Thursday, November 4, 2010

Moving up another level in trading

Level 1: Learning to set cut loss point for every trade & be discipline to follow it.
Level 2: Learning to identify breakouts and trade consistently. Cut loss fast and let profit run.
Level 3: Go for maximum kill.
Three instances from trades yesterday.
  •  Genting - Not OK
    Was trading at 2.26(5000 lots) vs 2.27 (10000 lots). If your follow breakout rules, have to take after 2.27 has broke but broker told me to feel the market and preempt it to take at 2.27. True enough, it broke and has to take 2.27-2.28. 
  • NOL - Not OK
    Bought 2.23 at the same day and was planning to exit at 2.29. It was trading at 2.29(1000 lots) vs 2.30 (3000 lots). Broker told me to queue at 2.30 but I sold 2.29. True enough, it broker 2.30. I was rebuked for making the mistake. Go for the maximum kill.
  • SGX - OK
    This time round, it was trading at 8.99(100 lots) vs 9.00(400 lots). 9.00 is a breakout point. I preempt it and took 2 lots at 9.00. After that it broke and closed at 9.14. Feel the market.

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