Good Closing !
STI rose 67.47 points to close above the downtrend line. Although a close above 2,647 is required to mark a higher high, I am cautiously optimistic the market is turning bullish. ( I have edited this paragraph slightly after the initial publish )
Please read also the cautious view from UOB Analyst : UOB Kayhian Technical Analysis
I am still holding half of the Wilmar I bought at $6.28. I was stopped out at $6.16 for half the position ( lose almost $500 ). The other half where I didn't place a stop was intentionally done that way for hedging purpose. So far, this strategy has been working fine for me. Several counters such as Golden Agri where my broker was wronged were eventually squared this way with a small gain ( instead of loss ). This method may be against all of the money management rule. But imagine if I let the entire position to be stopped out, my losses would have been $1,000 instead of $500. As of today, my net loss has reduced to $200 ( since Wilmar bounced back to $6.41 ). If prices continue to rise, I should end up with a gain due to the hedging.
Please read also the cautious view from UOB Analyst : UOB Kayhian Technical Analysis
I am still holding half of the Wilmar I bought at $6.28. I was stopped out at $6.16 for half the position ( lose almost $500 ). The other half where I didn't place a stop was intentionally done that way for hedging purpose. So far, this strategy has been working fine for me. Several counters such as Golden Agri where my broker was wronged were eventually squared this way with a small gain ( instead of loss ). This method may be against all of the money management rule. But imagine if I let the entire position to be stopped out, my losses would have been $1,000 instead of $500. As of today, my net loss has reduced to $200 ( since Wilmar bounced back to $6.41 ). If prices continue to rise, I should end up with a gain due to the hedging.
Labels: Market Direction
posted by Market Wizards @ August 24, 2009
Comments: 0
