Punting Goes Haywire

===Ferrochina===
I have close my position for ferrochina locking a 5 bids profit. This is inevitably bad as it will give more temptations on the quick gains. And that was what has happened, now I have another open position deep in the red didn't manage to cut losses due to HOPE. Could have lock in some profits but I woke up late as i was on leave today.
Really have to stick to the screen and be very nimble...
Seems like JP Morgan dumping shares....

Will need to cut losses tomorrow or on monday.
Indicators on the charts is sucky and yet I entered into positions.

I am punished for not being discipline and not following my system again.

====Punting====

===News Revolving A Protrader====
Ok, this ultimate trader is now being charge for managing a fund without a proper license. In my opinion, I feel that he is a solid trader but his methods are to the extreme end which is not really suitable to me.

I had attended the session on his DIFF system thought by his student with Mentor. Personally i find the price is not worth the $$ as most of the time, they talk about market psychology where we can learnt through books.

===Punting===
During the weekend, I have analysed some charts and a few of them (FC, N**) are showing signs of reversal and thus I have set my mind to punt on one of them. This mentality emerged into my brain due to the my mentor successful punting in Noble last week. You may say that I am driven by greed once more but I am in a desperate situation...

Being confident with my analysis, I set to queue a few bids above the support and manages to get it in a short time. To me that is not surprising as I believe that contra players are out to close their position on the strong gap up and I am still optimisstic even when the price falls 3 bids below my purchase price...

However, things starts to turn sour in the late afternoon where the general market STI decline from the strong sentiment in the morning closing its gap up and my screen is a sea of red. This has inevitably worried me... I really wondered what went wrong.... I'm regretful of my actions once more...

How I can only pray the DJI give a fanastic results tml morning....

Financial Crisis

Been figuring out how to have a 3 column template for my blog for a week but couldn't achieve it... XML looks simple but hmm not that easy after all....


===Financial Position+++
Ok I am in deep shit now... Had not been managing my cash well... With my $$ struck in the market and my upcoming school fees, my savings is totally exhausted....

Have to look for loans already..... I am out of the league for stock market for the time being, a long time perhaps....

Had to look for sideline as well...

Survey About Me

Came across this interesting survey from a fellow blogmates. My ReSULTs:

You Are a Pegasus

You are a perfectionist, with an eye for beauty. You know how to live a good life - and you rarely deviate from your good taste. While you aren't outgoing, you have excellent social skills. People both admire you - and feel very comfortable around you.

What Mythological Creature Are You?

Portfolio Q3 results

===Earning Season and World's Insight===

This quarter earnings seasons do not have much impact on most of the stock prices even when decent earnings are reported in fact most if not all went down even with remarkable results. The reason is obvious as the subprime woes got back into the scene making the worlds' economy gloom. With Expert Fund Houses like Merril Lynch, Goldman Sac, Citigroup & UBS credit woes falling beyond analyst expectations, the entire world is shaken. Thought that's the worse, you are totally wrong, the rising oil prices and the weakening dollar has added more stress to the world.

====Back in Singapore===

No doubt Singapore has enjoyed a robust growth in the economy but with all the dark clouds over US, the earnings on some companies looks ugly. A significant element that lower profits of serveral companies to the extend of making losses is the FX losses. The has affected the results of several companies such as Labory Marine, SembCorp Industries, Aztech ...etc results, which affect the growth of my counters.

===Aztech Financial Highlights===

Comparing 07 Quarter 3 to 06 Quarter 3

Revenue has increased from 8.9% from 61954 to 67495. With an increase in Revenue, COGS will naturally rise. However, the Group's COGS went up higher than its revenue with an increase of 12.1% from 49106 to 55050. This will definately bring the profit margin down and indeed the group reported a decline of 3.1 percent in the Gross Profit. It is alarming for investors and the management do need to look into the situation immediately to salvage the future growth.

Looking deeper, the group reported a significant increase in operating expenses. Other Operating Income has surge tremendously, increasing a 37.7% from 446 to 614. The figure is a very small in the overall picture and I find that this segment is relativly unimportant as it is not their core business. Selling and Distribution Cost has increase slightly, 2.1% from 2050 to 2093, which I feel is a reasonable figure. Next, the main attribute that erodes the earnings is the Administrative Expense(No idea what segment should be included here) where we saw an increase of 24% from 5232 to 6488. Finance Cost has gone down a bit, 10.7% , from 634 to 566.

From its further segmentation, I believe that the Administrative Expense consist of it's Provision of Doubtful Debts which amount to 579(previous year don't have), the Exchange Losses which surges 143% from 310 to 754, and the increase in Amortisation of Deferred Expenditure of 65.3% from 648 to 1071.

