Our Trading Plan in Action: SM's Higher Right Foot Bottom in Trade #1 of 20

The Higher Right Foot Bottom

• Criteria 1: Declining stock and declining 20-MA.

• Criteria 2: The stock was able to break through the 20-MA.

• Criteria 3: The stock makes a higher right foot.

SM Investment Corporation (SM) Chart

• Below is the screenshot of SM Investment Corporation (SM) on April 13, 2023, after the market closed:

SM Investment Corporation Chart: April 13, 2023

• We have conducted our own analysis of the chart, based on our current knowledge and understanding at the time the screenshot was taken. Our analysis is available in the post titled Marginal Stock Trader Tests a Trading Plan: First 20 Trades of 2023. Please feel free to review it.

• In hindsight, we are revisiting this chart from the point of view outlined in the YouTube presentation How To Identify Oversold Markets. What follows is our analysis of the chart using The Higher Right Foot Bottom concept:

Marginal Stock Trader Analysis Overlay: Higher Right Foot Bottom Analysis for SM as of April 13, 2023

Criteria 1: Declining stock and declining 20-MA

• From March 6 to March 14, the SM stock has been making a series of lower lows. During the same period, its 20-Moving Average (blue line) is also declining.

Criteria 2: The stock was able to break through the 20-MA

• On March 17, the SM stock suddenly broke through the 20-MA for the first time.

Criteria 3: The stock outlines a higher right foot bottom

• The stock then made a pullback, showing a lower left foot on April 4 and what appears to be the formation of a higher right foot on April 13.

Conclusion

• The SM stock satisfies all the criteria for a higher right foot bottom pattern, as described by Oliver Velez. This indicates a high probability of a bullish trend reversal, as this chart pattern typically occurs at the end of a downtrend and signals a potential reversal to the upside. 

• Confirmation of the pattern occurs when the stock price breaks above the resistance level formed by the higher right foot. This is typically seen as a bullish signal by traders, who may consider entering a long position in the stock. 

• However, it is important to remember that there is no guarantee that the pattern will play out as expected, and traders should use other indicators and risk management strategies to make informed trading decisions.

SM Stock Performance Confirms Our Conclusion

As of April 16, 2023, we have taken a screenshot of the SM Chart which displays the closing price of the last trading day of the week on April 14, 2023. Based on our analysis, the screenshot confirms that the stock has a Higher Right Foot Bottom pattern. Consequently, we decided to enter the market at Php902.50 and purchased 20 shares, which optimized our available Buying Power of Php20,000. We believe that this trade validates our previous conclusion in the post entitled Testing Our Draft Trading Plan: First 20 Trades of 2023, as it appears to be a self-fulfilling prophecy.

Marginal Stock Trader Analysis Overlay: Analysis: SM Investment Corporation (SM) Chart of April 14, 2023, closing which confirms the Higher Right Foot Bottom pattern. We entered the market at Php902.50 and bought 20 shares.

Marginal Stock Trader's Trading Plan Tested: Trade #1

We outlined our trading plan in our previous post Marginal Stock Trader Tests a Trading Plan: First 20 Trades of 2023 which we are currently testing. This post is about the first of the 20-trade testing process to determine the performance of our plan. Our trading plan consists of 8 Parts, namely:

1. Identify

• There is a set of 10 major bars that the market tends to repeat over and over again. In total, there are 13 bars, with three of them being uncolored. Out of the colored bars, only 10 of them are relevant and repeatedly presented in the market. These 10 bars appear in no particular order but are the only ones encountered repeatedly.

Screenshot of 10 Major Bars from Oliver Velez's YouTube presentation entitled "The Steps Every Day Trader Must Know to Be Profitable" shared via the link https://www.youtube.com/live/30a4gX4bOfU

• We found a Bull Elephant Bar 180 (+180) before the lunch break of April 14, 2023, using the 5-minute time frame.

2. Location

• The Bull 180 (+180) was on and above the 20-MA, and definitely above the 200-MA.

3. State 

• In terms of state, we would describe it as slightly narrow, but most probably above the neutral state. 

• The midpoint between the Tight and Narrow State and the Wide State with the 20-MA either on top or below the 200-MA is the Neutral State. In the Tight and Narrow State, the price of the security is tightly confined within a narrow range, with the 20-MA either on top or below the 200-MA. This typically signals a consolidation period, where the market is undecided about the direction of the trend. Traders can look for breakouts from this range to make trading decisions.

