Ezra
Ezra is still an uptrending stock. Entered at the 3rd break peak. Even though it broke one year high, it retraced and hit below the support where my stop loss was.
Trade details:
| Counter: | Ezra |
| Trade: | Long |
| Method: | S1 |
| Date of Entry: | 14/12/09 |
| Entry Price: | 2.29 |
| No. of shares traded | 2,000 |
| Exit Price: | 2.17 |
| Date of Exit: | 22/12/09 |
| Reason for Exiting the Trade: | Stop Loss triggered |
| Commission: | S$30 |
| Financing: | S$2.58 (S$0.43/day, 3.44%) |
| Profit / Loss: | -S$272.58 |
HK Land
HK Land is still in consolidation range after a good uptrend. The break peak that I got in was a false breakout. This counter should be affected by the overall retracement in HK market. Subsequent breakouts may signal another run as the uptrend is still intact.
Trade details:
| Counter: | HK Land US$ |
| Trade: | Long |
| Method: | S1 |
| Date of Entry: | 14/12/09 |
| Entry Price: | US$4.945 |
| No. of shares traded | 1,000 |
| Exit Price: | US$4.66 |
| Date of Exit: | 22/12/09 |
| Reason for Exiting the Trade: | Stop Loss triggered |
| Commission: | US$30 |
| Financing: | US$7.38 (US$1.23/day, 3.13%) |
| Profit / Loss: | -S$454.56 |
You may also like:
- Olam (long) – closed on 10 Dec 09
- USDCHF (short) – closed on 4 Dec 09
- USDCAD (short) – closed on 8 Dec 09
- GBPUSD (short) – closed on 17 Dec 09
- USDCHF (short) – closed on 18 Dec 09
- EURJPY (short) – closed on 13 Dec 09
- Recording your trades
- Trading Report Card – Nov 09
Discover the Secrets of Singapore Trading Gurus!
Interviews with Singapore stocks, forex, futures and options traders and trainers! This book is written for you:
- learn how professionals trade
- discover their strategies, money management and approach to the markets
- understand their stories and motivation behind trading
- know your trainers before attending their courses
{ 22 comments… read them below or add one }
It pains me to see you keep cutting and cutting losses. Your money management is good, in the sense that you take small losses before it rolls into big ones. But the small shark bites will lead to massive loss of blood too.
Why not do paper trading to perfect your system first before jumping into real trades? Or is this already paper trades?
I see that you are using a different system now. Aiyo, stick to one and perfect it lah. Like that will ‘enter fire enter demon’ one…take care bro
It pains me to see you keep cutting and cutting losses. Your money management is good, in the sense that you take small losses before it rolls into big ones. But the small shark bites will lead to massive loss of blood too.
Why not do paper trading to perfect your system first before jumping into real trades? Or is this already paper trades?
I see that you are using a different system now. Aiyo, stick to one and perfect it lah. Like that will ‘enter fire enter demon’ one…take care bro
wrong lah, it’s ‘walk fire enter demon’, haha
wrong lah, it’s ‘walk fire enter demon’, haha
i think the system you use, utilise something like Darvas Box. the problem with breakout strategies like this, is that, in a choppy range market, you will get chopped up to pieces. You have to figure out when the market is ranging , travelling in a rectangle manner. when price gets boxed out, breakout traders get really crushed. breaks high, the trader longs only to see it flips back and break low he shorts only to see it flips up. I think the edge is to determine within reasonable confidence that a breakout is reasonably valid is quite crucial. If im intruding, sorry ah, I trade breakout and I know the heartache trading this sort of strategy in boxed up market.
i think the system you use, utilise something like Darvas Box. the problem with breakout strategies like this, is that, in a choppy range market, you will get chopped up to pieces. You have to figure out when the market is ranging , travelling in a rectangle manner. when price gets boxed out, breakout traders get really crushed. breaks high, the trader longs only to see it flips back and break low he shorts only to see it flips up. I think the edge is to determine within reasonable confidence that a breakout is reasonably valid is quite crucial. If im intruding, sorry ah, I trade breakout and I know the heartache trading this sort of strategy in boxed up market.
