I shall start with our first candidate : Evergreen
Actually, this is an adjusted chart : bonus 1-for-2 in Jan2016.
In Jan2015, Evergren breakout of 45cents ... and started to rally. The whole furniture or so-called export-oriented sector moved. It peaked around RM1.60 level ... around Jan2016, after a whole year of uptrend.
So ... last Dec, I have asked my trading group to exit the whole sector!! Do not fall in love with our stocks once the rally is over ... catch another theme, instead.
It dived to RM1 ... and now, our RM1 is the strong support. Once RM1 broken, technically we shall see huge down side (reminded me of FLBhd broken RM2 strong support and now trading way below RM2)
Next support for Evergreen is seen around 80cents.
Can we buy Evergreen around RM1 level now? YES ... we can trade it and buy around RM1, with the fact that we MUST cut-loss if RM1 support broken.
If I have caught it much higher, say RM1.30, should I average it down?
Answer : NO. Well ... it was a mistake to buy around RM1.30 without exiting point. If one bought RM1.30 when it was uptrend, take profit in stages and one could use trailing-stop to able us to exit with profits as stock moving higher. BUT if one bought RM1.30 as it dives ... that is a mistake too. We should not be catching a knife .. but ... averaging it will not be right, either. We could try to cut-loss if it rebound to resistance around RM1.18 level, or if RM1 broken ... we have to sell.
Trading is THAT difficult ... making hard decision.
Hope this post will be used as a learning-experience.
Note : I will be watching here and make an update.
Have a nice weekend.