How to know when to sell when the stock is IN-THE-MONEY now?

 With reference to Sample 8, a much earlier blog post as below:
http://volume-price-spread-for-metastock.blogspot.com/2010/10/sample-8-simple-strategy-to-cut-loss.html

I am going to demonstrate on how I manage to hold on to a stock until the trend is against me and I am force to take money out from the stock.

After transacting this stock on 21st Oct which counted as Day 1, I waited for the next 10days to see if the
cut loss will be triggered and I will be out of this game.

Fortunately, the stock trended higher after Day 1 until today which is the Day 10. Within 2 weeks, price managed to trade higher without trigger the cut loss system, so how am I going to manage this trade from here onwards. The strategy is clearly defined in the Sample 8 in this blog or click on the above hyperlink which will bring you to the post that I have created much earlier to demonstrate how I protect profits from a stock.

Back to this stock again, on Day 11, I will be switching to weekly chart instead of daily chart to monitor
the stock price. The reason is simple as I want to give the stock some room to move.The weekly chart is
good at reducing unwanted short term noises and provide smoother trend. Daily chart is easily manipulated and a good negative day can easily send you out of the game and stock continues to climb higher within the same week. Therefore inorder to prevent such incident to happen, I switch over to weekly chart to monitor the trend and channel strength while using the daily chart to detect short term weakness and price fluctuation.

So when will I take profit or exit this trade? From now, I have to wait for the Sell signal to appear in the future. When that happen, I will follow-up with another chart that explains why I decide to quit and take
profit instead. Till then, continue to follow me through this trade..It may take days, weeks or months ahead,
when the time has come to take profit, you will be informed without gimmick.

This is also to demostrate how anyone can trade a stock effectively which still working for earned income.

Best of all, you can enjoy trading stock at your comfort level and make subtantial income to pay for your luxurious toys or food.

Trading is not without RISK, you must accept RISK inorder to trade. I respect RISK and I manage IT.

Thanks for Reading!

How to know if a stock will continue to TREND HIGHER?

Look at the huge transaction day and wide price range as shown by the enormous volume bar

denoted by the black arrow.

Usually, the stock will  be subjected to profit taking. As such, I need to know if the selling pressure

is strong enough to digest all the profits made in a day.

Using the high transacted day price as reference, obtain the Pivot Level for that day. As shown in

the chart, the Pivot Level is $1.20, therefore this value becomes the new profit protect level from

now.

As long as price continues to trade above $1.20 and above, I will continue to hold on to the stock until this level is breached or a new profit protect level is set after the price moves much higher.

In this way, I can secure some profits if the price starts to tumble below the Pivot Level.

The reason why many fails to survive in trading is due to lack of Money Management System which needs not to be complicated. You need to know when to sell or buy, when to cut loss or take profit.

Never be greedy to make another cent. When I sell, I choose to sell to the Ready Buyers and when

I buy, I choose to buy from the Ready Sellers and close my notebook to do my job as an employed

IT Engineer.

You need not stick to watch the stock price ticking real time, that will definitely kill you as a newbie.

I did that for nine solid months full time in 2003, great profits but intense stress and I hate to stress

myself while making money.

Trading should be fun and easy to do like watching a movie and indeed after years of improvising new

trading strategy, I develop this current trading system that can provide me with portfolio income while

working on earned income.

I can be reached at failureisnotachoice@gmail.com if you want to share your trading skills.

Thank you for reading again!

Power Strategy #2 - Test Base+ Go Long combination



After a weak market was triggered in January 21st 2010, the stock price tumbled $0.40 and found base

in early February as detected by expert signals (Price Pull Back Up and Demand Coming in).

For risk averse traders, this could be opportunity for trade but for my trading style, I would like to wait a little

longer to observe if the trend was indeed trending higher. I would wait for the price bar to change from Red Colored Bar to Green Colored Bar and the Trend Cluster at the bottom of the chart (just below Volume Bar) turned from Red to Green.

Luckily for me, I have a proprietary scanner that would pick up stock that meets such a strict criteria (Test Base + Go Long1) from the chart above.

This combination means that after some weaknesses in the background for sometimes, the stock is nolonger falling south (Stage 4)  but starts to move sideway (Stage 1) to consolidate strength.

Once the strength is built up to move northward, a "Test Base" is usually good to know that the selling activities have been absorbed and price is ready to move up with no selling pressure.

With "Go Long1" picks up after "Test Base", I know that the Professionals are ready move this stock price higher definitely. Look at the chart above and see for yourself.

Again and again, this combination is always ready to pick up any stock that is ready to stage an upmove.

Although there is no certainty in trading, there is always the probability of a good setup with strict money

management scheme to capture this profit opportunity.

Thanks for reading and many Profitable Trades ahead!



Power Strategy #1 - Stopping a down move + Go long combination

     (A stock from KLSE, Malaysia)  

       (A stock from Singapore)

Woo, this is one of the many combinations that my Powerful Stock Scanner can pick up.

At first, price started to pull back towards moving average line and broke down. Falling price
was halted by "buying-in" from the Professionals and this was automatically alerted with a symbol
below the price bar.

