Sunday, October 17, 2010

Market bubbles

For weekend reading, especially for those novices who thought market is a place to get rich INSTANTLY.

1. The tulip and bulb craze
2. The South Sea bubble
3. The 1929 Great Depression
4. The 1987 crash
5. The Asian Financial Crisis
6. The Dotcom Crash
7. Housing bubble and credit crisis(2008)

TEH : I want to add the bubble in China Stocks in recent 2007 before 2008 market crash. Some stocks traded at P/E above few hundreds!! Incredible.

Speculative stock bubble(in KLSE)

HwaTai : This is mentioned by a reader when it doubled from 0.40 to 0.80 in days!! Yippee ... let us have some biscuits, on me. It is at 0.56, can we take a GAMBLE that it will do its stunt again? Speculating and betting in the largest legalised casino, KLSE. Do we need another casino in Sabah, Karambunai?

KheeSan : This is mentioned and have a 'special' lesson for my friend, in trading/investing. This is a monthly chart of KheeSan which trading at 0.50 now. It shot from 0.50 to 0.75 in days of trading. Imagining GETTING RICH with a tit-bits counter. How sweet! It is back to 0.50, so it is only LOGICAL for us to 'position' ourselves for the rebound?? Who am I to say it wont fo beyong 0.75 this time? Looking into its historical chart, it was traded above RM5 before Asian crisis or RM2 in 2005. Even to RM2, I could have quadrapled my capital!! Yeah ... how sweet, again.

: It shot from 0.60 to 1.80 in few trading days!! As rubber-stocks rallied, IRCB is being used by syndicate to lure those greedy ikan-bilis. Without a cut loss level, playing such speculative counters, many ignorant losing lots of money. At 0.45 level now, will you PUNT into it and BET that when rubber-stocks rally AGAIN, it will shoot bakc to 1.80 or above? I m surprised that IRCB is still being mentioned each time I went to CN's meeting. It shows many are STILL holding at a loss, wondering if they should average down? Cutting at this level is too paiinful, right?

Sinotop : Moved from 0.32 to 0.64, doubled in few trading days. Today it is less that 0.16, half of 0.32. Do not apply any FA in such stocks. It is purely speculative and many insiders using it to squeeze those greedy and ignorant investors/punters. Will you buy it at current level and wait for that crazy one day it jumps back to 0.32 or beyond?

Sammy's Adventure

I watched a movie today!! It is amazing as I dont spend money much and not watching movies in cinema(I still view it a waste of money and time. Time = money). Anyway, my kids enjoyed themselves ... perhaps I should not be so tight or kiam-siap. The only expenses I m willing is nice dinner, especially after a good trade for the week.

Clare Chin : KLCI to go to 2610 after breaching 1500. BULL BULL ... buy buy buy?


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