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July P/L Challenge: How did you make the most of volatility?
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How did you make the most of volatility?

The market has been very volatile. Should we fear volatility? No, volatillity is our friend. No risk, no gain. How do we make use of this situation? The answer is to buy volatile stocks. What is a volatile stock? $Japfa (UD2.SG)$ below is not a volatile stock.
How did you make the most of volatility?
Apart from some news which increased its volatility, it traded generally in tight ranges. A volatile stock has a wide trading range. An example is $Acesian Partners (5FW.SG)$ below.
How did you make the most of volatility?
How did you make the most of volatility?
You may think that a volatile stock is risky- large upside and also large downside. I mitigate the risk by buying stocks which report or will report good results. In Apr 2022, Acesian announced that there will be a significant improvement in profit compared to the previous year. The next day, the price started to surge from $0.018 to $0.082 in mid May. Later on it corrected and formed a bullish double bottom. On Jul 21 2022, Acesian again issued a postive profit guidance. The next day, the price broke out of its $0.043 resistance and downtrend line. I bought at $0.046. Golden crossovers then formed with the MA5 rising above the MA20 and MA50. The price then broke out of several resistances. When it reached $0.058, it corrected a while to form the handle of a cup with handle pattern. Then the resistance was broken and the uptrend continued. When the $0.067 resistance was reached, it again corrected to form a handle before rising again.
To maximize your profit, you should trade from the valley to the peak of the swing. Anything less than that is not swing trading. The price has already risen for 9 days since it bottomed at $0.041. I'm still holding as I think it'll rise higher. If you only trade for 1-5 days, you can see that you miss out on a lot of the profit. Trading very frequently for just 1-5 days each, will still be less than the profit of 1 big trade.
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