La papillon – all these are real trades. I have a system for forex and another for stocks. Don worry, my next posts will be wins!
La papillon – all these are real trades. I have a system for forex and another for stocks. Don worry, my next posts will be wins!
Ryan – The problem abt breakout is we don noe when is the real breakout. Hence, sometimes has to try. If not, waiting for a cup formation is more reliable for breakout. Most importantly, I have determine that i can afford to lose.
Ryan – The problem abt breakout is we don noe when is the real breakout. Hence, sometimes has to try. If not, waiting for a cup formation is more reliable for breakout. Most importantly, I have determine that i can afford to lose.
I’ve traded using your system before and I had the same exprience of cutting losses. Soon enough I realised the short coming of using a ‘black box’ system. I’ve stopped subscribing and now using indicators. Because it uses a (sort of) 3 day (high/low) price channel, to me its too narrow to determine a breakout but too wide in terms of cut loss point.
For example, when price break a 3 day price channel it may be a false break. This can happen many times. So 3 days price channel is narrow.
But you may also realise that in terms of cut loss point, its too wide because you are buying at a high but cutting loss at the low. So its too wide.
This system works well when market condition is extremely bullish meaning price continues to break high and higher high. In a slightly side way market you will be trigger out of the trade more often because the 3 days price channel is too narrow. Because it’s a black box you are unable to change the parament of the price channel.
Dr Alex Elder mention such a system before, when we buy high we are hoping someone will buy it at a higher high from us, but this is the greater fool theory. If you are determined to continue using a breakout system, it will be useful to look for counter that are moving sideway within a narrow band and use a stop at its previous low. This will give you better safety margin, in terms of risk exposure and better chance for a true breakout.
You might have heard some say during clinic session that they prefer to buy when volatility is low because price will be in a narrow band when there is not much interest and blue/red band stays within tight range. So once it breaks the channel, price action will likely continue.
Not trying to discourage you, it’s still a workable system but just have to be more selective in the trade.
I’ve traded using your system before and I had the same exprience of cutting losses. Soon enough I realised the short coming of using a ‘black box’ system. I’ve stopped subscribing and now using indicators. Because it uses a (sort of) 3 day (high/low) price channel, to me its too narrow to determine a breakout but too wide in terms of cut loss point.
For example, when price break a 3 day price channel it may be a false break. This can happen many times. So 3 days price channel is narrow.
But you may also realise that in terms of cut loss point, its too wide because you are buying at a high but cutting loss at the low. So its too wide.
This system works well when market condition is extremely bullish meaning price continues to break high and higher high. In a slightly side way market you will be trigger out of the trade more often because the 3 days price channel is too narrow. Because it’s a black box you are unable to change the parament of the price channel.
Dr Alex Elder mention such a system before, when we buy high we are hoping someone will buy it at a higher high from us, but this is the greater fool theory. If you are determined to continue using a breakout system, it will be useful to look for counter that are moving sideway within a narrow band and use a stop at its previous low. This will give you better safety margin, in terms of risk exposure and better chance for a true breakout.
You might have heard some say during clinic session that they prefer to buy when volatility is low because price will be in a narrow band when there is not much interest and blue/red band stays within tight range. So once it breaks the channel, price action will likely continue.
Not trying to discourage you, it’s still a workable system but just have to be more selective in the trade.
Thanks Daniel for your explanation and support.
I very much agree that a tight period of consolidation would entail 1) more reliable breakout and 2) lower risk.
And yes, I have to be more selective in the trade. Sometimes, it’s about emotional control, controlling the impulse to trade when odds are low.
Thanks Daniel for your explanation and support.
I very much agree that a tight period of consolidation would entail 1) more reliable breakout and 2) lower risk.
And yes, I have to be more selective in the trade. Sometimes, it’s about emotional control, controlling the impulse to trade when odds are low.