Other details are:
Decrease in Interest Income(2.4%) from 170 to 166
Decrease in Interest Expense(16%) from 531 to 446
Increase in Depreciation of property, plant and equipment(20.8%) from 1062 to 1284
Decrease in Loss on disposal of plant and equipment(22.2%) from 9 to 7

Altogether, the Quater Net Profit has decline 28.6% from 5030 to 3591.

The Group has provide explanations for the decline in profit.

• A slowdown in orders from a key Contract Manufacturing customer in Asia Pacific region
• The appreciation of Renminbi as well as rising labor costs and overheads in China, contributing to higher operating costs
• An additional exchange loss of S$0.44 million due to depreciation of US dollar against the Singapore dollar
• Rising commodity costs affecting gross margin
• Provision for doubtful debts of S$0.58 million from 2 customers

From the above factor, I am very concern on the 2nd, 3rd, and 4th point. This factors are systematic risk which the company are unable to control and will keep acting against the company diminishing their future growth. .

Finally pertaining to the 1st and last point,I hope that the Management will need to ways to improve their sales and access their customers carefully to save themselves from giving their customer free stuffs(Provision of Doubtful Debts)

P.S. Tough Adventure on Financial Analysis

Bersek Mode

Market is self correcting... I wonder why? It seems that the subprime story is overdoing its impact... WHERE'S THE END RALLY???

Portfolio status - 24% wipe out...

I am going crazy... Severely Burnt.... Felt deeply regret for exploring the unknowns... PPL just laugh at me and I hate it....

Lost.....

Conversation

====A chat with my friend/mentor====

My friend cum mentor ask me how's my warrant and replied as usual another loss and that I could reduce my losses if I had not rush to sell earlier. And he told me it's better to earn then to lose... (who will like to lose money? duhz)... I then replied it is difficult to earn from the market... and he answered that it is difficult to earn in this market...

I then say I aspire to be like him can earn from most market conditions and grumped about my hugh losses and state about my weak emotions in trading. He highlighted to me that it may be my analysis instead of emotions... and note me on there is there is no such things as quick profits.

He then ask for my Observation, where I answered STI hovering around support lvl of 3670 and seems like consolidating at that level and later jio me to join another course where I decline as I am utterly out of cash and tell him to teach me after he attended.. He then tell me the system is good, wanna to learn must learn from the best... and mentioned that the fees is cheaper then what I attended before.

I answered that the system may not be suitable for me as its for pro trader who have the luxury to trade on a full time basis. Futhermore attending the course now is useless to me as I do not have the lifeline to trade futher... Another thing I observed from the system is one has to be nimble in the trades and I personally find that (e.g STI warrants) it may require a hugh caps in order to beat the transaction fees.

My friend/mentor then state that i am lack of confidence... and I response in an anguish mind to him how to be confident when my portfolio is down 21 percent...

Then he went along pointing the pros of the system like short term swing play and that TA is about entry and exit where I highlight on the cons that it requires a strict cut loss discipline and in my states, I cannot bear to cut further losses.... (one mininal loss- transaction fees will be from 54-60).

I then go on to state that both of us begun differently(He - FA, Me - TA) and have different track records. He has made consistant profits while I made the latter, consistant losses and that is a hugh difference. He mention that he dun speculate like me, I think he does speculate some times though and say my downfall is due to greed.

I then reasoned with him that I do stock chase due to the fact that it acted on my anticipation and gave me an assurance to buy because when I buy a stock with same analyse, it just goes down... and then he say I have committed all the taboos in trading....

Personally, I do not think that I am greedy (as i always cut my profits) but is just anxious in recovering my capital...

Now with a mountain of losses and no lifeline avaiable, I am deeply despair and felt that all the efforts I have put in does not pay off at all... this makes me severely sick of the market...

Grave Mistakes...

=== Lock another 150 losses ====
DJI vomitted 356.29 points last friday. And recover about 20 points on sat.
From what I observe, dips like this dun just come in one wave, and news of bad results from citigroup will definately cause another tumble when it opens trading on monday.

With such anticipation, I have join the putties bandwagon in hope to have a fruitful ride. In a rush-headed mind for profits, I have overlook the ISM report and its impact on DJI.

Early warnings were send out yesterday when STI tested 50 days MA and did not decline further after HSI closes with a deep drop of more then 1500 points, instead it retrace back to 3670 support lvl. At that point, I still foolishly held on to hope and took the gamble.

===This morning===
DJI closes 51 points down. To me, it seems ok where I should be able to enjoy the ride down. To my dismay, it went the other way round!!!

Trader Instincts
"When the trades goes wrong, you have to rush for the emergancy exit!!!"

My margin of risk was compromised and thus I took my losses before HSI opens as HSI is usually a driver to STI in either direction(decided not to take the gamble).

