901 - when to enter

This currency has been knocking on the door of the resistance for some time. So when actually a burst happens, what do I do?

Well, currently, I will go open Nial Fuller's page and read what he will do. He is very generous.

But in the situation when he stops doing that, there should be some sort of a theory I tell myself how to react. From some of the traders book I read, what they normally do is to let the price burst out, and wait for it to retrace. Upon getting back close to the original resistance zone, they wait for a bullish signal again and enter the trade. 

901 - what went Wong

I have been holding on to this trade for close to 2 months already. My ideal is to be a swing trader, holding the trade for less than a week.

So what's wrong with this trade? I entered too early. My logic that time was to buy when the price retraced in the bullish run. The thing I should wait for is actually a strong bullish signal. I would have saved more money if I waited for that.

I would have bought it at a much lower price, saving money, or  making more.

830 - browsing books

Went to Kinokuniya, and checked out the price of Trading in the Zone. Decided to get it online instead.

I flipped through other forex book, and gained some good insights:

• Its recommended to trade with 3 lots, you get good flexibility to buy or sell a portion of it. - an alternative is to use trailing stop. That means to regularly set stop loss, which also have enough allowance for small movements. It is also linked to the last point, which is to focus on not losing money.
• in terms of currency, buy the strong, sell the weak.
• Focus on not losing money. - maybe that is what Conrad always meant by defensive trading.

774 - reason

Why are candlesticks signals so important?

Because, if I want to be a short term trader, these are the things that will have a high chance of a burst of energy.







Look for powerful signals along resistance/support zones.

813 - still wandering

Simple trading:

resistance/support
strong bullish/bearish signal

this time, i will hold it for shorter period, around 2 or 3 days.

767 - why does resistance/support works?

It is because, many people set Stop buy/sell at that area.

So when price reaches that certain place, many orders will be triggered.

830 - silent movements

Ali Baba bought 7% share of SingPost, and the news was announced on 28 May. When a big investor wants to invest, they will do it silently.

A share that is performing boringly, not much big movements. Suddenly you see it getting bullish or bearish. It is the workings of a big investor, skillfully and quietly buying or selling a share.

There are many unknown news everywhere. It is especially easier to spot when it is a low liquidity share, and sudden big movements happen to it. Only when the public knows about the news, then the movement become even bigger.

If I can spot these silent movements before the public go crazy over it, it may be a good way to earn some fast cash.

Below, Creative have some movements. Someone is buying its share, and later it got pushed down by people that met their price and wants to sell it. So, expect some news to be announcing soon after these mysterious movements.

It can be one of the many people that knows something. Maybe some legal people know that Creative is more likely to win their legal case against Apple. Maybe someone doing accounting notices their splendid financial performance.

899 - practicing

One good way to practice is to just use IG market, start from the past at the left, and slowly scroll to the right side of the chart to the future. Zoom the candle to an appropriate size, enough to see each candle, and also enough to see the turbulence of the price actions, and browse through the candles. Try to get a good feel of candlestick patterns. You may not know what you are doing, but if you keep doing it, your brain will subconsciously record it for you.

One observation I made just now.

Long pins at peaks or bottoms makes the most sense.

What does it mean? Most of the time, you can be assured that a substantial price movement will happen next.

When it is a long pin at the bottom facing downwards, most like the bear is drying up, and likely the bull will take over.

When it is a pin facing up, at the peak, the bull may be dehydrated, and the bear will use its weight and collapse the market.

When it is a bull run, and long pins facing downwards appear, it may show that the bull don't give a f*ck, and want to continue charging upwards.