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Post by Admin on Aug 4, 2013 13:11:20 GMT 8
Apr 25, 2013; 4:00pm Castor Castor Question on money and portfolio management
Hello Sparrow and everyone!
First post on this forum. Came across your blog and your engrish really got me giggling and interested!
I went through the blog, and its a really good one! Some questions though:
1) How many open positions do you recommend us to have at any single 1 time? This can be a fixed number of positions, or a % of capital. For example, how many % of our capital should we be risking at any one time?
2) Does this value reset after we breakeven on a position? For example, if my money management rule says that I should only have 5 open positions at one time. If I manage to shift my stop loss to breakeven for 1 of the trades, am I now open to enter 1 more new position?
3) How much do you think is a good % of capital to risk on each position? I have read around, most say 1-2% per position, but what do you think?
4) This question is on portfolio management. Do you think we should hedge for our portfolio? Which means to say that we should have a balance of long and short positions in our portfolio? and not all long or all short?
5) Do you generally look at the STI to tell you to generally go long or short on positions? or you ignore STI and just enter into both long and short trades as long as got signal to enter?
6) Haha, last question for now, sorry for having so many XD
I was observing the 10 and 20 EMA strategy. It looks very good during trending markets. But the moment price becomes rangy and whippy, it gives a lot of false signals when the 2 EMA will just criss cross each other many times? Is there any other things that you look out for to sort of decrease these false signals?
Thanks a lot!!
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Post by Admin on Aug 4, 2013 13:11:49 GMT 8
Apr 25, 2013; 4:00pm Castor Castor Question on money and portfolio management
Hello Sparrow and everyone!
First post on this forum. Came across your blog and your engrish really got me giggling and interested!
I went through the blog, and its a really good one! Some questions though:
1) How many open positions do you recommend us to have at any single 1 time? This can be a fixed number of positions, or a % of capital. For example, how many % of our capital should we be risking at any one time?
2) Does this value reset after we breakeven on a position? For example, if my money management rule says that I should only have 5 open positions at one time. If I manage to shift my stop loss to breakeven for 1 of the trades, am I now open to enter 1 more new position?
3) How much do you think is a good % of capital to risk on each position? I have read around, most say 1-2% per position, but what do you think?
4) This question is on portfolio management. Do you think we should hedge for our portfolio? Which means to say that we should have a balance of long and short positions in our portfolio? and not all long or all short?
5) Do you generally look at the STI to tell you to generally go long or short on positions? or you ignore STI and just enter into both long and short trades as long as got signal to enter?
6) Haha, last question for now, sorry for having so many XD
I was observing the 10 and 20 EMA strategy. It looks very good during trending markets. But the moment price becomes rangy and whippy, it gives a lot of false signals when the 2 EMA will just criss cross each other many times? Is there any other things that you look out for to sort of decrease these false signals?
Thanks a lot!!
1) first i will define "capital" is what u take out frm yor overall saving, eg if yor overall saving gotch 100K, u take out 10% for trading. mean u oni going to use 10000 for trading. This 10000 is yor capital, notch yor overall "saving" that u hab. So now it depend leow..weather u use tings like CFD or using cash. wif CFD nowady u can "buy more" wif less , ie leverage. u hab to check wif yor CFD broker to c how much they charge margin and stuff like that. for noobiee to trading, i sugget u take 10% out of yor total saving 4 trading.
2) No. eben if break eben, u will notch trade more than 5 position simply becors wif eberi trade (asume u use CFD) , it wil cost u margin and comms etc as well. STICK TO YOR ROOS!
3) moi advice is notch go by % but go by the chart, where yor entree is, and where possiber s/r is so u can find yor cut lever. Reduce yor position size if u hab wide cut lever if u die die want to punt.
4) NO. alway employ cut loss for eberi trade u take.
5) No. dontch trade acording STI. Trade acording to the stock u wan to pray..STI is oni abt 30+ stocks. It does notch mean STI mv , yor stock will mov wohh. u can find many such stocks maaa STI uptrend now, but many stocks stew trading below 200ema. so comon sense lorrr, trade yor stock. notch the STI
6) Simper, when 10v20 in range, u either 1) dontch trade, or 2) use 10 and 20 ema as s/r. To avoid whipz, u can trade on higher tf > 4H (daily, wkly etc). There r many stock in SGX that are trending. then just find them and trade them. Trading is all abt folow yor roos. if u c stock ranging, then forget them lorrr.. if u set it as a part of yor stratgy, then folow it lorrr.. simper.
Hopez i ans yor ques - sparrow |
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Post by Admin on Aug 4, 2013 13:12:15 GMT 8
Apr 25, 2013; 4:00pm Castor Castor Question on money and portfolio management
Hello Sparrow and everyone!
First post on this forum. Came across your blog and your engrish really got me giggling and interested!