Mistakes:
Herd-Following
Panic buying/selling(brought at day high/sold at day low)
Traded on emotions/greed

Unstable State Of Mind....

Fed has cut its interests rate by 0.25%. SO What!!! My counters still hantakaki ard their prices.

I am in a berserk mode now... as I am being defeated yet again... With the same analysis of prospective counters, those that I brought goes down! Those that I never buy, goes up. This is driving me Crazy...

Lately, I have done some analysis and felt like doing some contra on Ferderal, NOL, and ChinaAElec, but due to the facts that what i buy will goes down, I did not make those trades and in the end saw them goes up as what I have anticipated.... DULANZ....

Attempting to ease my drought seasons, I follow some of my Mentor trades... But seems that I have been cursed, of so many of his winning trades, I just kept hitting those losing one.... Faintzz

In this unstable state of mind, I begin to chase stocks in my watchlist like Berlain Laju.... but quickly withdrew my order as I know it will be a mistake to trade on emtions/impulse...

Haiz... Seeing my holdings without any positive movement is getting on my nerves...

The Feeling Inside Me...

====In the Market Today====
As mention in my previous posting on the importance of Sector In Play! Today we get to see how powerful it is with all the constructions, commodities and marine sector surging up significantly.

Argh... I am 100 vested cannot do anything even when I saw a buy signal in Ferderal yesterday. It have move in the direction I anticipated... Still got more room to moved up... and thoughts of contra filled my mind now...

haiz... Main issue now is that there will be having a fed meeting tomorrow and it is a gamble that the fed reserve will cut rates... and the other towering issue is the unrealistic balloon floating over the Hong Kong Island...

Risk: Extreme High esp when I do not have any credits to pay off.. better keep my fingers off the button...

Problems Young Investors faced:
- Limited Capital
- Fear & lack of confidence...

News Flash

====Property Curbs====
In an attempt to cool things down, our government have step in to intervene hot property market, making the current deferment scheme more rigid for home buyers. The reason behind it is to make the homes more affordable the locals??? Hmm, I wonder how...

Nevertheless, this has brought a deep impact on our property players in Singapore where we saw most of them topping the top 30 losers today. I think this sector will sleep through the winter till next year.

With the government's target to achieve a 6.5 million, it will definately be back in play next year.

====Labory Being Taken Over====
News of this lucrative Marine and Oil Company being taken over by Dubai Drydocks has sparken up the prices in Labory. Hmm but analyst see the offering price too low????

Hmm, so far counters that speculations beign take over all cheong(Ezion by Ezra, Chartered Semiconductors by Temasek Holdings)

====CNA DMG Analyst Report====
Aztech got hugh contracts for its ADSL modem in Northern America and expects to clinch onto a futher 2 billion worth of contracts. As of now, factory are 100% operated.

12 Month Target Price: 0.51 (Oh My God!!!!)

Papa Bear Knock out!

====Market Talk====
STI has gap up and close at 3771.55, just nicely above 3750 short term resistance. This largely due to the positive closing of DJI in their last two trading session. Tonight Technology Giant Microsoft will be reporting its earnings, its' new product Microsoft Vista Earnings will definitely boost up DJI. Thus, I believe that Papa Bear has been knock out already and the bull regime will assumes with the earnings season ahead.

Review on the week actions: Marine stocks, Commodities, Contructions take turns to soar...

===My Regrets===
Loading up ChinaEnergy during the bearish tone is my biggest regret... All along, I have known and been told that Commodities, Constructions, Marine & Oil were the sectors in play and what I have brought doesn't belong to any of the sector mentions... That's very Dumb of me As I did not applied what I learnt from Master Dec/Mentor Neo which focusing on the sector in play and buy relevent stocks.( Need to slapped myself for that)

What all I can do it to wait for ChinaEnergy to be appreciated....

===Hopes and Wishes===
- First ,to offload Longcheer when opportunities comes!
- Hope that my counters can get into the green zone soon.

===Plans Ahead===
Thereafter I will revamp my portfolio carefully as spreading my little capital over so many counters(over-diversified) does not bring in profits effectively.... Will reduce my counters...

"You do not need many counters to bring in small profits, you just need one or two to bring in big profits"

Will definately also focus on Risk Management too as my capital is small.

Investing in myself by reading up more books in the after exams!

====Extras! Extras! Interesting Counters===
ASL Marine, LaboryMarine, Jaya Holdings all trading near resistance, high possibilites to break out!
Olam Rebounding Up from Moving Averages.
Noble Group assuming uptrend.
Midas possible break out from Moving Averages.
Golden Agriculture Testing Resistance. PineAgriculture at support level.

Aztech...

