Thursday, April 17, 2025

There is a Bigger Picture

We are all part of a bigger picture. The same situation applies while one dabbles in the stock market. 

While we are so certain of specific set ups, trade executions with plenty of research - in-depth or simple ones, there is a still bigger picture, to mind; not to forget. 

The bigger picture forms continuously and never stops. The picture hangs above our heads even when we forgot to think about it. Fresh news breaks out, macro events, macro trends, higher moving averages, stocks categorizations . All these while we are looking at a set up or maybe a single stock. 

Normally - we read the news, check the markets and look out for price ceilings and floors, drawing lines. Yes, drawing lines - important, utmost. That's the least you can do, probably mentally. Horizontal or slants, or should you just look at one of them. Then you may look at higher moving averages, larger waves and overall market sentiments. What then or what's next?  

Price action.

Without price action, no glaring set ups can be spotted, I think. Unless you are insider-ing trading which is illegal. Even so, manipulation or whatever it is can likely appear in price action - whether or not one can identify it. That's the beauty of having candlesticks in charts. Or rather (and also) the stock market. I thank.  

Have you heard of anyone who trades purely based on news or announcements without looking at the price chart (or just price if they follow and memorized the movements)? Not impossible - I recall people who enters a trade just based on Highs and Lows, coupled with announcements.    

I'm convinced that there is no "1 size fits all" for traders or inspiring traders. People behave differently among one another while the price of a stock moves on the screen. Luckily, trading methodologies are aplenty, and instincts could guide an experienced trader to an extent. Grace could also you help to an extent. But punishment awaits to those who are trapped by fear or maybe greed. Sounds ugly.  Recalling to my previous post.

So where do we find guidance besides lessons (painfully) learnt? 

People - great mentors

Our surroundings - eg. the famous "Fibonacci pattern"

Life Events - Inspirations

Stories - Aspirations

Ourselves - by "writing"

To list a few. 

Always be keen (you really have nothing to lose besides time and 'ink') to jot down your ideas, ponder them, develop a strategy, and try not to deviate until results (good or bad) are seen in your balance or even in yourself. Or better still, don't trade at all until you sit on it enough and decide again. 

After all, I stared at the S-Reits market for years before making my first entry. 

Don't be hasty.  

Trade with Inspirations ;)  




Wednesday, April 2, 2025

Is it Easier to Stop or Better to Continue?

Is it easier to stop trading once you hit a positive number or continue with another trade / second or even third one henceforth?  (within same round of coz)

The whole issue is underpinned by the fact that the price of a particular instrument or stock can go wherever it wants any second any minute any hour any day. No matter the current trend or how strong the pattern could be. 

So many scenarios. From my personal bad experiences, it is better to stop at 1. 

Or stop at 2 if the first trade is negative and the second covers it up to positive. However, things are not always perfect. 

Is your skill set that great or the market/another stock trade just manage appear for you after the 1st trade. 

Are you patient enough to wait for a new one or should you go to sleep? Because your set up strategy is so awesome. 

Are you tired or sharp enough to wait, avoid and only spot the ones best in shape? 

I guess the questions above are sufficient for thought and the conclusion can be simple and easy, I think. 

Decision-making is tough work. 

Don't be greedy. Don't get too hot. 

Keep the tower safe.