Ideas for trading

Scope : Swing and Position trading with Ein55 principles and Optimism psychology

Additional focus

1. Trading system of entry exit money management and risk management

2. Optimism tools mid amd short term

3. Ein55 principles

4.TA tools

5. Pa

4 groups ( based on theory)

Shorting

Fibonacci

Cut loss

Harmonics

MA as support

Oscillators

Supply and Demand

Candlesticks pattern

Chart pattern

Time and sales

Volume

Staples

Entry ~ 10.65

Coach - CFD trade

Buy : 37.02
Sell : 38.89
Cut loss : 36.19
Risk/Reward : 2.25

Kenneth class

Principles

- 赚钱是偶然, 亏钱是必然的

---  if I focus only on the money.. naturally I will add more money and later forget about my money and risk management.. and then just one stock will wipe off my portfolio

Gung Ho online entertainment (Japan)
Dena Co Japan

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Balance sheet - help you protect your money..

Profit and Loss - help you earn money

Tree, Sniper, wolf metaphor

Roots

1. Lose small focus. .to be in the game

Fertilizers

1. Patience..like a sniper.. vs machine gun and emotional turmoil

已经制动

Water

1. My cash

Sun

1. Trend

Backbone or trunk

1. Swing and position focus..
2. Humility to the market

Branches

1. Good friends

Fruits - Profits

Dangerous

Storms,  winter

Pests - distractions and noise

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When I enter the position. . I should focus on my trading rules and probability (I. E. My roots and backbone) winning factors and not on how much money I gonna earn (fruits)

Also..best not to think of how much money I losing..

Key is to FOCUS on the trading rules and trades and NOT on how much I making or losing?

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Sniper  - see Nial fuller article

Instead of like machine gun shooting (E. G. Scalping).. I use Swing trading and position my trades at retracement..

E.g. when firsr main support is broken..I wait for the price to drop and retrace to that level and then buy

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Wolves.. work in a team

Leni -Chartnexus
Chantel - HK stock tips
Yan Teck
Andrew and Kee Min - FA
Dr Tee - Coaching platform for my career
Marcus - trading programme and passive income
James Hon - 贵人 to open doors

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Lose like a professional!  I am a professional loser

Trading flow diagram - TO DO

Key principle

1. Trend is your friend until it bend

2. Keep it Superbly Simple

3. Multiple time frames
    a. Monthly, Weekly. .
     B. Then go daily and 4 hr

(Common time frames - 240, 60, 15, 5)

4. Analyze market from right to left..  (vs conventional mtd of left to right)

  - reason : most recent price action is impt

Thomas Saw

Why do I have 2 different type of trainers for Forex?? (DR Foo and Benny)

1. Methodology is a tool
2. Trading is a Skill!

They are different!

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Momentum trading. . At least 3 candles. .

E.g. 3 consecutive same colour in a row
Size of candles must be above average size
Enter on 4th or 5th candlestick when  it breaks highest high or the lowest low of the previous 3 candles
Be prepared to take profit fast

Benny Supply Demand imbalance

Question

1. How to draw demand and supply zones during gap conditions? 

Some key points

1. Confluence of turning points at higher time frame

2.shorter time frame..trend following

Pin bar (hammer) plus morning star.. area as strong demand zone

Swing trader.. we trade higher time frame..

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Key :
Monthly, Weekly, daily, 4 hourly(less usual)..

Daily time frame usually for entry signal.. H4 to help narrow down our risk

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Suitable for part time traders..

Regular exercises. .to post my trades..and let people comment (**how can I apply this to my Dr Tee mentoring?)

Trading rules and
** have to do Journaling and back testing everyday!!!!

Most important : First learn..HOW TO PROTECT MY CAPITAL!!!!!

Because of risk reward.. even 26 percent trades winning.. I still win 333 sgd (out of 5k)

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Key:
**we  wait for price to retrace back to the level of big imbalance and we sell

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I.e. wait for this big boy -Instution,  banks etc or any big giants that trade not just 1 or 2 lots..but trade 1000++  each... and trade along with them!

E.g. Areas with a lot of unfilled sell or unfilled buy orders. .

Think. . That area a lot of unfilled orders. . Esp players who missed the boat.. 

The temp push up (or push down) with low volume is due to the small novices. .

Hence when price go back to the big zone (with a lot of unfilled orders) , mostly it will go back down (or up) and resume trend. .

Rem : I don't have any chance against a group of wolves. .. if I am trading the conventional way..I am like the deer become dinner for the wolves!!!

