To The Moon

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1. How my first got into contra trading

I first started contra trading with OCBC bank shares many years ago when the stock was trading in the $7–$8 range. 20 years ago My initial trade was 1,000 shares, and I quickly noticed that small price movements of $0.20 to $0.30 could give me $200 to $300 in profits before deducting transaction costs. I adopted a simple “in-and-out” approach — entering when the price was near a short-term support and selling when it hit my short-term target. This method allowed me to build confidence while keeping my trades manageable in size. Over time, I learned to pair this with strict discipline, always knowing my cut-loss level before entering. That early experience taught me the speed, accuracy, and decisiveness required in contra trading, and it has shaped my current approach. OCBC remains one of my core contra stocks due to its liquidity and stability.

Now I have switched to 16.75 recently.

2. Describe my contra trading style in one sentence

Fast execution and precise decision-making are the core of my contra trading style. In this approach, I watch for quick intraday or short-term price swings and act without hesitation when my target levels are reached. I rely on speed both in entering and exiting trades, knowing that hesitation can turn a profitable position into a loss within minutes. My focus is on high-liquidity, fundamentally strong stocks such as OCBC and DBS, which tend to have smaller bid-ask spreads and predictable movement patterns. By combining technical support and resistance levels with disciplined order placement, I aim to lock in gains quickly and avoid prolonged exposure to market volatility. This style requires constant market monitoring, readiness to adapt, and an acceptance that missing some trades is better than forcing bad ones. In essence, my style is all about speed, precision, and calculated risk-taking.

3. Effect of settlement period change from T+2 to T+1

The shift from T+2 to T+1 settlement in U.S. markets generally makes trading cycles faster, but for me, T+2 was more favorable. A key reason is that part of my funds sits in money market accounts, which earn daily interest. With T+2, I had more flexibility and time to rotate capital while still enjoying these interest gains before the settlement date. However, my current contra trades are mostly in the Singapore market through Tiger Brokers, where I benefit from a seven-day free interest period for contra positions. This arrangement gives me room to plan my exits without immediate funding pressure. The main impact of the T+1 rule is the reduced buffer time to manage cash flow, making it more challenging for traders who juggle multiple positions. Still, with proper planning and quick execution, the shorter cycle can be manageable, especially if the focus is on liquid, predictable stocks.

4. Favorite contra stocks

My go-to contra stocks are OCBC and DBS. Both are fundamentally strong, well-capitalized banks that pay attractive dividends of about 2.5% to 3% per half year or quarter. These payouts act as an added safety net in case I decide to convert a contra trade into a longer-term holding. Bank stocks also tend to be more stable compared to smaller-cap counters, with strong institutional support and consistent trading volumes. This liquidity is critical for contra trading, as it allows me to enter and exit positions without large slippage. Additionally, the banking sector is sensitive to macroeconomic factors such as interest rate changes, which creates frequent short-term price movements I can take advantage of. By focusing on these large, reliable counters, I reduce the risk of sudden, unpredictable price drops while maintaining enough volatility to generate meaningful gains.

5. Favorite technical indicators and patterns

I rely mainly on moving averages to guide my entries and exits. For entry points, I watch the 5-day moving average, which often acts as short-term support. For exits, I monitor the 10-day to 20-day moving averages, which often serve as short-term resistance. For example, if OCBC’s 5-day moving average is at $16.75, I might buy near that level and set my sell order around $16.99. On shorter time frames, my favorite reversal pattern is the 1-minute hammer, which often signals a potential bounce when it appears near support. This combination of moving averages and candlestick patterns helps me avoid emotional decisions by providing clear, rules-based trade setups. It’s a simple system, but its effectiveness comes from discipline and consistency. By sticking to these indicators, I avoid overcomplicating my charts and focus on high-probability trade zones.

6. Preferred market cap size

I prefer large-cap stocks for contra trading, particularly those with high liquidity and strong fundamentals. Large caps like OCBC and DBS offer several advantages: narrower bid-ask spreads, predictable trading patterns, and high institutional participation, which tends to stabilize prices. These characteristics reduce the risk of sharp, unexpected moves that can wipe out contra gains. Large-cap counters also attract consistent daily trading volumes, which means I can enter and exit quickly without worrying about low demand for my shares. While mid-cap and small-cap stocks may offer bigger percentage swings, they also come with higher volatility and lower liquidity, increasing execution risk. For contra trading, stability and liquidity outweigh the potential for extreme moves. The goal is consistent, repeatable profits rather than high-risk, high-reward bets, and large-cap stocks align perfectly with that objective.

