Trading Q&A

6 Jan 06, 17:16ck: it is clear tat we're in the bull now.. but wat is a signal for u to sell?.. TA wise? or market sentiment?.. how to judge? cos most stock are showing overbought but still continue to rally..

Ans: A very good question. After strong rally, stocks will definitely sucuumb to profit taking. The question is when! I use T.A to take my profits when I see weakness in the stock. Things like, hitting resistance, volume declining despite closing higher in price, huge volume yet price is unable to close higher than previous and finally price close lower then previous on a high volume. Remember, it is almost impossible to sell at the exact top. To sell somewhere close to the top is good enough. If you took profit too early, nevermind! Just be patient and wait for the next opportunity. Why risk the paper profit for that extra few bids up which could never happen?

5 Jan 06, 01:11ermmmm: u mentioned u r a local, do u mean SGX local or just a local resident...??

Ans: I'm a Singapore citizen. I have a job full time and trading is my part time after my office hours. In Singapore, everyone is looking for an opportunity to earn that extra dollar. I happen to find my way from the stock market. I'm pretty sure i'm not the only one around. : )

5 Jan 06, 01:03pp: what is 'distribution'?

Ans: Distribution happens when smart money who have bought enough at the low price began to sell their holdings when the price is high. It is very important not to buy at distribution!

4 Jan 06, 19:21Sianz Sianz: Hi, Decipher, may i ask what's that QuickPick List you created? The price stated is it the target price?

Ans: Quick Pick list contains stocks that have unusual volume traded as compared to their average daily volume. Most likely something is brewing from within. If you read through my archives, you can find that i'm always complaining about how stocks moved up alot before the company make any news. So it's worth to look at these stocks before the news is out. The price stated is current price and not target price.