Pick The Winning Stock

US Pick Of The Day - 5/10/2011

2011-05-10T05:45:00.001-07:00

This blog is record of me in becoming a great trader in time to come. It also serve as constant reminder of the trading rules that I need to follow. Follow me on Facebook if you think this information can be useful to you!

My Story
I used to buy stock based on news and analyst’s recommendation, which usually end up in loses. I also used to monitor live stock price and buy into a stock when I see the price is running up (chase the stock - GREED) and sell the stock when it starts to come down (FEAR). The result? Every time after I buy, it come down, and every time after I sell, it goes up (I believed this is very common among us) I have then learnt that I NEED to AUTOMATE the trade (become end of day trader) to take out the emotion of FEAR and GREED. It works. I plan my strategy after the market close, automate my trading before market open, and let the market decide the outcome of my plan & strategy.

Automate your trade with E (Entry), S (Stop Loss) and P (Profit Target) Keyed in before market opens. Remember to use OCO, if Done, StopLimit order to protect your trade (Your Money).
Use StopLimit Order. Only buy when E was broken, and MUST sell when S is broken. Remember to shift your S accordingly (to protect your profit) when the stock price move

Today's potential Up trending stock (US)

Counter

Symbols

Apple Inc

AAPL

Blackrock Inc

BLK

Dycom Industries Inc

DY

Alexion Pharma

ALXN

Cooper Cos

COO

Earlier Posts

US Pick Of The Day - 4/21/2011

US Pick Of The Day - 4/26/2011

US Pick Of The Day - 5/3/2011

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

SGP Weekly Pick - 5/9/2011

2011-05-08T16:29:00.000-07:00

This blog is record of me in becoming a great trader in time to come. It also serve as constant reminder of the trading rules that I need to follow. Follow me on Facebook if you think this information can be useful to you!

My Story

I used to buy stock based on news and analyst’s recommendation, which usually end up in loses. I also used to monitor live stock price and buy into a stock when I see the price is running up (chase the stock - GREED) and sell the stock when it starts to come down (FEAR). The result? Every time after I buy, it come down, and every time after I sell, it goes up (I believed this is very common among us) I have then learn that I NEED to AUTOMATE the trade (become end of day trader) to take out the emotion of FEAR and GREED. It works. I plan my strategy after the market close, automate my trading before market open, and let the market decide the outcome of my plan & strategy.

Automate your trade with E (Entry), S (Stop Loss) and P (Profit Target) Keyed in before market opens. Remember to use OCO, if Done, StopLimit order to protect your trade (Your Money).
Use StopLimit Order. Only buy when E was broken, and MUST sell when S is broken. Remember to shift your S accordingly (to protect your profit) when the stock price move

This Week's potential Up Trending Stock (SGP)

** Market is volatile. Trade carefully and follow the rules. Buy only your E is broke up and Must Sell if your S is broke down. If your are not comfortable, Do not trade for a while **

Counter	Symbols
Golden Agri	E5H
PEC	IX2
K-REIT	K71U
M1	B2F
Noble Grp	E5H
SinoGrandnes	JS5

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

US Pick Of The Day - 5/3/2011

2011-05-02T23:54:00.000-07:00

This blog is record of me in becoming a great trader in time to come. It also serve as constant reminder of the trading rules that I need to follow.

I used to buy stock based on news and analyst’s recommendation, which usually end up in loses. I also used to monitor live stock price and buy into a stock when I see the price is running up (chase the stock - GREED) and sell the stock when it starts to come down (FEAR). The result? Every time after I buy, it come down, and every time after I sell, it goes up (I believed this is very common among us) I have then learnt that I NEED to AUTOMATE the trade (become end of day trader) to take out the emotion of FEAR and GREED. It works. I plan my strategy after the market close, automate my trading before market open, and let the market decide the outcome of my plan & strategy.

Automate your trade with E (Entry), S (Stop Loss) and P (Profit Target) Keyed in before market opens. Remember to use OCO, if Done, StopLimit order to protect your trade (Your Money).

