Monday, April 30, 2012

Keppel Corp - K Time

When I developed my K Time back then, I told myself that my method has to work in all markets. Be it forex, commodities, futures, indices and the stock market. What's the point of developing a strategy that only works in stocks? A strategy needs to be full fledged and simple to use. If it is too difficult and confusing, then it defeats the purpose of trading because in trading, the more complex and confusing, the harder it is to execute a trade, agree? I used to trade futures but not anymore due to work constrains.

Today, to prove that K Time also works in big caps, I traded KepCorp. I longed at 11.00/11.01 when it was about to break out at 16.25pm. Look at the attached screenshot above, many would long at breakout at 14.00pm++ or before breakout between 11.30-13.30pm only to realize that hours later, it reacted back down again. Now, there is no right no wrong, but one thing is for sure, I avoided reactions which many would be going through!! Emotionally, I already won half the battle as KepCorp did not whip me up and down.

Also to prove that I am not moving the market with big volume, I am trading small lots in CapMallsAsia, GLP and KepCorp. If I traded big quantity, many would say those stocks moved because I executed big lots. I hope this clears the air that by using K Time to time an entry, it doesn't matter how many lots one trades, because his objective is to time his sales as close as possible to the BBs before any breakout/breakdown happens.

I am perfecting K Time because I broke many rules in speculation a few weeks back. I was mad at myself because I could have got it right if not for my impulsiveness and listening to too much opinions. So to vent my frustration and redeem myself, this time round I am just trading with my own rules, no holds barred, just to get the timing element correct.

Now, do you agree that K Time is truly a poor man's strategy?

Ronald K - Market Psychologist - The Big Speculator