Bought DBS (D05.SI) at 15.76

Stop loss at 15.42
Risk is 34 cents

Some may recognise this setup as buying on a dip in an uptrend.
Others may feel that the uptrend line is broken, and there may be further downside.
Yet some may see a potential miniature head and shoulders forming.

I see all of the above and I also see a false break of the uptrend. Recently I like to trade on false breaks because then most of the shorts will get caught and they will have to buy back their shares, thus pushing up the price.

And fundamentally, I feel most market participants are not buying yet. They are still waiting for a correction in STI. Well, I see a correction in DBS and I see DOW and STI edging upwards to break resistance. People are now uncertain about gold, the once safe haven. They are also jittery about the stock market, what with the news of bombs and explosions and earthquakes. Hence it seems reasonable to me that there will be further bullish price action.

Once again, risk small.

Bought ST Engg (S63.SI) at 4.36

Stop loss at 4.19.

Once again, I am buying at a high price, in fact it was never this high before.

Many people I talk to will not take this trade, and that may be one of the reasons why this trade may work in my favour. The 'smart' money knows that in order to have bigger gains, few people should partake of it so that their own share is bigger. Meanwhile, they shore up support for the stock and it goes up. And when the stock is resting, it allows themselves and other savvy traders to come in (accumulation) before it goes up again. Most of the other market participants do not come in and so the stock is relatively stable compared to penny stocks that seem to attract the highest volume of the retail crowd.

Of course it is not foolproof. The stock market is one of the 'places' that espouses the most uncertainty around. Hence it is important to risk small. I have mentioned many times before, and I will again: the key to sustainable success in the markets is to risk small.