I am looking to start trading again.
Have been looking for ways to make more $, after reading the books that I wanted to read.
Finished LKY and Robert Kuok books.
Wanted something to fill my life to make myself productive.
So I will try to restart trading again.
Just found a missing piece of my strategy (I think).
That is to use SMA 200 to determine if it is down or up trend.
It is downtrend when line is sloping down, vice versa.
I will trade in 5 mins, major FX currencies, just like old times.
Still have 3k left in my IG account.
Firstly will determine is it is up or down trend using SMA 200.
If down trend, I will wait for it to hit the resistance level.
Then I will enter.
If it break above resistance lvl, I will exit soon.
Keep in mind that Profit Limit should be at least 2 times of Stop loss.
Learning from Adam Khoo, bet size should be around 1-2% of the money you have.
Why? It is like trading in casino with odds in your favour.
Short term you may not win, not in 100 bets, you will win.
For my case I have 3k, so my bet size should be around $30.
When I lose, it is $30, and at least $60 when I win.
My Profit Limit should be set considering the next Support lvl (if down trend).
Saturday, October 13, 2018
Adam Khoo youtube, and moving forward
I think he has one of the most informative youtube videos, and they are free.
Just direct and efficient.
Link below:
https://www.youtube.com/watch?v=OBmcK8pTdFU&t=77s
Some things interest me in the 17 min video.
Bear markets can last 6 mths to 1.5 years.
He uses 50, 150, 200 simple moving averages.
How to set in thinkorswim?
Go to charts, studies, select simple moving average, then edit studies to select periods for SMA.
SMA is useful for SPX (S&P500) chart, to see if the market is on up or down trend.
Amazon quite often bounces away from SMA 200.
Apple quite often bounces away from SMA 150.
I usually set SMA 200 in green, as I feel it is the long term story, and green means calm.
SMA 50 is usually red for me, as it is more intense, and represents more current emotions.
When SMA 200 is sloping downwards, it can mean a bear market.
Currently my thoughts on the market is that it may be a long awaited bear market.
But I will slow down on my buying.
I will still buy, but cautiously.
I want to have enough bullets when prices are real good.
But will still buy slowly just in case the bear won't last.
One way to know when prices are quite good is when stocks go to levels of 2008 crisis.
Maybe I will already have spent 50% of my reserves at the level, with the thinking that this crisis may be even worse then the previous.
I am also looking forward to stock up on Chinese shares.
China scares me, and one way to allay my fears is to invest in them.
Friday, October 5, 2018
Staying with Elon
Tesla shares is down again, at USD 268 each.
He mocked SEC again on Twitter after making a settlement with them.
I bought another 3 shares.
I am thinking only long term here.
It is the only proper electric car company in US.
I am buying more than I want to, around 4k USD on their shares.
Hope they get through this uncertain times.
He mocked SEC again on Twitter after making a settlement with them.
I bought another 3 shares.
I am thinking only long term here.
It is the only proper electric car company in US.
I am buying more than I want to, around 4k USD on their shares.
Hope they get through this uncertain times.
Tuesday, September 18, 2018
A bit of Tencent and JD.com
Added another 10 shares of Tencent.
Did not buy 20 which is the usual lot I will buy for US share.
This is because it may fall further due to the persistent trade war, so I settled for the middle.
Also bought JD.com. Was looking at it since yesterday.
But was interested in it after watching Richard Liu's interview.
What is the difference between Ali Baba and JD.com?
JD.com ships the product by themselves, Ali Baba relies on 3rd party logistics.
To me, JD.com wants to build a very quality foundation, which is their logistics.
Richard is very focused on the customers' shopping experience.
As the people of China get richer, JD.com's quality will become valuable.
Also, JD.com shares have plunged alot.
Their sales per share in 2017 was US$37, and their current share price is US$26.
Did not buy 20 which is the usual lot I will buy for US share.
This is because it may fall further due to the persistent trade war, so I settled for the middle.
Also bought JD.com. Was looking at it since yesterday.
But was interested in it after watching Richard Liu's interview.
What is the difference between Ali Baba and JD.com?
JD.com ships the product by themselves, Ali Baba relies on 3rd party logistics.
To me, JD.com wants to build a very quality foundation, which is their logistics.
Richard is very focused on the customers' shopping experience.
As the people of China get richer, JD.com's quality will become valuable.
Also, JD.com shares have plunged alot.
Their sales per share in 2017 was US$37, and their current share price is US$26.
Tuesday, August 21, 2018
Future is China
Bought Baidu and Tencent shares.
Was happy to know that I can buy Tencent shares from TD Ameritrade (under stock quote TCEHY).
Great as I do not need to pay for custodian fees.
I bought Baidu as the PE is good (20), and their half year profit is already up 35% (i think..).
They are like the Google of China, even if they slowly get destroyed by Ali Baba or Tencent, it may not be so soon.
They are also investing in AI, and doing the self driving project in China.
If there is a financial crisis, it will still do okay as people with no money can still surf net for free (and they may use the internet even more).
Out of the BAT (top 3 China shares), I like Tencent the most.
They are omnipresent.
I bought it later than the other 2 because I did not know how to buy them.
