Technical Trading and the Colombo Stock Market

Based on the level of interest back in 2007 for technical trading,compared to  the level of  interest today it has increased. But the enthusiasm is yet to improve, which will happen for sure.

Believe that Technicals work in the CSE
The most important aspect to be improved is the belief, that technicals really work. When compared to forex, and also the Stock Markets with short selling, the pace of the Colombo Stock Market is relatively slow. As such it is not for the high volume ( volumes of millions and millions of shares trading in seconds and minutes) high turnover guys. But on the positive side, it is ideal for individuals or institutions who feel their size is too small for big markets. As the pace is slow you can obviously take a risk more cautiously, than becoming more aggressive.

Daytrading is not Daily Trading
Even technicals are not every day useful for daytraders. I use to always believe that the CSE is not for daily traders but for daytraders. This may be the case in other markets or forex as well. But this difference must be clearly defined in your brains, that daytrading is not daily trading.

Stocks tracked on technicals do make money
On the belief that stocks make money based on technicals, it could be said that you really can make money here in the CSE. Just take the 2 stocks I've covered during my last few posts. For the month of Dec '13, Jkh has given a little over 6%, from the 3rd to the 20th, that's 13 days. JKH w23 has made a good 29% from 2nd to the 19th, again 13 days.

My present charts
Presently I'm looking at Tokyo Cement voting, and Colombo Fort Land charts. These are fundamentally sound stocks, and the prices a trending relatively sideways, which gives me room to decide on the entry position quite comfortably.