Following your trade plan
The topic on "commission" pop up again during lunch. Many TMI has converted back to retail due to the recent membership fee increase. Of course we feel the "pain".
Once you let go of TMI, your commission will revert back to retail rate. For SiMSCI, it is now S$10.70 (include GST).
Die hard fan of SiMSCI? No problem. I believe Tom has lots of strategies to let you 'ride the trend' so that your trades are not affected by commission.
[RDV is coming, do drop by and listen to his talk]
Traders who are like me (i.e. swing trader), we have to choose our option carefully. A better option is to move into higher time-frame. Let's take a look at our 2 "hybrid" trained trader's trade plan for SiMSCI. [they are hybrid because they are trained by both Tom-de-Rambo & JG-de-sniper].
They have spotted a "chart pattern"! With this focus, the trade plan should be "Long". Final target for this pattern is to exit at 396.7
Trade plan was done on April 8 (Sunday). Can you see from your own SiMSCI chart, A BuE candle seated nicely on Emolines (Waves)? Monday (9 April) market gap-up on opening, closing the gap, and at the same time, it also let you park your limit buy order at BuE trigger price or at a even better level (50%) for entry. Let's assume you park at trigger price and assuming you log-in 10 lots, your first profit target is 1.5x of that signal, target came on the same day. Assuming you decide to exit 7 lots and left 3 lots for your final target. 1.5x target is 39 tics on one lot, you gain $2,657.10(nett after commission) for 7 lots.
On the 10 April, another signal formed (NT2) at Emolines, from trigger price to 1.5x target, that is 52 tics per lot. Let's assume you have enter another 10 lots for 1.5x profit target, you have now achieved $5,093 after commission. This 1.5x target is also close to the target for Pattern FIB. You have now exited your balance 3 lots (81 tics x 3 lots = $2,387.90) from the first entry on 9 April.
Don't be too affected by the commission, since you like SiMSCI so much :D
The above illustration is a simple way for you to "counter" the higher operating cost. Hope it helps to ease your "headache" a bit.
Nikkei is not that bad though since it is around USD23 per tic, even if your commission increase to USD8, it is still fine. I am still using lower time-frame chart to trade.
Remember my posting 2 days ago on Nikkei using Fibonacci? Price retrace to sell cluster today, with a small little "shooting star" with 4 tics risk, going for 22 tics profit.
The importance of a trade plan, this trade plan must also be your CTH, then you can apply it without much hesitation.
Have you found your CTH yet?
Have a nice weekend :)