How is S&P500 Index doing so far?

 

Is S&P500 going to retreat lower towards 3200 level as seemed in the past?

In December 2020, I started to monitor DOW and S&P500 and I told my friends 

that there is a possibility that the US market might have a deep retracement

repeating last March 2020..

The response, no one can predict the future, the indices are still trading higher, not

likely to pull back soon.

Personally, I estimated that a retracement could be possible end Feb to March

2021. 

Let's see. As I just gotten my US trading account setup, waiting for the right time

to pick up good stocks. 

Cheers!

Residue Trading Strategy to extend Profits Opportunity to the fullest.

250221 - residual trading is to leave some lots behind by not selling the total accumulated
lot size of 70lots.

As the stock started to trade higher, we do not know when the selling spee will come
and quickly dissolved all the profits on the table, as such it is advisable to take profits
along the uptrend during a massive rally. In many times, we hope to know where
the trend will end so that we can sell before the price starts to fall and stop eating away
the profits. But it is rather tough to catch the bottom and top. Even then, holding
overnight also carries risks as any devastating bad news after trading hours will affect
the stock price to open gap down violently the next day and take away all the profits
and even worse, below our entry price.

Therefore, it is advisable to sell into the rising market and secure the good profits without
 much effort.

But do you sell all the lots?

In actually fact, always leave some lots around so that in the future, you can perform
average in the trade as the price continues to move higher after a retracement. e.g. 20%

So how I decide where to sell and how I know my potential hit rate with confidence,
for example, we assume that the start of the bullish move from 0.05 to 0.14 level. 

Refer to the chart, $0.05 (triggered "Super Golong" Gold Diamond Proprietary Indicator),
showed the price started to move up from $0.05 level. Assuming my maximun profit level $0.14.

This is how I calculate the hit rate to certain degree of accuracy.

As you can see that the closed price today is $0.119 which is at 75% price target and
moving towards the 100% price target, the chance is 5% luck...  

So what I did was, as the price moved towards 50% price target, I decided to unload some
of the holdings as I know the probability of hitting the next price target 75% is getting
slimmer... 

What I meant by "Residue Trading Strategy", this is a strategy that I have designed
and implemented in my trading and has helped me to achieve more profits.

By leaving about 20% of the total  lot size in the stock, we have a potential opportunity to
continue averaging in as the stock price starts to recover and move up the trend again. 

If it does not show sign of uptrend by continue to trade lower, you should just exit with the
remaining profits made from this 20% holding and be happy with what you have made.

Trading is more like a mind game, we are playing tactical game between two ears.

As shown above, I have 20lots@$0.095 left in the game to continue achieving more
profits for me. As I have already realized  79% profits, it is ok to let this 20lots to
continue to fight for more profits for me.

Happy Profitable Trading.

 

How to buy Low and Sell higher?

 

Witnessed that price made a low at point 1 and rebounded away. It is ok to miss

this opportunity as we do not know if this is the low point.

In order not to miss the next opportunity, you need to draw a horizontal line at point 

1 and extend to the right side as shown.

Sit and wait patiently for the price to come back to re-test point 1 low.

Next opportunity at point 2 came in mid-June where the horizontal line at point one

low was touched.

When price is moving towards point 2, you should be on high alert each day checking 

if the price would retest and bounce away from the point 2. If it did as shown at 

point 2, without hesitation, just enter the order to buy once price is above the 5SMA (blue line)

with cut loss below slightly below point 2 low. 

Watch to make sure that the cut loss does not trigger for the one week after purchased.

The rest will be history. With low risks to high returns ahead, enjoy the hell of a ride to 

the north pole. You need GUTS to make it work for you.

When you see BLOOD in the Market, look for buying opportunity

 

Buy when the price bar are RED, Sell when the price bar shows upper long tail > 50% of its body.

You will never go wrong.

When you buy, the price bar should be in Red and bleeding, what you need to do is to patiently

wait for the bleed to stop and you are on the way to recovery.

Patience is the key to success picking bottom and selling top.

Good Luck!

Happy Profitable Trading 2021! 

How to know if the break out will be geninue?

 

Base on 15th Jan closing, price is closing up to the Resistance level or Supply zone....

How to know if the future break out will be genuine or fake?

There is a way to know by careful study of the current trend and price action.

Let's see how will this break out pent out before I share what you should look out for.

How to repair a losing trade back to health?

 

The above scenario is based on worst case when a stock was purchased at the highest point 0f $0.39

where it started to trade to the downside. This illustration is subjective to interpretation, it takes

guts and years of trading skills to perform the recovery, you are not to average down as the stock 

price goes lower which is what most unskilled traders will do. 

In fact, the best loss is the initial cut loss level that you have set before you enter the market to

buy. 

But If you have overlooked or assumed that you just need to "buy and forget" then you will be 

very sorry soon. 

IN order to reduce the losses, there are steps to be taken to make sure that recovery is possible, you

need to identify that the stock is longer going lower and started to move sideway, as the stock starts

to move up the trend, you make the 1st recovery purchased as shown on 9th April when you see a

bullish Green bar (almost closed near day high), the quantity to buy has to be 3 times higher than the 

initial lots size. Subsequently, as the price move higher, execute the 2nd recovery purchased as shown 

on 6th May at $0.26 with 3 times higher than the initial lots size.

By averaging up the price, you will have a positive outcome as shown below. 

Base on my study, with this strategy, you can reduce the losses significantly and provided you have

the guts, capital and trading skills to recover a losing stock over a period of time.

Personally, initial cut loss is the best loss... and I always traded small lots size in the initial entry. 

The highest risk is always the initial entry where you do not know where the stock will be heading 

even after extensive study of the financial ratios and charting. The market will do what its need to do

and we have no control over it. What we can do is to limit our losses with trading plan.

so if I am wrong in my initial entry, I can still exit with small losses quickly, but if I am right on the

entry, the next buy will be heavy when the price moves higher above the breakeven level and I 

will keep on adding more positions up the trend. With averaging in an uptrend, my average per share is 

still lower than the market price.

In this way, there is no fear to buy high price and hope for higher price as the stock continue to 

rise until it triggers the profit protect line to exit the trade. 

Take example of the current holding of SIA stock.

Refer to the below post on how to start small and finish well..

Start Small and Finish Well

Other ways to recover losses in a trade.

1) If there is stock call or put option (warrants) to buy as a protection insurance.

2) Trade another stock which is trending up or down. Trade in the direction of trend to generate
     profits to cover the losses from the losing trade.

3) To apply what I have shared in this blog, average up when the stock starts to recover. 

You are the master of your own habits and trading techniques, find your own way to resolve the situation back to health. 

Don't sit on it. 

You will be better off doing something with small and calculated steps towards recovering from losses.

Happy Profitable Trading 2020

Welcome 2021 with massive action.

Why I traded SIA and to-date I have continued to add more lots?

 Refer to the blog link below, showed the buying of SIA as its fell and started to recover...

Chartfreely to Singapore Stock: Singapore Airlines Daily Chart Analysis dated 041220 (chartfreely-sg.blogspot.com)

How I decided to take trade is no coincidence, it needed effort to study the market as a whole and understood what could turn out for SIA if the Covid situation can be contained with promising vaccine soon and what the chart can tell you a story if we are moving towards a more positive outcome or never.