• In contrast, the Wide State occurs when the price of the security is trending strongly in one direction, with the 20-MA either on top or below the 200-MA. This signals a potential trend reversal, and contrarian traders may look to take positions opposite to the prevailing trend.

• The Neutral State occurs between these two extremes, where the price of the security is not confined within a narrow range nor trending strongly in one direction. This state can provide traders with opportunities to take positions in either direction, depending on other market indicators and risk management strategies.

4. Entry Method

• We employed Oliver Velez's concept of Anticipation Entry (AE) to enter the market.

• The Anticipation Entry method is a trading technique developed by Oliver Velez, a renowned trader, and author. It involves identifying a pattern in the market and entering a trade before the pattern is fully confirmed. This technique is used to capture the early part of the move and to enter at a more favorable price than would be possible if the trader waited for full confirmation of the pattern.

• To use the Anticipation Entry method, a trader needs to have a good understanding of the market and the patterns that appear in it. The trader then looks for patterns that are likely to lead to a particular market move, such as a trend reversal or a breakout. The trader then enters the trade before the pattern is fully confirmed, with the expectation that the move will follow through in the anticipated direction.

5. Initial Stop Method

• We set our initial stop to limit our loss at 1 bar. This means we liquidate our position if the price goes down to Php883.50 the low price of the day.

6. Add Method

• Our current buying power does not allow us to add to our position at this point.

7. Profit Method

• We refer to the previous post which mentions of 5-profit taking rules. We shall only consider 3 of the rules.

• Rule #2: Three-Push Profit Rule states that at a certain point, you can either take all, take a portion, or take no profit. An example of this rule in action for SM occurred in the last quarter of 2022, specifically between November 22, 2022 and December 1, 2022.

Marginal Stock Trader Analysis Overlay: 3-Push Profit Rule Analysis for SM

• Rule 4: One of the rules we follow is the New High Profit Rule which states that we should consider taking profits when a stock reaches a new high. An example of this occurred for SM between March 22, 2021 to April 7, 2021, and we are looking for similar patterns to help guide our decisions.

Marginal Stock Trader Analysis Overlay: New High Profit Rule Analysis for SM

8. Stop Adjustment Method

• If the pullback breaks beyond 50%, we need to make an adjustment and exit after three pushes.

More details about our trading plan

We are listing here the other features of our plan that may significantly affect the outcome of the test being conducted:

Stock Bias: SM Investment Corporation (SM)

• Stock bias refers to our preference towards blue chip companies for purposes of testing our trading plan.

• SM Investment Corporation (SM) is a Philippine conglomerate holding company with interests in retail, property development, banking, and other industries. It was founded in 1958 by Henry Sy Sr., who started with a small shoe store in Manila and gradually expanded into other businesses. Today, SM is one of the largest companies in the Philippines and is listed on the Philippine Stock Exchange. Some of the company's subsidiaries and affiliates include SM Prime Holdings (property development), BDO Unibank (banking), and SM Retail (retail operations). SM has a significant presence in the Philippines and has also expanded its operations to other countries in Southeast Asia.

Trading Capital: Php20,000

• This refers to the amount of money that we can afford to lose in the pursuit of trading profits. Based on the related post 7 Categories of Stock Traders Based on Buying Power proposed by Micro Stock Trader, we would be considered  Intermediate Stock Traders.

• Traders falling under the category of "Intermediate", with investment amounts up to Php50,000, typically possess a relatively greater understanding of the stock market and its technical as well as fundamental analysis. They are often inclined toward high-risk investments and begin to diversify their portfolio.

Online Broker: BPI Trade

• BPI Trade, the online trading platform of BPI Securities, which is the stock brokerage arm of the Bank of the Philippine Islands (BPI), is a fully integrated platform that allows clients to place online orders to the Philippine Stock Exchange. It provides real-time stock market quotes and comprehensive research, empowering users to make well-informed investment decisions anytime, anywhere.

Primary Source: Oliver Velez Trading YouTube Channel

• Oliver L. Velez has been the #1 source for professional trader education since the mid-1990s. Through his best-selling books, global seminars, and his intensive training sessions, he has reached and changed the lives of tens of thousands of traders worldwide. 

Investor Type: Aggressive Investor

• In a related blog post Awakening of the Marginal Investor or Speculator by The Starter Investor, the aggressive investor is someone who fully comprehends their security purchases and justifies them through personal study or experience. This investor can expect to double the average annual return of the defensive investor but also accepts the possibility of significant losses. They are comfortable with high-risk investments such as stocks and have a long-term investment horizon.