Can use supply and demand principle and candlestick also for commodities, Index,  high liquid stocks etc. .

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Key : to find disequllibrium between supply and demand.. I. E wait for price to move to oversupply (supply zone) and over demand (demand zone)

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Different timeframe have different supply and demand zones. . But usually higher timeframe have better probability time frames. ..

In addition - a lot of big boys.. are pushing the trend up.. hence if there is correction. . The big boys will defend their position ...

I.e. negative sum game as big boys will keep ensuring novices traders will lose..

Supply and Demand first came from SAM Seiden

Combine potential supply and demand zones with reversal candlestick pattern

Many market turn up or down. . Esp during correction. .because of many unfilled counter offers..

Do not trade non farm payroll!!!

Mix together with the normal trend line.. (what my China teacher teach me)

**Wycoff method help to predict market reversal...  Benny esp use it to help reduce risk for his counter trend trade..

E.g. for counter trend..I see Wycoff's JOC (jumping over creek??)

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Key :
Start from highest time frame.. Monthly, Weekly. .. then daily.... and to reduce risk and spread...go H4
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Key.. to remove emotion and just be a booooorrrriiiiiiiinnnnnnggggg Rule Based trader.............  yup.. borrriiinnnnggg..

Then just be consistent.. borrriiinnnnggg. Like a machine....

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Key : and danger. .
I will come with a lot of baggage and prenotions. . I may be very stubborn...

And I don't trust the method and rules

I will try to act smart.. think tradescanner and Ivan Koh..

And I end up losing $$$

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Key principle

- Supply and demand is not price overbought or oversold from indicators

- it has nothing to do with indicators
.etc.. moving averages crossover etc..

- usually buy from retracement. .

- because we identify the possible imbalances of supply and demand and we just place our buy or sell order there..

- these imbalances are due to the big guys.. and we trade together with them and not against them..

(Big boys trade by 10000 lots vs we only 1 lot)

- link to the cycle of novice traders fear amd greed

- Buy at demand and sell at supply.. I.e. to buy low and sell High..

- do not need to have many winning trades ..just need the right risk and money management

*** first thing I as novice trader need to do.. FUCKING PROTECT MY CAPITAL.. don't repeat my cheebye Zogneix and Aeropostale mistakes!

***usually during super high volume is the climax. . And the big trend will end soon!!!

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Benny presentation

- Start from hero journey. . Round

- link to us audience novices

- says he can understand our pain and struggles

- claim to Lose a lot of money..then turn into advantage to say he can help us prevent losing money. .

Other consideration

- Fresh vs origin level
- Arrival

Dr Foo, Steve Nison Candlestick

Dr Foo talk

1. Stay with the trend

2. Trade short term

3. Avoid range trading - trade on breakouts..

**stay out of trading market!

4. Stop loss! !!

5. Long shadows (esp Hammer and Gravestone) may tell impt info about bear and bull traps

*****be careful of traps! I kana big time by blumont etc..

for Forex. .  Traps are usually formed during high volatility period..

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Price vs Indicator. . Price is leading indicator . Price action...

Indicator is lagging indicator

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Good simple strategy

1.Use Bollinger squeeze strategy .. wait for breakout..

2. Spot WRB candle. . Relative to rest of candles

Worst mistake : when pple see big black marubozu candle..many people think it is cheap and buy... I. E. Kana falling knife

3. Forex - use multiple timeframe.. Ard 3 timeframe. . E.g. 60 min,  daily..and 15 min

Only trade when all 3 or 2 timeframe indicate same direction of market!

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Steve Nison

1. Type of trend?

2. During overbought and oversold.. esp turning points such as Doji, morning, evening star, long shadow spinning tops etc.

Yangzijiang

Yangzijiang

Entry : 1.15
Take Profit 1 : 1.24
Take Profit 2 : 1.35
Cut Loss : 1.08

Risk/Reward : 57%

Daniel loh 2

For OCTOBER 2014.. be careful. . Due to US stock market earnings

How to know got big players inside?

1. Price Surge

2. Volume shows big players are in

- Relative volume
- up day volume higher than down day volume

3. Price consolidation is stable without coming back to cost price

- cost price defined as the point where the price first cheong

(Stick WE holdings pic)

- I. E. It needs to rest on a "support" and not on a falling knife..

- because it means big players are not exiting and holding..

- some stock like WE holdings. . Big players are holding.. while stock like Biosensor ..BBs go in and out fast..