7. Stop-loss and take-profit levels

I typically set my cut-loss level at around 15% from my entry price for contra trades, though in practice, my exits are usually much tighter to preserve capital. If I have available cash, I might choose to take up the shares instead of cutting immediately, especially if the stock is fundamentally strong. This is sometimes funded by selling money market holdings from my Tiger Vault. On the profit side, I aim for $100 to $200 per trade, which is achievable with small price movements in large-cap bank stocks. The key is consistency — locking in gains frequently rather than aiming for home runs. My stop-loss and take-profit rules are always set before entering a trade, ensuring that decisions are not swayed by emotion once the position is active.

8. Specific cut-loss method

My cut-loss approach is straightforward: if a trade moves 15% against me, I cut the position unless I see a clear recovery signal backed by fundamentals. In some cases, rather than cutting, I’ll convert the contra position into a regular holding, funded by liquidating short-term assets like my Tiger Vault money market funds. This allows me to hold quality stocks without realizing an immediate loss. For contra specifically, I believe it’s essential to predefine your exit point before entering, so you’re not making panic decisions during market swings. I also avoid averaging down too quickly, as this can trap capital in a losing position. Instead, I prefer to wait for positive catalysts such as dividend announcements or earnings before adding. Discipline in following these rules is what keeps my losses manageable and my capital intact for the next opportunity.

9. Risk of overnight moves

Overnight moves are one of the biggest risks in contra trading, especially with U.S. stocks. A gap-down at the open can instantly wipe out gains or deepen losses. For this reason, I stick mainly to Singapore-listed large-cap bank stocks, which tend to have smaller overnight gaps and steadier opening prices. When trading counters that could have volatile overnight reactions, I reduce my position size and set stricter profit targets so I can close before the market ends. If I do hold overnight, it’s only in stocks I’m comfortable owning for the longer term. Managing overnight risk is about knowing when the potential reward outweighs the risk of holding past the close. Most of the time, I avoid unnecessary overnight exposure, preferring to take profits or small losses and keep my capital flexible for the next trading day.

10. Handling trades that go against me

When a trade goes against me, I don’t rush to average down immediately. Instead, I assess the situation — is the price drop due to a broader market reaction, or is it specific to the stock? If it’s a temporary sentiment shift and the fundamentals remain intact, I might consider averaging down later. Often, I wait for upcoming catalysts such as quarterly dividends for DBS or half-year payouts for OCBC, which can lift prices. If the loss is significant and I don’t see a near-term recovery, I’ll either cut the trade or take up the shares into my portfolio if they fit my long-term strategy. This approach prevents me from throwing good money after bad and helps maintain liquidity for other opportunities. Patience and selectivity in averaging down are key to avoiding deeper losses.

11. Common mistakes new traders make

A common mistake I see among new contra traders is over-leveraging — using the maximum available margin to take positions. This creates huge pressure when trades move against them, often leading to forced sales at a loss. Another mistake is chasing volatile, low-liquidity counters for quick gains without understanding the risks. Many also fail to set stop-loss and take-profit levels before entering a trade, leaving them vulnerable to emotional decision-making. My advice to beginners is to use only about one-third (33%) of their available margin and start with fundamentally strong, dividend-paying stocks. These provide a safety cushion and allow you to build skills without excessive risk. Contra trading requires speed and decisiveness, but also restraint. Knowing when not to trade is as important as spotting good opportunities.

12. One piece of advice for beginners

If I had to give just one piece of advice to someone starting in contra trading, it would be: start with dividend stocks offering 5% to 7% annual yields. This way, even if your trade doesn’t go as planned and you end up holding the shares, you still benefit from a steady income stream while waiting for the price to recover. This approach helps reduce stress and provides flexibility in managing trades that move against you. Avoid using your full margin, and focus on liquidity and stability rather than chasing high-risk counters. Contra trading is about discipline, preparation, and patience — not gambling on short-term spikes. By starting with a safer base of dividend stocks, you can develop your trading skills while protecting your capital from large, avoidable losses.

13. Stocks on my watchlist

Right now, my watchlist includes major bank stocks and insurance companies such as OCBC, DBS, Manulife, and Prudential. I believe a potential decrease in interest rates will create opportunities in the banking sector, particularly in their wealth management and insurance product segments. For banks, I’m more focused on the long term, as their strong fundamentals and dividend payouts make them reliable holdings. For insurance companies, I see more short-term opportunities, especially if rate cuts improve the attractiveness of their policies and investment-linked products. Both sectors are well-positioned to benefit from shifts in the interest rate environment, and their large market caps ensure the liquidity needed for contra trading. By keeping a close eye on both, I can balance short-term trades with longer-term plays, adjusting my strategy as market conditions evolve.

