08th October 2010 - Exclusive Analysis on Taiwan Stocks

Just happen that a taiwanese friend has asked for my opinion of some of his stock picks.
I decided to use my Diamond Scanner to pick a few stock for him beside analyzing his
self-picked stocks.

My Scanner report as below:

These are the stocks that meet the criteria for Long Order. I would usually check each of the stock chart for better understanding if there is trading opportunity.

For example, I check on the 1st stock which is Kinpo Electronics chart and plotted line studies on it.

My Study suggests that there is a good probability to take this trade as price is trending along the lower
channel and within the "Buy Zone". It may take a few more days for the price to build strength to trade
above the dotted blue lines which is the safety zone for price to head higher towards the "Sell Zone" for harvesting. Till then,

Good Luck and Happy Profitable Trading Ahead!

Using RTD Function in MSExcel for my Portfolio Management

Using simple spreadsheet to manage my Profit & Loss for each transaction.

Most of the fields are automated except for buy price, sell price, lot size and cut loss price.

Sample 8: Simple Strategy to Cut Loss and Let Profit Runs. I did this my WAY!

There are many risk management books that tell you how to cut loss and take profit when necessary.

The most important of all, the strategy must suit your own Personal Trading System.

Most of the trading books are catered for very short term trading such as Futures and Forex as

such applying the same methodology to slower Stock Market maybe backfired as the cutloss is

either too close or too far away.

The key  issue here is when the cutloss level is triggered, will you be brave to cut away the losses

and endure temporary pain instead of ending up with losing position that deteriorate over the time and

most intense pain. I always believe "First lost, the best lost".

The strategy that outline here is solely for my style and may not be suitable for you, if you like too, you

may try this strategy too.

So what is my intention on this risk Management?

After analyzing multiple timeframes, monthly, weekly & daily chart of a stock which is picked up by my

proprietary diamond scanner. I will have an good idea where will be the next resistance level.

Therefore if this trade is taken, I am expecting the price to trade higher from the buy price and if that

does not happen, I have this strategy to follow:

Sell if closed price < 50% Previous Trading Day Pivot Point(Transacted Day - 1)  or

If Price < Buy Price within the next 10 days.

Ok, why "Sell if closed Price < 50% Previous Trading Day Pivot Point"

The reason is simple, this method is used only during Initial Buy Order so that

price will not close below Previous Day Pivot Point. If it does, then expect price to fall further

until a base is formed or supported. If price does not trigger this cutloss, price should be

moving away from the cutloss level. This provide the 1st assurance that I can break even soon.

Next, If  "Price < Buy Price within the next 10 days = Cut Loss"

If price does not trigger the previous day Pivot Point, price should be heading north. Giving

a short time frame of 2 weeks to see there is internal weakness and price cannot sustain the

upside and start to fall and trigger the cut loss.

If both of the risk management are not triggered after the 10th day, I will utilize the weekly chart

as the base for holding on the winning stock while using the daily chart to spot potential weakness

in the trend.

Most of the time, while the weekly chart is looking positive and price is pulling back to support

level in daily chart. There is no cause of alarm.

The time to stay alert and take profit will be when the weekly chart and daily chart are showing

trend weaknesses or expert indicators that appear in the upper channel level such as "Trap Upmove", " Higher Price is stopped", "Top Reversal", "End of Up Market", "Lack of Demand", "Bearish" or

"Increased Selling Activity".

What goes up like a rocket, will do the same as it comes down. So do not buy "HOPE" in the trading

arena, it will be too painful and expensive to bear.

When the both the Cut Loss Strategy have not been triggered, I will revert to weekly chart as shown

below to allow more room for price to move further up. While using daily chart to detect early

sign of weakness.

As I said before, this is My Way. You may have a better way to do it.

Important, we just want to take some profit from the Market each time, no matter what

kind of methods we adore.

Best Wishes and Making Profitable Trading Ahead.

Sample 7: Buying does not need to be GUESS WORK

Buying can be a sure thing when cluster of positive indicators appear within the week or so.

This gives you the strong conclusion that "Yes", Professionals are in the game to provide

good support to the base so that price can propel further from here.

There are many powerful indicators in this Personal Trading System. I have spent more than

six months developing, testing and fine-tuning each indicator as precisely as it can be to pick up

the Smart Money activities such as when they are accummulating, distributing and idling.

Comparative Relative Strength to the Index and Moving Averages are used in my System

as references. The most important skills that I have developed over the times is to

interpret the Daily Demand and Supply with just Price and Volume only without additional

indicators such as MACD, RSI, ADX, STOCHASTICS, Moving Averages.

Yes, just Price and Volume using Candlestick. During my free time, I created many training

tools to improve my chart reading skills using Powerpoint, by reading each bar at a time and

decide to take trade or call it off, have made me more confident to even trade off with a mobile phone

that provide candlestick chart and volume.

This is what I have created to train my chart reading skills as below:

More than 50 charts with different cycles in stock trend are used for practising skills

What I want to achieve is to follow the Smart Money activities that drive the Market in either direction

to take some profit out from the trade each time.

