Magnum nice ... 1.28 close. On 20 May, I posted here that I took a Position Trade by chasing to buy MAGNUM at 1.16. Since I posted, MAGNUM rise and fell below my entry price. It fell as low as 1.10. You are sure to get at 1.11 filled. If you did, then, you will be happy, as MAGNUM closed 1.28. That's nearly +16% gain in less than 2 months. For your reading pleasure.
Why it doesn't resonate is because the win is so small if correct: 1.31 - 1.28 = 3 sen. That is a tiny tiny profit. And if it dips back down to 1.16, the loss = 1.28 - 1.16 = 12 sen. Add commissions and the loss is so much bigger than profits.
This type of trading is a sure recipee for failure and shrinking your account due to high commissions.
In Bursa, buying breakouts like this after today's big move is often too late, except on the mania stages where what goes high keeps rising even higher. But we are not in the mania environment - look around you and most stocks are still "normal" - today's KLCI barely makes a point. Since we are not in a mania environment, odds are high that after breakouts, the next few days move tend to be weaker and consolidating. So, important to read the market environment, the sector, the securities itself if trading short term.
For me, much easier to position trade i.e. give yourself a long time like 1 to 17 months to win. This minimizes commissions and maximizes profits.
Here are my views on my position trade price targets for MAGNUM. And some sharing of thoughts on what should be a good Trading Plan, and how to be a successful trader. My plan is so simple that even a child can execute.
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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....
Donator
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Posted by Donator > 2024-07-17 10:00 | Report Abuse
Ya, TP 2.00