Tuesday, December 05, 2006

Made a 1k today, total position -1.2k

First thing in the morning, what I did normally is to check the dow jones together with nikkei. Dow jones closed around 90 pts, which is considered a very bullish sign for all other indices. Hopefully, STI and HSI will open strongly too.

I bought two put warrant, one of them is my favourite one, the other is a higher gear. Both are call warrant, because I believe that hsi will also rise up strongly. I was paying close attention to the stochastic and rsi, after learning about them since yesterday. I also checked on bollinger band, always looking out for the squeeze that will occur just before a breakout. In the morning, a squeeze happened and the rsi is low, stochastics all point towards a breakout of the bollinger band to the upside. It did!

After it ran out of steam (stochastic rising all the way to the top, rsi very high, 14 EMA starts having a gentler gradient), I closed my open position immediately. I'm quite proud of that because this time I act on my judgement. Made a cool 400 just before lunch.

After all the signals point towards a bottom out situation, I bought more call warrants (my fav warrant). Bought twice as much as I normally do because I believe hsi will close strongly today. However, after lunch, it just went down and down. Quite nervous because was sitting on a paper loss of 700 to 1k. Luckily, it gained strength around 3pm. I sold when it reached my target price.

However, on hindsight, I should have stayed longer and make maybe 3 times more. It's okay, cannot be too greedy. The 3 times more could act against me and I could have lost 3 times more too, wiping all my profits for today.

Tempted to buy more call warrant today to anticipate for tmr. US futures are all green. But I decided not too. The market is very volatile now, so it can swing both ways suddenly. I certainly don't want to be caught holding a long position while the market tumbles and falls.

On a broader aspect, I think what some said the forum is true. Market will undergo a correction on next monday, after the announced IR results (prob this Fri). Hope to clear 50% of my long by then. If not I'll just brave the storm and hold on.

Oh ya, what's my total profit/loss now? Still have another 10 plus mins before market closes for the day, and I've shaved off around 1k off my total returns. Now still losing around 1.2k.

Not too bad, I must say