Showing posts with label CHHB. Show all posts
Showing posts with label CHHB. Show all posts

Monday, 4 May 2015

KLSE: A failed short term trade in AWC

AWC is definitely a failed short term trade. I could have earned a profit of 10% in 2 days, but at the end of the day I ended up losing 10%.

This time, not only my entry price is beautiful, my timing is perfect too.

AWC


I did set a target at the time of buying, i.e. 10% short term trading. This implies a target price of RM 0.490-0.495. The target price is achieved after 2 trading days, I did not sell. A target without strict execution is useless.

Greed has crept in my mind and I "suddenly" decided to increase my target price. While I keep on reminding myself to not make the same mistake, greed has also buried my previous experience.


I do not know what to say, but hoping that I could at least take this lesson seriously.

Thursday, 17 July 2014

2014 Q2 Review

Return: +9.9% vs KLCI +0.8% (3 months)

Transactions: 4

1. Top up CHHB. details here
This was a mistake.

2. Sell CHHB
I need to use money. I am grateful that I picked the right share to sell. Easy: just sell the one which is losing money. Don't hope for a break even, it may come after you lost your patience. 

Lesson learnt: a 3% loss in 2 months. Not a big deal. But it serves to remind me in the future, that I should have sold it at the right timing.

3. Buy SHH
This should be the one like INGRESS last year, the same reason that I bought INGRESS last year. I am going to hold this share until it brings me huge return. I believe it wouldn't be long.

4. Involuntary trade due to a one-lot transaction.

Dividend: 1

INARI 2.0 cent


Review: The power of compound interest

I am still very focus on KLSE, although I start to keep an eye on US markets.

My strategy is still the same for this quarter, very simple: buy and hold. Nothing more.

I start to feel the power of compound interest, that even a 9.9% gain comes in as a considerable amount. This is the power of compound interest. Interest on top on interest. This is how rich people gets richer. This is how money brings more money.

Monday, 9 June 2014

A brief review: when to sell a share?

Selling a share is a tough decision for me. When I intended to sell a share:
- for which that have an unrealized gain, it is as if I am cutting my limbs.
- for which that have an unrealized loss, it is as if prohibiting the loss to turn into victory.

Perhaps I hang on to these things too long, with too much emotions.

SBCCORP is a typical example:

Bought in Dec 2012 @ 1.04 (before right issue)
Went up to 1.18 at 17 Jan 2013 (before right issue)
An unrealized gain of 4 figures within 1 month. Yet I hang on there, wanting more gain. (I mentioned this before 2013 Q1 Review)
Finally sold @ 1.01 at Feb 2013.

Looking back, I realize two things, that:
I sold it too late, that only took action after it fell from peak price.
I sold it too soon, that I didn't continue holding or the share would have doubled its price in a few months time.

Why would I mention something 1.5 years ago? Because I found that I didn't learn from that experience at all. That I went through the same thing again: 

CHHB:

Bought in Mar 2014 @ 1.48
Went up to 1.61 at 21 Apr 2014
A 9% gain within 1 month. Yet I continue to hold, not even think of taking profit.
Worse comes to worst: top up @ 1.55 Top up CHHB
Current price @ 1.45

Yet I am still holding the share, get nothing for almost 3 months.

Yes I bought both of these shares at a pretty "decent" price. But buying at a low price alone does not guarantee profit. It must be paired with a good timing of selling to maximize profit. 

I keep repeating the same pattern: holding, telling myself that the share is going to move very soon. But as one day turned to two and two days turned to weeks or even months, at the end of the day the opportunity cost that I may have lost may cost me a lot in the waiting. Until the share did move, months would have passed, and by then I would long for an even higher return, which in turn results in not selling AGAIN, which traps myself in this circle eventually.

So how to sell a share? JUST SELL IT when volume comes! If not willing to sell or, then at least take partial profit. Look at these two example, if I sell them when it shot up, the waiting period is within 1 month, and yet I secured profits. Remember: Profit in the account is still the best, not the unrealized profit in the portfolio.

Tuesday, 29 April 2014

KLSE: Top up CHHB

It has been some time since I posted my last transaction, but it doesn't mean that I did not buy or sell in these periods.

Today I queue RM 1.55 for CHHB, a share by guazi in Investalks.


CHHB transaction



Why would I buy this share? 

The chart is beautiful, is very much like INGRESS lasty year:  Why would I buy INGRESS? Price up within short time, then price consolidation with low volume, to "wash out" contra and uncertain shareholders.




Why is it 1.55?  

Well, first of all I am very "prudent" in buying something, including stocks. I wouldn't pay full price for something - a typical Malaysian style, and will always bargain: 

kurang sikit boleh tak? (Malay)

eh kah kiam oh? (Hokkien)

不能再便宜了meh? (Mandarin) 

can you give a better price? (English) 

So I will feel reluctant to even queuing for RM 1.56.

Secondly, 1.55 is the lowest price since 21/4/2014. Because at that day there was a slight movement in the stock with volume. I believe this is a relatively safe entry price.  

Target price - No target price. If volume come and I find a better chance, then I will change.  

Friday, 4 April 2014

2014 Q1 Review

Return: satisfied.

Transactions: 3

1. Top up PNEPCB
This transaction did pull up my average price. So I actually endured the "pain" when I topped up -- already 2X of my first entry price, how could I still buy it? But I don't want to regret, and this share did not disappoint me. It "hurts" me in the sense when seeing the % return "decreased dramatically", however, in terms of amount, the return is of course higher. 

2. Buy INARI-WA
I used to think that an investment of less than 2k wouldn't make me any huge return, at most a few hundreds in short time. But INARI-WA has really "broken my glasses". For this small amount of investment, the return is really surprising in 1 month time. This shows the power of investment, of how money is being duplicated. 

3. Buy CHHB
Clearly a "follow wind" trade, from guazi in Investalks. Buy at low volume, not too bad. 

Dividends 2
1. INARI 1.5 cent
2. INSAS 1 cent

Review:
This results show that I don't have to trade frequently to pursue for huge return. In fact, buy and hold may be the best way for high return - just do nothing and wait for the return, isn't this the best part of investment?

Yes, I could have sold INARI at high price and then wait for adjustment and then go in again, but how could I catch the moment precisely? What if I miss it, and then just let the rest of the return gone?

Yes, I could have sold PNEPCB on 14 Feb 2014 @ RM 0.84 and switch share for another return. And until today it did prove working, since PNEPCB still hovering around this price, but WHAT IF? I am loyal to this share, really feel reluctant to sell at this price though.

After all, it is easier said than done. When my capital gets larger, when I have some cash to play really short term, then I can go for different trading style. For now, I am satisfied with my return.