Further to my post on 8 Sep 2012, STI has moved above 3050. I see some traders doing 'short trades', my personal opinion is to play stocks on the long side for now as STI has seemed to resume its uptrend and most stocks are trending up and taking turns to be a dog. haha. STI should be able to break its resistance at 3090 in the coming days.
Anyway, i was lucky to bite the bullet and took a long position in Sarin on Thursday morning. Otherwise, it will be another lamenting post. One thing good about illiquid stock is it moves up and down very fast... hahaha... now that i have entered the positions and the stock has moved up quickly, there are a few ways to trade this. Choose one that meets your personality and style.
(1) Sell some at current levels and let the remaining ride the trend with a moving stop.
(2) Ride the trend but put a moving stop (meaning i will liquidate my position if the price hit the stop price). Move the stop to around 98c.
(3) Sell all at the resistance levels of between 104-108.
(4) Ride the trend till the sell signals appear.
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