by Jason Ng, Founder, Master ‘O’ Equity

As a Star Trader, we are lucky as the Star Trading System automatically prepositions us in the right trades before the next major trend shift so that all we have to do is to simply trade whatever qualifies.

The Dow was up again last week for a full week gain of 143.68 points or 1.10%. On the weekly scale, I see that the advance is already slowing down even though volume remains relatively stable. Over the last 3 weeks, the Dow has gained 349.85 points, 158.96 points and finally 143.68 points last week in a decelerating growth. This is totally natural in the overall scheme of things and is the way all markets behave. All markets move forward in a series of contracting and expanding movements, like ocean waves.
Many people ask me if the bull will run on forever? That the market look so bullish now that it looks invincible. Well, common sense mathematics told us that, sadly, no. The market will NOT go up and up… why? Well, if the market move forward like it did over the last 2 weeks at an average gain of 150 points a week, would we see the Dow gain 7,800 points after a year? The Dow has existed since 1916 and has gained an average of only 145 points A YEAR! So, how long do you think the Dow can sustain 150 points gains without some really cruel pullback?

So, the reality is, the Dow will pullback and the longer it takes to happen, the more severe the pullback will be. Period. All traders need to have a means of detecting such a pullback early in its development so that sensible hedging can be performed.

The Star Trading System continues to point upwards with more morning stars, which means that it thinks there are more upside to come.

Thought For The Day : “Every Morning Marks A Brand New Beginning”

by Jason Ng, Founder, Masters ‘O’ Equity

Online trading has its pros and cons. Online trading’s main pro is convenience and speed, giving a trader maximum control of all aspects of trading. Conversely, online trading’s main killer con is in the tons of human error that can happen due to a lack of guidance.

Due to a lack of guidance, most online traders find themselves extremely prone to their emotions when trading online. When they feel the urge to get out of a position simply because their emotions are all fired up, they can at the simple click of a mouse. This has led to a lot of failed trades and a lot of lost money…. The only way anyone can succeed in online trading in the long run is through a disciplined trading regime based on a fix trading system or what we called “System Trading”.

System trading means that you pick stocks based on a fixed criteria, enter on a fix criteria and exit on fixed criteria… all put together nicely like different parts of a car. With system trading and a fixed portfolio management policy can anyone truly attain success in online trading.

System trading aims to take the emotion out of the trader by having objective and specific criteria for every aspect of online trading. With a fixed set of criteria to follow when online trading, the trader have something to fall back on when emotions start to fly, and that is, the proven track record of the system that the online trader is following. The online trader is assured that as long as he follows the rules to the nigh, the odds of winning will always be stacked in his/her favor. Over the long run, with a sound portfolio management policy, anyone can succeed in online trading.

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