Tuesday, November 30, 2010

DOW down 40 points, recovered from the early losses. KLCI at 1496.

As I mentioned, there is a huge difference between investing and trading. Now, if you are trading, one or two weeks ago, you would have cut-loss(or take profits) when markets go for correction. Perhaps, you would have jumped to other wagon that is moving north. For that, TA should be apply in proper manner.

But, if you like a good stock and think that you are investing in it, then it should be accumulating during weakness, buying at each support and patiently waiting for the BUY signal. If we have lack of those TA skills(many do not), then we could just buy in stages, buy when KLCI down 10 points for consecutive 3 days. It is good if we could know the support level of each stock so that we could buy into it at that level. Otherwise, no buying-no selling.

For those who trade strictly using TA(even KBunai also they could give you all those TA indications! Hmm...), then be it. But for those FA people, we should go for those stocks which we think could rebound(due to good fundamentals, not punting or guessing).

KNM : I received an alert SMS last week when it was still st 0.42, today at 0.54. I will not go for this very speculative counter. I do know that syndicate actually sending the rumours to play on the stock thru brokers, dealers, friends etc etc. It spreads and many bought into it, as the volume shown. KNM is back to be the darling, trying to take out KBunai's popularity!! There is a news KNM got some businesses. Again, I do not look for get-rich stock. I could have used it to trade but I hv many in hands with few warrants/call warrants to handle.

Scomi : At 0.36, remember the uncle who bought into Scomi-wa at 0.195? Perhaps he wondered why I said YTLpower-wb is better than his Scomi-wa? That was two weeks ago. It makes senses to him now. I hope he has cut-loss those I doubt it.

I will share this with my 'students' this Friday, the risk of playing with warrants and the RISK. Also, the knowledge needed. Warrants are not for everyone. Call-warrants are definitely much riskier. I have to cut-losses on TChong-cd, Bursa-co, Tenaga-cp and such ... as you could lose a lot if you use HA.

Saag and Talam are still actively traded, with many looking for that one 'bit' profit(or loss). It is for gambling-mentality. HWGB continues to attract uncles/aunties attention. These will never end as there are so many different personalities in the noisy market.

Look at K1, certainly a huge number one winner. It shot up another 25% in ONE trading day. Impressive. As k1 moves, KStar moves too. Simply because they shared the alphabet "k". Do you know what is the price of YTL-e now? It is at 1.30 ... hmm ... do you know what is the peak price recently? It dives from 1.70+. Impressive too.

So, for investing ... for trading ... for punting ... we all view stocks differently. We may view YTL-e as investing in their new businesses, supported by YTL group. For traders, riding on the huge upthrust ... and then cut it off. Those with good TA(and brave heart) could have profitted from the recent craziness. But more unforfunate group are uncles/aunties/novices moving in late to punt and get stucked(dont know what to do with it now as it dives ... cut is painful as we supposed to get-rich and it supposed to go to RM2.50, ok?!)

Depending on how you see it, to me the current correction is much over-due and technically needed. 3 weeks ago, many stocks in overbought region. Today, we could see those short-term traders cash-out and those dont-know-much sell off their stocks due to fear. Today, I could find many with RSI 30-40 range. Just nice. Current weakness is viewed as a buying opportunity. That is MY personal opinion and doings.

Someone nice e-mail me and telling me that I must be very new to market(yes I am, sir) to be such a ignorant that I was not there in market in 1980s where you will lose lots of money by averaging down. He is refering to my 'no brainer' of averaging down on LionInd(it is just an example, anyway). If you dont like LionInd as my RM2 example, please use Kencana or IGB for the Rm2 or any stock of YOUR choice as example. Thanks for the pointer. I may be new to market, I hope I m not that ignorant. I still have loooong way to go ...

RM1-stocks : JCY at 0.915 and Kinstel at 0.905. HuaYang at 0.96 is staying well. Remember I want to see who reaches RM1.10 first? I hv cleared JCY, as I m going for Kinstel. We shall watch if any of these three reaches the finishing line at Rm1.10. Not in the soonest of time, for sure. loong journey .

9.25 am : QSR and KFC diving, JCorp rejects takeover offers. Someone paying huge premium, still not taking profit meh? Due to the speculation news, finally reality seeps in again. I m stuck with a little of QSR-wb bought at 3.05 yesterday. Do you like Pizza Hut or KFC? Nice.

QSR-wb : Bought at 3.05 yesterday when it dives, sold at 3.15 and 3.17. Queue at 3.19 not done. It closed at 3.14 for lunch and frozen after that. I m still stucked with a small amount. I do not plan on her but thought just a short fling. Sometimes, things could get complicated!!

Once the news out, it DIVES. This morning, I grabbed back at 2.80-2.83 level. And ready to dispose it all(because it is UN-planned). I have taken profits yesterday and at 2.90, I will escape with profits! hehe. Very risky. Even no-profit, I will still cut it off and giving back the dinner I hv taken last night! That is a life of short day-trader which I dont which to take or encourage.

Please note that you can view me as a genius or an idiot, it does not matter to me. I m more concern what I m learning from my trade, and can I do better next time? If I m losing hugely in a trade, how could I reduce my losses(still lose la) next time?

Kinstel : At 0.885, bleeding further. No longer qualify to be in my RM1 stock. Perhaps joining my 80cents-group

Bolton and SigGas : Joining my RM1 category.

GenM : Tho this is a boring stock, its RSI below 30. So BUY la at 3.20. Slowly wait for it to climb. I want to ask my students to buy, but they too slow to re-act. Somemore all so young guys/ladies. I wait somemore, the slow train will move la.

谭咏麟 - 幸運星 - I like his songs VERY much in 80s.


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