Technical

I am a market trend investor....not a speculator.....The trend is your friend, Follow the trend til it ends.

The main technical analysis tool I used is 20 days SMA (simple moving averages).

My Golden rules

Buy

1.     Buy only when price just goes above 20 d MA(with volume, stays for more than 3 days)….avoid catching a falling knife….counter-trend trade…


Short/Sell

1.     Short when price just goes below 20 d MA or/and 50 d MA….when MA becomes a resistance….forms a lower high.

Example: Chip Eng Seng(CES).

Plot a 1 year chart, select "Moving Average Cross Over" indicator and input 20 (short cycle) and 50 (long cycle) days.
Note:
1. The Red line is 20 dMA and Blue line is 50 dMA.
2. I do not wait for 20 dMA to cross 50 dMA to take action....it's a bit late already.

Buy at $0.38 around Jan 2012.

Sell at $0.48

"Rather be roughly right, than be precisely wrong."

When I break the rules:
1. Short when price hit major resistance and starts coming down e.g all time high…price way above 20 d MA…reversion to the mean....e.g sell CES at $0.55 resistance(near 2011 high when 4 cents dividend was declared...CD)

When to cut loss?

Example: Cosco corp

Cosco corp showed a BUY signal at $1.02, but after 1 week it broke below the 20 day MA and stayed below it for more than 2 days signaling a SELL.

Note: Be decisive if the market reverses against you. Live to fight another day.