All in a day's work

China XLX. Was once in my radar but I totally forgotten about it until my friend reminded me to take another look at it.

From the chart, I've drawn out 2 important prices. the region between 1.14 and 1.21.

1. Circled. The number of times 1.14 had been tested since price broke and how it became the support last week.

2. "Doji" seems like a reversal in at play with the price testing 1.21 which i feel is one resistant level.

3. The line, could in a way, I feel signify that a reversal is comfirmed..

I think this can be a good counter to consider if it opens with a gap up and if highly traded.

This is the second analysis on China Hong.

Interestingly, as analysed the price rose the next day from it's previous breakout as you can see from this *new chart.

Now a deeper analysis as this chart seem to be heading to a whole new unexplored price range.

1. Notice the resistance since Apr 07 till now, it has only been broken on Friday, although slightly but it's a break of a major resistane nevertheless.

2. It broke a recent price top @ 1.24

3. Amongst the 4 times it tested the resistance line, 3 /4 of the RSI indicated >70% with the last one almost clearing the mark. So what about this time round since it has yet to reach the Overbought liene and just tested the resistance. What's the potential?

4. Signal of Trend Reversal highlighted in very light Yellow with 4 days of consecutive rally since "Black Monday". Will the rally continue?

These are some factors to consider for this counter. Open to comments and views!

Who says analysis has to be complex. In many ways it can be simple depending on how you look at it. In this chart, it's seems pretty simple.

Notice how it nicely breakout at 1.26 when the price tested 1.32.

Igore the latter price. @ 1.26 the market has already decided that the price of this counter is worth 1.26 @ closing, notice the very high volume. About 2x more than the normal trading zone.

As discussed with my friend, if this counter were to appear on the top volume list on friday, it's a good buy provided that the signs in the morning is bullish and well.. we're not that wrong, are we?

Week 3
1/10/2007 – 5/10/2007

Still a long way to learning the art of charting…

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1. Do a complete analysis of a particular counter in your shortlist.

I bought in HLG w/o doing a complete analysis. Well, not that I actually missed but I did not pay attention to the “actual” resistance and bought it at a “bad” price. Nevertheless, decided to hold on to this counter although this might cause me some opportunity cost but no rush, right?

Opinions of fellow chartists can definitely help you learn charting faster as they apply what they know “practically” not just “theoretically”.

The market’s always there.

2. Be confident with your analysis

Well, DON’T buy unless you are confident of your stock. Don’t buy and worry!

Even though the price always work 2 ways, Up and Down. You got 50% chance of getting it right! HAHA! ß This is rubbish. No such thing as 50% chance.

Know when to cut your losses and be confident after your analysis.
Stress and emotions can always affect the price that you want to let go. Once it hit you stop loss price, let go and say “bye-bye” to it, even though it may rise later. Move on….

The market’s always there.

3. Talk, Talk and Talk about it

It’s not easy to know everything from a single source. But it’s definitely possible to learn from others and that’s definitely faster than reading the whole library.
Of course, you won’t always hear what you want to hear but be open to opinions and re-analyze their opinions yourself.

So…. TALK TO ME!!!

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Let’s see how this coming week goes……………….



Afterall, STI

1. Supported at 3736 points

2. Peaked 3852 points “Intra-day”

3. IMO. Resistance at 3828 points

This caught my attention. The volume for IPOs! WooHOooooo. Is that not like a gamble?

Not too bad! Might b worth a look!

Week 2
24/9/07– 28/9/07

Second week into trading has made me clear of my approach in the market. Emotion Control and objectivity. Once again, there are lessons learnt and well, as compared to last week, I wouldn’t say that these are less important, so read on….

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1. Plan your purchase and quantity.

With a credit limit set at 10,000, there are only so limited stocks that you can buy. Take my ChinaKangda, (CK), trade for example.

At that time of purchase, I had another pending order and that effectively, limits my purchase for CK. In the end, I’ve gotten only X lots, a few lots lesser than what I intended to buy. When I’ve withdrawn my other order, I realized that I’d need to pay another charge if I were to get and I wasn’t willing. So in the end, I stayed with X lots.

Well, looking back, I should have spent that commission charge! Anyway, the point here is, do your calculations properly.

2. Review your portfolio often

Once again, with the fact that I’ve got a limit of 10,000, it’s normal that I have to give up a few positions to get another position, which can give me possible higher returns. Take CSC for example.

A construction stock that has been performing, well… Stably. It would not hurt to hold on to it when your have X lots at it and liquidate it at a later date, since I’ve bought it at .33, a relatively safe entry point, imo. But YangZiJiang (YZJ) came into the picture and I had to let CSC go, albeit with a lesser profit, for YZJ.

Sometimes, there’s only so much we can do.

3. Read more.

There are easily about 500 stocks that you can buy, available in SGX. Is it possible to monitor all 500 stocks or is it more realistic to read/know what people are looking at and from the named stocks, make you own analysis and then decide.

Trading, if played alone, is boring. Views and comments are definitely worth listening to. Be flexible in your view after all, the market never always moves in YOUR direction. No one is always right.

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Well, all these lessons learnt are meant for sharing. It’s not good to make mistakes in the market but well, have these lessons in mind if you were to trade.

Stock picking should not be treated as a gamble and I'm no guru...

Week #3 ….

Din not post for last week due to a pretty busy weekend. Anyway, as stated previously, I've acquired YangZiJiang @ 2.06. Not the best of buy but as imo, 1.93 could haf been a better entry point but since it hit 2.06 with high volume, my guess is that the formation is complete and it's time to follow another trend.

Well, looks like chart formation works again.