. Never be greedy to chase an
  explosive stock.
• Look to buy a stock which is on a healthy uptrend and has now returned to its support level to consolidate strength for the possible explosive upmove in weeks or months ahead.

Merry Christmas and have many Profitable Trading Ahead!