My Trading Adventure
How not to lose money
CP TEH
Publish date: Thu, 26 Jul 2012, 07:11 AM
CP TEH
0 2,918
All the writings in this weblog are mainly for PLEASURE reading purposes. I am in NO position to recommend a call(BUY/SELL). Please check with those know-hows before you make a decision. Yes, I am just a learner, with only five years experiences in KLSE. So, please BEAR with me.
Learning Corner
Fajar : Trading below 0.85 now ... take a look at the huge spike from 0.85 to 1.15 levels in THREE days. If you have chased her and did not take profit or cut-loss, today the losses will be huge.
So, I m adding another pointer in my system .... never to chase up a stock that spike up(unless you have intention to go for short contra trade, assuming you are an experienced trader).
I am not sure if it is Fajar or Senja now ... just do not buy and hope it will spike up again ...
Cybert : I am not sure about the stories ... I simply glanced through its fundamentals when someone asked me and told me about this stock continues to move high ... I think it was at 1.20 level, then I checked the noises ... everyone is making money, happily with this goreng stock. Increbible as it really moved above RM2 level before the plunge!! OUCH ...
Yes, another pointer not to lose money in my system is ... look into some fundamentals before you jumped into a stock. Remember, if a stock is 'suddenly' in focus, discussed in forums ... or some blogs(to lure you in) ... check the fundamentals. DO some homework and decide on your trading plan.
Whether it spike up hugely in days or moving higher and higher into unrealisitic levels, I will no ttrade such counters. Yes, I am defensive and conservative. I do not like to be caught in such situations and NOT LOSING money to these stocks overweight the profits.
I could still 'safely' stocks like GenM or MPHB ... it is easier to use simple basic technical charts. Yes, I use very basic charting ... as I believe in keeping my trading plan as simple. More importantly, we trade with RULES and SYSTEMS we generated base on experiences ... and lots of knowledge about the fundamentals(of counters and markets).
Keep these two simple pointers with you, newbies and novices. Then you will not be in such situations of hope-n-pray. If you have to ... cut-loss even it is huge losses ... and LEARN from the pain. Get away for a while from market, to recover ... and start learning the RIGHT way. Just do not blame whoever asked or lured you into buying Fajar or Cybert ... only you know why you are sucked into them.
Learning takes time ... painfully yet ... making us stronger, if we are diligent enough.
p/s : Will you listen to these simple rules or still thinking there is someone out there will help you to gain lots of money? Get you logic right.
TEH
Fajar : Trading below 0.85 now ... take a look at the huge spike from 0.85 to 1.15 levels in THREE days. If you have chased her and did not take profit or cut-loss, today the losses will be huge.
So, I m adding another pointer in my system .... never to chase up a stock that spike up(unless you have intention to go for short contra trade, assuming you are an experienced trader).
I am not sure if it is Fajar or Senja now ... just do not buy and hope it will spike up again ...
Cybert : I am not sure about the stories ... I simply glanced through its fundamentals when someone asked me and told me about this stock continues to move high ... I think it was at 1.20 level, then I checked the noises ... everyone is making money, happily with this goreng stock. Increbible as it really moved above RM2 level before the plunge!! OUCH ...
Yes, another pointer not to lose money in my system is ... look into some fundamentals before you jumped into a stock. Remember, if a stock is 'suddenly' in focus, discussed in forums ... or some blogs(to lure you in) ... check the fundamentals. DO some homework and decide on your trading plan.
Whether it spike up hugely in days or moving higher and higher into unrealisitic levels, I will no ttrade such counters. Yes, I am defensive and conservative. I do not like to be caught in such situations and NOT LOSING money to these stocks overweight the profits.
I could still 'safely' stocks like GenM or MPHB ... it is easier to use simple basic technical charts. Yes, I use very basic charting ... as I believe in keeping my trading plan as simple. More importantly, we trade with RULES and SYSTEMS we generated base on experiences ... and lots of knowledge about the fundamentals(of counters and markets).
Keep these two simple pointers with you, newbies and novices. Then you will not be in such situations of hope-n-pray. If you have to ... cut-loss even it is huge losses ... and LEARN from the pain. Get away for a while from market, to recover ... and start learning the RIGHT way. Just do not blame whoever asked or lured you into buying Fajar or Cybert ... only you know why you are sucked into them.
Learning takes time ... painfully yet ... making us stronger, if we are diligent enough.
p/s : Will you listen to these simple rules or still thinking there is someone out there will help you to gain lots of money? Get you logic right.
TEH
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Discussions
3 people like this. Showing 5 of 5 comments
morning sir...thanks for the valueable pointers, ever day trader needs to have an investor's mindset, knowing the company before putting the money in..If the fundamentally supports it, and technical analysis just strengthen it, i will go in... but if wanna go in on the euphoria uptrend counter like goreng counters, then the strategy is 2 sens profit.. in and out after 2 sens and in again
2012-07-26 08:34
FUNDAMENTALS - the PE and dividend yield especially, plus a company's net tangible assets. These information are easily available and should form the basis of one's selections.
I'm very particular about the dividend. Sometimes we might become "forced investors" in that we might have to wait a while in order to a counter to reach our break-even price or to turn in x% of our target price. Getting dividends while we wait is a great consolation.
But that doesn't mean I shy away from counters that don't give dividends. I'm okay with companies that have low PER - more often than not, it's just a matter of time before the price would rise and the capital gains more than make up for the lack of dividend.
And I'm with CP Teh on this one - don't chase counters that have already gone up. When something has reached a certain height, it is more probable for it to come down than to go up further. Consider it as "a missed bus" - don't chase because there will surely be other buses that will come your way.
2012-07-27 00:40
basically buy low and sell high and also must have holding power not like many people out there trying to make money out of thin air ! in the end they realize the sharks 'goreng' them !ha ha ! no joke it is a fact many got burnt not only their fingers also the whole body. My sympathy to them .
2012-07-27 05:13
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
ahmad khan mhammed noordin
morning cp teh..
very informative data with full of advice.
look forward your methodology.
we promp to make same mistake and continue contribute through forum
2012-07-26 07:51