Trading Style: Swing Trading

• Although we mentioned in our About Micro Stock Trader page that we focus on day trading, we realized early on that we need to be at the Advanced Level Category online trader with up to Php100,000 trading capital to be profitable in the market plays of a day trader. Hence, we would be more comfortable doing swing trading while testing our trading plan.

Candlestick Chart Time Frame: Daily Chart of Closing Prices

• A candlestick chart is a type of financial chart used to represent the price movements of an asset over time. In our specific case, the candlestick chart is based on a daily time frame, which means that each candlestick on the chart represents one day of trading activity. 

• The chart is based on the closing prices of the asset for each day, and the candlesticks are formed by plotting the opening, closing, high, and low prices for that day. The candlestick chart provides a visual representation of the asset's price movements and can be used to identify trends and potential trading opportunities.

Time Frame of Trade: 3 to 10 Days

• Our time frame selection is based on the desired trade duration.

• In this case, we aim to take a trade with a duration of three to five, to ten days.

• Hence, we have chosen the daily time frame to facilitate our trade.

• This information was derived using Oliver Velez's YouTube presentation titled How To Trade Key Retracement Without Indicators.

In summary, this is the trading plan being tested by Micro Stock Trader: We prefer blue chip companies and have a bias towards SM Investment Corporation. We have a trading capital of Php20,000 and use BPI Trade, an online trading platform. Our primary source is Oliver Velez Trading YouTube channel. We could be classified as aggressive investors but with short time horizon, and our trading style is swing trading. We use a daily candlestick chart to represent the price movements of an asset over time, with a time frame of 3 to 10 days.

For our first of 20 trades, we have identified and eventually confirmed the Higher Right Foot Bottom pattern. For our next trade, we are keeping watch of either the 3-Push Profit Rule or the New High Profit Rule patterns to show up for our exit.

Alternatively, we can still refer to the BPI Trade Traders' Takedown report giving SM a BUY rating and establishing a target price (PT) of Php1,120, indicating a potential increase of approximately 25% as of April 12, 2023. 

We invite you to keep reading our posts to find out the results of our testing. We are excited to share our progress and insights with you as we go through the process of implementing and refining our plan. Stay tuned for more updates!

Marginal Stock Trader Tests a Trading Plan: First 20 Trades of 2023

Testing Our Draft Trading Plan: First 20 Trades of 2023

Oliver Velez discusses the importance of a trading plan for a successful trader and its essential components in his YouTube presentations, "The 7 Parts of a Master Trading Plan - (Profitable After 20 Trades)" and the "Trading Strategies: The Eight-Step Formula for Winning Trades." Here are the key takeaways:

8 Parts Of a Trading Plan

Please note that our understanding of all the components of the trading plan is not perfect. But we are going to test the plan to the best of our understanding. The components of our 8-Part Trading Plan adopted are the following:

The Mechanics

1. Identify

2. Location

3. State 

4. Entry Method

5. Initial Stop Method

The Mastery

6. Add Method

7. Profit Method

8. Stop Adjustment Method

Oliver Velez is a renowned trader, entrepreneur, author, and international speaker on trading psychology and strategies. He is the founder of ifundtraders.com, as well as the founder and creator of Pristine.com. In his YouTube presentations, Velez emphasizes the significance of a trading plan for traders' success and discusses the essential components of a master trading plan.

Embarking on the Journey to Profit: The First 20 Trades

Marginal Stock Trader has decided to resume our online stock trading activities after a hiatus of over 158 months since February 24, 2010. Our primary focus remains on three core areas: Online Trading, BPI Trade, and the Philippine Stock Exchange (PSE). We shall be using BPI Trade as our online broker to buy and sell shares of blue-chip companies listed in the PSE. Our goal is to trade with just enough board lots to be just over the net amount of Php 8,000 per trade. 

Adhering to the Trading Plan

The trading plan's objective is to help traders become their best selves. By strictly adhering to the plan, traders undergo a transformative experience akin to being devoted followers, resulting in heightened discipline, awareness, ability, capability, and wisdom. These positive changes emerge gradually as a result of faithfully following the plan.

Developing Trading Discipline

The need for a trading plan is essential because, at the start of a trading journey, the trader is not who they need to be to succeed. Trading discipline is not innate, and it needs to be developed over time. A trader needs to go through a transformation and become more disciplined, aware, and wise. To aid in this process, a well-constructed trading plan becomes a temporary replacement for the trader. However, as the trader undergoes this transformation, the plan eventually becomes unnecessary because the trader becomes the plan.

