GLP, Sembcorp Marine - Wins and Losses

It's such a volatile market. The market suddenly reversed and trended higher. Here, I am particularly impressed with my students' trade. Made $ in Sembcorp Marine but lost in GLP. It was so volatile earlier that one piece of news from Japan can cause a spike in prices and within a few minutes, it tanked again. This is trading, we expect some losses and hope for more wins. Short term trading is not risky if you can read the charts correctly and if I tell you it's simple, it's that simple, just that it requires practice. If you love trading like I do, don't give up, but throw away your complex TA and FA and embrace simplicity. :)



Ronald K - Market Psychologist - A Stock Market Opportunist

Polaris - Profits Turned To Losses

Yesterday was a total bloodshed late in the morning. However early in the morning, I knew something was totally wrong and by just hesitating for a flick of a second, I wasn't able to cut loss fast in Polaris at 0.026 which would have saved me $3K SGD. Ok, so that's one of the mistake I made by not reacting as fast as I normally would.

May 31st 2013, I once again got caught on that devious fake breakout, fake volume which I don't want to go behind the scenes to explain what happened and why I did not book profits during that day. The end of the story is I had profits which turned to losses. This is only the second or third time that it happened to me in my entire trading journal ever since I started speculation and so I take it very seriously. I can make a wrong call and cut loss, that's fine. However profits turned to losses is a big put off and a no no to me. I was mad at myself for my greediness and hopefulness and so from here on I am only going to listen to my inner thoughts and observe what the BBs are doing. No more fixated target price nor hope nor greed.

Paid a hefty price for this unforgivable mistake I made but at least my emotion was reduced to the very minimum and my cut loss was only 3 pips down. I don't mind losing big money but at least I dare to go big and give it a try. I understand that in all great attempts, it's glorious to fail. Without failure and learning the art of losing, how can I ever free my ambitious mind to taste the labor of success later?

Ronald K - Market Psychologist - The Big Speculator

Midas - Fake Volume

As a human, I sometimes do commit asinine mistakes. Every time I told myself not to chase and buy on breakouts, some days I still commit that unforgivable mistake and had to pay a hefty price. On June 6th, I went to long Midas on a high volume day, at the time when I longed, I knew I committed a crime again and would need to get out quickly so as to either secure a profit or cut loss quick.

On that very same day, I had a chance to get out at 0.505 and make $500 but because of greediness, it cost me $ again. Yesterday, I could have cut loss without losing a single cent but just minor commission, again because of hope, it cost me $ again. Today, I decided that when the market opens, I am not going to hesitate too much but to watch for a few minutes before decide my course of action. 23 minutes passed by and finally I decided to liquidate with no hope or greed whatsoever. My cut loss was 2 pip however I learnt a valuable lesson in identifying fake volume with fake breakouts. Midas is currently trading at 0.48/0.485.

We are now entering one of the most challenging market where there are constantly selling across the boards. Will this present an opportunity for us to buy low again? I still think timing is very crucial at this point of time due to it's volatility.

Ronald K - Market Psychologist - The Big Speculator