The Expert indicators, Diamond's Scanner and  System Tester codes are not for commercial purpose.

It is solely for my Personal Trading and shared with a few good buddies.

Expert Indicators will appear on the price bar each day if certain condition is met. The programming

codes involved Price Action (Open, High, Low, Close) and Daily Transacted Volume.

The Purpose of the Expert Indicators are to decrypt the nature law of Supply and Demand in the Market Place each day, not forgetting the Professionals activities are registered in the Volume bar.

The key element in this Trading System is to predict the Professionals Activities in the near term with acceptable accuracy. Therefore a swift trade can be executed and profit can be made as the price starts

to rebounce from the successful "Test Base / Support Level". At this level, the Risk to Reward Ration

is good.

The Diamond's Scanner on the other hand, help to scan the whole SGX Market about 900+ stocks

for possible stock that meets the criterias for further analysis and possible transaction the next day as shown below. This Scanner also applicable to all tradable securities.

Using the same trading system for USA Market using http://www.updown.com/ with 1 million

dollar Practical Account.

With the Scanner to pick out trades, this is my USA Stock Portfolio.



Sample 6: The Power of Knowing WHAT's NEXT?

Sample 5: Stock may have found it's support level

Sample 4: Don't be greedy. Know when to take profit is utmost important as buying.

Everyone knows how to buy shares as long as you have money in your bank. Sadly not many know when to take profit and eventually causing a winning trade turning into a lose trade. How do you feel? definitely as lousy as you can be, self sabotage is common in this challenging Market Place.

Most of us are ruled by the two worse enemies of mankind, "Greed" and "Fear".

We want more and more and hope that price will go higher and higher and hopefully there is no roof to where price can go and we can become overnight trading champion. HaHa, I am waiting since 2001 and

have not witnessed such a miracle then. When Greed overcrowds our mind, we become irrational to make

decisive action to even take a portion of the profits out from the Market and leave the remaining one-third to

test your guts feeling.

When a stock is too far away from your entry level, you just can't give it up and look for another opportunity.

You just have to own this stock no matter what you feel. This is a part of your self sabotaging ego at work.

Witnessing price been moving up steadily for the past five days, you decided that you are not going to miss out anymore, the pain to wait for a retracement is too long to bear, impatience sets in and you decided to take a position in it. Once you have joined the herd, you feel great and glad that now you are part of the game. For the next 1-2 days, price may continue to move higher with reducing volume each day.

Knowing this could be the tell-tale sign of potential weakness in the price, you continue to hold as you are blind by the FEAR of not getting into the trade and also the FEAR of losing opportunity to get in.

Just one bad news that hit the wire, Market starts a new phase of profit taking. Unaware that the Professionals are actually pulling funds out from the Market, you decide to hold on to the position as you believe that the Market should come back up soon and luck shouldn't be that bad. And two weeks have past, the stocks that you have bought are now down by 30%, you start to worry and wonder what has happened and still hoping that the Market will come back up in the near future. Keep on waiting and waiting.....and you will discover that the transacted volume each day is getting thinner over the months and then years.

The Professionals are nolonger interested to move this stock. You keep on waiting and and resulting in holding the lousy stocks for months and even years sometimes. Finally,  you give up the hope that Stock Market is not for you anymore. Worse still, when you decide to cut loss painfully, within the next few days, the Market starts to recover and back to the breakeven level for your portfolio. Oh....You start to hate yourself for being stupid this time and more frustrated then ever.

When you buy, the Market declines, when you sell, the Market recovers.

This is really bad feeling and omen. You blame on luck and your financial advisor who gave you the stock tip earlier. Ha Ha.. Vicious cycle one after another.

Sometime you may never recover your losses and the stock that you may have purchased is suspended from trading. This is enough for you to spread bad feelings about the Stock Market experiences to your friends or loved ones that never to touch the Stock Market.

This is not a made-up story, It is real scenerios around us and we know people who had been caught by the Stock Market plunge, fear has overcome them, deep intense pain has taken control over their body and mind.

Do not talk "Stock Market" to this group as you will get a Karate Chop from them. HAHA..

Financial Skills is a learnt skills, it can be taught and learned well if given time and effort to understand

the underlying cause and effect of the Stock Market Price Movement. Beside learning how to Buy a stock,

you should pick up the other important skills on how to Short Sell a stock if the Market turns bearish.

Like me, I am a Computer Engineer who is interested in software debugging, reverse engineering to discover how an application is written and coded. I am curious and like to get into the root cause of each task that I handle. Likewise for Trading, by understanding the natural effect of the Market Demand and Supply,

I am able to create a series of programming codes that pick up stocks that are going to move up from the bottom of the channel or falling off the roof of the channel. With tedious repeated testing on Scanner codes to make sure that only a few out of hundred stocks are picked up for analysis and possible trade the next day.

Nothing is difficult if you have the heart and soul to learn and excel. Life is short, live with passion!