Creating Habits for Success

Repeatedly applying a method consistently, even if it feels unnatural initially, can be advantageous as it can develop into a habit. Once the habit is formed, it gets ingrained in our subconscious mind and becomes a part of our daily routine. Over time, it becomes second nature and becomes an integral part of our way of life.

Details of Our Trading Plan

Although our understanding of all the components of the trading plan may not be perfect, we are going to test the plan to the best of our understanding. You would be helping to improve our blog if you would report to us any errors found on this post concerning the quoted references. We will be adopting the 8-Part Trading Plan, with the following essential components:

Part 1. Identify Playable Event (7 to 8 key playable events)

In terms of technical analysis using candlestick charts, there are 14 bars available, but we shall focus only on the ones most significant to our purposes:

These are our notes from The Most Powerful #Trading Tactic Of All Time presentation by Oliver Velez:

• Bull 180 (+180) Green Elephant Bars. This event is what we are looking for.

• Bull 180 (+180) near or on the 20-MA, and above both the 20-MA and the 200-MA. Use Php 25,000 or 50% of the Php 50,000 account. 

• Bull 180 away from the 20-MA and below both the 20-MA and the 200-MA. If you are away under the 20-MA, get near before taking profits. If you are near above the 20-MA, try to get away above before taking profits. The stock can't get away and they can't stay away from the 20-MA. They always have to snap back to 20-MA.
• Add another Php 25,000 if another playable Bull (+180) shows up along the way going up.
• Bull 180 (+180) with 80% entry.
• Too much of 180 is also not good.

• Bear 180 (-180) Red Elephant Bars. For now, Marginal Stock Trader uses these events only for guidance, not buying signals. 

• Bear 180 (-180) near or on the 20-MA, and below both 20-MA and 200-MA.

Part 2. Location of Playable Events (7 locations)

The 7 specific locations based on the concept of Fabulous 4:

• Location 3 is farthest above the Fabulous 4 (+) and to bet long for more gains on the stock here is a losing strategy now and then.

• Location 2 above the Fabulous 4 (+ +) is not close nor too far to the Fabulous 4 and is the second-best location to bet on the stocks going up most of the time.

• Location 1 immediately above the Fabulous 4 (+ + +) is the very best location to buy.

• Fabulous 4 Trap Zone is the location where we do nothing. This zone consists of 4 key items of support/resistance:

• 200-Period Moving Average

• 20-Period MovingAverage

• Prior Day's Closing Price

• Prior Day's Late Day Price Activity

• Location 1 immediately below the Fabulous 4 (- - -) is the most desirable location to bet on a downward movement. We don't think about betting on an upward movement from just under the Fabulous 4. Since we don't think short, this is just a guide to us of an impending downward movement.

• Location 2 below the Fabulous 4 (- -) is not close nor too far to the Fabulous 4 and is the second-best location to bet on the stocks going down most of the time. But every now and then if something really powerful happens in this location, we can also bet on the upside.

• Location 3 farthest below the Fabulous 4 (-) we can bet up most of the time from this location.

Part 3. State of the Overall Environment (2 states)

Confirm the state of the market using the 20-MA and 200-MA:

• Tight and Narrow State with the 20-MA either on top or below the 200-MA. Best opportunities come from the narrow state.

• Wide State with the 20-MA either on top or below the 200-MA. This is where you become a contrarian trader.

Part 4. Entry Methods (2 items)

Shorting is definitely not on our list. Now that it is out of the way, let us talk about how we are going to enter the market. We have two ways:

• 1. Anticipation Entry (AE)

• 2. Confirmation Entry (CE)

• The PCT Test:

• Position: Stop trading against position.

• Color: Stop trading against the dominant color.

• Stop trading against the 20-MA (simple)

• Steps for buying the Elephant Bar:

• Buy the stock Power Bar.

• Buy the stock above the 20-MA (simple) and 200-MA (simple)

• Buy the stock that has a rising 20-MA.

• Buy the stock near the 20-MA.

• Buy at the major bottom strategy, according to our notes from CANDLESTICK PATTERNS STRATEGY Can Help You GRAB The LOW ! and Spot The Bottom In ANY MARKET (3 Signs The Market Has Reached Lowest Point)

• No Follow-Through 1
• No Follow-Through 2

5. Initial Stop Method (3 items)

• Limit loss to 1 bar or risk only 1 bar
• Keep watch of the maximum loss per trade.

