Uncle Ti 88

F&N - SGX If you look at the first post of this blog Long F&N (F99 - SGX) 6.28 , we are using the Simple Moving Average (SMA200) to trade F&N. Here the SMA200 was triggered long at 6.05 (wait for a couple of bars to confirm) however long was initiated at 6.28 as we have missed the early entry. Stop-loss was triggered at below the SMA200. Here we take it as 5.98, a couple of bars below the SMA200. Our entry is stopped for a loss of 0.30 (Exit at 5.98). Yesterday close was at 5.60. Stop-loss is a very important component in trading. Always have a stop-loss! Always know when to cut your losses instead of hoping the price to turn around. Protect your capital and live to trade another day.

F&N - Long on 10th May 2011 Long at 6.28. I use SMA 200 to see general trend and use this as one of the factors for entry. Exact entry is determined by the individual. Some people add in their own additional conditions be it technical or fundamental before entering. Entering at the right time is important. Entering too early might create a whipsaw, entering too late the price would have move a lot. Stop-loss is determined by the same method.