I’ve never tried this system before, but on closer look I would say, you stand a better chance making money by going against the system, ie buy when price is at red line rather than the blueline. This is basically buy on dip strategy, of course you again hv to make the judgment whether the trend is intact. The benefit is, your risk is lower, thus you have good odds on your side. ex: in your ezra chart, you drew a trendline, it made more sense buying at those red lines near the trendline.
I’ve never tried this system before, but on closer look I would say, you stand a better chance making money by going against the system, ie buy when price is at red line rather than the blueline. This is basically buy on dip strategy, of course you again hv to make the judgment whether the trend is intact. The benefit is, your risk is lower, thus you have good odds on your side. ex: in your ezra chart, you drew a trendline, it made more sense buying at those red lines near the trendline.
The emotional aspect is probably the most important. Likewise, to speedup the profits probably the best alternative is to trade forex. I’ve tried forex as well. But it also took some learning curve to understand the economics or its dis/advantage.
Here are some odds calculation: assume we trade only 2 instruments, for example USDSGD and stock (eg Ho Bee)
USDSGD (=1.5)
1 lot size=USD100K=SGD150K
1USD=1.5SGD
Minimum pip =0.0001
Per pip value=10SGD (note this)
Ho Bee (price $1.5)
100lots=SGD150K
Minimum bid=0.01
Per bid value=1000SGD (note this)
If both USDSGD and Ho Bee appreciate by 10%.
USDSGD=1.65 (1500 pip has moved) (=SGD15K profit)
Ho Bee=1.65 (15 bid has moved) (=SGD15K profit)
both has SGD15K profit, but ask realistically which has a more achieveable probability, 1500 pips or 15 bids.
There is another thing about using leverage accounts, most of the time you are trading against the market maker. Institutions that offer leverage account most of the time are market maker.
Between a retail investor and the market, there are market maker and brokers. Brokers take your order and place the order in the market to earn your commission.
Market maker creates a market for you to trade, and their objective is to earn your commission as well as your account. You notice you do not receive CDP statement when you place your order with a market maker. Market maker like to trade against you, so when you buy/sell they like to fade against you. So sometimes you may also realise that your stops are triggered by a dip. Why this dip, so that they can trigger you out of the position. In doing so, they will earn your commission at the same time your account value.
Whether leveraged or unleveraged the final result or profit/loss is cash from your account. Sometime, its good to trade less and be more selective.
The emotional aspect is probably the most important. Likewise, to speedup the profits probably the best alternative is to trade forex. I’ve tried forex as well. But it also took some learning curve to understand the economics or its dis/advantage.
Here are some odds calculation: assume we trade only 2 instruments, for example USDSGD and stock (eg Ho Bee)
USDSGD (=1.5)
1 lot size=USD100K=SGD150K
1USD=1.5SGD
Minimum pip =0.0001
Per pip value=10SGD (note this)
Ho Bee (price $1.5)
100lots=SGD150K
Minimum bid=0.01
Per bid value=1000SGD (note this)
If both USDSGD and Ho Bee appreciate by 10%.
USDSGD=1.65 (1500 pip has moved) (=SGD15K profit)
Ho Bee=1.65 (15 bid has moved) (=SGD15K profit)
both has SGD15K profit, but ask realistically which has a more achieveable probability, 1500 pips or 15 bids.
There is another thing about using leverage accounts, most of the time you are trading against the market maker. Institutions that offer leverage account most of the time are market maker.
Between a retail investor and the market, there are market maker and brokers. Brokers take your order and place the order in the market to earn your commission.
Market maker creates a market for you to trade, and their objective is to earn your commission as well as your account. You notice you do not receive CDP statement when you place your order with a market maker. Market maker like to trade against you, so when you buy/sell they like to fade against you. So sometimes you may also realise that your stops are triggered by a dip. Why this dip, so that they can trigger you out of the position. In doing so, they will earn your commission at the same time your account value.
Whether leveraged or unleveraged the final result or profit/loss is cash from your account. Sometime, its good to trade less and be more selective.