6. Add Method (2 items)

Successful traders always add to their winning positions.

7. Profit Method (3 main rules of 5 rules)

Oliver Velez listed 5 Rules on how to take profits from the point of view of day trading, in his YouTube presentation How To Take Profits Like A Professional Trader, which considers "The Ultimate Art":

• Rule #1: 30 to 50 Cent Rule: Partial profit-taking rights available. 

• Rule #2: 3-Push Profit Rule: Take all, take part, or take no profit at this point.

• Rule #3: The Igniting Bar Profit Rule

• Rule #4: The New High-Profit Rule

• Rule #5: The 50% Break Rule

8. Trade Management (8 items)

More trading strategies for testing

Testing our study notes on not trusting the green in bear markets

• We want to put our study notes to the test based on the advice from When Not To Trust Bull Moves - Technical Analysis Thursdays with Oliver Velez. 

• The best course of action is to wait for green bars to eliminate red bars, indicating a potential bullish trend. 

• The game is potentially over when one green bar takes out two red bars simultaneously, indicating the bull market is gaining power.

• It's important to keep in mind that the odds are that 72% of all new highs will eventually fail, underscoring the need to be cautious and deliberate when making investment decisions.

Assessing the probabilities

Our study notes from the YouTube presentation Pullback Percentages - Technical Analysis Thursdays with Oliver Velez:

If a stock undergoes a significant downward drop

 If the stock undergoes a significant drop from the 100% mark to the 0% mark:

• It has roughly a 1 out of 10 chance of the stock coming all the way back up to the 100% mark coming from the 0% mark.

• It has roughly a 2 out of 10 chance of getting to the 66% mark or two-thirds up from the 0% mark.

• It has roughly a 6 out of 10 chance of getting to the 50% mark or halfway up from the 0% mark.

• It has roughly an 8 to 9 out of 10 getting to the 33% mark or a third up from the 0% mark, thus continuing its decline to a new low.

If a stock undergoes a robust upward move

 If the stock experiences a power move upward from the 0% mark to the 100% mark: 

• It has roughly a 1 in every 10 chances of the stock getting all the way down to the 0% mark.

• It has roughly 2 times out of every 10 chances of getting back to the 66% mark or two-thirds down the 100% mark.

• It has roughly a 6 out of 10 chance of getting back to the 50% mark or halfway down the 100% mark.

•  It has roughly an 8 to 9 out of 10 chance of getting back to the 33% mark or a third down the 100% mark, then continuing its upside move to a new high.

We hope we don't get all mixed up in the percentages and the odds. Moreover, this is day trading advice but we are applying this tactic to swing trading. Finally, we used the daily closing prices for our chart and simple moving average.

Keeping our trading plan simple: the summary points

More study notes from the YouTube presentation When Not To Trust Bull Moves - Technical Analysis Thursdays with Oliver Velez:

Three movements of the market:

• Up
• Down
• Sideways sometimes

Two colors for the most part:

• Green 
• Red

Two dominant moving averages (simple moving averages or SMA):

• 20-SMA
• 200-SMA

Two states of the market:

• Narrow
• Wide

Two actions of the market:

• Buy
• Sell

Two results of trading:

• Gain
• Loss

Two types of market players:

• Depositors/Withdrawals
• Losers/Gainers

Bringing It All Together: Synthesizing Our Study Notes

Here is our evaluation of the SM Investment Corporation (SM) stock as of April 13, 2023, as we put our learning notes from the past two weeks to the test. Let's see how our knowledge translates to the real world.

Testing our learning notes using the SM Investment Corporation stock performance as of April 13, 2023

• Analysis 1: This significant downside move named A has reached past the 66% mark away from its high position (A, 0% mark) and has 2 times in 10 chances of a pullback. Thus, our analysis is that this upside move named B is not real. The attempt from here to get to a new high will likely fail or is going to fail most of the time because the odds are very low. Most likely it will bounce and make a new low (yellow line) or move sideways in the meantime.

• Analysis 2: In contrast, the powerful upside move named B has reached up to the 66% mark on its rebound from the new low (B, 0% mark), with only 2 times in 10 chances. More likely, this will bounce a little bit more and proceed to decline to a new low or move sideways in the meantime.

