What is the lesson that can be learnt today? - STAR-TRADER'S 25 CENTS LOSSES -

I have posted a forum message at sharejunction but seems like I didn't save it or what. It was a long long message.. :( anyway, is ok. Life is like that. Is just like stock market. Predict the unpredictable. Anyway, what I was trying to say at the forum was when I noticed One replied from "freshmind", indeed a good saying when he/she mentioned that "Human never learnt from history due to greed and over-confidence".

Which what brought me to how I strategies my trading. What I want to talk about everyday is an opportunity for you to fight back in the stock market.

I observed that many retail investors will buy at a certain price and keep to it without realizing that the potential of losses will be incurred more if the stock showing downtrend for the rest of days of weeks to come. This doesn't really serve the purpose of trading, maybe this is my style and ways of trading. But I want to tell you is that we trade to win and to minimize losses as minimum as we can and to come back to win the trade or other stocks on another day.

One recent example I can quote from my trading was Mermaid. I cut loss at @0.65 when I bought at @0.675 with a 25cents losses because I don't see it coming to move further uptrend as it doesn't stay floating at the range of price due to lack of buying pressure. If I would been keeping in and wait for it to come uptrend, I will be even more losses incurred based on today's price so what I meant is we can always come back even on Mermaid or other stocks when the uptrend is shown like what my recent purchase of Straits Asia few weeks back which I bought back to cover back the cut-loss price that I have sold off.

As long as we see the uptrend on the TA Chart of a stock itself, we can position ourselves to make the decision to buy on uptrend and to cover back the 25cents losses that I have incurred when I cut loss for Mermaid.

Probably I am a short or mid-term player. I don't like to keep stocks except CapitaMall and will buy more when it near to the dividend quarterly. And I will play other stocks for short-term trading based on the TA Chart itself.

As for today, I believe a lot of investors have succumb to selling pressure and short-selling might have been done by the "Big Fish". So, what I would like to say is the buying-up will occur again as to cover the short position but when and what, these I will got to go back to charts and look out for the right entry price to cover back my 25cents losses. This is also what I always mentioned, taking opportunities of the global direction news to influence the up/down of the stocks.

Thanks,
Star-Trader