Use StopLimit Order. Only buy when E was broken, and MUST sell when S is broken. Remember to shift your S accordingly (to protect your profit) when the stock price move

Today's potential Up trending stock (US)

Stock	Code	E	S	P
Dycom Industries Inc	DY	15.1	14.04	16.4
Omega Protein Corp	OME	13.39	12.53	14.94
Amtech Systems	ASYS	23.28	21.66	25.5
Cathay Gen Bancorp Inc	CATY	17.31	16.83	18.15
Riverbed Technology Inc	RVBD	35.77	33.98	39.82

Please note that the P (Profit Target) above is used to calculate the RRR (Return-Risk-Ratio). For traders who want to ride a bigger trend, he/she should practice risk & money management properly and set higher P

Read About Risk Management Here

Previous Posts

US Pick Of The Day - 4/18/2011

US Pick Of The Day - 4/19/2011

US Pick Of The Day - 4/20/2011

US Pick Of The Day - 4/21/2011
US Pick Of The Day - 4/26/2011

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

SGP Weekly Pick - 5/2/2011

2011-05-02T08:43:00.000-07:00

My Story

This Week's potential Up Trending Stock (SGP)

Counter	Symbols
Golden Agri	E5H
UMS	558
K-REIT	K71U
M1	B2F
MacqIntInfra	M41

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

US Pick Of The Day - 4/26/2011

2011-04-26T06:33:00.000-07:00

My Story

I used to buy stock based on news and analyst’s recommendation, which usually end up in loses. I also used to monitor live stock price and buy into a stock when I see the price is running up (chase the stock - GREED) and sell the stock when it starts to come down (FEAR). The result? Every time after I buy, it come down, and every time after I sell, it goes up (I believed this is very common among us) I have then learnt that I NEED to AUTOMATE the trade (become end of day trader) to take out the emotion of FEAR and GREED. It works. I plan my strategy after the market close, automate my trading before market open, and let the market decide the outcome of my plan & strategy.

Today's potential Up trending stock (US)

Counter Symbols E S P

Willis Holdings Ltd WSH 40.61 39.69 41.92

United Natural Foods Inc UNFI 44.09 42.67 46.00

Ariba Inc ARBA 32.59 30.63 35.00

US Weekly Pick - 4/25/2011

2011-04-25T01:21:00.000-07:00

This blog is record of me in becoming a great trader in time to come. It also serve as constant reminder of the trading rules that I need to follow.

I used to buy stock based on news and analyst’s recommendation, which usually end up in loses. I also used to monitor live stock price and buy into a stock when I see the price is running up (chase the stock - GREED) and sell the stock when it starts to come down (FEAR). The result? Every time after I buy, it come down, and every time after I sell, it goes up (I believed this is very common among us) I have then learnt that I NEED to AUTOMATE the trade (become end of day trader) to take out the emotion of FEAR and GREED. It works. I plan my strategy after the market close, automate my trading before market open, and let the market decide the outcome of my plan & strategy.

Automate your trade with E (Entry), S (Stop Loss) and P (Profit Target) Keyed in before market opens. Remember to use OCO, if Done, StopLimit order to protect your trade (Your Money).

Use StopLimit Order. Only buy when E was broken, and MUST sell when S is broken. Remember to shift your S accordingly (to protect your profit) when the stock price move

This week’s potential Up trending stock (US)

Counter	Symbols	E	S	P
Alliance Holdings GP	AHGP	50.79	48.74	53.47
Clayton Williams Energy Inc	CWEI	96.06	89.79	105.90
United Natural Foods Inc	UNFI	44.09	42.67	46.00
Peabody Energy Cp	BTU	66.00	61.99	70.60
Mentor Graphic Corp	MENT	14.41	13.91	15.48
Haynes International Inc	HAYN	50.96	48.58	55.60
Cincinnati Financial	CINF	32.21	31.48	33.00
Career Education Corp	CECO	21.31	20.48	24.90
American Financial Group	AFG	34.83	33.99	36.00
Ariba Inc	ARBA	32.59	30.63	35.00

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

SGP - Yanlord (Z25)

2011-04-24T09:18:00.000-07:00

Yanlord - 4/23/2011

- Still restricted by its down trend line

- All indicators are brearish

- It has more selling pressures compared to buying pressure

- It could be testing the level of 1.48/1.49, the neck line of the mini double bottom

- If 1.48/1.49 cannot hold, it will invite more shortist to push it further downward

- In general, yanlord seems to be more bearish in the coming week

SGP Weekly Pick - 4/24/2011

2011-04-24T01:21:00.001-07:00

My Story

I used to buy stock based on news and analyst’s recommendation, which usually end up in loses. I also used to monitor live stock price and buy into a stock when I see the price is running up (chase the stock - GREED) and sell the stock when it starts to come down (FEAR). The result? Every time after I buy, it come down, and every time after I sell, it goes up (I believed this is very common among us) I have then learnt that I NEED to AUTOMATE the trade (become end of day trader) to take out the emotion of FEAR and GREED. It works. I plan my strategy after the market close, automate my trading before market open, and let the market decide the outcome of my plan & strategy.

