Wednesday - 31st December 2008
9.00 a.m. - Malaysian Time
Sometimes you may wonder, how on earth that you still keep making losses after a stop loss position has been taken. In almost all the investment books that I have read, the authors , most of them, have suggested that ' if you make profits, just let them ride along' and a stop loss is a must as it acts as a mechanism to limit your losses. But in reality, after following their advise, it seems that you still make an endless losses.
So, what is next? Well, why not you practice a stop gain as well. It means, after placing your position, you must place another added position to sell/buy at a profitable levels. It may work wonders to you.
The market , in long term, is still bullish and so is the very very short term;
1) If you look at the chart , there are 3 acending white bars that have been formed for the last 3 consecutive days. So if the market opens within the body of the yesterday's white bar especially if it opens more towards the lower part of yesterday's bar and then manages to beat down the levels between 1616 to 1620, the market may retrace further down ( remember the swing strategy ? - please refer to my previous posts ) and a black bar may be formed at the end of the day or may be in the early part of the day. So if this happens, just sell here!
2) If the market opens between 1644 to 1661. Buy after the market has dropped 6 points below the opening level. Be careful of the false alarm. Any way if the market manages to beat down the levels between 1616 to 1620, the market may retrace further down. ( see # 1 as above ). If the market manages to beat up the levels between 1672 to 1678, the market may go further up. If you see any profits, just lock them up!
3) If the market opens between 1662 to 1671. Buy after the market has moved up beating the levels between 1672 to 1678. ( see # 2 as above )
4) If the market opens between 1634 to 1644. Sell after the market has retraced beating the levels between 1616 to 1620. ( see # 1, as above )
5) If the market opens 1672 to 1695. Buy after the market has dropped a bit and then moves up 5 points above the opening level. Any profits, just lock them up!
6) If the market opens above 1740. The market may go up further.
7) If the market opens between 1610 to 1633. Sell after the market has moved up a bit and then falls down 5 points below the opening level. If the market manages to beat down the levels 1616 to 1620, the market may retrace further down ( see #1 as above ).
8) If the market opens other than the above, it is your call.
9) Also look for trendlines...etc.
10) Please refer to #9 ( Thursday's Tip dated 26th June )
11) Also refer to # 9 and # 10 ( Tuesday's Tips dated 1st July)
If you are not sure , just contact your broker.....not a match making broker
Have a nice trading day.
HAPPY NEW YEAR everybody!!!