Right now, it’s in the middle of nowhere.

The worst thing you can do is that you, itchy finger, you start to want to get into this trade or try to force a trade, when conditions are not ideal. So for me, it’s absolutely no doubt for me, is if I were to ever get into this trade, I would definitely wait for it to come back to here, because that is simply the characteristic of this particular stock over here. I will not try to get in on the breakouts, because very hard to get in. Because the kind of volatile movement. You break out, then you will pull back across below again, because you see this, the nature of how it moves.

Okay? So I will try to bottom pick at the key uptrend support. If it doesn’t come back to here, I will just leave it alone. It’s okay. I mean you have 150 to 200 stocks over there. Remember none of the stocks is your wife.

It’s not your relative, or whatever. It is just a simple instrument. It’s not even your car. For your car, you might feel some love for your car, but remember all the stocks, individual stocks, they are just an instrument to get an outcome and objective, which is to make profit. That’s it. Don’t ever fall in love, or don’t ever think that, “Okay, now I want to give it some benefit of the doubt.” And that kind of thing.

So this one is very straight forward for me. No getting in at all, until it comes back to here. Then, if I see a turnaround with a bullish reversal pattern, then that is worth a trade again. Because at the same time, when it comes back to here, and it goes back up, do you realize that your stock loss is just somewhere slightly below?

And you are looking at a move of at least two to three R from there at least.
So that would be a much more, better reward to risk ratio, kind of the trade to take potentially.

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Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile

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