====Aztech, A Prospective Counter that Sunk...====
The images below are excerpts from SIAS research in july. The report(figures and future prospects) is pretty impressive and has attracted me to buy.

Other driving factors: Provider for Singtel Mio and Skape phone.

Summary:

• 1st half 2007 Net Profit up 25.2% compare to 1st half 2006. Deducting the one-time exceptional gain in 2006. It up by 45.4%!!! Impressive results!


• Financial Position is stronger than 2006(see images for figures) indicates a good and stable growth.


• P/E ratio stand at 13.8, which is the second lowest among its peers. Industrial Average P/E is 18.1. Lowest P/E stands at 11.5, Highest P/E stands at 25.2.


• SIAS give a TP of 0.87!!! I brought at 0.575, if hit target will give me a yield of more than 50%!!!

====Q3 Results====
The 3Q results is totally not fanastic.

• Revenue rose 13.6% to S$185.13 million when compared to 2006


• Net profit increased only 3.1% to S$12.62 from 2006


• Quarter-on-quarter basis, the Group witnessed a 8.9% increase in turnover to S$67.50 million


• Quarter-on-quarter basis net profit declined 28.6% to S$3.59 million....

Credit Agricolor has sold off their holdings and brought a significant drops to its stock prices... The only comforting news is that the company and its' directors kept buying back shares which indicates that they are confidence in the future growth.

====Actions====
An Big Mistake Trusting Brokerage Research(A repeatation of LongCheer...)Keep this counter in my locker and take whatever dividends they give...

Time of Volatility

====Swinging Market====

Last Friday, DJI went down by 366.25 points to close at 13522.02. Whao the black monday effect is so great. The festive mood has also spread to STI on Monday 22/10/2007, where we have a gap down and another further decline to 3632.98 for the 1st hour before HSI comes to our support which helps us end the the day with only 35 points down.

Then came tuesday, DJI manage to close slightly higher last night and we get to enjoy some ride up the index with the support from HSI.

Last night, DJI manage to shoot up due to the strong earnings from Apple. This has boosted our index and STI manage to gap up today. However, HSI start to lose its strength and STI got its beatings as well, managing to close at 1645 near the 1650 support this support will not hold now...

More reports(beatings) to come in US:
MBA Purchase Applications (wk10/19 , 2007) Oct 24
Existing Home Sales (Sep , 2007) Oct 24
DJI - 168 as at 11.20pm

=====Actions====
As the saying goes"Volatilty is your friend" and I am out to buy on weakness during such times.

And I got to pick up China Energy yesterday. With the purchase, I am 100% vested again!
Chart below:




Today, it manage to gap up but has closed lower.... I can only hopes that weak holders are out of from the previous selling... and it can hold at ard 1.32....

Haiz a jinx again... failed to anticipated further decline due to US report.

Tomorrow Aztech report earnings.... due to market sentiments, positive results will not have any impact on the counter....

Portfolio status: Down 15%...

SnapShot of See Hup Seng

See Hup Seng Ltd provides corrosion prevention services for the marine petrochemical & chemical and construction industries.

With the booming marine and construction industries, I believe SeeHS will be able to flourish with the services it provides. May need to hold long to yield big profit.

Mission Failed!

====Market Sentiment====
Today market sentiments is a total inverse of yesterday. We saw STI diving down from previous closing 3,810.72 to 3,735.39 just before 10a.m. Then, it seems to have found some treasure at that level and slowly rises back to the surface of the water to close at 3,839.73 making a +29.01 gain. This is particularly caused by ever strong HSI which guided it up to the ship and get its' way back to the north-bound course.

====Actions====
(1) Shorting IPO
Today's debutee, ChinaOilTech open at $1.20, a significant increase gain of 100% from its IPO price at 0.60. Like most IPO, excitment has catalyst it up to $1.35 at the beginning of the morning.

To me, it is overly price and thus I begin to execute my plan to short it! 3 try of market sell at prices above $1.20 were missed.... And eventually at 9.45a.m, I shorted it at $1.09... with the belief it will go down beyond the day low of $1.

Prices have flucuate between 1.03 to 1.13 till 4.20p.m. , thereafter, it goes up to 1.15 and eventually close at 1.13. I have stick to my belief that it will goes down below $1 around 3.30 P.M., the time that market tend to have lots of selling. However, it did not even hit $1... I had become weary and set my buy queue at 1.06... which it only manage to touch but my buy order did not get through... Finally, at 4.25 p.m., I have to accept my mistake to realise yet Another LOSS of around $86 by covering my positions at 1.10...

Again, I have to thank Mentor Neo warning me that BB be back to push the price after a strong HSI closing at 4.30P.M. If not my losses will me much more.

