Monday, March 14, 2016

Dinner Date # 6

I met a reader (who is 3yrs plus in trading KLSE) ... for a dinner. After a whole day of classes, I was very tired but ... an interesting topic about trading, preparation for market crash ... and a free dinner ... motivated me!

So ... we met at Din-Tai-Fung. A nice restaurant as I do like Chinese food.

Ok ... nice dinner on him. If u r reading this post, thank you again for meeting me.

Question : Mr The, do u use different time-frames for your trades in KLSE's stocks?

The answer is NO. I only use daily chart most of the time. At times, I check on the weekly chart. So, I do not use hourly or 15min/5min time-frame(TF). To me ... KLSE's stocks lacking liquidity to use shorter time frame and the consistency is not there.

Anyway, he is using hourly chart to good effect ... hence, I will try to check on that ... and see if I could have entered at better price. We always learn from each other.

Ok ... that was Thu ... I told him, I have sold most of the stocks but bought two stocks : Supermax and KMLoong.

KMLoong : Out trading group bought at RM3.15-RM3.17 level as it was bullish. This was spotted by one of tratle(been with me for 3-4 yrs) and I thanked him for the good spot. But ... I sold ALL on Friday as it is reaching resistance RM3.30. At the moment, it is still up (breakout in making today!!) above RM3.40 now ... and I might buyback during pullback.

Supermax : Bought at RM2.73 level on Thu ... but have to sell at RM2.76 on Friday as I m clearing most of my stocks. There is no follow through to break above RM2.80 and ... yes, MYR strengthening might hurt the sector-play again. Supermax was lagging behind Kossan, TopGlove ... and even Harta. Karex got bonus-issue play ... but I sold for small profits in Supermax. At the moment of writing, Supermax trading at RM2.68.

So ... once sold KMLoong, if it goes higher, we could buyback. No need hai-ya ... I sold too early la. Or once sold Supermax as planned(no follow-thru above RM2.80, SELL .... these was given live and planned for my trading-group before bought into, ok?) ... no need to fell ...phew, luckily I sold Supermax on Friday.

See? One .... sold too early. One ... luckily sold.

As traders, we need to plan and execute. No point attending few thousands ringgit of trading course/workshop and waste the money as one will not learn how to EXECUTE. It is the emotion control that is needed ... not those indicators blah-blah ... I am SURE 80% of those attended workshop will STILL lose money in trading!! Sure.

So ... I asked him ... do you attend any trading course since you are new in markets? He didn't. He self-studied (great!! ... do that consistently, do not listen to those course preview, selling you their workshop and software!!). He read my blog and like it as I talked senses, according to him la. I cant be lying about what he said ... as he is reading my lines now!! haha.

But ... he said he wanted to join my workshop as his ex-colleague (IT line) went for my e-learning last year and found very useful! Oh ... his friend is in my trading-group since last year!! Well ... I reminded him about the first TIPS for market-crash preparation ... it is called CUT-LOSS.

No point holding to huge paper-loss or if trades going against us. He agreed to maintain discipline.

Anyway ... as he is new to markets and no experiences in seeing crash in markets, I could understand that he could not have the FEEL yet. So ... the only way I could advise him is to capital-preservation way ... by cut-loss on our bad trades.

He wants to meet me again ... well, as I will be seeing more dates ... I will go round-2 with him ... perhaps, next year.

Note : Join my workshop end of this month, if possible, ya. Thanks for the dinner.


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