Tuesday, November 09, 2010

2.10 am : DOW down 50 points.

counter : 260, 900.

Clashes of opinions

It is very common for us NOT to agree with others when it comes to stock picks. IT IS VERY OK and should be THAT WAY.

But, we should not want it only OUR WAY.

We have read those FA vs TA school of thoughts. The clashes are endless as they are using different approaches. I have no comment on which is which as I view it as trivial. More importantly, do you know HOW to APPLY what you saying, may it be FA or TA or nowadays, combination of both? So, I never take side ... I started with learning FA, making it a point NEVER to trade those extremely speculative empty-shells eventho they might give us HUGE profits. I will shall say ... thanks, but no thanks. You may go ahead with you KBunai or Maxbiz. It is OK with me to 'miss the boats'.

With FA + TA, I added EA + PA + HA ... which is my RA = Rojak Analysis! That is MY belief.

I believe that I should look into FA of a particular company before I trade. Sometimes FA may not be that good but it is tradable(example GPacket and such). As I included TA in my trades, especially these days(as I m learning ... when you are learning, you SHOULD APPLY that little skills of yours to sharpen your mind). TA with charts but MINIMAL indicators. Sometimes, people thought I only look into RSI. Haha ... it DOES NOT matter to me again how u see it as I have MY WAY. But, I do appreciate those constructive comments which could only HELP to improve my trades in future.

Look ... to me, it is a JOURNEY. If you could not see the changes in my trades, you are NEW to my blog, new to the way I write ... and dont even know me, an open book. That is also OK with me.

FA vs TA? Nah ... I would rather focus my mind into my trades rather than arguing such an un-beneficial topic. APPLY is the key word I will emphasize. If you THINK you know FA, use FA then. If you think TA works perfectly for you, good ... practise TA, then. What the fuss?

Another interesting clash of views will be speculative vs non-speculative counters. HEY, which counters in KLSE do not show ANY speculative nature? Hmm ... just give me ONE. Let me crack my brain(3 am now, ok?) ... BAT? Nestle? GenM? KLK? These giants? Are you sure they are not speculated? Excuse me ... very sure? THINK AGAIN.

To me, I put stocks into categories - say "SPECULATIVE". Rate them from 1 to 5.

Jotech very speculative at the moment : rate #5. HuaYang is moderate with rating #3 and YTLPower is less with rating #1. Even these rating CHANGES during different period of time, ok? When you read a news about a counter, you know SOMEONE will speculate on it. So, the counter's speculative's rating increases!!

Example : I bought TopGlove for my aunty(to gain few hundreds dollars only la ... for nice family dinner) but her young 20+ son claimed that TopGlove is speculative and argued that he will NOT touch these counters. Then, as I m too busy to 'argue', I will only say ... ok, young man, you are right. Then, he is happy. TopGlove's speculative rating is #2 to me. Supermax deserves higher rating and IRCB the highest. You dont gain anything arguing, ok?

Someone told me that he will buy only those counters with positive cash-flow!! That is like a 'criteria' to him. I was thinking ... hmm ... if I m a new growing company, I need loans and money to expand my business ma, right? A low gearing is acceptable. Today, TopGlove is a cash-positive company. It grows ... but whether sustainable or not, we dont need to argue about that. Analysts should be independent and write what they think. Unfortunately, many analysts are working for their banks/broker houses ... not for us.

It makes me laugh someone would come to say "Congrats on your SigGas" or "Sorry to hear about your TanChong". You see, I hv mentioned many times ... I believe that emotions SHOULD NOT be in play. I m only human ... of coz I do have my mood-swing(PMS, once a month, ok?). But, I wont look back on ... say, Sunrise which I sold at 2.40 and say, hai-ya ... if I know hor, I wont sell etc etc. It could drain my energy which I rather use to look into it to LEARN and focus what is in my hand, for example topping up E&O or buying Kinstel or clearing EAH & AnnJoo. Seriously, in ONE day, I have many trades in hand. And now, I do have my clients' stocks too to stalk(KPJ, BStead,Jerneh, Tenaga, AZRB and Jaks ... and the list could only increase).

Let us make our lives simplier by ACCEPTING each others - strengths or weaknesses. We are ALL human, afterall. I seldom write much about my cut-loss but believe me, I lost a lot of trades!! But again, I will see it as OK to 'lose' a trade but gain the knowledge and experiences.

I do not write many many of my trades here as it is simply impossible. It will be good if readers treat this blog as ENTERTAINMENT place to chill out after reading 10-20 other blogs! Haha.

If you have learnt something from my writings, good. That is one of my purpose(to newbies) but if you think I m bull-shitting a lot here, read this " BEAR with me, I am BULL-shitting". I written that when I created this blog 2 years ago! Hehe.

Well, there are exchange of words of dis-agreements in CNX's forum again. Sigh. I do wish we are all could 'agree to disagree'. I dont think so my learning could progress IF I always think I m right. No SUCH thing as right or wrong in my view. If you are right, what have you done correctly and could you apply it for your next trade? Why? Why not? And if you are wrong, what's went wrong? Why? Where? How should I modify and re-define my trade on her next time around? etc etc ... these questions are endless in my mind. Do you think I have time to argue? Hmm ... treat me my D&C at and I shall speak my mind! Haha

Time to sleep again. It saddened me to know that this world(of trading) full with people who dont appreciate LEARNING. Many are in markets but only a handful will want to LEARN the fundamentals of investments or tradings.

I hope I will start it right with my 'classes' for NOVICES, coaching them the RIGHT mentality even before they think of moving into markets.

My fav quote : Theories are empty without practice, practices without theories are blind.

Learn your theories WELL and apply it in your trades.

3.25 am : zzzzzzzzzzzz


PLG : Ride on it ...

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