Monday, December 04, 2006

Made some contra gains, lost a LOT of long


In life, you made some and lose some. I only hope to make more than I lose. Not today, I guess.

Today, I have a gut feeling that HSI will do alright. This is after DOW has fallen by around 27 pts on last Fri. My rationale is this: HSI has fallen very badly on Fri too, around 270 points (if I'm not wrong?). Some forum pple said that this is due to the BBs trying to sell off their stocks before this week's new and exciting IPOs in hongkong. There's also this thing about HSI going to get restructured, about BOC being one of the components of HSI.

Well, that's all last week's news. So I guess today should recovered a fair bit. It did. After deciding on whether to buy a call warrant for HSI in the money, I'm basically sitting on gains of around 440 to 940. It came in waves of ups and downs. Eventually I settled for 440, making some decent money.

However, all my long position fell quite badly, overall still losing close to 2.9k. WTF.

Today learnt a bit more about using Bollinger band to check for 'squeezing'. It happens when the top and bottom band starts to get closer and the line chart is trading sideways, bouncing up and down between the bands. I think if the chart is above the median line of the bands AND the MACD are both pointing upwards AND RSI is quite average (50- 70), it's a valid buy signal. To confirm, it's best to wait for it to break out first, of cos.

Gotto to have more confidence in my judgement.