Swing Trade - Kep Corp 20090623

Kep Corp Stop out on 23/06/2009 at 6.48. Counter closed at 6.45.

This is a test trade. It shows that using Candlestick is not a reliable swing trade tool. In any case, swing trading within 2-5 days time frame is not viable in SGX. (Refer to Getting Started in Swing Trading by Michael C Thomsett). It is extremely difficult to change small moves in SGX counter even with counters like Kep Corp which is a large cap stock with relatively high trading volumes. This is even more so for smaller cap stock with much less activity.

One key issue with index stock is the over market condition changes. Fund managers will sell down out of fear.

However, on the second day, the market shot up and KepCorp recover most of its loses and closed at 6.63 on 24/06/2009. Today, I am expecting KepCorp to go down slightly to around 6.58 - 6.60 range unless some positive news in the afternoon.

In general, short swing trades tends to be influenced by news and changes in overall market condition. This may not be a viable trading option for me because I don't want to spend too much time monitoring news and prices on screen. This is not practical.

The next method is to use Cyclical Trading Method. This is also doing Swing Trade but with a time horizon of 5 to 30 trading sessions. This method required bigger swing and will provide less trading opportunities. It means also taking bigger risk and expecting much larger profits. It may mean less than 5 trades per month on average. It also may mean following the overall market trend to trade. Some considered this as mid-term trading. For a start, I will use Stochastics combined with MACD for entry and exit signal.