(2) Buying On Dips

As mention in my previous posts, small corrections are the best time to buy on dips. Personally, I do have a few counters to purchase in mind to ride the year end rally and settle for Courage Marine queuing at 0.485 at 12.00P.M. (Notice that I have set my buy queue at a late time, this is because I am overly engrossed on my shorts position and forgotten my plan).

The counter manage to hit 0.475(ML entry price: super strong support) in the morning and I have missed it(reason above). By the time I remember my plan, it was at 0.50... I then set it at 0.485 in hope to get it in the noon sell-down.

During the noon, the lowest it got was 0.49, needless to say, I did not get it.

Conclusion: Both plans had failed!!!

===Lessons===

In my desperate state to recover losses, I have make a risky attempt by shorting. I was highlight that I did not calculate my risk well.

(1) At 60cents, ChinaOil Tech P/E was 20(consider high). However, its peers is trading at a P/E ratio of 40. Therefore 1.20 is reasonable...

(2) I know that PowerHouse is shifting from the States to China and HongKong. And I have neglect a little on HSI market sentiment and went against the trend, I should have release on weakness when I am ITM. Being stubbon and holding on to my beliefs is a mistake.

(3) As shorting is taxing, I forget about my intial plan to buy on dips.

(4) One must not be greedy to lock profits when shorting.

===Feelings/Thoughts===

Till now, I feel like a jinx(being negative) and always wondered how I am able to earn like my peers to earn from the market. My long recovery journey seems to be NEVERENDING and I felt very frustrated/depressed about it.

When will this be over??

Personal Comment:

INVESTING IS ONLY FUN WHEN YOU ARE EARNING, NOT WHEN YOU ARE IN MY DREADFUL STATE OF LOSSES

The Awaited Correction

==== Small Talk in the Market====
Yesterday(posted after 12am), we have experienced great volatility in the market where we seen a Morning Glory where STI open at 3,826.81 running up to 3,856.36 which later become a Looming Afternoon when it got tired and slips to a low of 3,788.88 before closing at 3,810.72.

===What Happen and Thoughts===
This has caused a great commotion in the midst of the bullish market and we saw a hugh selldown across the market.

The possible cause may be
1) The awakening of the credit woes in US.
2) The Uncertainties of the Fed Meeting in the weeks ahead on 31st Oct.
3) The fall may be a memoir of Black Monday on October 19, 1987.

Well, this is inevitably good for me as I am waiting for the bear to strike from my sale of Lian Beng. With this pullback, I hope to get some cheap bargains to ride the year end rally in Nov.

I am very interested to see how counters like Courage Marine, Sky Petrol(Fund House just entered), Ezra(just posted good results) and of cos China OilField Technology(IPO start trading) will react with the negative sentiment, especially when the experts in ShareInvestors are triggering the sell call.

Of course, the more adventurous can try to short some counters tomorrow for quick gains.

Quickies for shorting
Raffles Education
UniAsia( left peanut)

SnapShot of Hiap Seng

Quick Analysis of a undervalued stock.

P.S. For Bro Max(insider brought at 0.795)

Wishy-washy

I have been wishy washy in trading(lack of confidence)... getting more and more conservative with my buyings(fear)... and not following the primitive system of mine. I always have this mentality that I can get the stocks at a cheaper price(those who knew me knows that i usually set 3 bids away from open price and I seldom get them) thus always failed to buy those stocks and they flew away without me.This has made me lose lots of profit.

Today, another counter long in my watchlist flew away again. That is Courage Marine... I have been bioing that counter below 40 cents since the correction in July/Aug and today Big Fund House, Merril Lynch has entered into it, making the price shot up to 0.525....

Well, too late to enter again..... Haiz....

Investing is Fun?!?!?!??

Today, Mentor Neo have said to me that "Investing Is Fun". I totally rejected the idea as my journey to now, is not enjoyable... and I am still in a dreadful state, still trying to recover my losses...

Investing is only fun when you are earning. However at my state, I do hate the game alot... Throughout my journey, I have no doubt made mistakes and suffer the losses in vain. I do know my mistakes and is trying to learn from them, preventing myself to make the same mistakes.

However as I continue, I begin to doubt myself...

I have constantly analyse charts and try to update myself with the latest news. I have did alot of analysis for prospective counters before my entry. However, the counters always failed me when after I brought. Then the irony about it is, when I analyse and never buy, it went up.... These has make me pondered alot before making making any trades.

Another Trading Mistake

====Lian Beng Blasting Higher & Higher====

Just when I thought I got a good price by selling at day high on Thursday, Lian Beng has make yet another miracle on Friday!!! Argh!!!

Fridays are usually sell down day as people (mostly speculators) do not want to hold through the weekend. I am surprised that the highly speculated Lian Beng can yet hit another record high today when we have 558 losers out of the 825 counters in SGX.

