Friday, November 9, 2012

Capitaland - K Punt

I was very busy today meetings after meeting for the entire day. I just got home and thought it would be wise to share a stock I punted earlier before I got out from the office. I was watching Capitaland since yesterday and I knew I would have a chance today. So at 12.28pm, I shorted my first 50 lots of Capitaland at $3.43 because I saw some mini distribution in the minute chart. I was watching for a while and initiated my second batch of 50 lots at 13.15pm because I saw the selling was about to commence. Thereafter, I went for my never-ending meetings.

I was on the road and without Cityindex's platform, any execution needs to be done by calling the dealer. At 3.33pm, I finally saw it, I saw that it was about to turn so without those usual greed, fear, hope, I secured my profits of $2000 by executing my orders over the phone. Well, one might ask how did I know it's about to turn without a chart? Remember I told you all that I remember numbers in my head. Numbers are very important and when numbers changed like a change of behavior, I am cognizant of any imminent breakouts/breakdowns. Of course, this is the minute chart which has much much more noise than the daily. Capitaland is a very easy stock to read. I studied and understand it's behavior and so I was able to read the BBs movement 1-2 steps ahead before the breakdown.

When profit taking takes place, comes distribution and after distribution comes short selling and so that's what I did for what I preached in my stock operation course. Capturing the essence of profit taking with a streamlined short selling process that blends seamlessly with my stock operation course, I think that's the most simplest form of reading the minute chart.

Ronald K - Market Psychologist - The Big Speculator