Posts

My New Site On Trading

As mentioned in my previous post, I won’t write too much about investing or trading in this blog. Instead, I have created a new site dedicated on currency trading (forex) – http://www.fxblackboard.com

This new fx site will be the place where I post my analysis, my views and the way I trade. The site is still “work in progress” and I will be adding more stuffs in the future such as trading articles, tutorials etc (if I can really sit down and pen my thoughts – I can’t write well! LOL) Right more, it’s more focused on my analysis on different currency pairs. In a way, it’s also like a trading diary to me, helping me to keep track and re-visit some of these trades or setups in the future.

It is a “hobby” site at this point in time. I am just passionate in trading… that’s all. I really want to create a site that can provide value and knowledge to other traders, especially newbies. There are just too many hyped-up nonsensical forex products out there in the market. You know… those “Make $20, 586 in 7 days Trading Forex With This Breakthrough System”. You get the idea. 99% of them are just pure marketers, i.e. they are not traders. They are just out to sell you and scam the hell out of your money.

Trading IS tough. If it is so easy, every Tom, Dick and Harry will be making obscene money and relaxing at the beach all day long. Isn’t it?

Anyway, if you happened to read my posts in my fx site, do support it by “liking” my posts or via other social media platforms, or you could just tell your friends who are interested in trading verbally, old-school style. 🙂

New Changes Ahead

It has been quite some time since I updated my blog and a lot of things happened within the past few months. I don’t want to talk much on them though. Anyway, I have changed and revamped my blog design. I like this new Studiopress eleven40 theme. It looks much neater with a more spacious feel. The only thing I kept is the colour orange. Somehow I just like this colour for my site.

I realized most of my recent posts are about investing and trading. After some thoughts, I think I won’t focus and write too much on investment topics in the future. Not because I don’t like it, but rather I would like to keep this alexyeo.com more like a personal blog.

I am still very active in trading. In fact, I have created a new website on currency trading. Will “open” the site to the public in time to come. I only trade currencies and commodities nowadays. Very rarely do I trade Singapore/US stocks. All my stocks that I am holding on right now are more for “buy and hold” – long term investment or value investing if you like to call it.

One good news… I am back to church and into the arm of my Lord Jesus once again. 🙂

Don’t Go Against The Trend

Lesson learned: If the charts tell you that the overall market is down and the short selling potentials are much higher than going long, just focus on shorting. Don’t go against the trend, you are just taking unnecessary risk if you do that.

As seen from the screenshot above, I go long on 2 stocks. I THOUGHT with bullish reversal signals, they will go up. However, I am going against the trend. True enough, the Dow go south again and my stop loss for my 2 long positions were hit. Luckily my losses were covered by my short position in Reynolds American.

Do take note that I am not investing. I am just trading these stocks. So I don’t give a hoot about fundamentals. I just find counters with the right candlesticks signals which can give me a high probable trade – in this case shorting them. I normally hold my positions for a few days only – swing trading.

No Longer Just An Internet Marketing Blog

If you didn’t look at the blog header and judging from the posts I have written recently, you would have thought that this is a blog that talks about investing. I have written way too many posts about trading, investing, stock market etc. LOL.

The reason I have not written much about internet marketing stuffs these days is because I really feel I have nothing much to write about. It is still the same now as was 4 years ago. It’s still about finding a profitable market. Create a useful website that will provide value to visitors. Offer the product to the visitors (be it your own product or as an affiliate). Build links and generate traffic via SEO. Profit and make money. The concept HASN’T changed at all although techniques might be slightly different now, because things changed so fast online.

I guess I will have to change my blog theme soon. Maybe a redesign of my blog header. It’s not just about internet marketing anymore. I have moved on and venture into investing and trading too.

I am an internet marketer, trader and investor. : )

My First Ever Trade

I traded using CFD (contracts for difference) for the first time in my life using my own real money.

Counter: Sembcorp (Long)
Open: 14 Jul 2011
Close: 25 Jul 2011
Entry: $5.00
Exit: $5.08

sembcorp-trade

(click on the picture for a bigger view)

What did I trade and why?

Candlestick:

  • Bullish reversal hammer on 12 Jul, followed by a white candle stick closing higher above hammer’s real body on next day.

Indicator:

  • 20 EMA: Price is at MA
  • Stochastic in middle. Not overbought or oversold region.
  • MACD just going to cut signal line from top.
  • High volume on the hammer day
  • Chart pattern: N.A.

Thoughts, Feelings & Action

Trade solely based on candlestick signal. High volume on hammer day may signal the end and the start of uptrend reversal.

Market was very volatile for the past few days. Euro’s Italy debt problem causes the market to plunge on 12 Jul. The following day was bullish due to good news from China’s growth.

Very uncertain. Don’t  know where the market is heading. Traded for the 1st time in my life using my own money.

Where is your stop and limit and why?

Entry: $5.00
Stop: $4.88

Set stop loss just below the previous day’s low

Updated: As price rises, adjusted stop loss at $4.08

Did the trade work out as planned?

Due to the US debt ceiling not solved and stalled, the overall market falls on Monday.

Price gaps down from $5.14 to $5.10. Since the ATR is about $0.10, there is a very high chance that my stop loss will be hit. True enough, my stop loss was soon hit at $5.08.

I was expecting the price to continue move up towards the upper channel but market sentiment was not good. But overall I am still satisfied with the trade as it was my first ever trade using my real money and it ends up a positive one.

The 2 Doji formed may not be a good sign, so it might be wise to get out too.

As I am very new to trading, I don’t expect to make big money. I am in it to learn first. My #1 goal now is to protect my capital. With more learning, more experience, I am sure the money will come later.

I also have a proper trading record and trading diary. A disciplined trader WILL BE a successful trader.