This may indicates that
1) TA and FA is not 100% and highly price stocks will become more expensive as long as there is high demand on it.

2) It is hard to time the market

3) I have not learnt well to predict the trend.

Lian Beng New Chart Below:

Looking at the chart above, I realize that I have made a mistake in my analysis. I failed to see that the trendline is still intact....I must admit that to a certain expects, Fear has gotten me into selling Lian Beng due to the fact that many experts have analyze about the minor pullback in mid October. This only shows that my psychology to deal with the market is weak...

Sale of Lian Beng

==== Small Talk in the Market =====
2 and a half mths has passed since the last correction in late jul/early aug where we see a sharp decline in STI from an all time high of 3700++ to 2900++ breaking the 200MA support.

Back to present, we managed to see STI breaks into new record of 3900+ into the uncharted region yesterday. Several analyst feels that he recovery is way too fast and predicts there may be a pull back in mid Oct.

During the week, STI has gapped up on two occasion only to closed lower due to the profit taking sentiment in the market. Just yesterday, STI hit its high of 3906 and close at 3814 (almost a hundred points down). It may be a sign of warning.

====Personal Experience====
As a beginner, I am alway heavily vested in the market. This has made me got caught in the two market corrections where my holdings got struck. From the experience, I learnt to be smart and decided to lock some profits to safeguard myself against the forseeable correction ahead.

Looking at my holdings, I have only 2 counters(Lian Beng & STI ETF 100) that are on profits. This scale down to only one choice - Lian Beng - as its the only one that I could liqudate into cash. I have already do my research on Lian Beng and its peers before selling it. (see below)

===Personal Analysis===

Overview of P/E (Sources: Straits Times, 10th Oct, Wednesday)
CSC Holdings: 43.1
Chip Eng Seng: 34.2
LC Dev: 55.9
Lian Beng: 77.3
Yongnam:63.9

Comparing among its peers, Lian Beng has the highest P/E. It is very risky for investors enter into it now.

Constructions Charts






All the charts above shows a possible downtrend. It may be a good time to lock profits and entered on dips during the correction.

New Securities Account!

===Small talk with securities trading account===
We have seen/hear news of technical failure in securities trading platform from time to time when there are exceptionally large volume of trading on the trading day itself – these days are usually crucial to investors/traders as majority of them happens on when there are price shock/correction in the market. The technical failure results investors/traders to lose significant amount of profits, eating into their profits and the extreme worse cases go to margin traders where they could not cut their losses. Thus, it will be best to have a reliable securities company trading platform and perhaps diversify your trades with different trading platforms.

Personal experiences
I have been trading with POEMS since Feb. From my experience, I feel that it is simple and easy to use especially for beginners like me. It offers investors/traders a wide variety of financial instruments from the most common stocks, bonds, treasury bills, unit trust to the sophisticated instrument, forex. However, I have encountered some cases from primarily where live prices system crashes and cannot be shown or companies name cannot be display on live prices to the worse where I cannot log into the system for a few hours during the trading day.

This is especially annoying as I cannot manage to protect my profits and cut my losses and watch my counters prices drop sharply from the SGX website where I can’t do anything (Still got another alternative: call your broker place your order which incur a higher transaction fees). I had complained about this to Mentor Neo and he suggested to get another trading account as POEMS trading platform is usually unable to handle large trading volume on crucial day.

Recommendations
He has recommend Lim & Tan Securities and iOCBC Securities to me and emphasis on Lim & Tan securities as they are having a promotion now. The promotions give a 50 NTUC vouchers and 6 months free subscription to ShareInvestor Account after completing 3 trades with them. WHAO! That’s a good deal as you can get access to a range of analyzing tools and comprehensive information of stocks information from ShareInvestor website. As for iOCBC, it offers free SMS alert features for free whereas the rest need to redeem points for the feature.

Action
With such attractive benefits and features, I have applied for both last week and managed to get my Lim & Tan Securities trading account today and iOCBC has rang me up to inform me that my account will be ready by next week. :)

"Too Fast Too Furious" Week

===Small talk in the Market ===
China stocks legacy ended briefly on Tuesday where most counters fall sharply on Wednesday after a big gap up. The rally is set due to China week long holidays as they celebrate their National Day. Major indices kept breaking new highs for 2-3 consecutive sessions?!?!?! This is very alarming as Dow Jones was one of the indices which broke record high even with its credit risk deficit….. Hmm where is the connection???

Amidst in the rally, we saw some spectacular performance in the constructions sector who follow the properties giant rally last week since the review of booming property article from Business Times on 27/4/2007. The most amazing play would be ei-nets… which make almost a 500% yield comparing it prices on 20/09/2007 to the prices today.

