2009-07-17: AscendasIndiaTrust, Healthway, Parkway - update

Sold off Ascendas India Trust at 0.68. I was getting impatient over this counter. Within the next 3 trading sessions, it went up to 0.71. The biggest problem with this trade was that I was looking too closely at the intra-day fluctuation and lose sight of my own trading rules. The second problem was to set the stop loss point too near to short term support where it is very often break. Allowing 3 bids below support would have prevented pre-mature sell off.

Healthway was sold at 0.10 and it closed at 0.105 on 17th July. There is not need to sell off if the counter has not breach the stop loss point. The fear of losing money has overcome me in this trade and prompted me to sell off prematurely.

Parkway was sold off at 1.69 on 17th July. The reason for selling was that on 16th July, it opened at 1.72 and was sold down to 1.68 during a super bull day. This caused me to get impatient over it since it kept showing sell down while other stocks are push ahead. Looks like it is going to go down. However, at the end of the day, it turn out that it was closed at 1.71. Now the counter looks a little bullish. Again, the same mistake as the above 2 counters.

The conclusion that I had drawn from these and many other trades that I'd made is that I must stick to using oscillator to monitor the stock and disregard the intra-day fluctuations. I should only focus on closing prices of each day and stop from playing intra-day fluctuations.

Playing intra-day fluctuations sounded like very cool and professional. In the end, the reward was not attractive and it is very much prone to manipulations of the bigger players. There is no point to get sucked into the fights between buyers and sellers. It would be wiser to sit aside and watch the outcomes of their fight before taking sides. In this way, we can know more clearly which is the winning side.

This is a very important lesson and it must be adhere strictly. As for now, using the combination of Stochastic and MACD and Moving Averages to trade seems to be able to make more winning trade than any other tools.