Trading Journal As of 3 Mar 2017

Here is this week’s update.

Long Position (Stopped Out)

Thai Beverage Public Co Ltd (SG)

Thai Beverage Public Co Ltd - Exited Long When Red Line was Broken
Thai Beverage Public Co Ltd Daily Chart

Trade was entered at $0.915 and exited at $0.94. Overall a profitable trade.

Long trades Alliance Mineral Asset Ltd, Broadway Ind Grp Ltd, GSH Corp Ltd, Interra Resources Ltd, Keppel REIT, Sunmoon Food Company Ltd and Ying Li Intl Real Estate Ltd are still alive.

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Trading Journal As of 20 Mar 2015

Here is this week’s update.

Long Position (Stopped Out) 

Asian Pay Television Trust (SG)

Asian Pay Television Trust - Exited Long When Red Line was Broken
Asian Pay Television Trust Daily Chart

Trade was entered at $0.925 and exited at $0.895 (due to ex-dividend of $0.021). Overall a losing trade.

Long positions for First REIT, Sheng Siong Grp and Thai Beverage Public Co Ltd are still alive.

 

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A Trading Disaster Happened

Woke up yesterday to find that Illinois Tool Works Inc(ITW) buy order was triggered at $57.61. Check with the Yahoo Finance to discover that stock has never reach this price. Called up marketmaker trading helpdesk and was told this

“As conversed over the phone, your pending order (ITW) was correctly filled. I understand you have different sources to refer to, but all orders placed on CMC Markets’ platform must be referred to the CMC Prices on our platform as well. Kindly click the URL Link below (Clause 3.8) to see the explanation so that you may learn about how it works.

http://www.cmcmarkets.com.sg/content/documents/cfd/CMC_Singapore_Legal_Documents_PDS.pdf

Kindly also see the following where I attached the chart for the particular counter you traded on. The charts are always available for clients to determine if their pending orders are triggered but not determined by the prices from underlying market or prices from other providers. ”

Today, found out ITW trade has exited with a loss due to gap down.

Traders beware.

Illinois Tool Works Inc Daily Chart Trading Disaster
Illinois Tool Works Inc Daily Chart

At least I always enter every trade with a pre-defined stoploss. Always prepare for the unexpected. The above can also be prevented by using marketmakers with direct market access (DMA)

 

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USDCHF: Will the Trend Line Break?

USDCHF Daily Chart

The USDCHF has been in a downtrend since June 2010. Is this a false rally before resuming turning downwards? Let me know your views.

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Christopher Strudwick: How To Successfully Trade The Trend

An easy way of seeing a “Trend” is firstly looking at a monthly chart and observing which way the stock price is going. (This is called using the “mark one eyeball test”)

This is a cheap way of seeing what the stock is doing right now and does not involve any fancy, expensive computer software. Just your own two eyes.

It takes a couple of seconds to work it out as there are only three directions a stock can go. Upwards, downwards and sideways or a combination of all three.

Now as an added help I use a ruler or any straight edge and place it on the chart/monitor screen or you can print it off. Whichever suits you best?

What I am looking for is called a “Support line.” This can be found where the “bottom” finishing prices of the end of day’s trading are progressively higher than the day before.

You are looking for at least three points that you can put that straight edge against to confirm what your eyes have already shown you. That the stock is going upwards and is bouncing upwards off this support line.

Now you have found the “Support line” you now want to find a “Resistance Line.”

This is found by using that straight edge again on at least three points which are the “Highest” points that you can find. Again the stock is bouncing repeatedly downwards off this line.

Once you have found both lines it should show you a stock that is going “upwards” traveling between these two lines. Occasionally going past these lines, but on the average it stays between them.

To explain further, a “Support Line” is formed when “buying pressure” consistently overcomes “selling pressure” at a particular price level. In other words this stock has found “buyers” willing to buy consistently at this point.

A “resistance line” is created when “selling pressure” overwhelms “buying pressure.” again at a particular point. In this case “sellers” are happy to sell at this point.

When a stock is going “sideways” usually there is a lack of either buying or selling pressure, so the stock just goes sideways, until there is interest shown again, usually by a company announcement or an unforeseen event.

Hopefully it’s good news, particularly if you are currently holding a stock like this.

If you haven’t had this type of stock yet, don’t worry because you will, as all stocks go through this stage at one time or other.

The only thing which varies is the time frame. Sometimes it can be days or for even a week or three.

I have had stocks which have sat there for 3-4 months just going nowhere. Just happily tracking sideways.

(A point to remember here is once the “support line” has been broken by excessive selling it invariably becomes the “New Resistance” line.

And once the “Resistance Line” has been broken by excessive buying it invariably becomes the “New Support” line.

It all sounds complicated and confusing at first but it gets easier the more times you do it. (Like other things) And is well worth the effort, for it will enable you to find more profitable, performing shares. And that is what it is all about.
Article Source: http://EzineArticles.com/439905

Comments

A simple way of identifying the trend. However, you may want to use some charting software to filter out those non-trending stocks if you have too many charts to manually eyeball. Stocks are either in “ranging” or “trending” mode. As traders, our aim is to make money. We only enter a trade when the stock is in a trend

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