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1. How my first got into contra trading

I first started contra trading with OCBC bank shares many years ago when the stock was trading in the $7–$8 range. 20 years ago My initial trade was 1,000 shares, and I quickly noticed that small price movements of $0.20 to $0.30 could give me $200 to $300 in profits before deducting transaction costs. I adopted a simple “in-and-out” approach — entering when the price was near a short-term support and selling when it hit my short-term target. This method allowed me to build confidence while keeping my trades manageable in size. Over time, I learned to pair this with strict discipline, always knowing my cut-loss level before entering. That early experience taught me the speed, accuracy, and decisiveness required in contra trading, and it has shaped my current approach. OCBC remains one of my core contra stocks due to its liquidity and stability.

Now I have switched to 16.75 recently.

2. Describe my contra trading style in one sentence

Fast execution and precise decision-making are the core of my contra trading style. In this approach, I watch for quick intraday or short-term price swings and act without hesitation when my target levels are reached. I rely on speed both in entering and exiting trades, knowing that hesitation can turn a profitable position into a loss within minutes. My focus is on high-liquidity, fundamentally strong stocks such as OCBC and DBS, which tend to have smaller bid-ask spreads and predictable movement patterns. By combining technical support and resistance levels with disciplined order placement, I aim to lock in gains quickly and avoid prolonged exposure to market volatility. This style requires constant market monitoring, readiness to adapt, and an acceptance that missing some trades is better than forcing bad ones. In essence, my style is all about speed, precision, and calculated risk-taking.

3. Effect of settlement period change from T+2 to T+1

The shift from T+2 to T+1 settlement in U.S. markets generally makes trading cycles faster, but for me, T+2 was more favorable. A key reason is that part of my funds sits in money market accounts, which earn daily interest. With T+2, I had more flexibility and time to rotate capital while still enjoying these interest gains before the settlement date. However, my current contra trades are mostly in the Singapore market through Tiger Brokers, where I benefit from a seven-day free interest period for contra positions. This arrangement gives me room to plan my exits without immediate funding pressure. The main impact of the T+1 rule is the reduced buffer time to manage cash flow, making it more challenging for traders who juggle multiple positions. Still, with proper planning and quick execution, the shorter cycle can be manageable, especially if the focus is on liquid, predictable stocks.

4. Favorite contra stocks

My go-to contra stocks are OCBC and DBS. Both are fundamentally strong, well-capitalized banks that pay attractive dividends of about 2.5% to 3% per half year or quarter. These payouts act as an added safety net in case I decide to convert a contra trade into a longer-term holding. Bank stocks also tend to be more stable compared to smaller-cap counters, with strong institutional support and consistent trading volumes. This liquidity is critical for contra trading, as it allows me to enter and exit positions without large slippage. Additionally, the banking sector is sensitive to macroeconomic factors such as interest rate changes, which creates frequent short-term price movements I can take advantage of. By focusing on these large, reliable counters, I reduce the risk of sudden, unpredictable price drops while maintaining enough volatility to generate meaningful gains.

5. Favorite technical indicators and patterns

I rely mainly on moving averages to guide my entries and exits. For entry points, I watch the 5-day moving average, which often acts as short-term support. For exits, I monitor the 10-day to 20-day moving averages, which often serve as short-term resistance. For example, if OCBC’s 5-day moving average is at $16.75, I might buy near that level and set my sell order around $16.99. On shorter time frames, my favorite reversal pattern is the 1-minute hammer, which often signals a potential bounce when it appears near support. This combination of moving averages and candlestick patterns helps me avoid emotional decisions by providing clear, rules-based trade setups. It’s a simple system, but its effectiveness comes from discipline and consistency. By sticking to these indicators, I avoid overcomplicating my charts and focus on high-probability trade zones.

6. Preferred market cap size

I prefer large-cap stocks for contra trading, particularly those with high liquidity and strong fundamentals. Large caps like OCBC and DBS offer several advantages: narrower bid-ask spreads, predictable trading patterns, and high institutional participation, which tends to stabilize prices. These characteristics reduce the risk of sharp, unexpected moves that can wipe out contra gains. Large-cap counters also attract consistent daily trading volumes, which means I can enter and exit quickly without worrying about low demand for my shares. While mid-cap and small-cap stocks may offer bigger percentage swings, they also come with higher volatility and lower liquidity, increasing execution risk. For contra trading, stability and liquidity outweigh the potential for extreme moves. The goal is consistent, repeatable profits rather than high-risk, high-reward bets, and large-cap stocks align perfectly with that objective.

