Ha Ha ..
I tend to look for
Catalysts nowadays. This is the "N" in CANSLIM. It could be:-
1) Earnings Announcement
2) Analyst Report
3) Company Announcement
4) Speech from Regulator ( I tend to sit up and take notice when the Prime Minister is speaking )
5) Newspaper Article
etc.
The stronger the Catalyst the better
As long as that company is not trading too long in the tooth, I may buy for the ride.
I normally try to buy at the 25th percentile of the trading range and try to sell at the 75th percentile.
If I have a profit of about Sin$500 in a few minutes, I may take it. If it is a strong day, I may wait until just before lunch to take it. The first 30 mins of the trading day is normally the best time to sell. Whenever something spikes up, it's also a good time to sell. I have sold and bought back positions if the story is still intact.
I normally watch Bid and Sell Volumes for signs on for whether to hold or fold. If I see somebody scooping up large amounts then I may want to hold on a bit longer or even average up if it has not spiked too much. Similarly, if I see someone selling big blocks, I will try to get out immediately.
After a a week or two, people are normally no longer interested in the counter anymore. That's normally the time to get out if I have not already sold. Hence I dont have to really worry about Stop Loss.
Example:-One week before the NPC meeting, there were rumors that China will be spending a lot of money on Tibet, Xinjiang and Green Energy.
I couldn't find any good Xinjiang and Tibet plays. But there were a couple of Green Energy plays so I bought most of them eg. largest Solar, largest Windfarm, largest Wind Turbine maker, largest Bio Fuel Supplier.
Some of their PEs were ridiculous eg. 40x but since I know that I'm betting for a week or two, PE does not matter to me.
before buying, I would check to see whether there were any recent announcements, news etc, to make sure that I'm not going against any bad news.
I also check the graph to make sure that it had not spiked up in the past few weeks. That's because I dont want to be buying when the short term players are just about to take their profits.
Anyway, all of them spiked up about 10%, 2 days before the NPC Meeting. That was the time for me to exit. I could have waited until the meeting and sell on any announcement but since it's a trend-less market, I prefer to take any windfall profits.
Another Example:-In Singapore, millionairemind alerted me to Capital Malls Asia. I bought a position and when the announcement was made about their inclusion into the Index, it spiked up. I sold close to the top of that spike. Then there was profit taking.
I bought again as the story is still intact (as it would be included only in a week's time). It went up and I sold again. There was again profit taking and I bought the third time.
It spike slightly and started to drop. As it was getting close to the end of the week, I decided to sell the last position.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
