Bought: BOC (3988.hk) and Cosco Shipping Ports (1199.hk)

I got back into the game recently with buying BOC (3988.hk) at $3.00, 2 lots and COSCO Shipping Ports (1199.hk) at $6.03, 2 lots. 

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 Trading at 1-minute interval

Having some time today, I thought I would try tracking one of my trades at the one-minute interval.

I opened a long position at 3.14pm with the AUD/JPY pair @ 79.373. The price fell to 79.3 (see label 11 below) before it started a nice upward trajectory towards my target sell price at 79.57 (green line).

At 3.45pm, it nearly hit my target before falling 79.48.

At 4.59pm, there was a surge in price but again, stopped short (2 pips...) of my target price.

Having spent nearly a hour of my life and seeing a wedge forming, I gave up at 4.14pm and took the profit of 15 pips.

Bought - KWG Property (1813.hk)

This is what happens when you buy a stock immediately after ex-dividend day: You take the gap down at the highest price and ride it all the way down... :(