Monday, September 6, 2010


Since I started trading, I've read about chart patterns (i.e. double top, double bottom, cup and handle etc etc). I'm not really a believer of this strategy since I'm still basing my stock decisions on fundamentals.

Recently, I've been introduced to the Fibunacci Retracement which I tried following on my recent trades like CHIB and AP. I made a few percentage gains but not enough for a vacation. =)

One of my current and favorite stock is MPI, I noticed it has a 7-10 day cycle. I did not base my decision on buying this stock on this alone. However, last weeks rally and then today's sell down made me think that this might work.

I might have just, over-thought my decisions in buying and selling when in fact charting really works. This theory will be proven this Wednesday, which I'm expecting a huge sell-off. And will be my buying opportunity. (Caution do not follow)

My target buy price is : less than 3.5.

I hope this works!