I haven’t posted much this week on account of a slight eye operation I am having in Singapore, which is going well except that I am bummed about being unable to touch my eye at all for a few weeks otherwise all my doctor’s hard work and my hard money will be wasted so I pretty much spend my time wrapped in an eye protection device which looks like swimming goggles.
Anyway, for those who went in on the high volume strategy I talked about last week, another blogger demonstrated on one of his trades how important it is to manage them well once you go in. So to a very large extent, knowing when to add, subtract or stop completely is a more important skill than just finding a good entry. Those who took up my suggestion at the end of last week to go into the KLSE on higher volume should have been rewarded by a rise which is clear enough from your entry level to turn it into a stop level (of course, this example does not apply to the actual stocks underlying the KLSE, but there are many which share this pattern.)
But, I am a longer term player so I need to ask myself whether this bear trend is still intact. So here is a weekly chart KLSE seen through the eyes of a typical bear. Looks like it has a lot further to fall doesn’t it?
Is this a valid picture? Still far to early to tell, but I don’t fell like taking the risk right now, so I will take more opportunities to lighten up.
Happy Trading!
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