Automate your trade with E (Entry), S (Stop Loss) and P (Profit Target) Keyed in before market opens. Remember to use OCO, if Done, StopLimit order to protect your trade (Your Money).
Use StopLimit Order. Only buy when E was broken, and MUST sell when S is broken (For long position, and vice versa for short position). Remember to shift your S accordingly (to protect your profit) when the stock price move

This week's potential UP trending stock (SGP)
HKLand US$ (CH78)

Sunvic (A7S)

Jardine C&C (C07)

KepCorp (BN4)

Genting SP (G13)

This week's potential DOWN trending stock (SGP)

CapMallsAsia (JS8)
FalconEne (5FL)
KS Energy (578)
Midas (5EN)
Yanlord (Z25)

SGP Weekly Pick 4/18/2011

SGP - CapMallsAsia (JS8)
SGP - Midas (5EN)
SGP - Yanlord (Z25)

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

SGP - Midas (5EN)

2011-04-23T07:43:00.000-07:00

Midas - 4/23/3011

- bearish divergence spotted on MACD histogram

- RSI and stochastic are pointing down

- last friday's black candle without tail signify selling pressure

- recently broke out from a mini inverse head and shoulder

- it seems like it is testing 0.775 (neck line of the inverse h&s) as support

- 0.775 is also confluences with 20DMA and 50DMA

- The key is 0.775 must hold, otherwise, sell down could be triggered

SGP - CapMallsAsia (JS8)

2011-04-23T03:18:00.000-07:00

CapMallsAsia - 4/23/3011

- has been restricted by its long term down trend

- MACD bearish cross over

- RSI heading down except the last Thursday

- XD 0.02 on 4/28/2011

- In general, there is more bearish signals than bullish signals

- buy up on last Thursday could be due to up-coming dividend

- for it to move up, it need to break its downward trend line

- my personal view - it has higher tendency to move down

US Pick Of The Day - 4/21/2011

2011-04-21T05:05:00.001-07:00

My Story

I used to buy stock based on news and analyst’s recommendation, which usually end up in loses. I also used to monitor live stock price and buy into a stock when I see the price is running up (chase the stock - GREED) and sell the stock when it starts to come down (FEAR). The result? Every time after I buy, it come down, and every time after I sell, it goes up (I believed this is very common among us) I have then learnt that I NEED to AUTOMATE the trade (become end of day trader) to take out the emotion of FEAR and GREED. It works. I plan my strategy after the market close, automate my trading before market open, and let the market decide the outcome of my plan & strategy.

Today's potential Up trending stock (US)

Counter	Symbols	E	S	P
Cooper Industries PLC	CBE	67.51	64.48	70.00
Interdigital Communications Corp	IDCC	46.41	44.42	49.57
Mentor Graphic Corp	MENT	14.42	13.91	15.20
JDS Uniphase Cp	JDSU	18.96	17.81	20.90

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

US Pick Of The Day - 4/20/2011

2011-04-20T00:03:00.000-07:00

Today's potential Up trending stock (US)

Automate your trade with E (Entry), S (Stop Loss) and P (Profit Target) Keyed in before market opens. Remember to use OCO, if Done, StopLimit order to protect your trade (Your Money).

Use StopLimit Order. Only buy when E was broken, and MUST sell when S is broken. Remember to shift your S accordingly when the stock price move

Counter Symbols E S P
CablevisionSys CVC 33.88 32.78 35.60
Cooper Industries PLC CBE 67.78 65.19 70.00
Discovery Financial Services DFS 24.43 23.49 27.45
Borg warner Inc BWA 72.31 69.25 77.80
Stericycle Inc SRCL 91.36 89.04 93.00
Apco Oil Gas Int APAGF 83.82 78.98 89.90

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

SGP Pick Of The Day - 4/20/2011

2011-04-19T15:31:00.000-07:00

Today's potential Up trending stock

Automate your trade with E (Entry), S (Stop Loss) and P (Profit Target) Keyed in before market opens. Remember to use OCO, if Done, StopLimit order to protect your trade (Your Money)

Use StopLimit Order. Only buy when E was broken, and MUST sell when S is broken

Counter	Symbols	E	S	P
SembMar	S51	5.92	5.74	6.50

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

US - Pick Of The Day - 4/19/2011

2011-04-19T06:22:00.000-07:00

Today's potential

Automate your trade with E (Entry), S (Stop Loss) and P (Profit Target) Keyed in before market opens. Remember to use OCO, if Done, StopLimit order to protect your trade (Your Money)

Counter	Symbols	E	S	P
Borgwarner Inc	BWA	72.31	69.25	77.80
Stericycle Inc	SRCL	91.36	89.04	93.00
Under Amour Inc	UA	75.11	71.14	76.00

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

US - Pick Of The Day - 4/18/2011

2011-04-18T02:07:00.000-07:00

Today's potential

Automate your trade with E (Entry), S (Stop Loss) and P (Profit Target) Keyed in before market opens.

Counter Symbols E S P
Cablevision Sys CVC 34.02 32.97 38.00
Liberty Capital A LCAPA 76.77 74.49 82.00
Cooper Industries PLC CBE 67.78 65.19 75.00
Discovery Financial Services DFS 24.43 23.72 27.45

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

SGP Weekly Pick 4/18/2011

2011-04-17T13:43:00.000-07:00

Potential Downtrend Stocks In SGP Market

- Criteria
- Price - Min SGD0.50
- Volume - Min 300,000 (50 Days Average)

Short ONLY When It Breaks Support!!

CapMallsAsia (JS8)
FalconEne (5FL)
KS Energy (578)
Midas (5EN)
TigerAir (J7X)
Yanlord (Z25)

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

US Weekly Pick - 4/16/2011

2011-04-16T04:51:00.000-07:00

Potential Uptrend Stocks In US Market
- Criteria
- Price - Min USD15
- Volume - Min 300,000 (50 Days Average)

Nasdaq (Remember To Check The Stock Chart)
Trimble Navigation Ltd (TRMB)
Vertex Pharmaceutical (VRTX)
Virgin Media (VMED)
Altera (ALTR)
Autodesk Inc (ADSK)
Avis Budget Group Inc (CAR)
CA Inc (CA)
Cardtronic (CATM)
Carrizo Oil & Gas Inc (CRZO)
Cepheid Inc (CPHD)
Cerner Cp (CERN)
Check Point Software Tech (CHKP)
Cyner Inc (CYMI)
Echostar Corporation (SATS)
Fossil Inc (FOSL)
Joy Global (JOFG)
Jack Henry & Associated (JKHY)
Lufkin Industrial Inc (LUFK)
Lululemon Athletica (LULU)
Netflix Inc (NFLX)
Rosetta Resources (ROSE)
Successfactor (SFSF)

NYSE
AMB Property Corp (AMB)
Aetna Inc (AET)
American Water Works (AWK)
Amerigroup Cp (AGP)
Anadarko Petroleum Corp (APC)
Ball Corp (BLL)
Cabot Corporation (CBT)
Carbon Ceramics Inc (CRR)
Chevron (CVX)
Chicago Bridge & Iron Co (CBI)
Cooper Industries PLC (CBE)
Discovery Financial Services (DFS)
Dresser-Rand Group Inc (DRC)
Exxon Mobil Corp (XOM)
FMC Cp (FMC)
Frontier Oil Corp (FTO)
Gartner Inc (IT)
Halliburton Co (HAL)
Honeywell International Inc (HON)
Idex Corp (IEX)
KBR Inc (KBR)
Massey Energy Co (MEE)

Disclaimer

Please be informed that all the mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.

The Psychology Of Trading

2011-04-16T00:26:00.001-07:00

This is as important as the rules set-up. You have to master trading psychology before you can become a successful trader. You should pay as much attention to managing your emotion, patience, fear and greed as trading techniques itself

Managing Trading Psychology
- The market doesn't care if you want or need to make money or if you are right or wrong
- All traders have emotions and make mistakes
- Setting Expectations
- Accepting Losses
- Managing Fear and Greed

Setting Expectation
- Trading is NOT a Get-Rich-Quick scheme
- Set realistic expectations
- Over-rated my abilities
- Reality vs Vision
- Don't build decision today on what I hope to be tomorrow
- Need to perform = Stress
- Focus on the process of trading rather than $$ goals
- Remain in my circle of competence
- Take it slow and steady

Accepting Losses
- Loss is part of trading
- Plan for string of losses
- Good trading =/= profitable trading
- Losses =/= Loser
- The outcome of every trade is always uncertain
- Stop trading or trade less if necessary
- Practice, practice, practice
- Jesse Livermore: Losses is paying for information

"If you trade well, there is no losing trades, only trades that make money and trades that give you information to make money later"
- Brett Steenberg, author of "The Psychology of Trading"

Managing Fear and Greed
- Avoid chasing stocks ("miss the boat" mentality)
- Think abundance
- A few wins don't make you great
- Understand the price and market
- Manage your risk within your equity
- Know your entry and exit before the trade
- Plan the grade and trade the plan
- Associate with like-minded traders

"The game of speculation is the most uniformly fascinating game in the world. But it is not a game for stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer. The will die poor"
- Jesse Livermore, How To Trade In Stocks

Trading By The Rule
- Ask yourself the following questions:
   - Do I have a winning formula?
   - Have I really tested it to know it's winning?
   - Do I have the needed confidence?
   - Am I executing for formula faithfully?
   - Am I truly tracking each and every trade to know I am following the formula?
   - Do I have the confidence in my ability to follow through?

