Sunday, September 04, 2016

UMW : Still a good stock?

Sunday noon ... 12.10pm ... sending my son for his badminton session. 1st session ... let him sweat and train... haha.

KL : CP, Good morning. Are we going to sell those good shares with unrealized profit and keep cash for market crash. Because when market crash, whatever "good shares", the price will pull back and can buy back at lower price. Pls advise. Thanks.

This message sent to our chatbox this morning by a member. I have answered partially, but incomplete without further illustrations, discussions and evidence to support. There is no such definite answers ... we need to check on the FOUR pointers I shared ... the BULLETS part is important, the EXPERIENCE to buy during crash is crucial ... the time frame we placed for those so called GOOD stocks. We need to DEFINE objectively the word "GOOD STOCKS".

Take UMW as an example. Someone holding at RM10 and asked me. He asked if he should average down at the current price or cut-loss .... buy lower during crash.

UMW is a good stock?? Tell me : Just a YES or NO.

If no, how to cut-loss ... as we stuck up there and it is still trending down. How cheap is cheap?

If yes, should we average down at current RM5.50 or wait for crash ... to buy cheaper?

My question to all who claimed UMW (or whatever GOOD stocks you are holding), during crash ... most of stocks will go cheaper, RIGHT? Then ... what should we do? Average down ... dollar averaging? What?? Unlimited bullets? WOW ...

UMW ... low becoming lower ... taken out from index-link recently, replaced by HapSeng.

Ok ... want to go home to rest ... swim ... then read my 'crash-profit' book.

See all tonight.


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