My Trading Adventure

Dollar averaging : HuaYang

CP TEH
Publish date: Fri, 24 Aug 2018, 07:01 AM
CP TEH
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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.



Let me think ... this is HuaYang.  Its peak was RM1.80 level, from 2008 crash level of 15cents (adjusted due to bonus-issues, dividends).

Assuming we like her fundamentally. The whole property-sector has been down and slump. So ... being a contrarian, we would like to see if it is a good time to BUY at current level.

Using Hu-Li-Yang divide 4 method, RM1.80 divide 4 = 45cents , which is at current level. Ok ... buy first portion (invest means buy-hold for long time recovery and average it down if we get cheaper price).

We shall start small ... say RM10k for it at 50cent (closed 48cents at the moment).

Then, if it is at 40cents, continue to buy a consistent amount : RM10k .... 30cents another RM10k, 20cents another RM10k ... and by the time 10cents, we fully invested our RM50k. We don't know how low it could go ... perhaps now itself is bottoming and property-sector to recover by next year!!

The rule is to hold till it recover ... say , 100%. Then ... we sell of HALF of our portion to take back our capital Whatever there is a 'free' stock ... and we have no worry on it up-down.

We don't care ... we just use a no-brainer way of investing : buy-hold and averaging down if lower. Sell if it doubled.

Get the idea ...just an idea. Don't take it too seriously, perhaps ... treat me a coffee and discuss if this idea could work or not.

Note : I don't know if any readers stuck up there in HuaYang but I m not surprise that there are still many stuck up in many property stocks. Well ... dollar averaging, anyone?

Ok ... time for my jog.

TEH
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Discussions
Be the first to like this. Showing 5 of 5 comments

ncl90

If good stock....price can keep drop?

2018-08-24 08:00

enning22

everything falls back to economic fundamentals,or economic/business cycle,the turn should be around,watch for signs as the national debts begins to subside, and foreign investments begin to improves.

2018-08-24 08:35

SuperBest

noted with tqs

2018-08-27 18:02

tehsowgeit

same as my predict, the property sector will recover next year,

2018-09-29 06:33

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