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Saturday, August 28, 2010

DOW up 160 points. No buying ... except JCY at 0.90, 0.80 ... and all the way down? Also EAH at 0.45 or below. I will have to trim TopGlove as I do not expect rubber to rebound any soon. How bout JCY, EAH and A123? Well these are new stocks in new low ... cheap can go cheaper, I know. So, I need to prepare for that and hopefully could be able to average down at each level I placed.

JCY : Every 10cents down, add 2k units. I have started at 1.35 but cut it off for RM1k+ loss. Now, I m collecting at 1.20, 1.10 and yesterday 1.00. I like it at o.88(rather than 0.90) ... so, my next buy should be at 0.88!! We dont know how low it could go, right? Any rebound(example - up to 1.10) of 5-10% will see me selling some and get ready to buy more at lower prices.

EAH : I have an average of 0.50 and will buy more at 0.45 at the moment lower my average. And might continue to buy at 0.40? I m holding 32k units of it now. Every one cent = plus or minus Rm320. So, I hv paper loss around RM1k now. I dont know ... we shall see how deep it could go but I m not cutting losses as that is not in my plan for her. I will galdly to clear some if there is a jump again. I have cleared half at 0.55 recently before kept buying from 0.53 and lower. Could it do a stunt to 0.55 again? If it goes SHARPly in a day again will see me clear half(again) while ready to collect when it retraces. It will ...?

TopGlove : I have to trim this one as I have lack of funds ... hence, if I want to buy at RM5 or below, I need to take small loss now. Well, I hv average at 6.30, i think.

A123 : BOught at a 'high' USD10.50, I m still waiting for next level to average down. Currently green-stocks in US is being rubbished. Many in new lows now. A123 is a 'new' stock listed and from USD20 dived to USD10, will it go to USD5 or even USD2 when US market dives? I do hope I have enough bullets to shoot it till end of next year. I dont see any rebound soon in this sector but I do believe these green-stories are cyclical.

ZhongWang : It is at new low now but I m being careful about my entry. If I dont have enough funds as my waterfalls falling sharply too soon, I have to clear all my TopGlove as I believe ZhongWang will rebound better. But, I m waiting for HSI to dive .... and once DOW gives way, it will. How low ZhongWang could go?

Why ZhongWang? It satisfied almost all my INVESTMENT criteria and also trading at its NEW low. So, it is good technically ... oversold. It is matter of WHEN I should move in for my first bite. Please do your own research IF you want to buy into this WATERFALL. I will show the chart and you will be scared!! Well, to me ... I should BUY when I m in fear. I m in fear for JCY, EAH and A123 at the moment. I have to use different strategies on each of them. I do not feel the fear for TopGlove yet. So, TopGlove will be trimmed or clear soon to collect my bullets, preparing for the worst. I have been weighing between TopGlove and ZhongWang and decided to go for the latter. ZhongWang's P/E is at single digit now.

Yes, I have cleared most my my trades. Many with losses. I could not afford to diversify if I m to average down. I have to focus only in a few. Even only the 4 mentioned above, I have handful to handle!! And I have to be discipline NOT to punt in any other stocks except for day-trading or contra, which I m feeling it is unsafe at the moment.

CitiBank

Many in Malaysia buying into CitiBank. To be honest, if you are a real investor, you will not buy into it. Fundamentally flawed but too large to fail kinda case. Provided the US gov to bail it out and guaranteed that she is safe, many may lose large amount of money here. Now, why so many buying into CitiBank? It is CHEAP(stock price, not valuations) with high expectation of appreciation of stock price(currently at USD3.70). Say you are going to BUY a financial stock, will you consider CitiBank? Why? Any other reasons besides what I have written above? Because some guru saying buying Citibank is sure way of profitting?

WaSeong : At 2.00, trading at its strong support with extremely oversold(RSI 19.4). On 26th May, RSI14 went to lowest level at 15.7(since the 2008 Nov). So, if we are going for counter-trend, personally I like it at RSI14 at historical low, and trading at strong support. The reason is obvious - a lower probability of another sell down(a hammer on Monday will see me BUY for short term rebound) and a higher probability of its rebounding. This is for short-term contra play, if I want to play on contra basis.



Efficient : Going into oversold level again. At 0.185, I will like to start collecting at 0.180 level, then 0.175 and 0.170 level. then ... WAIT. I have traded it in this manner twice and successfully released it in when it shot above 0.20-0.22. Recently, I went for short trade and cleared at 0.21 ... since then, it moving lower and at 0.185 now. Nice ... just do it!

Buying WaSeong or Efficient on Monday, employing different strategies. Many stocks re-acts differently ... so, it will be good if we have stalk over a period of time and more confident to trade it using what we believe works. What work for stock ABC is not true for XYZ. I have so long list of stalk-list ... and I do categorise them through their different characteritics. Yes, if you see ... I will mention about trading Wahseong or Efficient and I have traded them before. I do not talk about Sinotop, Timecom or even KNM. Definitely LCL is out of my list(out since the founder threw his stock!). PN17 is a NO NO to me. I dont care what high profits must take high risk as some put it. We have different risk appetite and risk management.

I have less than 3 years in markets. I m giving myself to develop and apply the knowledge I acquiring ... FA or TA or mixture of it. If I could play a spinner-hook(a spinner who has slight hook due to early release of his thumb) and get strikes after strikes, I wont mind mixing it. Bottom line : A good consistent score.

Patience is something very elusive ... I m slowly focusing into a few stocks to trade, using methods that suitable(which making senses to me - buying SAAG now at 0.065 doesnt make sense to me, so I wont even mention it) ... I need to feel comfortable. Learning to focus is also very important. We could over-diversifying. That was one of my weakness. So many stocks to buy, so little money.

To trade less too ... that is one of my weakness I m pointing out. Over-trading. So, I will buy or sell less unless it trigger my buy or sell signals. As different stocks act and re-act differently, I m buying many at its oversold level, with diffrent time frame.

Wish me luck as I might be accumulating a wrong waterfall and could never live in market to see the next trading year. By then, this blog should STOP.

Happy weekend. Happy Merdeka, my beloved Malaysia.

TEH

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