| Are you trading stocks and shares and are you a | | | | the "tape". |
| profitable trader? | | | | "Trading the trends isn't a daily thing," Grandma |
| Having always been in the stock market where I | | | | Foong explained. " I only trade the trends 30% of |
| have a trading seat in the broker's office, I am in a | | | | the time, because that's what the market do- the |
| privileged position to observe traders and punters | | | | stocks trend only 30% of the time". |
| who flock to the trading room daily. There was a | | | | What about those "anti-trend" stocks? |
| lady, somewhere in her sixties who would be sitting | | | | " Since most of the stocks trend 30-% of the time, |
| in the same position daily in the trading room, always | | | | the rest of the time the stocks oscillate between a |
| oblivious to the surroundings and people around her, | | | | high and a low, and you can trade these smaller |
| lost in observing and studying the stock market price | | | | anti-trends. " |
| movements and charts on the trading screen. | | | | "You mean, you trade those smaller periods of times |
| Over the years, while many traders and punters | | | | when a stock is moving within a range?", I asked. |
| would come and go, many after losing their fortunes, | | | | " Yes, these are the times when if you observe |
| Madam Foong as I would learnt was her name, would | | | | carefully, the main trend of the stock is up, so when |
| always be around. Grandma Foong, as she was later | | | | the price falls, you will want to buy on the low |
| affectionately called, was obviously a very profitable | | | | against the main trend, and when it moves up, you |
| trader. | | | | will want to sell at the high of that minor trend up, |
| One day, I plucked enough courage to ask her how | | | | against the main trend", Grandma Foong replied. |
| what was the secret of her success. | | | | " But go, watch the prices like a hawk, these |
| "Sonny," she said, " I only trade with the trend and I | | | | anti-trends are minor, you are basically there for a |
| punt on the counter-trends!". | | | | very short while, even day trading them, most of |
| What a revelation! | | | | the time." |
| The secret of her success, she explained further, | | | | With those words, Grandma Foong gave a hurried |
| was to poise herself for the best trades whenever | | | | excuse, and went out the door. |
| there was a confirmed trend. By observing the price | | | | Here was the secret of a profitable trader. Trade |
| movements daily, she would be able to determine | | | | with the major trends 30% of the time and trade |
| the extent of the prospective trend- a skill that she | | | | the anti-trends ( or range trade ) the rest of the |
| has picked up from experience, similar to studying | | | | time, but be very fast with these minor oscillations. |