Monday, June 22, 2009

Today I m off but got errants to be done. I bought LionInd and TM-CI on Friday as I know I m free today(Monday) and will trade on some. Since I hv cash in hand, I do not intent to play-contra or margin. Hence, I hv reduced the risks?

KLCI at 1050 level, and many expect it to move sideway or higher this week. I have no expectation ... if it moves higher and my babes run up, I will happily SELL them off. But, if KLCI retraces further, I will be glad to collect more.

Warrants : I have shown JL the top 20 of my warrants but these few are my fav - AnnJoo, SPSetia, Sunway, WCT, WaSeong and YTLPower. Yes, I do mention a lot about AnnJoo-wb as I do like it as a steel-play. Other than that, I do monitor these closely and traded them many of times. Yeap, I dont write it here as the gains/losses are 'small'. I used them to train myself trading and to test my hypotheses. Yes, it is TA.

Call-Warrants : AMMB, Commerz, Resorts, Genting, TM, Sime, IOICorp and BJToto. Oh yes, I bought AirAsia-ce weeks ago, but it is expiring soon ... so, I hv taken it out of my list.

Note : Warrants and especially call-warrants are NOT for those who know nothing about trading. Yes, the risk is very high if u dont know about it. Let me give some examples of my experiences.

AirAsia-ce : I bought at 0.135 and happily sold it off at 0.145 the next day. I know the AirAsia news will be temporary, so ... even holding it for another day will give me the unnecessary stress!! Hence, I m glad to load it off. Yes, it went higher but once I sold off with no intention to buy back, I won't look back. Once the news is over, AirAsia(the mommy) moved lower and lower each day. AirAsia -ce at 0.07 at the moment.

Now, from 0.14 to 0.07 .... if you are those BUY and HOLD, you could have lost 50% of your funds on it. Serious, I feel most of us SHOULD NOT touch call-warrants. There is some sense of gambling in it. But, if we know-how it could give us VERY good return.

9.10 am : LionInd still diving ... yes, I will accumulate it. GPacket reached my cut-loss point. Yes, will cut-off. Ouch.

9.45 am : KLCI diving ... rally over? Or just a mere correction so that we should be buying?

I m queue-ing for TM-ci at 0.10 and LionInd at 1.10. Yeah, I get a little more excited now seeing REDS ... I m The REDS supporter, mind you.

JL : Monitor the warrants I gave you last night. SPSetia, WCT, WaSeong, AnnJoo ... many more losing more than 10% now. Don't buy now or else buy in stages. Say RM5k for stage 1 ... move lower by another 15%, buy another RM5k ... and so on. If it is a market reversal ... then, look into 6-months to a year time frame.

1.15 pm : I saw the KLCI dived this morning ... and being 'sick', I m glad. LionInd not done at 1.10 but touched 1.14, moved back to 1.20 level. TM-ci is not done at 0.10 either. I believe many experienced traders gained this morning from the dive, and a V-shape recovery.

Many of the warrants in my list were expereincing a huge loss in the morning dive, SPSetia, WCT, WaSeong, AnnJoo and such were downed more than 10% but managed to regain grounds. We could not know what we are catching is a 'knife' or it will recovers, but ... when you are in FEAR ... do BUY. I saw KLCI losing almost 20points and I get so excited(sicko).

So, on Sat ... actually I wrote about SPSetia as the waterfall I like most at the moment ... (but I hv deleted the post - sorry). SPSetia-wb closed lower at 0.555 last Friday. It was from 0.82 last week, ok? So, why am I excited? It dived and ... I queued at 0.50, 0.48 and 0.45. It was done at 0.50(only 5000 units) and as it was shooting higher, I queued at 0.54. It was done!! It touched a intra-day low of 0.495 and at 0.545 now. The mommy SPSetia up 0.04 cents, one of the few green-counters(99 green, 534 red).

Is that few hundred bucks gain matter much? To me it is not(but at least it paid the father-day dinner I spent over the weekend! hehe). But to me, the most important thing to note is my trading hypothesis, my trading plans and my emotions involved. It trains my trading brain. I remember I hhv written before about 'trading mind'. Yes, it needs exercises and training. I will want to write more regarding this as it only make senses that we SHOULD do some practices, even if we are NOT using actual money.

HKSE : HSI up more than 2%, with many greens BUT CWP lowered to 0.92(touched 0.87). China Water strengthen to 1.95 now(from 1.80 last week). Sinopec at 5.84, recovered from 5.60 level. in red? <--- Noted. SGX : SingTel at 2.92. I m still monitoring Genting SP and GoldenAgri.

6.00 pm : KLCI at 1045.97. Oil below USD70, Gold at 925 level and DOW-future in reds now.
LionInd at 1.22, will need to try to clear it tmr. Stucked with GPacket and Petra and doing nothing much yet. I will stay sideline for a while, and will be glad to collect some warrants. Yes, I 'forgotten' that I only want to play with warrants if I m in KLSE, otherwise I prefer HKSE.

Warrants in focus : Wah Seong, Sunway, TgOffs, Affin, WCT, AnnJoo and SPSetia.

Call-warrants in focus : Resorts, Genting, Maybank, Bursa and Ammb.

JL : Any of these dive AGAIN tmr deserve to have a closer look. Buy into warrants, not call-warrants if the risk too high to take. Expect REDS tmr to BUY into a warrant that you like. As I mentioned, BUY in stages. Say ... 20k units initially.

10.45 pm : DOW losing 145 points and below 8400 level now. We might be seeing REDS again tmr morning. Be prepare.


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