Bad Trade: Straits Asia

Bought 6 lots at 2.34, sold at 2.11.

Mistake was to buy when the market was overbought. Must learn patience. Don't have to be invested, even in a bull market.

Accumulation examples

I missed these: Accumulation shown by small bursts up on high vol and retracing healthily on low vol.

CSE:


Straits Asia:

Missed this one as I was busy at work yesterday, had already shot up after I looked at it.

Don't chase now, too risky...I'm half invested in a bull market, so doing OK...the bear can appear and turn profits into losses within a few days, like in Jan. Buying on pullback will help to avoid this.

Sold Straits Asia

Straits Asia dropped below the 200EMA for on heavy vol, has rebounded with light vol.

Sold 9 lots today (1st Mar 10) @ 2.07.

Loss is $1400, includes brokerage. It may be easier to handle it as a percentage, which is 7.1% of the trade, or 0.6% of my capital.... acceptable.

Straits Asia again

This trade has been quite stressful:

• My broker called me yesterday to suggest that critical support was at 2.03 (200 EMA) several hours before it bounced off from there... She suggested I buy more but I didn't because don't want to risk any more on one trade.
• She said critical resistance is around 2.25, which is the 50MA and the blue trendline (connecting head and shoulder).
  

In hindsight, maybe I should have waited for the trend to be clearer before buying both for:

• the overall market, and
• to break the head/right-shoulder trend line. Or at least a HHHL.
  

Bought Straits Asia

Bought 9 lots Straits Asia Resources @ $2.20.

Seems to be have made a failed H%S pattern, which may be bullish if enough weak holders have been shaken out.
It promptly dropped 3% after I bought it. Today's engulfing candlestick (not shown) looks bad. Since I'm in the dare, nothing to do but see how it works out.

Cut loss level at the previous low, $1.93

Sold Everything

Yesterday, 25th Jan 2010. Sold:

• 3 lots SIA Eng @ $3.53
• 14 lots Amara @ 53c
• 1 lot SIA @ $14.00
• 10 lots Mermaid @ 80.5c
• 23 lots Hong Fok @ 71.5c
• Hiap Seng Engineering 15 lots @ 64.5c
• GuocoLeisure 14 lots @ 71c
• Yangzijiang 7 lots @ $1.13
• Straits Asia 3 lots @ 2.32
• NOL 6 lots @ $1.77
• Rotary 10 lots @ 1.04
• KepLand 3 lots @ 3.43

Sold because the market looks to be correcting. Yesterday I put it at an 80% chance. Last nights limp rebound, after 3 consecutive down days on the US mkt, seems to confirm this (vol down 28% on NYSE, 24% on Nasdaq):

Short term, I missed the rebound.... too bad.

From Nov 09 to Now, lost 3K. Main mistake was getting to carried away with the bull market and chasing stocks without a tight stop loss.

Bought Straits Asia

Bought 3 lots @ $2.52 yesterday, 28th Dec 09.

Was bought to my attention by my broker 8 days ago - a broken inverse H&S:

Neckline (cut-loss) at $2.33.

I bought yesterday, No real reason for the timing except that I'm looking for stocks with a clear cut loss point. It was on top volume list. The market is crazy now.

Sold China Fish, Straits Asia

Sold 5 lots Straits Asia on 14th Oct 09 @ $2.04.
Sold 6 lots China Fish on 19th Oct 09 @ $1.29.

Using MACD-H to find extreme shakeout

Refining the 4-red-1-green rule to find situations where an uptrending stock has been sold off enough to shakeout the weaker holders.

1) Bull market. Stock in uptrend.

2) Recent sharp fall in price, usually several black candles - to shakeout the weaker players.

3) MACD-H is at its lowest point since the start of the rally/uptrend, signalling the severity of the shakeout.

4) When it turns green, hopefully the shakeout is over and stock can shoot up now that the weaker holders are gone.

Past examples:

CDL Hospitality (start Aug):

SATS (start Aug):

The current selloff is caused by SIA shareholders selling - should I play it now? Such abnormal selling may be distorting the chart.

CAO:

Current Examples:

See Hup Seng:

Straits Asia: