Clipper Ship Trades: January 2013

Thursday, January 10, 2013

Staying out

I have scanned the following stocks and found excuses for staying out of the market:

STI ETF: MACD Divergence
DBS: Falling and may form into a double top
ST Engg: MACD Divergence
Kepland: MACD Divergence
KepCorp: MACD Divergence

Short and sweet, I am simply staying out.

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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Thursday, January 10, 2013

Staying out

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