Saturday, October 27, 2012
The risk in speculative stocks
I do have my RISK talk on Thu night ... it was packed and for two hours plus, I kept talking .. about RISK. Wonder all will be bored to death? Haha ... Nothing come first in market than to understand that market is risky.
Linear (code : 9504) : A monthly chart to show how RISKY the buy-n-hold. The PEAK was at RM7.50 ... well, guess what the price is today? It is traded at 1cent ... correct, it is ONE single cent. How low could it go? half cent and de-listed, right? Virtually, one could lose EVERYTHING.
Is it really possible to lose everything in markets? Well ... yes, actually. If the counter we bought de-listed and we are not compensated. Annother obvious one would be buying into call-warrants, which expired(of coz it will not be in money). So, the risk is VERY high if we do not think logically and without the needed informed-knowledge.
I have never traded Linear but it was in my stock-list in my initial years. Some counters which in my list went into PN17 or de-listed. For example : Stamford College ... as I am in education line. It went into PN17 and failed to re-structure.
Another counter I remember I was checking is NguiKee. It is just a shopping emporium counter. Well, it is because I was in KK and NguiKee is a 'large' shopping place, so I thought.
BioOsmo : It was IPO-ed when I first came into KLSE ... I thought of apply for it, 33cents. Well ... luckily I did not. It went to 20cents ... lower to 4cents ... and gorenged recently. Unless it is not de-listed, we can buy to hold till it is gorenged again? When? We could never tell ...
I have traded LCL and Evermas before ... phew, you will be lucky to get out of such speculative stocks. You lost lots of money in it ... you learned the mistakes and how to check on fundamentals. I can mention more such cases, where IGNORANTS and NEWBIES, those gamblers will be buying into such counters as it is so so ... attractive. Every aunties-uncles talk about it, all newbies interested and asked about it in forums ... and you bet, it attracts many gamblers!! KLSE-casino is the largest casino in Malaysia ... we could legally BET and try our luck!!
I think we all should advise those ignorants and newbies to get out of these stocks while can ... sell all for huge losses and then, start all over again with GOOD trading habits, good mindset ... and start to learn to trade or invest the right way ... and sleep well.
If you do not know which counters considered as speculative(all are, just matter to extent)
, then do ask those HONEST ones ... the experienced one. I do not mind answering that as it could save MANY from being sucked into these shark-infested counters!
Have to go again ...