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Strategies

Things to take note of when entering a counter

1. Don’t be a hero to be the first one to buy/sell.
2. Cheap always get cheaper especially when you are longing or chasing it.
3. Preferably long on white candle, short on black candle. Safer to enter when the counter direction is on your side.
4. Do not show hand, enter the counter according to the risk that you can take.
5. Enter with the expectation that you can lose it and you will not take a big hit.
6. If Entry and Stop loss is given, that means you follow strictly, especially on the Stop Loss level. Do not complain when the counter have massive loss just because you did not cut loss. That’s your problem, and don’t ask me how or why.
7. Whatever counter being alerted is just my opinion. If you would like to trade it, please consult your authorized broker or remisier.
8. I may or may not enter the counter that I highlighted. If I have vested interest, I will highlight it.

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Diamond Cutter Strategy (previously known as Diamonds in the rough strategy)

Diamond Cutter  are counters that are cheap (below 0.50) that if spotted correctly will have large returns (see attached chart). However it is also very high risk. Therefore, to minimize the risk, the strategy below are being outlined:

This was the strategy that I had developed previously.

How to trade Diamond Cutter:

But first:

1. You do not want to trade Diamond Cutter counter if you cannot stand the heart attack if it goes against you.
2. You must cut loss if it does not go the direction that you want.
3. You do not want to become a long term investors of these counters as it is very cheap stock (there is a reason why it is cheap, think about it…)
4. Only use your small profit to play the stock. Do not use your capital at all.
5. This is purely for speculative and it is your own risk.
6. Do not ask me how and what to do if the stocks goes down. If you ask me that, that means that you are not practicing cut loss and you are in heavy position using your capital, which already breaks the rules above.
7. This strategy works better when market is bullish.

 

How do you trade?

1. Once the chart has been posted, watch the closing price. If it goes higher by 1 to 2 bids above the next day with high volume, then you can try some.
2. Once you have some, hang on for the roller coaster ride.
3. If the roller coaster suddenly stops, it may mean that you are in the wrong train. You may have to look for another train.
4. It is good while it lasts. Don’t keep on hoping the ride will continue forever.
5. And don’t be the last one to stay on the train.

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