Immediately after the price was supported (Climatic Action), Professionals continued to move price
higher. Price closed near the day high denoting enthusiasm to move higher the next day.

The Professionals aggressively accummulating the stock was denoted with a Blue Diamond symbol.
This was clearly illustrated again in the Mid-April and Early-June.

In many cases where Blue Diamond appears, price will immediately move higher away from the cutloss trigger set from previous day pivot level. So if the cutloss level is not triggered, continue to hold the stock and
adjust the cutloss level as price moves higher to protect the profits.

Do not be greedy, be happy to exit the trade if the profit protect level is triggered.

Use the scanner to pick the next potential stock for such a combination again in any stock exchanges.

Next posting, I will show Power Strategy #2 - Testing Base + Go Long Combination.

This is where the Professionals will probe the stock price to see if there is anymore sellers before
launching a delibrate pushing up of the price quickly.

Catch up with you again, bye.

14th Oct - Sold off the remaining 50% of Golden Agri Shares. Found Weakness!

As expected, today's traded volume is much lower than yesterday massive volume as such

I watched the price bar closely.

As compared to yesterday's price range (high - low), today's price range is much narrow due to

the fact that there are still potential sellers where the demand is met by strong supply therefore

the price is locked within a tight trading range.

The weakness is confirmed when price closed at day low with high volume. If the Professionals

are interested in higher price, we should be expecting further upside today but this is not the case.

For now, I am expecting price to find support level near to yesterday's pivot level @$0.64 before

testing the near term price target of $0.72 level in weeks ahead.

Just be happy with what I harvested, move on to the next profitable catch using Diamond Scanner again.

Good Luck and Many Profitable Trades ahead!



Sample 10: Will price continue to trade higher from now?

Hi, if you have followed my sample charts from the beginning, you should not miss Sample 5 chart analysis on Golden Agriculture Resources on 29th September 2010 where I spotted three weeks of reduced selling pressure and commented that there is a possibility the price may rebounce soon.



Indeed two weeks later, 13th October 2010. Massive price movement today and this is no coincidence at all. By Mastering the art of intrepreting Demand and Supply in the Market, I am able to predict what the
SMART MONEY activities thereby taking advantage of the situation.

Interesting, I would usually exit all or partial during a massive bull run day. I did it again today by selling
50% of my  holding to secure a nice pot of profits on the table and leaving the rest of 50% soldiers to fight through the upper channel wall (known resistance level).

After the Market closed at 17:05, I re-evaluate the stock to make some assumptions for tomorrow's session.

How I know that the bull run will continue tomorrow or fade out completely by tomorrow?

The answer lies in the today's transacted price and volume.

From the chart, price has just closed near the upper channel line which is $0.655. Breaking out of
this channel by tomorrow will be bullish as the upper channel line can become the new support level
for the price to propel further northward.

What if price really pull back tomorrow, what will I do next?

In my Personal Trading System, I utilize the Pivot Point for cut loss or profit protect strategy..
Base on today's closing, the pivot point is $0.63667. Therefore my profit protect level will be
set as $0.635 for tomorrow session. If the stock is subjected to massive distribution by tomorrow,
I will be out of the game at $0.635, generating 6.5cents of profits on 50% holding.

Another scenerio could be today's volume is not sustainable, therefore I expect the tomorrow volume
to be significantly lower and inorder to know if price will continue to go northward, I hope to see a small
negative price bar closes within the body of today's bar. See sample below.

This sample shows that after a massive upside the previous day, everyone will be wondering if the price
will continue to head higher or subject to profit taking.

When price pulls back with much reduced volume, this will show that "Yes" there maybe some selling pressure but the pressure has reduced significantly because the closed price is not lower than the low of the massive upday. This is a bullish sign and may mean that the Professionals may want to move the stock price higher very soon and they are just taking a short break.

So this is my way again, let's see what happens tomorrow then?

Anyway, the stock price is now in the upper channel level denoted as Sell Zone (Above the dotted red line).
It's time for harvesting.

                         Being GREEDY in the market is the Sure way to lose BIG.

Sample 9: Excessive Volume Upbar may not be a good thing

Looking at the two marked areas with extremely high volume with positive closed. But

what happened the next day? Price began to tumble instead of moving higher. This

is really confusing as why price fell after a solid upday on the previous day.

This is clearly detected by my Expert Indicator which showed the message "Professionals are

distributing". But why distributing and not accummulating more to the upside instead.

The reason that I can imagine is that the Professionals with huge book orders are unable to

unload all the shares at in a quiet market place. They have bought much earlier at a discounted

price and waited for the right time to unload the inventory to make a pile.

The only way to unload the massive inventory will be during a bullish market day where there are

more demands. This will be the time where the Professionals will be able to unload to the demand side of

the market. After unloading, there are no reason for the stock to go higher  and this can be verified

by the next trading day volume which is usually average to low volume. Price will start to move lower

to find its next support level where the Professionals will enter again to accummulate the base which

later become the FULCRUM for the price to move higher again.

This is how I interpret the market, this is my way!

Thanks for reading!