7. Stop-loss and take-profit levels

I typically set my cut-loss level at around 15% from my entry price for contra trades, though in practice, my exits are usually much tighter to preserve capital. If I have available cash, I might choose to take up the shares instead of cutting immediately, especially if the stock is fundamentally strong. This is sometimes funded by selling money market holdings from my Tiger Vault. On the profit side, I aim for $100 to $200 per trade, which is achievable with small price movements in large-cap bank stocks. The key is consistency — locking in gains frequently rather than aiming for home runs. My stop-loss and take-profit rules are always set before entering a trade, ensuring that decisions are not swayed by emotion once the position is active.

8. Specific cut-loss method

My cut-loss approach is straightforward: if a trade moves 15% against me, I cut the position unless I see a clear recovery signal backed by fundamentals. In some cases, rather than cutting, I’ll convert the contra position into a regular holding, funded by liquidating short-term assets like my Tiger Vault money market funds. This allows me to hold quality stocks without realizing an immediate loss. For contra specifically, I believe it’s essential to predefine your exit point before entering, so you’re not making panic decisions during market swings. I also avoid averaging down too quickly, as this can trap capital in a losing position. Instead, I prefer to wait for positive catalysts such as dividend announcements or earnings before adding. Discipline in following these rules is what keeps my losses manageable and my capital intact for the next opportunity.

9. Risk of overnight moves

Overnight moves are one of the biggest risks in contra trading, especially with U.S. stocks. A gap-down at the open can instantly wipe out gains or deepen losses. For this reason, I stick mainly to Singapore-listed large-cap bank stocks, which tend to have smaller overnight gaps and steadier opening prices. When trading counters that could have volatile overnight reactions, I reduce my position size and set stricter profit targets so I can close before the market ends. If I do hold overnight, it’s only in stocks I’m comfortable owning for the longer term. Managing overnight risk is about knowing when the potential reward outweighs the risk of holding past the close. Most of the time, I avoid unnecessary overnight exposure, preferring to take profits or small losses and keep my capital flexible for the next trading day.

10. Handling trades that go against me

When a trade goes against me, I don’t rush to average down immediately. Instead, I assess the situation — is the price drop due to a broader market reaction, or is it specific to the stock? If it’s a temporary sentiment shift and the fundamentals remain intact, I might consider averaging down later. Often, I wait for upcoming catalysts such as quarterly dividends for DBS or half-year payouts for OCBC, which can lift prices. If the loss is significant and I don’t see a near-term recovery, I’ll either cut the trade or take up the shares into my portfolio if they fit my long-term strategy. This approach prevents me from throwing good money after bad and helps maintain liquidity for other opportunities. Patience and selectivity in averaging down are key to avoiding deeper losses.

11. Common mistakes new traders make

A common mistake I see among new contra traders is over-leveraging — using the maximum available margin to take positions. This creates huge pressure when trades move against them, often leading to forced sales at a loss. Another mistake is chasing volatile, low-liquidity counters for quick gains without understanding the risks. Many also fail to set stop-loss and take-profit levels before entering a trade, leaving them vulnerable to emotional decision-making. My advice to beginners is to use only about one-third (33%) of their available margin and start with fundamentally strong, dividend-paying stocks. These provide a safety cushion and allow you to build skills without excessive risk. Contra trading requires speed and decisiveness, but also restraint. Knowing when not to trade is as important as spotting good opportunities.

12. One piece of advice for beginners

If I had to give just one piece of advice to someone starting in contra trading, it would be: start with dividend stocks offering 5% to 7% annual yields. This way, even if your trade doesn’t go as planned and you end up holding the shares, you still benefit from a steady income stream while waiting for the price to recover. This approach helps reduce stress and provides flexibility in managing trades that move against you. Avoid using your full margin, and focus on liquidity and stability rather than chasing high-risk counters. Contra trading is about discipline, preparation, and patience — not gambling on short-term spikes. By starting with a safer base of dividend stocks, you can develop your trading skills while protecting your capital from large, avoidable losses.

13. Stocks on my watchlist

Right now, my watchlist includes major bank stocks and insurance companies such as OCBC, DBS, Manulife, and Prudential. I believe a potential decrease in interest rates will create opportunities in the banking sector, particularly in their wealth management and insurance product segments. For banks, I’m more focused on the long term, as their strong fundamentals and dividend payouts make them reliable holdings. For insurance companies, I see more short-term opportunities, especially if rate cuts improve the attractiveness of their policies and investment-linked products. Both sectors are well-positioned to benefit from shifts in the interest rate environment, and their large market caps ensure the liquidity needed for contra trading. By keeping a close eye on both, I can balance short-term trades with longer-term plays, adjusting my strategy as market conditions evolve. Subscribe to me.Post a comment in the comment section—if noticed by the official team, you’ll have a chance to receive 50 Tiger Coins as a reward!

@CaptainTiger @Wrtd @MillionaireTiger @CaptainTiger @Daily_Discussion 

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