Missed by a cent

With the recent market volatility, ACCICB who trades the Chinese market told me that he missed buying a stock by a cent which went up 7% the next day. It was a clear morning star reversal pattern and in the last minute the prices just went sky high. This is the tough part when you don't have live prices on screen...at least that's how it affects me for another market. 

Both of us concur that it was a clear buy and it was one of the few bright spots in the otherwise sea of red in the Chinese market. This just goes to show how difficult it can be to trade in such a market when you were never ever a pro before so it's like going against the odds which can be mightily satisfying when you do get it right. Provided that you still have the stomach to continue without going bonkers and without losing all your capital. 

I do see a lot of worm holes forming over the past few weeks in the charts. Worm holes which was a term coined by ACCICB are basically stocks that are trading sideways, make a feeble attempt to rally despite overall down trend and then suddenly it just falls into the worm hole. This gets repeated as the stock goes down further and further in price as the down trend is just simply too strong.

He told me that he read it wrongly when the stocks rally last week and we disagreed as he thinks it's a recovery whereas I think it's an attempt at recovery which failed as evident in the fall a few days later and I think the fall should continue since the SMA and Bollinger bands don't seem to be changing. 

On the other hand, there are a few stocks with an expanded Bollinger band with a strong uptrend and nice white candles traveling along the bollinger band in the MACD sell zone. These I've shorted or waiting for the opportunity to short but what I really want to master is shorting in the buy zone which would allow me to long if the trend reverses. 

There are also a lot of haramis and some harami crosses forming so it is a matter of separating them from the 'hai'ramis. Interestingly I've never acted on a harami before but ACCICB has way too many bad experiences with them which I've written previously. But he is way better than me at cutting losses which is something I'm working on. My long positions have been so bad that only my short positions can save the day. 

Comments

  1. Joyce,

    Let me count the indicators:

    1) Candlesticks
    2) SMA
    3) MACD
    4) Bollinger Bands

    But no live prices?

    Hmm...

    Hmm...

    Scratching my chin...

    ReplyDelete
    Replies
    1. I use free delayed prices which is bad I know...

      Delete
  2. When you are generating profits using delayed prices then what more is required?

    Also, making from both short and long calls in both bull and bear markets - impressive!

    ReplyDelete
    Replies
    1. Hi Money Honey,

      I don't know...I've set pretty high standards for myself and I'm still not optimizing my buys and sells...previously I got free live prices so it was easier not having to toggle through different screens. I'm still an amateur in front of professionals in a very tough market so far...

      Delete

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