Patrick Stock Reading

Wednesday, December 28, 2005

The 7 habits and Stock Trading

Human endownment, it was said that it determine our future and happiness. Proactive people use their initiatives and resourcefulness to get what they want creatively. They exercise the four human endownments namely, Self awareness, imagination, conscience and independent will.

Consider one difficult situation you are facing now. Well, in stock trading what can be worst then getting struck in stock you brought and it continue to trend downward.

in such as a situation -

What do you see will happen, if you do nothing to the worst performing stock. (self awareness)

What happen if you do what you already know what you need to do?

Let us side step before answering the above, one of the 7 habit: "Begin with the End in mind". Simply put, what do you want to achieve? it means the result you wanted, by acting or not acting.

Needless, to said if you do not act upon, and continue to sit on the worst performing stock you are likely to continue to suffer.

That bring us to another habit - "Put first things first". Guess it may not really fit well here. Anyway, what is the important task that needs our attention? I would be looking at and examine the options available for my worst performing stock. Two choices:

1. Cut loss or sell at a loss - recommended by many experience traders, brokers and may be investors too.
2. "Cutting loss" without disowning the share. Sell at the current high and buying back at a lower price. This strategy highly risky, what happen if there isn't enough volume to support one buy sell order, esapecially true if everybody lost interest in the counter.

So what next, make decision loh..., as mentioned either option is risky, but on second though it may worth the risk.

before I end, one more things "Sharpen the saw".

pondering ...did i answer the first part of the question..

Friday, December 23, 2005

China Sun


Mid term uptrend intact, however daily chart post total different picture. Mid term risk is high as hte price may trend downward strongly, due to the current formation as shown in the chart.

Near term support at 0.425, if broken, if will go further down, and a confirmation of head and shoulder formation. The blue arrow is pointing at the MA to show a false golden cross is formed here. The best strategy to trade in such formation is write a put warrant, I guess.

Knew you will comment on the put warrant. :)
As mentioned, FOR SUCH FORMATION, in general, frankly, I knew nut about call and put option not to mentioned warrant. I don't call myself an expert and am learning how to trade, thanks for giving me chance to learn.

AusGroup


Daily chart - no sign of recovery. Trending down. It lowest price for the pasted months was $0.185, currently sitting at support at 0.20. At best, it move side way, at worse it may break $0.20 support level and head for $0.185 may be lower.

Post weekly chart instead of daily chart.

Monday, December 19, 2005

M1

Touches near term support today with a black candle, if breakdown, from this support, will see more down side and it may test the next low at $2.01. If price were to fall to this level, doubt that it could hold @ $2.00. Indicators shown in the chart are moving downward.

Weekly chart, with 30-60 day MA, uptrend intact but rather weak.

Previous posting

First a evening star, then a hanging man, Friday a black candle, Thursday and Friday, with day high both at $2.20 and a Tweezer top formed Will is slip on Monday?

Near term support is at $2.11.Currently range trading. All indicators in coming down, a correction? may be . When, and how far will it go? Sorry no ideal

Mid-term trend intact, may buy on dip. When to buy? Am using support level as guide, at suport level, will monitor volume, when selling volume is drying up at certain price said at the $2.11 and buying volume increase, this is where the entry point I'll be aim at.


Vesting interest..

Thursday, December 15, 2005

Star hub


Star hub again! It went down on sept to oct then range trading till this week breakout. since it high on 13 dec, it is coming down. Nearest support is at 1.95 and well, can this be a strong support? tomorrow is profit taking day, so trade with care.

vesting intested.

Monday, December 12, 2005

Raffles Education Holding

Raffles Education buy call of $1.42 with a one year TP of $1.62, upgrade from the previous $1.59, TP.

Rearch by DBS securities.

Thursday, December 08, 2005

GES



It is red all over for now. Don't believes my eyes, check the mid-term trend, oh bad! bad! trending down.

It is at it support line now. didn't monitor how it was traded today, so not sure whether there is a strong support at $0.88.

On gut feeling, tomorrow is friday and well, the usual things will take place loh..., so don't think the support will hold on well. On TA view, a black bearish candle appeared with a decending triangle, am not comfortable with it. Time to exit for those without holding power, do not take a second look ok. be serious about it

Having vesting interest.

Singtel


Looking at it mid term trend it look promising. Short term trend seem like going down, but on second look, the current down trending is more like a pullback after the recent rally.

Today, a tweezer bottom is formed on it candle chart and look promising for a short rally.

Stochastics is at the oversold zone, but the smooth D% is turning up and MFI is moving upward too. Hm, think I'll hold on till is reach 2.7+

Star Hub


The star is here, usually this is a trend reversal signal in short term.

Stochastics is at 93.5 % oversold, it may go higher, but in local context it is rather kiasi loh, so quick quick off-load better, then getting struck.

looking at smooth D% it's suggesting that going flat, usually i took it at a u-turn. So I'll would exit and would return if it hit support line again. If it continue to rally, I'm fine with it, cause gain is caculate at what I have actually gain not the price that continue to rally. So no regret. Yet to Exit, no problem, still got time I guess.

Tuesday, December 06, 2005

Pearl Energy


A double bottom, then a tweezer bottom, today close have a higher low and higher high.

The pullback is over, I guess. and the beginning of rally. Still have time to jump in. Don't hesitate, if you have yet to joint. Those already have, hold on, and adjust your TP accordingly.

Nera Electronics

Really not too sure in term when it will breakout, but belives it's coming soon.

My view and tools use is rather premitive and not complex, so be it.

Candle wise - nothing significant.
Dual MA - short MA touches Long MA, is this a sign of golden cross forming?
Stochastics - going down and smoothed one is moving side way, interesting to note.
MFI - going up.
RSI - FlatVolume - increasing

So, the next consideration is to look at the market and see what they are doing. Feel it pluse and whether the buying or selling is strong. Got and ideal, trade with the trend and you're likely to be reward.

Sunday, December 04, 2005

Nera Tel

Since it break out, on the fourth days "a falling three candle" (red cicle) is likely to form, if a long black candle appear on monday. We could safety said that the falling three method is confirmed = down trending.

If one is considering to open position, it pay to wait on monday to see the chart formation. We could more or less confirm the formation at around 4pm. We could also confirm a "Fail falling three method" at around 10:30 -11:00am

As a guide as to the likely formation stated above. Using the closing price on Friday:

Open lower then Friday closing price and trade upward = bullish
Open at Friday closing price and trade downward = bearish
Open higher then Friday closing price trade downward =bearish
Open higher then Friday closing price and trade upward - Bullish

Trade at your own risk