Trading Q&A

Thanks for the questions. Looks like you guys are not newbies! haha I was expecting questions on how to get started. hahaha One reminder, I will not update as frequent as my growmoney.blogspot.com, due to time constraints. However, I will surely spend weekend answering all questions posted in the week should I have no time during weekdays.

coldfusion: Hi Decipher, just one Q. Should a trader go long immediately after a breakout of a trading channel or wait for opportunity to go short instead? Your views pls..thks..:-)

Ans: It will depend on what you base your breakout on. As for me, my breakout plays must have 3 elements, volume, chart formations and price. If all 3 are present, then the odds are higher. However it is very seldom to see all 3 occurs. That is where your cut loss strategy comes in. Do not be fooled by a breakout without volume or a huge volume with little price movement.

jeme: how do u select a good stock in e first place?.. tons of them in sgx

Ans: Jeme, I select stocks base on, high liquidity (High average daily volume of at least 3 million), Fundamentals (I avoid shoddy companies), Chart formations, breakouts or simply bluechips. Although i'm very much a technical analyst, I do own SPH for long term. In trading, I open my eyes and ears to everything. It is important to approach this game with an open mind.

Ley San: how do you determine the resistance level?

Ans:By simple drawing recent highs in a straight line. For longer term resistance, use major peaks, short term resistance, use minor highs.

Ley San: how do you read charts? i just want to learn more abt RSI & MACD.

Ans: : ) How do I answer this? I find Alexandera Elder's Trading for a living very useful. It explains some of the most common indicators. If you look carefully, there are advertisers on my website, you can visit them as some are educational website like mine. Or you can do a google search. Plenty of free explanations.

Quest: are you a fulltime day trader? what do you trade in?

Ans: Nope, I hold a full time job. I prepare my analysis at night. It's what you do after the market close that is more important. There is no need to monitor intra day for me, as I do not trade intra day. I have experience in Simsci futures and shares.

Lily: I understand that there is an Inside Two method variant too. Apart from this variant, are there more variants to the original Inside Three Method?

Ans: Sorry, I am not aware of such methods. :P

Lily: How do you trade an Inside Three Method? Where should I place my entry and how to place my stops?

Ans: For Inside Three Method, I don't have the answers. As for entries, stops, i would place them according to technical indicators or chart formations.

Lily: Hi, may I ask something on candlestick charting patterns?

Ans: Yes Lily. I am trained on candlesticks as well.

sacredmarket @ SI: u trade the SIMSCI? how did u get started and what u use to base your decision on?

Ans: As I do not have live data feed at that time, I depended on my trading kakis for charts they share generously to me. I go long when MacD histogram is below zero line and sloping up and there is a bullish candlesticks formation on the 30 mins chart. Otherwise I will look out for bullish divergence or bearish divergence to go short. Last but not least, I always get a clear direction of STI and trade to that major direction.

wuiwui: i dunoe much abt TA. can help?

Ans: You must get started by reading...pick up one indicator at a time...do not rush..Market will still be there even if we all die. If you haven't started on anything, pick up candlesticks. Pay attention to the psychology behind the formation of candlesticks. It is important.

Quest: my question is what good newsfeed is there to subscribe to? for singapore market news. or is listedcompany the best(and free) way for this?

Ans: Actually, I shut my ears and eyes to news feed. Over time, I found that it is the least important to focus on. It clouds my mind. But it's always good to know what's happening. I am a member of Shareinvestor.com so that is my only source.