CapitaLand – reaching a potential distribution zone | Technical Analysis | Singapore Stocks

A support turned resistance zone is a strong psychological zone where short-term traders would try to fade, or take profit on current longs. Hence, it is advisable to trail tight stops and watch the smart money carefully.

CapitaLand – triangle breakout | Technical Analysis | Singapore Stocks


This is indeed a breakout from triangle formation. Some might argue its an ascending triangle due to the obvious double top peaks formed earlier but either way of looking at it is fine. I have drawn it as a symmetrical triangle in the attachment for easy reference. As for the price target, you actually look at the apex of triangle and apply the 2/3 RULE. That is to say that you draw the arrow taking the apex of the triangle as a reference point and count back 2/3 of the time frame. The price objective would then be the breakout price + height of base.

Asia Investment Banking Conference 2009


This event was held in SMU, and saw professionals and student flying in from all over the world to attend talks and networking sessions with a variety of renowed industry speakers. 

After 3 days of talks and workshops, the event culminated in a memorable networking dinner and social drinking session in a professional setting. It was indeed a great opportunity to network with many industry professionals.

The 3 Essential Elements in your Roadmap to Success

Having studied many professional traders, I found that there are 3 crucial factors that have led to their success. All these market wizards have found success because they have understood and mastered the 3Ms of trading – Method, Money and Mindset.

Method (chart-reading): Process by which a trader enters into the market, using either technical or fundamental inputs to make their decision

Money (risk management): This includes capital allocation, risk parameters (drawdown limits), risk-to-reward calculations (entry price, profit target, stoploss)

Mindset (psychology): Market psychology the most important part of trading, and determines how well you can execute your trading plan in the markets in real time

The 3 Essential Elements in your Roadmap to Success - Wrong Allocation!

The 3 Essential Elements in your Roadmap to Success – Wrong Allocation!

To many new traders who know of these 3Ms, they tend to make the mistake of giving equal weightage to all 3 parts (refer to above), or even worse, almost 100% weightage to the “Method”. The most obvious danger is neglect to the other essential parts.

In reality, a professional trader should allocate the 3Ms as depicted below here:

“Don’t focus on making money; focus on protecting what you have.” – Paul Tudor Jones

Technical Analysis: The Basics of Reading the Market

Technical Analysis is the study of price patterns and trends in the financial markets so as to exploit those patterns. It is in effect applied mass psychology, for it studies the collective action of all market participants. The classical method focuses on analyzing behavioral patterns and patterns, while the statistical method uses formulas and statistics to find mathematical patterns.

Technical Analysis: The Basics of Reading the Market

Technical Analysis: The Basics of Reading the Market

 

In applying technical analysis, the same skills can be applied almost universally across different charts and markets, for example a head and shoulders pattern on a stock chart can be interpreted in a similar way to one one a forex or commodity chart. This is useful if you need an immediate opinion on a market that you know nothing about. The reason technical analysis works so well across different markets universally is because it analyses market psychology, which is the collective psychology of individual market participants.

In contrast with fundamental methods, technical analysis is much less time consuming, for example it can take as little as five minutes to analyse a chart, while doing a valuation on the same stock may take days. This is possible because market technicians believe that market action discounts everything, so instead of trying to figure out the “true” value of a stock by valuation, the technician allows the market to do that for him, by looking at the consensus of all market participants. In addition, technical analysis provides great timing and price projection tools, which cannot be found in the fundamentals.

Technical analysis is used to find opportunities when the probabilities are in your favour, and project possible paths and key levels that prices will reach. It is using past data to make a calculated guess of the future. It is NOT a crystal ball that can forecast the future.