Sold ST Engg at 3.47

Sold ST Engg at 3.47.
Profit of 2R.

ST Engg surged to a 3-year high of 3.58 last week. I did a mental trailing stop of 3.47, one point of perceived support of 3.48.

I once talked about buying stocks that seem to be at a relatively high price. But then when the price is high, it reflects the value of the stock. Conversely a when a stock is cheap, the fundamentals underlying it is also of equivalent value.

You may argue that you cannot make much by buying at high prices. But then let's not talk about making profits first. Talk about preserving your capital. Statistically only a small minority make meaningful profits on a consistent basis. I venture to say it is less than 5% (and I am one of them!).

Let us look at professional hedge funds. There are 3000 over of them in the US. Again, only a minority is making money consistently year after year. Most just come and fade away. Some have stellar growth and even larger implosions (collapse). Turns out they indeed have risk management in place but their traders manage to sidestep that! That is NO risk management.

Reading from: http://online.barrons.com/article/SB50001424053111904571704577404264215025458.html#articleTabs_article%3D2
"In the last three years, the Top 100's average annualized hedge fund returns were an impressive 25.55%".

Keep that in perspective, and you will probably think more about what it means to invest in the markets.

I need a robust development methodology for my JForex business

Trading Development Methodology v.0.0.1
1. Formulate new trading idea
2. Draft prototype
3. Test prototype
4. Select degrees of freedom variables
5. Formulate test plan for each DoF
6. Backtest
7. Forward-test
8. Optimize
9. Launch  

ST Engineering near 3.5

Looking at the strong support throughout the week, ST Engg seems poised for a breakout above 3.5. I will be watching for signs of volatility and weakness to determine if it is still worth riding further