Hey David, not sure if we can always compare one asset class versus the another, in accordance which is easier to make money. I think each has it’s advantages and disadvantages. But according to you, Forex is “better” because of the smaller per pip value of $10 versus a stock’s per bid of $1000 (if 150k is invested)?
Hey David, not sure if we can always compare one asset class versus the another, in accordance which is easier to make money. I think each has it’s advantages and disadvantages. But according to you, Forex is “better” because of the smaller per pip value of $10 versus a stock’s per bid of $1000 (if 150k is invested)?
There will be different opinion and arguement whether forex or equity is better because there will be successful forex and equity trader. The important thing is whether you understand which asset class better and your trading preference.
There are not many ‘counters’ to trade for forex because there only a few major pairs and in actual fact you are trading economies (US, Japan, Sin economy), economic fundamental don’t change very fast.
If you look from Mar 09 till the highest (9 mths has past) for EURUSD and AUSUSD, there is 20% and 50% appreciation respectively. Or USDJPY 30% down. But if you look at equity counters within these 9 mths there are a lot that has moved more than 50%. Broad view, SP500 has moved more than 60%, STI 80%, so there are counters within those market that has outperformed the index. The biggest ‘attraction’ for forex is its 24hrs liquidity and ‘fast profits’ etc. Some time what trading courses or broking house try to sell you are too good to be true. People are drawn towards them because of ‘fast profit’. So when you look at the course/broking house (seller) and the course attendee/trader (buyer) psychology, most of the time the seller win. Their job is to teach you or to facilitate your trade or let you access the market but will not guarantee your result. So buyer beware, a lot still depends on the trader.
10SGD per pip move compare to 1000SGD per bid move is small on a 150K position, so the reward is small/slow. Meaning you will need USDSGD to move 1500 pips (1500 pips is a lot in terms of forex) for the same 15K profit. To some, making 30-100 pips is considered good and reaching 200-500 pips might get someone rank top few in their trading class list. Again you might reason that it is safer to go with USDSGD because the pip value is low so losses will be slow if it goes against you.
The advantage with equity is that its appreciation is faster than forex. 15 bids move is more achieveable compare to 1500pips, 10% appreciation is more likely to happen in equity compare to forex, but please do not take these as trading advise, because market condition may change. Just use them only for education purpose.
There will be different opinion and arguement whether forex or equity is better because there will be successful forex and equity trader. The important thing is whether you understand which asset class better and your trading preference.
There are not many ‘counters’ to trade for forex because there only a few major pairs and in actual fact you are trading economies (US, Japan, Sin economy), economic fundamental don’t change very fast.
If you look from Mar 09 till the highest (9 mths has past) for EURUSD and AUSUSD, there is 20% and 50% appreciation respectively. Or USDJPY 30% down. But if you look at equity counters within these 9 mths there are a lot that has moved more than 50%. Broad view, SP500 has moved more than 60%, STI 80%, so there are counters within those market that has outperformed the index. The biggest ‘attraction’ for forex is its 24hrs liquidity and ‘fast profits’ etc. Some time what trading courses or broking house try to sell you are too good to be true. People are drawn towards them because of ‘fast profit’. So when you look at the course/broking house (seller) and the course attendee/trader (buyer) psychology, most of the time the seller win. Their job is to teach you or to facilitate your trade or let you access the market but will not guarantee your result. So buyer beware, a lot still depends on the trader.
10SGD per pip move compare to 1000SGD per bid move is small on a 150K position, so the reward is small/slow. Meaning you will need USDSGD to move 1500 pips (1500 pips is a lot in terms of forex) for the same 15K profit. To some, making 30-100 pips is considered good and reaching 200-500 pips might get someone rank top few in their trading class list. Again you might reason that it is safer to go with USDSGD because the pip value is low so losses will be slow if it goes against you.
The advantage with equity is that its appreciation is faster than forex. 15 bids move is more achieveable compare to 1500pips, 10% appreciation is more likely to happen in equity compare to forex, but please do not take these as trading advise, because market condition may change. Just use them only for education purpose.