Saturday, July 23, 2005

Young Bulls

So I have rewritten my trading rules. First of all is to determine whether a stock is in uptrend or still in downtrend. I shall avoid all stocks that falls under the downtrend category. Rebound is impossible to play. It is so easy to get hurt with this strategy.

What is and uptrend stock? I shall define a stock that is in uptrend when it has broken the downtrend line and both the weekly MACD and 3/7 EMA are positive. From here, I will use the daily charts to time my entry. Sometimes, my hand are ichy and just afraid of missing the bus. So the first thing to do when the signal is spotted is to buy a little bit. Then increase my holding at every correction until the peak has been spotted. As the price ascend higher, the stop lost shall be moved higher to protect my profit. Once the peak has been determined or the price has hit my stop lost, then I shall sell off my entire holdings. No regrets. Move on and look for another bus. This is the slow in, fast out strategy.

My first stock that fulfills these conditions is:

The facts and rumour: AGM has just approve the rights issue. Current price is too low and the management indicate that the rights price will be around 55 cents. So they have to push up the price before the SC approves it.

No comments: