Back to HK Stocks

Back to HK Stocks

Having had a year of learning in forex, I finally lost a substantial amount of my initial investment ($600).

Having experienced the risks (and returns) involved in forex trading, I think a safer bet would be to stay in the stock market  instead.

Having learnt valuable lessons in forex, I believe trading markets would be an easier but slower platform to earn money.

Back to my HK market :)

Mixed signals.. but all correct?

Wow, it's been almost 2 months since I last blogged here.

I had been busy learning the ropes (and paying "tuition fees" as I've been using a live account) to gain forex experience.

I wonder how long will I need to go beyond what I can see now:

M1 - downtrend
M5 - uptrend (but slowing based on M1)
H1 - ranging
D1 - slight uptrend (but shows ranging)
W1 - downtrend



About Stop Losses



Wise words... while it's from the context of forex, it will apply to stocks investing too:

The fluctuations that are of regular occurrence seen in the market is a constant battle between the buyers and sellers to take control and is just part of the game and therefore should be anticipated in each trade.

You must understand that you need to stop trying to time the market at the exact time a top or bottom will happen. 

Hindsight makes this approach seem ideal but the big problem with this is that hindsight does not make you money. We can all successfully pick these ideal zones after the fact, but how many of us are consistently really making money? How do we counteract the effect of these fluctuations that destroy the psychology of traders?

The answer is the correct usage of a stop- loss, position sizing, and pending orders. 

We are all greedy by human nature and adjust our stop loss to meet our larger lot size (positioning) inside the killing zone of the market (normal fluctuations). 

Use a position size & stop-loss combination that meets the 1-2% risk bracket and a pending order that gives you a better entry and more importantly lets you walk away from the monitors. Adjust your position size to meet a stop loss that gives the trade the room it needs to play out that if in fact gets trigger confirms your analysis was outright wrong.

Micromanaging the market fluctuations is detrimental to your well-being and truly halts your development as a trader. 

Do not risk money that determines if the rent will be paid this month and focus instead on becoming proficient in a proven strategy. Focus on acquiring capital, if that means getting a second job or cutting back on eating out largely depends on your individual circumstances, but once your proficiency meets available cash, it will be all worth it.

You need the right mindset and practice “perfect practice” because if you don’t, I guaranteed you the market will gladly begin take your money away.

A stop loss should be placed in a zone where the trade idea becomes invalid.

Most of the traders place their stop loss in a way to achieve the risk reward they want, and this is completely wrong.

Source: http://www.forexfactory.com/showthread.php?t=589024

Forex (23 Jun to 8 Aug) : Easy Come, Easy Go

Forex (23 Jun to 8 Aug) : Easy Come, Easy Go

For those who have been following my blog, I started trading forex on 23 June, which was the day before the Brexit event (in Singapore time).

I managed to profit from Brexit (one trade profit of 512 pips, anyone?) but lost the profits as I wasn't able to correctly predict the market in July. This happened again last week when I managed to recover most of my losses in July, I shorted Brent Crude on 8 Aug and lost the profit due to 3 bad trades.

While my net pip gain in Aug is currently positive, my investment account is back to its original amount as the size of my Crude trades was increase to 1% per trade (previously set at 0.5%).

DateWinsLossPips
(Profit)
Pips
(Loss)
Net Pip Gain
23 Jun020125-125.0
24 Jun44824.5234.6464.9
28 Jun115.281.2388.9
30 Jun3229.264.1354.0
1 Jul010100.9-100.9
5 Jul13108.2170.5-163.2
6 Jul13112.3236.3-287.2
12 Jul3213736.9-187.1
13 Jul1145.251.2-193.1
14 Jul1331.8125.3-286.6
15 Jul20136.40-150.2
18 Jul1111.843.2-181.6
19 Jul4377.242.6-147.0
20 Jul4476.258-128.8
21 Jul21518100.2-211.0
22 Jul31150.686.3-246.7
26 Jul0106.9-253.6
28 Jul1114.721.6-260.5
29 Jul87163239.7-337.2
1 Aug3121.18.212.9
2 Aug51119.650.382.2
3 Aug40115.10197.3
4 Aug30108.90306.2
5 Aug3177.31.7381.8
8 Aug030138.3243.5

As what they say, "easy come, easy go"...

Trades from 1 June to 22 July (Final Review on the Standard Chartered Trading Platform)


CodeNameSharesBuy DateBuyStop Loss / Target / SoldProfit / LossDays Held
3988.hkBANK OF CHINA100024-May33.0856.2762
0933.hkBRIGHTOIL100019-May2.282.3551.2667
2255.hkHAICHANG HLDG10009-May1.731.756.404
1813.hkKWG PROPERTY100011-May4.614.664.466
1150.hkMILAN STATION200011-May0.840.73-231.7821
2014.hkOZNER WATER100018-May1.191.2329.3368
2014.hkOZNER WATER200024-May1.181.26140.5762
2014.hkOZNER WATER20008-Jun1.31.3-20.322
d1r.siARA Asset Mgt5009-May1.2351.269.502
bn4.siKeppel Corp10019-May5.275.355.3867
1813.hkKWG PROPERTY10008-Jun4.654.45-235.0514
1813.hkKWG PROPERTY100010-Jun4.394.65225.4435
1813.hkKWG PROPERTY100016-Jun4.244.65385.8929
1813.hkKWG PROPERTY100024-Jun4.354.65265.5521
3988.hkBANK OF CHINA100023-Jun3.063.2115.2828
3988.hkBANK OF CHINA100024-Jun2.933.2246.6327
1150.hkMILAN STATION200024-Jun0.710.86287.3520

Total Net Profit = HKD$1,434 (6.14% for the period).

After transferring all HKD from the trading account, I had a total profit of about $250 from my initial investment of $4,000.

Considering my first buy was in March, I am pretty pleased (and relieved) that I can proudly say I survived in this world of stock trading :)

Due to SC removing its no minimum commission practice from 1 August, I think that it will no longer be profitable to trade using its platform.

As such, I have exited all my trades and will be evaluating my next move - whether to invest more into forex or to trade using other platforms instead.

If you have any suggestions, I look forward to hearing from you too!




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