I went through the blog, and its a really good one! Some questions though:
1) How many open positions do you recommend us to have at any single 1 time? This can be a fixed number of positions, or a % of capital. For example, how many % of our capital should we be risking at any one time?
2) Does this value reset after we breakeven on a position? For example, if my money management rule says that I should only have 5 open positions at one time. If I manage to shift my stop loss to breakeven for 1 of the trades, am I now open to enter 1 more new position?
3) How much do you think is a good % of capital to risk on each position? I have read around, most say 1-2% per position, but what do you think?
4) This question is on portfolio management. Do you think we should hedge for our portfolio? Which means to say that we should have a balance of long and short positions in our portfolio? and not all long or all short?
5) Do you generally look at the STI to tell you to generally go long or short on positions? or you ignore STI and just enter into both long and short trades as long as got signal to enter?
6) Haha, last question for now, sorry for having so many XD
I was observing the 10 and 20 EMA strategy. It looks very good during trending markets. But the moment price becomes rangy and whippy, it gives a lot of false signals when the 2 EMA will just criss cross each other many times? Is there any other things that you look out for to sort of decrease these false signals?
Thanks a lot!!
1) first i will define "capital" is what u take out frm yor overall saving, eg if yor overall saving gotch 100K, u take out 10% for trading. mean u oni going to use 10000 for trading. This 10000 is yor capital, notch yor overall "saving" that u hab. So now it depend leow..weather u use tings like CFD or using cash. wif CFD nowady u can "buy more" wif less , ie leverage. u hab to check wif yor CFD broker to c how much they charge margin and stuff like that. for noobiee to trading, i sugget u take 10% out of yor total saving 4 trading.
2) No. eben if break eben, u will notch trade more than 5 position simply becors wif eberi trade (asume u use CFD) , it wil cost u margin and comms etc as well. STICK TO YOR ROOS!
3) moi advice is notch go by % but go by the chart, where yor entree is, and where possiber s/r is so u can find yor cut lever. Reduce yor position size if u hab wide cut lever if u die die want to punt.
4) NO. alway employ cut loss for eberi trade u take.
5) No. dontch trade acording STI. Trade acording to the stock u wan to pray..STI is oni abt 30+ stocks. It does notch mean STI mv , yor stock will mov wohh. u can find many such stocks maaa STI uptrend now, but many stocks stew trading below 200ema. so comon sense lorrr, trade yor stock. notch the STI
6) Simper, when 10v20 in range, u either 1) dontch trade, or 2) use 10 and 20 ema as s/r. To avoid whipz, u can trade on higher tf > 4H (daily, wkly etc). There r many stock in SGX that are trending. then just find them and trade them. Trading is all abt folow yor roos. if u c stock ranging, then forget them lorrr.. if u set it as a part of yor stratgy, then folow it lorrr.. simper.
Hopez i ans yor ques - sparrow
Hello Sparrow!
Thanks for answering my questions 
What I meant about trading with STI is, for example now STI is rather bullish, so we look for counters that have good long signals. However, ignore those with short signals.
I know what you meant about certain stocks not following STI general direction. But from some of my observations, even if stocks are not in the 30 component stocks of STI, a lot of them still follow the "general direction" of STI.
This is what I notice, when STI rally on that day, a lot of stocks (even not the 30 stocks) tend to go up as well, and the opposite is also true. So wouldn't we want to stick to the "higher probability" trades?
What I meant about hedging the portfolio, I think i use the wrong word. I mean do you think we should diversify our portfolio by having some stocks that we long and some short instead of having say all 5 long counters?
Thanks!! |
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Post by Admin on Aug 4, 2013 13:13:38 GMT 8
Thanks for answering my questions What I meant about trading with STI is, for example now STI is rather bullish, so we look for counters that have good long signals. However, ignore those with short signals. I know what you meant about certain stocks not following STI general direction. But from some of my observations, even if stocks are not in the 30 component stocks of STI, a lot of them still follow the "general direction" of STI. This is what I notice, when STI rally on that day, a lot of stocks (even not the 30 stocks) tend to go up as well, and the opposite is also true. So wouldn't we want to stick to the "higher probability" trades? What I meant about hedging the portfolio, I think i use the wrong word. I mean do you think we should diversify our portfolio by having some stocks that we long and some short instead of having say all 5 long counters? Thanks!!
