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Sunday, November 21, 2010

NEP : Trading below MA-20. Buy when bullish crossover seen in oversold region - sell when bearish crossover seen in overbought region. Easier said than done. Do you like the 15% profits in less than 10 days? That is trading, not buy-n-hold. Volatility is welcomed.

The up in that 7-days was in tandem with crude oil price when it went to almost 88 level. Retracing to 80 level now, many oil-stocks retracing too. Wonder why I always write about crude oil prices in USD? It is a simple overview on traders view. It is an economic indicator.

6.50 am : Sunday is family day ... and I will going to Putrajaya for photo-shooting with family! Hehe.

EPL : I cant believe that Chelsea and Arsenal lost again, giving MU the advantage now. Liverpool whacked WHU 3-0, but they are not contenders this year. So, I missed their game as I rather sleep to wake up early!!

Holding power : This is something an investor should have if we are seeing market to move up higher from this point. I do not want to be over-exposed as being cautious is wise. So, whatever moving higher with high RSI, I will sell and to look into others. I do not have strong holding-power. I m actually diversifying my capitals into a few portions - and the one in 'investing portfolio' is for buy-n-hold. Even that, my holding power will not exceed half a year?

Over-diversifying showing lack of knowledge in a particular stock, and lack of confidence too.

As much as I like steel-sector at this point of time, I have divesified into buying LionInd(for its low PE, high NTA and KLSE babe character - I like her too), Kinstel(for its 'cheap' RM1 price, high volumes and nice chart too) and AnnJoo-wb(for trading and in my warrant-play).

Balancing my portfolio could be a challenge too with my 'small' limited capitals. I need to make sure some portions to be used in a higher leverage play, moving in and out of call-warrants for short trades. As I do like O&G sector too, I went for a more defensive ALAM(chosen her vs Dialog) while moving for quick trade in Kencana-cc. I m still eyeing Sapcres or SigGas.

While I wont mind holding to stocks, I do not want to hold to call-warrants. I do cut-losses, such as Tenaga-cp, TChong-cd, Bursa-co and such to move into other call-warrants or waiting for opportunities for short-trades. Recently when I said I moved into AirAsia at 2.25, actually I moved into AirAsia-ci. I have said that I wont want to encourage anyone to 'play' on the high risk call-warrant(I viewed playing with HWGB is riskier).

Averaging down, to me should be used only for good stocks where I have longer time frame(3 months?). I will average down my BStead and not TWSCorp. I will buy more into BStead and not TWSCorp. TWSCorp is very small-portioned as it is only being used to test my descending triangle(it broken the strong support recently and I m still thinking of cutting it off as the test is over). Also, I averaged down KinStel by cutting off JCY earlier. Such a decision may be fruitful or it may be risky. In market, we need to take calculated risk. For that, I use TA.

In bull-market, many will continue to go higher ... so, we could afford to average down on good stocks(with sector in play too) while riding it higher. we need to have holding-power.

Averaging up, to me should be used for an uptrending stocks in bull-market. While I like property and construction stocks( I termed them P&C = private and confidential, haha), I like Sunway and SPSetia. Going for smaller players, I like E&O(for its exposure in Penang and Klang Valley and also higher beta stock to trade) and Ivory(Penang, here I come). I do think P&C will be the theme too as it is being hotly panned out by many analysts.

Rubber-stock : Recently due to the flu news, suddenly rubber stocks went up on Friday. In the modernised world, we will see more new viruses, bacterias, disease and such ... and the demand of gloves will be higher. Perhaps, it has been factored in. I will like to take a closer look to play on its rebound. Personally, I still like the elastic-business.

As I bought TopGlove at Rm5.50 when it corrected last month, it is back to RM5.77 level now. I will sell it at RM6 level for my 10% profit. This is for my aunty, not mine. To them, 10% in ONE YEAR is very huge. Afterall, 30+ years putting money in FD(to grow??) is not a good idea of investing, anyway.
8.oo pm : Tired after a long day out - time to watch Chong Wei vs Lin Dan. Tmr will be a busy day for another one month before holiday starts ...

TEH

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