Great surge on STI yesterday leaded mainly by the three banks bringing up the index to 64 points. buyers flock the market with optimism that the Q2 earnings will be strong!
This is extremely bad for me as I had liquidate myself into cash position making some losses from china essense when dow jones show weakness two weeks ago and most of the counters are too high for me to enter now...
Let me retrace my trades on essence I made my entry price @ 0.95... a day after the counter show a hugh increase in trading volume, after purchasing it, the trading volume as extremely low for the next 8 session... i dislike the looks of it as low volume mean low liquidity... at that point, dow jones show weakness... feeling the worse is going to come, I cut loss at 0.905.... Looking at the counter made me felt stupid as it made a peak at 1.13 yesterday...
This is extremely bad for me as I had liquidate myself into cash position making some losses from china essense when dow jones show weakness two weeks ago and most of the counters are too high for me to enter now...
Let me retrace my trades on essence I made my entry price @ 0.95... a day after the counter show a hugh increase in trading volume, after purchasing it, the trading volume as extremely low for the next 8 session... i dislike the looks of it as low volume mean low liquidity... at that point, dow jones show weakness... feeling the worse is going to come, I cut loss at 0.905.... Looking at the counter made me felt stupid as it made a peak at 1.13 yesterday...
The other counter that I turn into cash position during the dow jones weakness is inter-roller....Locking in at a peanut profit of $25... and now inter-roller is laughing at me...
From the above, I conclude that technical analysis is limited as it indicates the price movements in the short term future... For a longer term, I believe that fundamentals analysis on the company financial information is the key. Thus, I will begin my quest to learn fundamental analysis...
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