Common Fear and Greed of Novices

 

Potential Bottom Fishing with Less Risk#4

 

Trade to Win strategy - #6

 Preferred Strategy, watch only a basket of a few selected stocks

Personal Trading Strategy (Be patience to take advantage only when opportunity arises.)

1) Pick up any 3 to 5 stocks that you like to trade.. Can be any stocks that you

are familiar with. E.g. Cisco, Dell Inc, F5, Fireeye, Pure Storage, Citibank, Tesla,

Apple, Microsoft.

Taking F5 as the stock in the watchlist bucket as an example. 

2) Open the chart in C2chart and apply the template “11”. 

3) Next, change to weekly chart and take note of recent low point from the upper 

     chart screen.

4) Check on the middle screen to highlight the lowest point of the moving averages 

     in sync with the Upper price chart

5) Next using oversold and overbought indicator, identify that the stock has recently 

     below the overbought level “20” line

6) Remember the area with circles as shown, write down the dates. 1st low on 

     16/3/2020, 2nd low on 21/9/2020.

7) Go back to daily chart, and look at the price during 16/3 and 21/9.

8) As can see that when go to daily chart to look at the two marked dates from 

    weekly chart. 

    We can see that the Price is still trading lower, similarly, if you look at the MA 

     and Stochastics indicators, both are still pointing to lower Space meaning the 

     downside move has not yet finished business.

9) In order to have high accuracy entry, watch the stock daily, look out for price 

     to start to move up and closed positive, watch the two indicators and look out 

     for bullish cross-over as shown that they happened on 19/03/2020, three days 

     ago from the rock bottom level. 

    This is the day that I will take this trade. The cutloss will be place on previous 

    bar low. 

    When you trade at the bottom level, you are taking a lower risk then you chase 

    the stock after it has risen in price. 

10) Similarly for 21/9/2020, the indicators and price are still heading down…

      Therefore you need to check the stock price everyday until you start to see 

      that the price begins to move up and the indicators crossover start to appear. 

      This only happen on 28/09/2020, where you can take a trade to the upside of 

      the market.

11) Do not rush to buy with all the cash you have. If you decide to buy 10lots for 

      this trade. 

      Initial entry is risky as we do not know where the stock price will close higher 

      or lower from our entry level. Therefore 1st entry will be 20% or 2 lots. 

      Subsequently as price starts o move away to breakeven level, more the cutloss

      level to breakeven so that if the stock is still weak, you can exit without major 

      losses.

12) As the stock moves away from the breakeven level, watch out for the indicators 

       crossover as the price head higher, this allow you to average up the stock by 

       accumulating more lots as the price starts to trend further up.

Trade to Win strategy - #5

 

You do not need to trade multiple stocks at a time.

You will just need to have a basket of 3 to 5 stocks.

If the overall market is bullish and trending up, choose 3 to 5 stocks and watch them like a hawk.

If the overall market is bearish and trending down, choose 3 to 5 and what them like a hawk.

Initial buy should be on smaller lot size to test if you are right on the stock's direction.

For example if you intend to trade over 10 lots. Initial buy will be 20%, subsequently you

can continue with 20% or more and depending on your risk profile.

Step 0) Scan the market for bullish and bearish stock.

Step1) Your initial entry will be 2lots, if you are wrong within the week, you can cut loss 

without too much pain and move on to another stock. Cut loss when red price bar falls 

below the two MAs and cutloss lines.

Step 2) Once the stock price trades away from your entry level about 10%, move your cutloss 

level to the breakeven point where if you decide to sell, you will not lose any capital.

Step 3) Next as the stock starts to trade higher, look out for opportunity to add more lots into 

the up trending stock. Continue to add lots base on my sharing.

Step 4) When price is high above no man's land, sell 50% holding lot size and let the price 

comes back

to the base channel low again, continue to add more lots when opportunity arises.

Step 5) Sell all when you see the following indication such as "end of up market", 

"climatic top", "trap upmove", "supply overcomes demand", "no demand" 

and "supply coming in".

Step 6) Take all the profits and move on to the next stock, repeat Step 0 to 6 again 

and again until trading becomes a routine, boring and just pure execution of clicks.

Potential Bottom Fishing with Less Risk#3

 

Potential Bottom Fishing with Less Risk#2

 

Potential Bottom Fishing with less RISK#1