I am starting to like China shares, and will look to increase the portion in my portfolio.
And now is a decent time, as US and China might be having a trade war.
And China shares are tanking.
It is impossible or hard to stop China from becoming mighty and powerful.
Their urban population will burgeon even more, due to migration from rural areas.
However, China shares is something that I do not have a good feel of.
I do not use their products or services, I can only read up on them.
All I know is that I feel uneasy about the rising power of China, just as I feel the same for AI and automation.
So investing in them will help me be part of the evolution, turning my fear into an opportunity.
Was happy to know that I can buy Tencent shares from TD Ameritrade (under stock quote TCEHY).
Great as I do not need to pay for custodian fees.
I bought Baidu as the PE is good (20), and their half year profit is already up 35% (i think..).
They are like the Google of China, even if they slowly get destroyed by Ali Baba or Tencent, it may not be so soon.
They are also investing in AI, and doing the self driving project in China.
If there is a financial crisis, it will still do okay as people with no money can still surf net for free (and they may use the internet even more).
Out of the BAT (top 3 China shares), I like Tencent the most.
They are omnipresent.
I bought it later than the other 2 because I did not know how to buy them.
I am starting to like China shares, and will look to increase the portion in my portfolio.
And now is a decent time, as US and China might be having a trade war.
And China shares are tanking.
It is impossible or hard to stop China from becoming mighty and powerful.
Their urban population will burgeon even more, due to migration from rural areas.
However, China shares is something that I do not have a good feel of.
I do not use their products or services, I can only read up on them.
All I know is that I feel uneasy about the rising power of China, just as I feel the same for AI and automation.
So investing in them will help me be part of the evolution, turning my fear into an opportunity.
Thursday, August 9, 2018
DBS finally
Just bought DBS shares, only the minimal.
Was not hungry for it, rather just bought it as the fundamentals are decent.
My thinking is that there are 2 types of timing to buy shares.
One is to gradually increase your investments, rather than always wait for a crash first.
This should be slow and steady, and when the PE is at least not ridiculous.
DBS PE ratio is around 15.
The other timing is when there is a crash, a great discount for your shopping wants.
One reason for me to pull the trigger was because their half yearly net income was up 20%.
If the price descend into $22.5 area (the next resistance zone), I would buy another portion.
Currently the financial market is uncertain, as there may be a looming trade war between US and China.
So it is always important that you have a stash of fund to inject gradually if there is a crash.
Currently my cash is around 20% of my portfolio.
Was not hungry for it, rather just bought it as the fundamentals are decent.
My thinking is that there are 2 types of timing to buy shares.
One is to gradually increase your investments, rather than always wait for a crash first.
This should be slow and steady, and when the PE is at least not ridiculous.
DBS PE ratio is around 15.
The other timing is when there is a crash, a great discount for your shopping wants.
One reason for me to pull the trigger was because their half yearly net income was up 20%.
If the price descend into $22.5 area (the next resistance zone), I would buy another portion.
Currently the financial market is uncertain, as there may be a looming trade war between US and China.
So it is always important that you have a stash of fund to inject gradually if there is a crash.
Currently my cash is around 20% of my portfolio.
Monday, April 16, 2018
Liking for Ali again
Bought 5 shares of Ali Baba.
Used to own it with IG account, but lost interest for it to buy it back.
But recently I liked it again.
They worked with Starbucks to open a very futuristic Starbucks.
Shows that they are keen to modernize China.
Buying them might mean catching on China's growing middle class.
They bought Lazada and also many other SEA companies.
I like and use Lazada. They are basically capitalizing on the growth of SEA.
Had a talk with my father about my fear of China.
But I understood more about the situation. China is open in some ways, and I can fairly invest in them. They are open to competition.
They bought and own South China Morning Post. They hired a Ivy League young man of 30+ age to run it, and kept producing quality news on my Facebook.
But recently I read that they may have the mission of changing the world view of China using soft power.
The CEO Jack Ma seems to have a decent character. On the long run, it is important for making sound decisions for the company.
Technically it is also a good time to buy, as they reached one of the support zones @ $171.
I am also grateful to have cleared out most of my shares in IG just before the recent dip.
Now I only have Google and Uniqlo in the account.
Used to own it with IG account, but lost interest for it to buy it back.
But recently I liked it again.
They worked with Starbucks to open a very futuristic Starbucks.
Shows that they are keen to modernize China.
Buying them might mean catching on China's growing middle class.
They bought Lazada and also many other SEA companies.
I like and use Lazada. They are basically capitalizing on the growth of SEA.
Had a talk with my father about my fear of China.
But I understood more about the situation. China is open in some ways, and I can fairly invest in them. They are open to competition.
They bought and own South China Morning Post. They hired a Ivy League young man of 30+ age to run it, and kept producing quality news on my Facebook.
But recently I read that they may have the mission of changing the world view of China using soft power.
The CEO Jack Ma seems to have a decent character. On the long run, it is important for making sound decisions for the company.
Technically it is also a good time to buy, as they reached one of the support zones @ $171.
I am also grateful to have cleared out most of my shares in IG just before the recent dip.
Now I only have Google and Uniqlo in the account.
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