I am only human so that means sometimes I succumb to “temptation” when it comes to trading stocks.  By that, I do not mean a sexy remisier calling me to place orders with her la.

Recently, I traded some stocks ahead of the results season in the Singapore stock exchange. The net outcome was Breakeven as I have entered the first batch of positions prematurely BEFORE the trigger breakout signals present themself and had to cut loss as the stock price retreated.  The circumstance surrounding the entry decisions was that the market has been down a few days and then regional markets rebounded in the morning, so i naturally ASSUME that the stocks i am monitoring would also follow suit.  Actually there is nothing wrong with this assumption as long as i am aware of the potential risk and prepared to cut loss if i am proven wrong……which was the case.

During the subsequent sell down of stocks in singapore stock exchange, i was more determined to wait out for the buy signals to be triggered. This time, I would be rewarded with some trading gains…..some of my recent trades were posted here:  http://mojostock.com/forums/forumdisplay.php?f=33

And when the results seasons come to an end for the singapore share market, I have closed all my positions once the results season “window” period is over. I ended this round just about breakeven after closing all positions.

As i look at the recent trades, the bad ones were the ones which i entered “in anticipation” of a breakout.

So last Friday as i did my homework, the chart for Ferrochina looked “tempting” again……but this time round, i have decided NOT to anticipate the breakout even though US and Japan stock markets had performed strongly prior to the opening of the singapore stock market.  As i mentioned last week, the breakout trigger for Ferrochina is 1.03……and this morning the highest done was 1.02.  Had I tried to anticipate the breakout and entered prematurely, it would have ended up being a bad trade as it has fallen back to 0.98….and in the process triggered the cut loss point.

This incident reminded me the importance of being disciplined and having patience to wait for the fish to come around……

rooney