Monday, December 11, 2006

Made 1.2k on call warrants today : )

At first, I did not want to buy anything, because tmr I'll be gng overseas for a short trip till Fri. I'll have difficulties making payments should I incur losses.

However, after observing the market, I just can't resist the temptation!

But firstly, let me recall the IR issue at play today. As expected, after genting won the sentosa IR, its share price will rise. I wouldn't buy it, certainly not today cos it would be chasing after it. What's more is that genting is going to issue new shares to get capital to fund the building of the IR, at the end of this year. If I wanted to hold genting, I'll prob go get it then, not now.

Capital fell but not by a lot. I guess shortist don't dare to touch this hot stock. Too bad, can't buy at lower price. Won't buy today too cos tmr flying off.

For my hsi warrants, I bought call. 3 times. Somehow I feel that first few days of the week I'm much more confident of myself, so I usually earn more. The rest of the week perhaps too tired already, or OVERconfident, so will lose my money nearing the weekend. That's an important point to take note in the future.

So, I went in and out 3 times, making small sums each time. Total made 1.2k today, so very very handsome profit. How did I do it?

a) Paying close attention to sentiment: Dow closed +30 last fri, nikkei opened strongly, even out sti was so strong in the morning. I bet that hsi will opened up too because Fri is lao until cannot lao already, so the probability of upside have to be higher than the downside.

b) Even before hsi opens at 10am, call warrants for them occupied the top 10 vol at sgx website. Don't follow the crowd. Yup, I didn't, I followed their sentiment after my research.

c) Disciplined approach to trading. I bought when the stochastics are making a minimum point at the bottom, I checked the momentum, making sure that the red line is above the blue one and checked the rsi, making sure that it's not very high (near top of screen). I also looked at the ema, to ensure it has completed its downtrend. Finally i checked the bollinger band to see if there's an uptrend, or better still, my favourite, the 'bollinger squeeze'.

I always like to see bollinger squeeze. It's quite easy to see it now that I've been trading warrants for 3 weeks. It only means 2 things, strong upside or strong downside. To see which one, just check the above things I mentioned.

d) Average down. I usually don't like to do that. But as I said, today I'm super confident of my chart reading. I bought near the minimum of the stochastics. When the price dropped further, I bought more. But I must see that the ema is turning upwards now and that the stocastics is completing the min and going upwards.

e) Very very impt. I opened another window to check the chart, when I have another window for the entry of orders. In fact, I already keyed in the orders, just waiting for the signal then I press the button. Very very effecient.

Okay, not looking to enter the market now, made enough today. Still a bit worried about fabchem and sunshine, dropping like nobody's business. Longcheer resting a while. When I come back, hope to see them starting to cheong!

As of now, losses are at $120. A lot depends upon how badly fabchem and sunshine drops. Since I can't control much about that, I shan't worry about it.

I'll update more when market close for today.