Review of trade this week (31 March - 4 April 2008)

1) COSCO sold 4 lots at 3.83 (buy 3.40)

Rationale :

"Hit" 50 day MA on first try during downtrend and likely to retrace further to fibonacci retracement levels.

Learning points : To observe because the price levels did not actually touch the 50 day MA! Nevertheless planning to buy back again at 3.40 at a later date?

Profit : $1602

2) Sembcorp sold 2 lots 4.17 (buy 4.16)

Rationale : Sembcorp's news about the water plant in China seemed to disinterest the market. Thought that might retrace after hitting the 25 day MA.

Learning points : 25 day MA not the same as 50 day MA!!! Plus forgot to note that the stock has already hit the 50 day MA once. Have added this checklist into trading system.

Loss : -$47

3) YZJ sold 5 lots 1.04 (buy 0.85)

Rationale : Already hit target price at 1.05. Looking at 50 day MA can see that it is dropping below the 2nd gap target at 1.15. Hence unlikely to get there. Decision made to take profit.

Profit : $912

4) COSCO sold 2 lots 3.74 (buy 3.4)

Rationale : Tried something new and attempted to use Elliot Wave theory to do intraday trade.

Learning points : Wave 2 can retrace all of wave 1. So instead of shorting at the start of wave 2 I should have waited for the full retracement! (COSCO opened at 3.81 that day, dropped to 3.73 then retraced back to 3.81 before finally dropping to 3.65 at end of Wave 5 impulse later in the day).

Profit : $91

Total profit/loss for this week : $2558

Total profit/loss to date = $2558 - $520 = $2038.