• Analysis 3: When trading in a bear market, it's advisable not to rely on green bars. However, if a single green bar surpasses the value of two red bars simultaneously, it indicates a shift in market sentiment, and the bears lose their grip. This signals the beginning of a bull run. We can observe this phenomenon on two occasions - March 17 and April 5 (indicated by arrows) - where two green "elephant" bars have eliminated the value of at least two red bars. This implies that the market is likely to continue its upward trend (represented by the purple line).

• Analysis 4: In terms of identification, we have a Bull 180 (+180) sitting on the 20-MA (simple moving average) last April 5. This may possibly indicate a continued upswing movement.

• Analysis 5: In terms of location, the stock is most likely to be found in the optimal buying location, which is right above the Fabulous 4 or Location (+++), and the 20-day moving average (20-MA) that is also on an upward trend. This represents the best opportunity to purchase the stock.

• Analysis 6: In terms of state, the 20-MA is on top of the 200-MA and is in the tightening and narrowing state. Best opportunities come from the narrow state.

• Conclusion: After analyzing the six analyses, we have observed a fairly balanced prediction of either a continued downward trend or a robust rebound leading to a new high. However, based on various indicators, we are more inclined to believe that the 20-day moving average (20-SMA) will act as the new support level at Php892.50, at least for this week. Hence, we believe we have found an entry point around that level. Even if our prediction turns out to be incorrect, we have 19 more opportunities to test our trading plan and make necessary adjustments for optimal results. We consider any loss incurred during this testing phase as a small price to pay for the valuable knowledge, insights, and experience gained.

• Benchmarking: Despite using only technical analysis through candlestick charts and simple moving averages, we can refer to the BPI Trade Traders' Takedown report of April 12, 2023, for comparison purposes. The report recommends a BUY rating and sets the target price (PT) for SM at Php1,120, representing a potential upside of around 25%. This target price is determined through a sum-of-the-parts (SOTP) analysis that assumes a 10% discount to the net asset value (NAV) of Php1,246 per share. As of April 12 and April 13, SM's latest closing prices are Php899 and Php884, respectively.

Online Trading Perfomance Year 2009

Online Stock Trading

Updated April 9, 2023

ONLINE STOCK TRADING took a back seat for while when Marginal Stock Trader got himself employed in a business process outsourcing company conveniently located along Ayala Avenue, Makati City, Philippines.

Holding on to cash

For the past six months since 17 July 2009 when we started tracking our BPITrade trading account weekly equity balance, Marginal Stock Trader completed only three purchases.

Nevertheless, we decided to close all our outstanding positions and hold on to cash when our total trading account equity of 10,000 pesos went down almost 5% by the end of November 2009, following our 6% Monthly Loss Limit Rule. We ended the year with a cash position of 9,481 pesos in our online trading account.

Accumulating equity

We have a total starting capital of 3,500 pesos as of 19 May 2009. We allocated 3,000 for our stock trading activities and 500 pesos for our BPITrade account minimum balance requirement.

Then we made a second capital infusion 3,000 pesos on 18 June 2009 to finance the purchase of a second Ayala Corporation shares board lot, making us a holder of 20 AC shares.

On 26 June 2009, we contributed another 3,000 pesos to build a total equity of 9,500 pesos. This allowed us to buy our third board lot increasing our accumulated holdings to a total of 30 AC shares.

We were able to complete on 17 July 2009 the first step to building our first one million pesos when our total equity reached 10,000 pesos with additional funds of 500 pesos coming from our savings program.

Building wealth

Looks like building wealth is a desirable goal filled with temptations and setbacks. There is a huge temptation during implementation to move away from the rules and plans you put in place at the inception of online trading activities. The result of course could be undesirable because instead of growing our equity, we could end up with more losses than profits.

Indeed, the whole idea of day trading or weekly trading to build wealth when our fund is limited should be reviewed. Our experience tells us we could have ended the year 2009 in a more positive note -- even if we consider our worst decision of buying 10 AC shares at the top -- had we just bought and then held our position as of 26 June 2009, staying on the sidelines and avoiding trading altogether.

But we played the role of a weekly trader, online trading is our game, and so we traded.

Trading outlook 2010

We might stay on the sidelines for while from trading AC shares unless some really really great motivation to trade comes up. Forget about day trading or weekly trading for us. There is no sense making a quick trade and lose money as quick. All indications point to swing trading for us hence. Walk the talk. Follow the plan. Align with the rules. That is what we are going to do.

Tracking trading performance

We remain cognizant of the purpose of this website: to keep track of our progress being an online stock trader. Watch out for the action. We will tell you what's going on in our trading account. Let's expect some good news and build wealth through online stock trading.