Market View 10 Nov 2008

It was an very interesting tag-of-war between the
bull and bear in last friday's market, and if you
never watch the whole game till the whistle blow,
you have missed out in some trading opportunities.

It's OK.
Today I will share with you a trading "secret"!!
Well....not really a trading secret, but a trading
trick.
I simply like to keep track of stocks trading at
about 85cts to 95cts, because of the risk/reward
trading them, but they MUST have volatility and
liquidity, that is, they are "Hot" trading stocks.
You should know that stocks that are below
$1 move at $0.005 each bid, and stocks above
$1 and less than $10 move at $0.01 each bid.

If you buy a stock near to the magic $1 level, your
downside is 0.005 per bid, but if the stock rises
above $1, you will be winning 0.01 per bid, so your
reward level will be better, and you got the little edge
over the others. It is this edge that differentiate the
good and the better traders.

So in summary, keep track and seek to buy those
stocks near the $1 level for a better risk/reward
edge. For a feel of some stocks in this categories,
we have Straits Asia, Cosco, Noble, Yanlord, and
a highly in-comer Swiber.

This trick is known to many, but I don't see many
sharing out, so I hope that it will be beneficial to
all.

As usual,
Stay Alert but be Aggressive too.
Audentes Fortuna Juvat !!

我生来一贫如洗，但绝不能死时仍旧贫困潦倒!
索罗斯 George Soros