Investment : sharing on strategy and technique

I would summarised the way i trade (how i choose what to buy and when to buy ) in 3 simple steps.

1. It must be at the bottom
2. Selling angle sideways and a heart beat is formed
3. After heart beat is found, wait for the selling angle to ease (go sideways) before enter

After many years of trading, since 2011 and learning from many gurus, I have found a way that suits my trading style best. My advice to those who read this is that everyone has different time horizon and loss threshold. Hence, I would suggest that you don't follow blindly but use this as a guide to your existing trading technique.

My risk tolerance to downside is very low, 2 - 3 pips would get me selling them away, and to re-enter only if it is still good. Reason being, stocks that drop can continue to fall and we don't catch a falling knife. We wait for the U turn + sideways then only re-enter.

Please note that I am no expert in fundamentals and purely technical trading. Personally, I don't believe in buying and holding as you can see many people lose so much money doing that, having hopes in stocks the the worst enemy you can have. Even if a stock is very strong fundamentally, I would choose the right time to enter which is at the bottom, not chasing the top, nor enter blindly, nor because i suddenly have money so i buy in.

Uses for any charts especially Unit trust funds
This technique can be used on any chart, for unit trust fund, it is even more effective, that was how i picked gold fund and brazil fund and china fund and ride all the way to the top. In fact Unit trust is much more effective with this style as there is low risk of the one company you invest in, going bankrupt or suspension.

Recent trades

on 22/11/2019 I have entered a few stocks namely Ausgroup, GSS energy and Dyna-mac (entered on 21/11/2019 , sold off on 22/11/2019 and buy back because it is still very strong)

Let us start with Ausgroup. I remember few weeks back it keep on getting buy up with high volume. I will not chase that coz there are cases that after huge buy up, next day drop back to original price or worst, it drops more. So i will apply the principals I shared above on this chart.

1. It must be at bottom

 2. Selling angle slow down with the first heart beat. Don't chase the first heart beat, could be a false one

 3. Timing to enter. Wait for the sideways angle and buy up. In fact for this chart it is not ideal to enter yet, but i am taking my chances because of other counters in oil and gas + oil price is running + US markets and SG equity market index is looking poise for an upside.

 Next, Dyna-mac, same thing
1. it is at bottom

2. already slow down in selling and one heart beat , now here I am showing you the best timing entrance.  when I see the red U turn I will not buy yet but wait for confirmation. at the blue circle I entered as the selling angle slowed down and become sideways. Next I sold at 0.125 but bought back again and end of 22/11/2019 because it was still hanging there which shows strength. If it is not strong, it would drop down to 0.120 and restart the accumulation phase. So in my humble opinion, next monday this stock will run up with high chance.

 Third stock I bought is GSS energy, same principals as above but I will not be showing the chart, good to do some homework yourself. So after the heart beat, I wait for the smoothening of selling angle then I will buy back at the sideways points. This counter is nice where there is a double bottom. to signify further strength.

Other methods:

I do use market depth, and also looking at how the big boys play the buy sell queue to determine my entry, for example for Ausgroup I saw the big boys playing the queue so I enter. I can't share too much here on that coz it is very tough to explain, it takes experience to watch the movement and then decide  on it.

In summary, i hope this sharing helps. Never invest in anything from property, stocks, forex, unit trust etc without a proper entry and exit strategy. If you do that it is equivalent to just gambling.

If you listen to others then you buy also not ideal because you learn nothing when you make or lose money. Most important thing in investment is to learn from mistakes and don't repeat it. that is how you become successful in anything in life. 

My current portfolio