A good start for 2016

Missed out on the gaming run, but here is my trade diary for January 2016:


Sorry, I blocked out the names and don’t have another copy.

First stock is CAL and the 2nd one is DAVIN.

Range trade play for CAL. CAL range 201601

Sold majority of DAVIN too early because TP levels hit.



Following the Trend on SMC.

SSI Momentum play.


Mistakes of the Month:

  1. Took some losses on NIKL as Boaris tried to bottomfish too early. Had to cut and take a larger than normal loss because the bids dried up.
  2. Missed out on the whole Gaming sector rally. <\3


Excited for the next month! Come on, February!


Standby ION control…

So, the past few days went something like this:

Star Wars fans will know
Star Wars fans will know
Everyone’s talking about ION.

How did Boaris Baltazar Y Quintillion trade this stock?

ROUND 1:   

round 1

2 days hold.

Bought on:

Sold all.


round 2

Bought again on:

Sold partially.


round 3

Added some more:

Sold all.


round 4

Bought again on:

This was not a winning trade.

Lost some money in Round 4.

Yeah, pretty underwhelming story señor BoarBQ!!

Especially compared to this guy: (Yup, this is the droid you’re looking for):


The Battle of Buyers and Sellers:

Battle of Hoth

Will the Rebels be able to defend the ION cannon from the assault of the Empire?

Who do you think will be the victor?

P.S.: Forgive the Star Wars references. Boaris just re-watched the original trilogy. :p

Missed Out!

Missed the recent run up of TAPET and PXP because I am all in on 2 TF babies.

Two ceiling opportunities lost because I held on to consolidating stocks; one nearing the tip of a triangle and another is in a pennant.

This lost trade hurts me more than taking losses.

TAPET and PXP were easy to trade too and the setups were basic and familiar.

I’ll just leave this here as a reminder that I can still be clingy:

Clingy Koala
I won’t let you go, my tree!
If I sold my TFs to enter these stocks that were breaking out, and then return to my TFs after selling them breakouts, would it be worth the risk?

Those breakouts may be duds and my TFs may be the ones breaking out anytime soon.

To maximize efficiency, I should have sold my TFs when they started showing signs of consolidation and just return to them when they start trending again.

This is assuming I will not lose money on the trades I’m switching into. But this is a statistical impossibility.


Note to self: Still need to improve on my portfolio management.

Let’s go back to the drawing BOARd.

TF = Trend Follow stocks

On Entering Trades

RULE # 1

“Thus it is that in war the victorious strategist only seeks battle after the victory has been won, whereas he who is destined to defeat first fights and afterwards looks for victory.” 

The last plan of Robb Stark.

We only enter a trade when the conditions are set for us to win.

This is the cardinal rule; Win the battle before it is fought.

There is no point in making a trade when the reward is not worth the risk.

Do not enter into a trade when you are uncertain or afraid.

Do not enter a trade half-heartedly and then “hope” to win.

Weigh in the probabilities and make sure that the odds are with you.

Value the time value of money. Entering a trade entails opportunity costs.

Calculate the best chance of winning in stock A or B or Cash.

There is no point in holding a consolidating stock if other issues are breaking out.

We do not go into a trade and then wait for the chart to go in our favor;

Rather, we wait until the chart is in our favor then go into the trade.

Note: There is no such thing as a “sure victory”, there is only statistical probability.

76.4% chance of taking over the world

RULE # 2

“The general who wins the battle makes many calculations in his temple before the battle is fought. The general who loses makes but few calculations beforehand.”

Batman always does his homework before facing his enemy.

The keyword here is “Before/Beforehand”.

Before making a trade, do your homework and create a trading plan.

A trading plan should include your rules for entry and exit. (The more detailed, the better)

Entry: Entry points, Position sizing, Trend confirmation, Risk reward ratio, Breakout points etc etc

Exit: Cut loss area, Trail stops, Take profit levels, Trend breaks, Time limits etc etc

(I would argue that Exit rules are more important than Entry rules; Selling is an art.)

Draw up your charts and trading plan beforehand.

Do not try to improvise on the fly.

During trading hours, there will be a lot more variables and emotions in play.

Your judgement will be clouded by market noise and your own biases.

Sure, if you don’t have a plan, you might get lucky a few times; but you will never be a consistent trader.

Eventually, you are going to surrender all your gains and more back to Ms. Market.

Consistency is king; It is better to be consistent than lucky.

Without a trading plan, you are only gambling and it is only a matter of time before you get wiped out.

Well… Do ya?

RULE # 3

“It is the rule in war, if ten times the enemy’s strength, surround them; if five times, attack them; if double, be able to divide them; if equal, engage them; if fewer, defend against them; if weaker, be able to avoid them.”

For the Horde!

Pick your battles carefully, boars and girls; we do not need to trade everything that moves.

We only have so much resources so we put them into play only when the odds are with us:

If it is overwhelmingly in my favor, I would go all in.

If it is greatly in my favor, I won’t hesitate to make the trade.

If it is considerably in my favor, I would enter perhaps in tranches.

If it is slightly in my favor, I would look for another opportunity.

If it is not going in my favor, I would cut to fight another day.

“He who knows when to fight and when not to fight, will be victorious.”

Yup, today is not a good day to die…

(All quotes from the Art of War, Sun Tzu)

If you read the book, just replace the words below:

General = Trader                       Battle = Trade

State = Portfolio                         Troops = Money