Bought STI ETF at $3.33

I have held on to YZJ til now. Now it is at $1.17. Mostly it has just been fluctuating all this time. 

I have bought STI ETF at $3.33. The spike in volume when it turned down is a good indication that selling pressure is exhausted. Looking at the broader markets, the bullish trend looks set to continue.Stop loss is just below resistance. First target is the recent high. 

Do risk small in trading. This is far more important than any brilliant trading idea you may have, and will ensure you do not experience large emotional swings that mimic the volatility of the markets.

Finished 8th in Dukascopy's Strategy Contest!

Finished 8th in Dukascopy's Strategy Contest! Unexpected, but here it is:

http://www.dukascopy.com/strategycontest/?action=blog&trader=eagl&month=201407

5 Daily Routines Of History’s Greatest Artists

Today I read about the '5 Daily Routines Of History’s Greatest Artists' from the following link:

http://www.businessinsider.my/daily-routines-of-geniuses-2014-3/#.U8_SbfmSysJ

What struck me most was this paragraph towards the end:

Hemingway emphasized the importance of building a creative rhythm, saying you shouldn’t finish your work for the day unless you know how you’ll start tomorrow. 

“The important thing is to have good water in the well,” Hemingway said, “and it is better to take a regular amount out than to pump the well dry and wait for it to refill.” 

Then I clicked on this link:  http://www.theparisreview.org/interviews/4825/the-art-of-fiction-no-21-ernest-hemingway

I am halfway through it being totally intrigued by what Hemingway has to say about his creative art. I promised myself I will finished reading that. So today's post came thus into existence. 

Bought YZJ Shipbldg SGD at 1.10

Did you guess correctly? I bought YZJ (or Yang Zi Jiang as it was formerly known) a few days back.

Now some people will tell me the 200 SMA was supporting the price at 1.10. And yes that is true. And if you have any experience reading financial charts in the markets, you really do not need to use the SMA indicator to see that. I can see it or guess that the 200 SMA is there, no indicator required. It is not rocket science, it is experience. 

Anyway, I bought based on trend reversal and seeing the price action. The price broke to lows of 1.02 recently. You could say it broke the 1.08 support. Then it reversed strongly, came back up to 1.13, then it dipped to 1.10. And I bought on the dip.

That is reason enough for me to buy. The false break and subsequent strong momentum confirming the false break. The bigger reason has to do with the previous post, the bigger picture really.

Getting back to the Stock Market Again

In recent times, I noticed the STI is keeping at it and just keeps knocking on the 3200 level. This mildly surprise me and I thought the market might be worth a second look. So I look at the chart and I see it finally breaking 3200.

It seems to be breaking out of its downtrend, the downtrend which was holding me off this market for a while now.

So let us look at the DOW. It has been in an uptrend while the STI was in a downtrend for 2013. It has been a divergence of trends, and now it seems the STI is joining in the uptrend as well. 

I am betting on a resumption of the Dow uptrend and a reversal of STI's downtrend. Hence I have bought a stock in the Singapore market. Can you guess what it is? If on the other hand, you think otherwise about the market, feel free to leave a comment. Til my next post, risk small and frequent!