Wednesday, September 30, 2009

Bought Wilmar at 6.28

Wilmar had a day low of 6.11, before bouncing up to the 50MA support. I identified my cut loss price at 6.24 with price acceptance of half a day, meaning I must see Wilmar going below 6.24 and staying below 6.24 for 4 hours before I will cut. This is just a guideline. Of course I will see other markets as well before I make a decision.

Target is 6.9 thereabouts, definitely a reward:risk of more than 3:1.

Latest news about Wilmar IPO China :

Thomson Reuters

UPDATE 2-Wilmar seen delaying HK IPO amid volatile market

http://www.forbes.com/feeds/afx/2009/09/30/afx6947127.html

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My Trading Approach

Risk management is paramount. I risk 1% (defined here as R) of my trading capital on any ONE trading idea (It could be anything, really! For instance, maybe, I dreamt of a rotten apple, so I find some instrument that allows me to short AAPL ). I use stop losses to limit my risk to 1%.
The trend is my friend, so one of the first things I do is determine the primary trend and stick to it.
My approach is to buy near support preferably after it shows signs of rebounding. Similarly, I short near resistance preferably after it shows signs of falling. Sometimes I go for breakout setups with specific stocks.
I go for a reward/risk of at least 3:1 in my favour. Otherwise, I do not take the trade.

Clipper Ship Trades

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