27 October 2009

27-10-09 HSI Morning Trading

Today we see a big big drop in the opening (600pts drop), which makes trading an extremely difficult decision to make.

Will price goes back up to fill the gap, will price continue to drop drastically? More than 500pts drop always posts a problem for my strategy, which is trading based on differential changes.

Thus I decided to wait for a while, and let price settle down after 10.15am HK time. 22200 seems to be the strong support for the session. At 11.40am, I made a long @ 22200, assuming a double bottom. TP1 is at 22250, which is later done at 11.45am. TP2 is at 22300, which was missed. Price went back down to 22200, and 2nd contract exits with a breakeven.

Thus total win for the morning session is 50pts profit (HK$500 for HSI Mini contract).

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