4. Volume shows accumulation

- if up day volume is higher than the one day before and one day after down day..it is considered high..there is accumulation..

****blumont case study :

- when I see volume of down day is higher than the up day...

E.g. in OCT 2 down day volume is higher than previous 2 weeks up day!!!!!!!!!!!

(Stick pic here)

- hence..this is the key of penny stocks volume play..

Relative volunr

Step 5 : WAIT!

-cause big boy to scare away retailers may force price down for a while..

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Best type of stocks : Small and Mid cap stocks. .

Reason : if big cap like SIA .. got too many institutions buying and selling..

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How do I know if a stock still has strength on breakout

1. 3 day go up or 4 out of 5 days go up
2. 10 day MA going up

Key : if price do not move after breakout for 3 days.. SELL!!!!

Good habit. . Always use Trailing stop loss!

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Remember : DOJI is a down day....

Hence.. if I see Doji with high volume. .time to RUN!

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Penny stocks

1. Must monitor intra day volume. ..
2. See at 445pm

Daniel loh

Impact or less than 20c. . Open a OTC2 counter market

End of bull market. . Mid June 2016

Interest rate rise to 2.5 to 3 percent.. v dangerous...

Property market lag stock market by 6 mths.. economy or unemployment rate lag by as much as 1 year..

Bubble will definitely burst by 4 percent... Interest rate.. will not be last time 5 percent..

Yellen forecast 2.25 percent by 2016.. but it should be higher interest rate..

Be careful when interest rate above 3 percent liao..

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Acquirer company.. 80 percent will go down..

Acquiree company. . 99 percent will go up.. reason.. must pay more than what company price otherwise director won't sell..

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Market always very short sighted.. e.g. OCBC bought Wing Hang.. good for OCBC for next 10 years.. but it eat into their EPS for this quarter. . Will drop below what analyst predict..

For this type of news... best to sell on the day it gap up.. or most one day after. .

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Generally buy on reversal or breakout. . 2 ways to buy stock. .

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Breakout for SG stocks (3 key reasons!)

1. $1-$3 stock..

A. Breakout by 5 cents and above(within 5 cents is a buffer. . Distribution zone)

B. Volume expands (RELATIVE to previous few days)

Key reason :***need institution or ching Kay to push through! ! To push and break resistance!

C. Whole candle shows strength (Relative. . White marubozu. . Bullish engulfing)

Or Strong Hammer..

2. $3-$10 stock

Break 10 cents above or below
Volume expands
Whole candle shows strength

***within 10 cents is a "Distribution" or buying or selling zone. . Need this 10c buffer!

Rem market maker not very good.. not definitely allow you to touch the resistance or support line.. so need a buffer and create a distribution zone!

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First thing to see stock..is not see indicator..

See first plain chart and volume see pattern. . E.g. breakout?

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2 key candlestick

1. Marubozu
(Long body candle indicate speed. . Speed of how fast white candle speed up)

Speed at breakout candle v impt. . Why???

Because will determine institution if they want you retailers to join in with them..

Otherwise you will find many fake breakout..  then cry wolf many times then later they buy big time..

Instution will suddenly buy big volume and go in super fast to push the price up..

2. Hammer

(Or hanging man)

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Chart pattern.. combine

1. Double bottom plus triangle.. then breakout of distribution zone..

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Keys

1. Combing of various chart pattern. . E.g. double bottom plus triangle

2. Strong candlestick.. Marubozu , hammer, hanging man with super long shadow

- speed
- Institution buying

3. Distribution zone breakup or breakdown

4. Gap

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How to determine reversal

Cannot break support or resistance of distribution zone..

Thinking ideas

A. Stock invest strategy

1. CAGR positive unless is recommend by gurus like Dr Tee
2. Optimism less than 15 percent - long term and mid term
3. Momentum - MACD and RSI and Sto
4. Vol breakout or building up
5. Key levels of support plus Fibonacci
6. Special chart pattern and or candlestick

B. CFD strategy

1. Mid term trend..
2. Short term trend or potential Turing point with good chart pattern
3. Candlestick
4. Momentum. .not oversold

C. Brightwin strategy

1. Scan from popper and check with list of CFDs

2. Follow BIG trend and never go against big trend (think aero, zogneix)

3. wait for iScan signal

4. Indicate cut loss and Take profit targets 

5. Go through Money management and Risk Management. (Ensure margin level > 5000%)

No Cut Loss = Walking on rope without seatbelt