Wednesday, May 18, 2016
After two bull day for this week, it finally turns to bear today (Event Wednesday).
Monday I bought HGU, yesterday sold to take profit, but this morning I bought it back. then it drops 5 dollar per stock.
My HGD is profiting finally, but I am not put it on sale because I don't know whether it will drop over night.
Three factors are important for trading at stock market, first is defence (for a monk, the defence is their precepts, for me as a trader, I follow my rules (or discipline).
One rule is when stock drops I don't sale and buy it at lower price, it does not work for me, because I may miss to buy before it goes up)
the second rule is when stock drops, and I already have one, I don't buy it at already lower price, because the stock could go even lower, and I will be imbalanced (to put too much position on the losing stock)
To support my two rule, when the stock "yin" drops, I buy "yang" to cover the loss of "yin", after sale yang, I wait "yin" to go back, or buy "yang" again to fence off "yin" .
Now my problem this week is I don't have enough cash to cover all three yin-yang stocks. for gold and silver, I can only cover one with my cash. (reality, I have to cover gold and abandon silver for now, silver is less volatility)
The second factor is the ability to keep unmoved.(the samadhi power) This is a practise, you are not moved by the wind of market, for the wind I mean the emotions of greed and fear.
The last factor is the ability to win (wisdom). Currently I am still in loss. It will come when I practice the first two really good. For win, here are the things I am looking for:
- candlestick & bollinger bands for a good setup to enter
- weekly chart after a week, and determine the trend for the next week
- chart for years, determine the overall trend currently. (hold for longer position)
so far I put longer position on gold, silver and oil they are all bull (my previous post), but this week it is bearish on gold and silver.
Just keep practice.