Market View 19 August 2009

Ok, Uncle Sam is up again with gains
from the 3 major indices on better-than-expected
retail figures. Dow covered back 83 points
after losing 186 points on Monday.
It is looking to be an interesting week again....

STI and most of the Hot stocks were up yesterday,
with most stocks closing near the day-high this time.
One Skype member asked me yesterday why was STI up?
I reply with laughter, and did not gave much reply
after that. He then said that it was not good for
the heart because of the roller-coaster ride day-in-day-out.
I will be very filthy rich if I knew exactly
what is on Mr Market's mind on any particular day.
But I can predict (50-50), and then follow what
is the main action of the trading.

I started trading light a few stocks that I specifically
mentioned yesterday, "focusing on the commodities stocks
and the oil-related stocks", and add-on to them when it
was clear that it was going to be a all-green day.
That is how I trade. I test the market with light positons,
and if I am wrong, I will be out at the cut-loss level.
If I am right, I add-on to the positions, and ride the
stocks up high with a trailing stop, of course.
The add-on part of the trading is actually one of the gist
of trading and winning, but I notice that many retailers
do not practice it. So now, you have gain an advantage over
the rest of people who don't read this blog. :-p

Another gist of trading is money-management which
I have repeatedly mentioned in every blog entry.
A cut-loss is essential in preserving capital
and even confidence in trading, as many will take
a long time to mentally recover from a huge losses
which will cause turmoil to their life. When your stock
is moving in your direction, you set a trailing stop,
to protect your profits. You add-on stocks on its way up,
so that your profits will multiply, and you hold the winners
long until the south wind bring it to your trailing stop,
and you are out with a decent profits. So when to buy again?
That is another gist of trading that will be discuss next.....

I wonder how many readers actually gain from PEC's surge
last few days. I will continue to focus on the commodities
and oil-related stocks, and you saw it coming, those near-$1
stocks.
Trade those still Hot (Green) stocks but be very cautious
of south wind. Follow the Flow, but expect the Unexpected.
I will be cautiously trading today on the still-hot stocks.
Concentrate on the GREEN (If Available, but prepared)Hot stocks:
Straits Asia, Midas, Olam, Ezra, Ezion, KS Tech, Cosco,YZJ,
Indo Agri,Noble, NOL, Genting, Ascendas India Trust,Yanlord
& Uniasia, Raffles Edu, Swiber, Swissco.
In close watch: Epure & Falcon Energy, Rotary, First Resources,
Mermaid, Hi-P, PEC, CSE Global.


Enter any position with a Cut-loss level & Trailing Stop,
and Please practice strict (Risk)Money-management.
If you don't like what you see in the market,
simply don't trade.

If you have Skype, and would like to chat with me about
stocks and all others,you can ring me at my
email address: stocklobang@yahoo.com
I have currently a couple of members skyping with me
everyday,and they are having good trading results.

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

市场生存座右铭: 风林火山


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Afternoon Mid-day Review

Hello Readers, have you all taken your lunch?
This morning trading was concentrated on a few
stocks only, and I was also stop-out in a few
positions.

Maybe some readers will wonder how come I
never recommend them stocks like Seroja, C2O
which are the big winner in the Top volume?
Normally, I will watch over the stocks for a
while, observe their movement habit, then I will
start to trade on them. Yes, they are in my watch,
as how can anyone miss them since they are so hot.
I will continue to watch them...until...

I will continue to stick to the greens, but I will
sell them if they reverse and hit my stops.
That is how I play the game.