Wednesday, July 27, 2016

Reminder : CUT LOSS

10.20 am : KLCI in slight red ... BAT dived some 10%. GTronic dived 6%. Nothing much discussed in the chatbox this morning ... as I was away - busy.

Didn't manage to short FKLI in opening ... and now it is in red. DOW dived 100plus points but recovered well to close 19points lower. Really ... nothing much in KLSE, except THHeavy is becoming lighter ... and those stuck inside are seeing some light too.

KKB, CMSB, HSL ... WCT ... well, the pan-borneo news. Hope one day I could really drive from KotaKinabalu to Kuching. I have only visited Kuching and Miri so far ... in my years staying in Sabah, but I have travelled most part of Sabah ... will like to go to Maliau-Basin and Kinabatangan again ... one day.

Well ... thinking of retiring. Haha ... another 3-5 yrs to go. Hopefully I m still physically able to carry-out my next journey ... next adventure --- retirement adventure.

Ok ok ... I was day-dreaming ... what am I supposed to write about today ... now? I have about half-hour before I need to run again.

Yes : CUT LOSS .... my favourite discussion and ... reminder to MANY of my readers, how important CUT-LOSS is. Let me check on ALAM .... yes yes, the one affected by O&G and owned by local funds, many retailers favourite ... or perhaps, Perisai ... not shielding well, tho.

This is ALAM's daily chart ... nothing much except that it is at LOW, breaking 32cents, we shall see historical low price. Please do not say ... 30cents, cheap leh. Sai-lang la ... haha ... kidding me?

Alam : Weekly chart ... showing from the peak RM1.60 level ... to current 32cents.

I do remember during cohort-5, it was trading at 50cents to 55cents range and we were discussing on buy 50cents, sell 55cents ... range-trading. Then, O&G started to be in play and it breakout of 55cents ... 60cents ... and rallied till RM1.50-RM1.60 level as crude-oil was around USD110 level. Today, we are seeing crude-oil price below USD50 ... halved ... but the stocks which rallied and dependent on these 'theme play' ... once the theme is over, we have to GET OUT.

It is over ... once 1.30 strong support broken. Game over. Exit. Cut-loss ... and forget.

Somehow ... many buying without exit plans. Somehow ... don't know why, cant really explained but there is a good book I read which explain the finance-behaviours of traders/investors. CUT LOSS and selling is one of the most difficult ACTION and DECISION to be made. It means ... admit wrong and move on. These are one of the missing traits in most retailers.

I will need to understand more on why majority will not be able to capitalise in market-crash. One of the reason is they are STUCK inside many stocks ... some with 10-20 stocks in hands and not able to take a decision to clear them off.

Yeah ... any O&G counters ... some more resilient ones such as Dialog or Yinson ... many in historical low.

O&G is just one sector ... which in strong downtrend and not finding bottom yet. There are many stocks going into new low level.

Time to go ... just a reminder about EXIT. It is crucially important.


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