Scalp Trades Dated 7/4/2011

1. Scalp trades today :-

AXREIT - Sold at RM2.35
SUNREIT - bought more at RM1.06

2. To answer some of the postings by Daven, Goreng Addict & Cheeheng :-

Capital needed is vary for scalp trade, but minimum capital would be 30K at least. Out of 30K you need to do cash management. I usually don't dump all at one price, try to allocate 3 entries with different price, each with 1 cent different. Why i choose 1 cent not 2 or 3 cents different because my brokerage is low enough for me to do so. If you having high brokerage fee, this method is not going to work for you. You can forget about trying my method. You need at least 0.1% or lower brokerage to earn even with 1 cent profit. So, if you are very active and your trading breach certain value a month, then try negotiate with your broker to give you a lower brokerage fee... :) First, you may notice my earning is not significant for each trade but accumulate throughout a month is quite okay to me. Second, you may also notice i trade on REITs and CWs only, others share may apply but the winning is not so consistent. REITs is a safer bet as compare to CWs, dealing with CWs is totally a different ball game altogether. Started off with REITs is the best. :)

Above just a guideline, may not apply fully, as for me, i used much bigger capital. One should not think this method work forever as there may be risk involve as well. So to minimise risk, actively buy in during DPU period as this is the time most REITs will perform at least better than ordinary day. Most fund manager dispose or liquidate their holdings during this period as well. Volume will normally higher and active. Try monitor hng's trades as well, as he take advantage of the high dividend declaration period by certain stocks he picks and most of the time he gains through such trading. You can adopt his method if you wish, one will find some clue if you follow hng's trades long enough. In fact it is very safe way of trade, as dividend serve as cushion for you if one happen to stuck at high entry price. I need to stress that, there is no holy grail method in this world, we are just trying to make money consistently and with lowest risk possible. So good luck.

3. hng, How i wish, i can earn consistently as what you described but this kind of scalp trades will get drifted away when price keep goes against you. If this happen, my earning will no longer be sustainable.