Nice Things to Have
- A trading mission statement
- A trading plan
- A trading journey
- Risk managements system
- Monthly/Yearly performance review

Review the items at least once a year

Common denominators of a successful trader
- The desire to be successful
- The confidence that they could win over the long run
- Discipline to follow a given methodology
- Taking trading seriously
- Rigid risk control
- Patience to wait for opportunities (Persistence)
- Acting independent of the crowd
- Accepting losing is part of the game
- Loving what they are doing

Risk Management

2011-04-16T00:25:00.001-07:00

Why Risk Management?
- Capital Preservation and Capital Appreciation
- Reduce stress from uncertainty
- To ensure long term success
- You can control

When Risk Is Managed Well
- Clarity
- Logic
- Rational
- Focus on the task
- Execution

Do I Know...
- My Win-Loss ratio?
- My probability of winning?
- How much I am risking per trade?
- How much I am risking in total at one time?
- What is the maximum risk my equity can take?
- The importance of the size of my equity?
- How many lots I can buy?
- Where are my stops are?

Risk Management
1. Money Management
2. Trade Management

What Is Money Management
- Consistent traders keep their risk very small
- Equity is able to withstand a series of losses
- Position sizing methodology

Many Ways to Size Position
- Units-per-fixed-amount-of-money
- Equal Units Method
- Percent Risk Method
- Percent Volatility Method
As described by Dr. Van K Tharp, author of "Trade Your Way To Financial Freedom"

Money Management Example
- Total Equity = $10,000
- Risk 2% per trade = $200
- We want to buy CDL HTrust using CFD
- Peak = $1.74 and Trough = $1.68 on 31-Dec-2009
- No of shares to buy = $200/($1.75-$1.67) = 2500 shares
- We round down to 2000 shares
- Our potential risk = [($1.75-$1.67)*2000]+$50 = $210
- % risk of equity = $210/$10,000 = 2.1%
- Imagine we put up 5 trades with same amount of risk, ie. $210 per trade
- We are risking a total of $210 x 5 = $1,050
- % risk of equity in total = $1,050/$10,000 = 10.5%
- If all trades are to stopped out, our remaining equity = $10,000 - $1,050 = $8,950

Key Points
- Always round down the lot size to reduce risk
- Size position based on available equity after taken losses
- Only increase position size when profit allows
- Once a position has locked-in profit, the risk is eliminated
- Avoid topping up your account after series of losses

What Is Trade Management
- Know when to enter and exit
- How to set our stop loss
- How to scale-in or add positions
- When to take profit

What Are Working Against Us?
- Broker commission and other fees
- Lots size
- Bid / Ask spread or Bid size
- Size of trading capital

Use Of Leverage
- Understand leverage can help and hurt your account
- Don't use leverage unless you have accumulated enough profit
- Apply leverage to EITHER total trading capital OR per stock basis
- Be careful of using margin as leverage

What You Need...
- You need to be consistent in 3 areas:
   1. Your approach
   2. Your trade execution
   3. Your risk management and psychological control

Key Point Summary

2011-04-15T23:52:00.001-07:00

Summary Of Trading Psychology and Risk Management
1. No one can predict what the market is going to be tomorrow
2. All systems have drawdown
3. You must be clear in your trading plan
4. Focus on the task
5. Plan for losses
6. Be an independent thinker
7. Plan the trade and trade the plan
8. Manage your risk well
9. Understand your psychology profile
10. Keep your risk small at all times
11. Trade less after series of losses
12. Know your exit

Counter	Symbols
Apple Inc	AAPL
Blackrock Inc	BLK
Dycom Industries Inc	DY
Alexion Pharma	ALXN
Cooper Cos	COO

Counter	Symbols	E	S	P
Willis Holdings Ltd	WSH	40.61	39.69	41.92
United Natural Foods Inc	UNFI	44.09	42.67	46.00
Ariba Inc	ARBA	32.59	30.63	35.00