Sunday, October 11, 2009

A deeper look at my recent mistakes

Dwelling more deeply into my mad forays into Wilmar, Orchard Parade and Ezion, let's see if all these are avoidable.

Wilmar
I bought when

1. stochastics still falling
2. parabolic SAR still showing red
3. prices have not even touched 23.6%

In other words, I bought too early. Avoidable mistake.

Orchard Parade
I bought when

1. Parabolic Sar still flashing red but

2. Bullish engulfing
3. Prices bouncing off from 23.6%
4. Prices bouncing up from lower channel
5. Stochastics turning up

Nonetheless, the market took it down with it. I paid attention to the stock, but ignored the market. Avoidable mistake.

Shorting Ezion
I made the cardinal sin : trade against the trend. Definitely avoidable.

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