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Thursday, November 04, 2010

WHAT YOU OBSERVE CAN SAVE YOUR ASS

by STOoi

Taken from CNX's forum

Hark back to 1997. At that point, I was pretty new in the Stock Market, and it was booming. I went to meet my remisier, and I noticed a pile of sales checks on his desk. The topmost one was for a sum exceeding RM300,000, which was a huge sum at that time. When I asked, he said that the recipient was one of his biggest clients, and he had been disposing big-time.

I took the hint, sat down with him in front of his terminal, and managed to walk away from most of my holdings.

A few days later, the Market collapsed.

As per the proverb: Fools Rush In Where Angels Fear To Tread.

This type of Intel you can't get from Internet trading. Sometimes, you have to talk to a human, and keep your eyes open.

The second lesson I learned was how important Capital Preservation really is. If I had not been there that day in 1997, my view of the Stock Market could have been completely different, as my life experience could have been changed dramatically and completely.

TEH : The above is taken from the most regular contributor to CNX's forum. I seldom read his postings but I find this short 'reflection' important to share. Thanks, STOoi for your un-selfish sharing and allow me to un-selfishly share with others. Let me know if you dont like it, ok? It is your 'property'.



11.20 am : Today is Deepavali eve - it is quiet out there, quiet in office and quiet too in market. A long weekend for many to visit their friends. I have many Indian friends and students. I dont see colours, mind you. we are Malaysians in heart. I will only visit my friend friend who came back from Sydney. It has been a loong time since I catch up with him. :)

KLCI at 1510 level ... SPSetia-wb and KFC-wb continue their surge. No, I dont like overbought stocks ... I m moving into AnnJoo-wb, instead. AnnJoo at RM3.08 now, see if it could recover to RM3.30 level again.

BRDB-wa is another warrant I m watching after it broken away from the 'pennant' I mentioned over the weekend. It is at 1.32 now. It is overbought too ... so, I m reminding myself NOT to chase any overbought counters, if possible SELL them off.

EAH : RSI should be reaching 70 today, was at 68 yesterday. That gave me excuses to clear off some as I bought heavily into it. I do need to release some bullets to shoot on others ...

Stalk : I m stalking Kinstel, E&O(moved in), AirAsia, Kencana and Sunway.

Well, I m taking half-day off ... to bring my family to Jusco(again??) for my bowling now. It is free and I could play whatever number of games I like! Hehe.

I will elaborate more on Ooi's article(not STOoi's) tonight if I could find the time.

3.20 pm : Cleared some EAH at 0.60 yesterday, and 0.615 done today too. At 0.605 now, I wont mind clearing all at my target of 0.645 level.

EAH : Yes, Bond(James?), 0.55 is the strong support. That explains why I buying hugely after it fell off below 0.60 and 0.58. But, the problem with TA is that you need to prepare to CUT LOSS if it breaks support level. I DO NOT have a stop-loss for this one and prepare to collect MORE at 0.50. I have gained 3 times of 10%, this time my average not at 0.55, but at 0.58(I think), so, I have to reduce my positions to release my funds which 'stucked' for some time. Sometimes, we need to prepare for the worst. TA does not help us here. Buy at support, but if support breaks, RUN.

As I have took some losses on Bursa-co at 0.110 days ago, it is at 0.105 now. Watching 0.10 level. Then, TChong-cd moving lower, failed to clear at 0.20 and retracing since then. It is in-the-money cw with 3 months left. No more topping up as I m watching its mommy. Now, will it rebound? We shall watch

TopGlove : I bought at RM5.50(without technical analysis or whatever - just do it!) for my aunties last week. Today it is at RM5.75 ... if I tell them this weekend that TopGlove gaining Rm250 bucks in a week, they must be very impressed!! Haha. May be they will say ... you not bad, ar. Always ask me if I gain from market?

11.00 pm : Yet another very good scores in my bowling games - played 8 games and averaging 202 today. May be I should seriously think of enter some competitions soon.

DOW is BULLISH ... going to 11,400 level now. Too bad that KLSE is closed tmr but I guess HSI will shoot the sky to new high!! Hurray ... bull run ...


TEH

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