Personal thoughts/views

On the whole, the market is enthusiastic for the rise of the sleeping dragon for the 1st half of the week until the fever was stop. Haiz, we are not HSI ultimately…. this is extremely bad for me as I hope to release longcheer among the rally…. Have to keep in my pocket now... will look forward to release it in the year end rally. I only hope that Dow Jones (major concerns for the world economy) does not interfere with the year end rally….

Along the way, I have pick up Ouhua which I mentioned in my previous postings. I was really happy to see it rises 10 cents from my buy price but good things always have short time framed and it decline sharply to 0.525 -0.535… Short term support now at 0.535… May have to release soon for other attractive counters before it hit my buy price and goes beyond it…

As for ei-nets, personally I have received tips (from someone who is right so far with his previous 3 tips) to buy in August but I did not purchase it as I have doubts over it. Furthermore, the company has reported losses lately and makes me unconvinced with the tips… Well with the rise, it has proved that his tips are reliable… Though I have missed the opportunity yet again, I was not upset as before because it will make me uncomfortable to invest in it.

Next constructions, well I have realized a little late that the booming news for our properties giant will brings in the construction play. Though I did not make any new purchase in that sector, I still enjoy the ride from -Lian Beng- as it secured another contract from Kovan development site bringing up its book order to 575 million. This also makes me experience something new as it has broken new highs where I am not able to predict its resistance level from the chart…. Now I do not know when to sell.

Once again from the chart we see that prices reflect before news and know that it’s a dirty game after all with the 3 consecutive volume spikes from the charts!



Note: Previously, I had set my sell target at 0.58 before July correction, have now change my perspective on it and decide to ride on the trend.

Finally, I have dropped my target to even out my net losses before year end. I feel that this has given myself too much pressure and affect my psychology in trading. From this, I learn that a little pressure is good but too much make one person go haywire.

==== 1st OCT 2007 ==== IRONIC DAY

A dreadfully sad day for me where i ponder over my earlier decision... Now, I am feeling some regret lingering from my soul....

We have a good bullrun in the exhange today with china stocks conquering the top gainers and my capital are rolling back to me. Yet with these, I am not feeling the joy that I should have felt......

something is gone and missing forever...

Stock Chasing

Firstly, the bad news, Chinamilk cheong to a high of 1.31 and I am not in the boat.... DOESN"T MeANT TO Be....
The day today is another bullday for majorities of the counters... especially the red army... and i am out to buy!

I got into my new position ===OUHUA=== today but also at premium hope it doesn't disappoint me...

I have set to queue at 0.475 earlier in the morning and adjusted to 0.48 before ten... didn't hit the price throughout the morning and closes at 0.515 for the morning session. Coming back from lunch I adjusted my order to 0.50... One hour passed... nv hit that... change higher as time ticks away. Finally at 4.55pm, i do a market order at its high of 0.515... Argh... hope it doesn't fails me.... with this purchase i am again 100% vested...

Trading for so long, I have to admit that I do not have the emotional edged when I trade... and it resulted much downfall in me like contras, warrants, failure to cut losses when triggered and always cutting profits due to short term prices falls... this shows that my perspect is very short and doesn't see the big picture behind...Need to made improvement on this... However, this emotional part is very hard to train.

I really wondered how my peers can achieve that esp WL where can be so cool-headed and focus when he trades and Mentor Neo who has much more paper loss but is yet still so confident.... Hope that I can reach that stage soon....

Trading Hipcups

Have one trading hipcups on my lastest buy today. This incident start from last friday when i entered positions into milk milk. Milk Milk was trading near its bottom last week and I made an attempt to enter postion queuing my order @ 1.12 in the early afternoon despite my analysis that 1.09 is the best entry point.

The whole afternoon went and i saw saw the price see-saw-ing between 1.13-1.15. It didn't manage to hit my 1.12 mark and just 30 mins before the trading hour ends, I adjust it to 1.14 which I manage to get it 4 mins before closing.

Markets then open the following week and I made the payments through EPS on tuesday.
On Wednesday, I proceed to check my account to see if my $$ is transferred into my trading account where it reflect $0.... then i guess ok the transaction should not be so fast and its normal. Milk Milk also drop to a low of 1.10 this day which is near to my forcasted entry price.... I then curse and swear over my impatience as I got the counter at a premium ...

