Monday, April 18, 2011

It was a late minute dramatic end with a draw. It is Monday, back to classes.

Failed breakout : Affin, MahSing.

Learning Corner : Never to regret on your trades

Many of times, when we decide to BUY or SELL a stock, for whatever reasons/excuses, we might look back in regrets!! Our stocks shot up AFTER we sold off our positions. We regretted and do nothing about it but to bang our head to the walls!! Hmm ... that could not be constructive, ok? Or AFTER we bought into a stock, some bad news(un-forseen?) hit the market/stock, and it started to move lower. Then we sit there regretting instead of make a decision to cut-loss.

Now, we need to understand that each time when we buy a stock, we HOPE that it move higher, but we need to prepare our next plan IF it did not move as what we expect, for whatever reason(s). For traders, we need to place a stop-loss before we buy into any stock as it is likely that our trades go against us. It has nothing much to do with your STARS or BAD LUCK. NOTHING. It has nothing much to do with your 'rationale' that that particular stock is your favourite and has profitted from her before!!

Be logical, please. I dont buy a Penang-based stock simply because I like Penang, right? At what level should I buy(and how much?) and at what level should I sell? No one could really tell what is next, that is why I find it defeating to REGRET.

By regretting, it sucks our energy ... we will be sitting there moaning instead of look for next opportunities. Seriously, we should not regret about our trades!! What we need to look into it more seriously will be what were going on in our mind that make us making such a decision. And think logically what we should be doing next(rather than emotionally). It is easier said than done, of coz.

Such emotions (of up and down) are not constuctive. But it happens in us each time we take a trade. To reduce such, we try to follow our plans. Making a decision by myself is much easier as I have to deal with myself. Only I could understand why I hv done some stupid decisions(buy or sell). Only I could understand if my decisions are rational.

REGRETTING is a destructive emotion. It drains us ... with those hai-ya or hai-yo ... all the cursing 'celaka', 'sial', 'no luck', 'if only I know', 'i should have ..' and so on ... it is STILL in me but at the very best, I will get away, re-call and re-collect my thoughts. What was going on, actually? What have I done right or wrong? Could I do better next time when similar opportunities are here?

Recent examples : I bought Scable(a Sarawak stock - related to Taib) at 1.27 due to technical ... 1.27 was it suport, forming a base and with Sarawak election nearing, I THOUGHT it will fly off!! Haha ... it went to 1.30+ but seeing it fails to move up and hovering at 1.30 for a week, with FEAR of election results around, it went lower. I cleared at cost price. It is at 1.21 now. Should I give myself a pat on my back and ... say, PHEW. Should I regret buying it in the first place?

Recent example : YH bought Genting at 10.10 level, and when it reaches 11.40 resistance level, she told me she got 'scared' seeing MANY rushing in to buy Genting at 11.40, resistance level with HIGH RSI. I could only asked her to THINK of SELLING. She logically sold her Genting at 11.40. If Genting shoots up to RM12 AFTER she sold it off, will she curse me? Since Genting went below 11 after that, should she thank me? Hmm ... decisions are NOT mine. I could only say my opinions, which proven WRONG many of times!!

PChem-ca : Grabbed her at 0.460.

MPHB-cd : Still like her, grabbed back at 0.290.

2.30 pm : KLCI up 8.88 points. Nice number for Chinese.

Genting-cv : Grabbing back at 0.145, in queue.


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