Okiee let say ALL the stocks in SGX folow general dierctiion of STI (say uptrend in this case), then how u decide when u shud enter a stock of yor choice? unless u dontch care abt that n anyhow enter as long as gotch the trend there and yor risk lever beri the high. rembr in a trend, then can be period of LS 4 kopi taking etc.. u will stew nid to find a guud enter point so that u can get best rewards and lower risk. diferlent stock gotch diferlent suply demand area.
last time when pee pur dontch hab such ting as CFD, they canotch do shorts. That y part of reason pee pur "diversify" is they scared if this sector notch doing well, then the other sector that do well can "offset" the losses, make it seem like lose less lorr..in a way, this is "hedging" to moi laaa..
but since u mean notch hedging, then if u tink abt it, its just realy trade 5 diffelent stock niaahh lorrr. Okiee so if u trade on CFD and gotch 5 stocks gotch signer and confirm. 3 Long signer, 2 short signer and u trade them all. u r basicly just trading 5 stocks niahh becor all of them u gotch signer (in both dilections) maaa.
when u trade on chart wif CFD where u can do both long & short, dontch nid to tink toooo muchie..gotch signer, u trade. long or short dontch mater. |
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Post by Admin on Aug 4, 2013 13:14:21 GMT 8
halo Castor,
Okiee let say ALL the stocks in SGX folow general dierctiion of STI (say uptrend in this case), then how u decide when u shud enter a stock of yor choice? unless u dontch care abt that n anyhow enter as long as gotch the trend there and yor risk lever beri the high. rembr in a trend, then can be period of LS 4 kopi taking etc.. u will stew nid to find a guud enter point so that u can get best rewards and lower risk. diferlent stock gotch diferlent suply demand area.
last time when pee pur dontch hab such ting as CFD, they canotch do shorts. That y part of reason pee pur "diversify" is they scared if this sector notch doing well, then the other sector that do well can "offset" the losses, make it seem like lose less lorr..in a way, this is "hedging" to moi laaa..
but since u mean notch hedging, then if u tink abt it, its just realy trade 5 diffelent stock niaahh lorrr. Okiee so if u trade on CFD and gotch 5 stocks gotch signer and confirm. 3 Long signer, 2 short signer and u trade them all. u r basicly just trading 5 stocks niahh becor all of them u gotch signer (in both dilections) maaa.
when u trade on chart wif CFD where u can do both long & short, dontch nid to tink toooo muchie..gotch signer, u trade. long or short dontch mater.
Hello Sparrow!
Thanks for the reply, I understand now!
I ask this is because past few days I was in a short position for Yanlord, Golden Agri, CapMallsAsia, entered short after their pullbacks, because they were in a downtrend.
But yesterday really got owned and stopped out for all these 3 counters because apparently STI breakout from the range, when some of these are not even part of the 30 component stocks, but still shoot up!!!
Which is why I was asking you if we should LOOK FOR counters to short when index is in a bull run, or just chiong long position all the way (of course I think this would be more risky because if market crash or anything gg) You know what I mean? hehe. |
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Post by Admin on Aug 4, 2013 13:16:28 GMT 8
Apr 26, 2013; 10:44am Castor Castor
Hello Sparrow!
Thanks for the reply, I understand now!
I ask this is because past few days I was in a short position for Yanlord, Golden Agri, CapMallsAsia, entered short after their pullbacks, because they were in a downtrend.
But yesterday really got owned and stopped out for all these 3 counters because apparently STI breakout from the range, when some of these are not even part of the 30 component stocks, but still shoot up!!!
Which is why I was asking you if we should LOOK FOR counters to short when index is in a bull run, or just chiong long position all the way (of course I think this would be more risky because if market crash or anything gg) You know what I mean? hehe.
halo castor,
sometime it beri much depnd on yor where u put cut loss lorrr and how u make use of those ema lines lorr. take 4 xxamper, yanlord shown in chart. if u shorted , yor cut can be above the 100 by logivcal sense. if risk lever cannotch take, then punt smaller reduce size.. notezz oso, 200ema nearby. if u short be4 , then 200ema can be yor kopi tgt. sometimes due to ema lines being rather close togeether and price ish oso within, u can just forget about that stock lorr.. for yanlord, moi wud notch punt untew gotch clearer signer. just an xxamper niaahh frm hindsight niaahh..
soimetime, it oso depnd on how expelience u r wif reading price action. 4 xxamper, capmallais chart shown below. read acording to numbr indicated. this is hindsight horrr.. just someting to notez next time to improv.
lastlee, i want to mention, indicator r just indicator. they r notch garlanteed 100% zhun. if BB want to pray a stock, they will lorr.. it how u mange yor position and risk that is importent. if we r wrong, then we r wrong. we just hab to cut niahh to reduce loss. that all .
may knw how many yrs u trading leow? just curlioius |
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Post by Admin on Aug 4, 2013 13:16:53 GMT 8
Apr 26, 2013; 8:08pm Castor Castor
Hello Sparrow!
Experience for trading close to 1 year lol. But I started out in forex, just tried out the stockmarket a few months ago
Hmm.. But I usually don't like to take kopi so fast, I prefer to ride the trend, so for both trades I will most likely not exit so quickly there, but just enter on pullback and anticipate a break of the support.
Thanks for your help Sparrow! Appreciate it 
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