Dow Jones on US has trading on the negative zone last few days, the Asian market also cannot avoid the negative headwind. The my break even stop was initiated yesterday on Noble Group.
Let’s review what happened on my journey, I had 2 stock picks when I scanned the market on 28 May. Originally, I had pretty good confidence that Noble Group is resuming on the up trend and I can ride the trend up. So, I did write a post about my happiness that I made the right decision on my Noble Group Stock on the 1 June. Subsequently, I also did a post on stock market for beginners to explain why I selected Noble Group instead of NOL.
Though I thought I had made the right decision at the beginning of the week, I still entered my break even stop as the closing price has trade above my entry price. I left the break even stop in the system using a GTC order. GTC means Good Till Cancel, the stop will be there forever till I cancel to change it. This is a discipline that every traders must develop in order to protect ourselves if the market turns unfavorable towards us.
So, I did enjoy the psychological winning feeling on my paper win for 2 days. Unfortunately, my feeling turned a bit upset when the market turned down and executed my break even stop yesterday. A moment later, I also feel "Heng" (Fortunate in Chinese) that I did not make any loss. I actually made a few dollar profits even though my stock pick was wrong and did not went on the up trend. I am still happy that my capital is protected.
So, always remember, the market is volatile sometimes, we cannot predict with 100% certainty how it bahaves, however, we takes a small risk to initiate our position when we see an opportunity. On the other hand, we must always have a stop order to protect us from losing our trading capital – That’s the way to survive in the stock market.
After closing my open position yesterday, I followed my earlier learning and I spotted Hyflux was trading near 50d MA and it rebounded with a white candle. I initiated an open position today because it is still trading above the 100d and 200d MA, it does provide a good risk/reward opportunity for me. We shall monitor on its performance in the next few days!
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
