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In last week’s column I wrote ..”a corrective drop to even 3.3890 could damage the near term prospect of a strong move above the nearby resistance zone..” Since then the market spiked down to test S1, around 3.3890

The FBMKLCI went up 9.58 points week-to week or 0.7% to close at 1,259 points Thursday. The average daily trading volume was only 600 million shares last week and the average daily trading range was 7.5 points. The benchmark index went as high as 1,264.91 points when it opened after the holiday on Wednesday but failed to extend its gain on Thursday. The bullish market sentiment was boosted by other bullish market performances but is still cautious

The Singapore equity market went through a correction last month despite strong bullish momentum. I have expected the FTSTI to test the 3,000 points level but the index only managed to climb to a high of 2,947 points.

The first month of 2010 has challenged ideas about how to protect your capital, grow your capital and find the best return in the market. Where and how to start are common questions. Some people examine their current job with its heavy time demands and decide that the life of a share trader sounds easy in comparison. We look at some common questions about becoming a full time share trader.

Understanding risk and reward is at the very heart of trading but few traders formally assess these relationships. The new trader, and even experienced investors, tend to focus almost entirely on the reward side of the equation. They start with an idea of how much they could make from the trade of the investment. For the trader this is often based on the price regaining old highs. For the investors, it is most often based on compounding interest, yield and dividends.

by Daryl Guppy. We start the strategy with a basic understanding of the relationship between risk and reward as shown in the diagram. Blue chip stocks are those which have the capacity to return 10% to 20% in a single trade. These figures are moved up a little in a bull market, but in general these are the types of returns we aim for with a blue chip stock.