HAPPY CHINESE NEW YEAR

WISHING ALL READERS, FRIEND & MEMBERS

A VERY PROSPEROUS & A BOUNTIFUL HARVEST

CHINESE NEW YEAR

NEW YEAR 2016 'ANG POWs' ??

Esceram is now on the impulsive wave 3 with a tp at 0.885~0.95

Buy in at 0.47

Cut loss at 0.415

TP  at 0.885~0.95

Risk......trade at your own risk.

Homeriz is now on the impulsive wave 3.....with tp at 1.61

Buy in at 1.16

Cut loss at 1.05

Risk.....trade at your own risk.

Ifcamsc is now unfolding the corrective wave B....with tp at 1.335

Buy in at 0.96

Cut loss at 0.915

Risk......trade at your own risk.

Seacera is now unfolding the last impulsive wave 5.....with tp at 1.285~1.435

Buy in at 1.06

Cut loss at 0.945

Risk.....trade at your own risk.


NOTE......The above is just my2c opinion....Do have your trading plan b4 you make your DECISION.

MERRY CHRISTMAS AND HAPPY NEW YEAR

WISHING ALL MEMBERS

&

READERS AND FRIEND

MERRY CHRISTMAS & A HAPPY NEW YEAR

P/S.......ALL BUY/SELL CALL FOR CONTRA TRADING WILL BE POSTED FROM NEXT MONTH (AS REQUESTED BY MEMBERS ).

DIVALI GREETINGS

WISHING ALL INDIAN MEMBERS

READERS & FRIENDS

*A HAPPY DEEPAVALI*

SELAMAT HARI RAYA

TO ALL MUSLIM MEMBERS & FRIENDS

Money management and risks.

For profitable contra trades ,a good money management strategy,cut loss policy and when to buy and sell is 

a must.Lets say you have a working capital of 100,000 (or credit facility),how do you maximise your profits

and minimise your risks.Spread your risks by dividing your capital by five if you are trading five counters....

Example:

1) First counter you make 5%

2) Second counter you lose 3%

3) Third counter you lose 2%

4) Fourth counter you make 4%

5) Fifth counter you make 5%



Nett gain is 9%

20,000( 100,000/5 counters) x 9% gives you 1,800

 1,800 x 3 =5,400/per mth (12 to 16 contra trades are done per month.)

For those with working capital of 20,000/30,000/50,000/150,000/200,000 ,please allocate the money accordingly( per counter).

P/S......The above is just a hypothetical example...

Hope the above is helpful to my *Contra Trade Member's Group*.

The above is just *My Trade Plan*.If you have a better plan that gives you good profits,stick to it.

My *December contra trades* will be revised to the above format. 

The 4 Stock Market Stages.

Learn the 4 Stock Market Stages That Every Trader Should Know

To trade stocks successfully, you must first understand the four stock market stages that individual stocks and the overall market go through. These cycles tell you if you should be long, short or in cash.
Once you are able to identify what stage it is in, you can then trade accordingly to those characteristics.
After a while you won't even have to think about whether you should be long or short. You will know, without question, exactly what you should be doing NOW. You will either be focusing on long positions, short positions, or you will stay safely in cash - just by glancing at a chart!
Here are the four stages that stocks go through. This happens in all time frames whether it is a monthly chart, weekly chart, daily chart, or an intraday chart.

Ok, so I'm not the best artist in the world but I think it will serve our purpose here! What? You thought it would be more complicated that? My philosophy on the stock market is that if it is too complicated then it is just not worth doing. Now, we'll look at the characteristics of the four stock market stages. I promise it will be painless!

Stage one

Stage 1 is the stage right after a prolonged downtrend. This stock has been going down but now it is starting to trade sideways forming a base. The sellers who once had the upper hand are now beginning to lose their power because of the buyers starting to get more aggressive. The stock just drifts sideways without a clear trend. Everyone hates this stock!

Stage two

Finally stocks break out into Stage 2 and begins the uptrend. Oh, the glory of stage 2!! Sometimes I have dreams of stocks in Stage 2! This is where the majority of the money is made in the stock market. But here is the funny thing: No one believes the rally! That's right, everyone still hates the stock. The fundamentals are bad, the outlook is negative, etc. But professional traders know better. They are accumulating shares and getting ready to dump it off to those getting in late. This sets up stage 3.

Stage three

Finally, after the glorious advance of stage 2, the stock begins to trade sideways again and starts to "churn". Novice traders are just now getting in! This stage is very similar to stage 1. Buyers and sellers move into equilibrium again and the stock just drifts along. It is now ready to begin the next stage.

Stage four

This is the dreaded downtrend for those that are long this stock. But, you know what the funny thing is? You guessed it. Nobody believes the downtrend! The fundamentals are probably still very good and everyone still loves this stock. They think the downtrend is just a "correction". Wrong! They hold and hold and hold, hoping it will reverse back up again. They probably bought at the end of Stage 2 or during Stage 3. Sorry, you lose. Checkmate!
Here is an example:
Stock market stages occur in all time frames on every chart you look at. This could be a five minute chart of Microsoft or a weekly chart of the Dow.
Generally, you want to stay in cash when a stock (or the market itself) is chopping around in a stage one. In stage two you will want to be aggressively focusing on long positions. In stage three you want to be in cash. In stage four you want to be aggressively focusing on short positions.