Today, I check my account again the morning, It again reflect as $0.... i then proceed to check if my purchase has gone true. To my astonishment, it is still outstanding.... "OMG where is my thousands of dollars". I then called my mum for the security pin to log into ibanking and double check my bank account and the thousands of dollars is reflected as transferred...In a panic, I set to queue at 1.17 to sell.... as I dun have capital to pay. Thereafter, I rang my broker to check.... and got to know that the money is in but is not reflected on the account. From this call, i get to know that account details are only updated 1 day after transferred (the condition is it need to be before 9p.m.). I have transferred after 9.p.m. on tues and thurs it will only reflected on thursday.... where they need to key in manually into the system(what a lousy system that the securities company has).... I then went to check the order status and wanted to withdraw the order.... KNN it went thru.... argh.... blame it on my ignorance this time..... Sian innocently miss the boat.... SAD (MacD line going to cross signal line, 4G1R, low RSI)


NAN DAO I MING FAN TIAN SA GU XING! Why I always have sway encounters!!! TAMADE!!!

Insights of STI ETF 100

Ok, one of my two winning counters currently is the STI ETF 100, as mention before, it is like a pure equities unit trust but the difference is that it is listed on the stock exhanges where we can get access to real time prices and trade throughout the day. (Note: Unit trust only trades once a day). Like unit trust, it gives investors great diversification.

Components of the ETF:


The ETF aim to tracks the STI index with these 50 companies. Thus, with this ETF, you get to have some holdings in each of the 50 companies from the table. If you observe carefully, you may notice that most of the companies are blue chips and their stock prices are very expensive on the exhanges. Thus with a small capital, you do not have a luxury to own them.

The ETFs has provided investor an alternative to own those stocks as it require a smaller capital. However, it disadvantages is that with diversification, it offer a less attractive capital gain then each of the individual stocks.

Finally, I feel that the ETF is good for beginners are the prices are more stable than each of the individual stocks.

Trading not my cup of tea...

Have been trading in the market awhile... and failed to achieve much results from it... alot of stocks has recovered aggressively except for my holdings...
In my journey, I have always cut my profits and hold my losses..
Think my system is really wrong... now without any cash, I am in the midst of quitting trading... my actions now is to hold my stocks till it recovered and sell them off...

Observations from the market.

Due to my part-time studies school assignments, I have not been posting for a while. However, I am still actively watching the market movement trying to pick up the some experience to enrich myself when the similar situation arises again.

The stock market has been very volatile for the past one month since the 26th July where US market has plunge greatly due to credit risks in the home mortages that made the bear sterns fund to collapse and investors fail to get any money back.

This crisis has spread across to the rest of the world which make investors/traders panic resulting in a massive sellout in the every market and with the exception of the ShangHai Stock Exchange. (Ironically, China should be the major threat but it seem to be in her own world rising like each every other day, and all major indexes decline it did not even not even scratch her)

Even with strong economic growth reported, Singapore was still not sparred. STI has fallen sharply from its peak @ 3685 to the possible bottom @ 2962 in three waves with some false recovery in between. It has broken some major supports that I forcasted using T.A. The situation further worsen when it manage to break 200 days moving averages (last line of defense) an indication that the bear years may be coming in.

In the correction, every counters falls as investors/traders sell in panic. Blue chips were the first to go falling sharply till is is ridiculously cheap as compared to pennies. As the market recover, these market gaints make pretty aggresive movement punching the bear deeply in its face.

As for pennies, this correction is a doomsday to those companies that has their operations funded by debt. This is most noticeable in the construction counters, where construction leader like CSC and yongnam fall greatly. Companies that are overly prices from its fair value also get their beatings. This is seen from the speculative play of serveral counters before the correction.

Another interesting observation that i have notice is, counters (courage marine) with high dividend payoffs are shown to be much more resilient in the correction. This shows that with a possible bear year emerging, traders/investors will flock to these counters to get the dividend gains.

From these observations, I notice that the risk reward is better to buy blue chips on dips instead on investing in warrants. And in times of uncertainties, we should bank on high dividend yield counters as they are more stable and the dividends will be a bonus to us even in the bears years compare to the interests paid by putting our money in the banks.

Practical World===UnRelevant to stocks trading===

There is this intersting letter that I heard while tuning to Class 95 when I was driving back home today. Below are the narrated details:

A guy by the "penname" of LY had broke off with his girlfriend 7 months ago. This was due to the fact that the girl's mother had look down on him as he is not earning highly enough.

Well this average earning John manage to move on with life and got to interact well with another girl(whom he knew for six years) developing feelings for her. He then confessed and the girl went MIA(haha no la just distant herself from him) thereafter.

He is confused and ask her if it is becuase of his confession and the girl says that her mother wants her to marry to a well to do guy(I believe should be consider rich guy ba) and she will listen to her mother cause she single-handledly raise her up.

Additional Info: This guy is earning 40K per year which should be what majority of the guys are earning from a regular job in singapore now....

Well from the above, we can see how "sway" the guy is to have 2 such encounter in a straightrow. We will pray for him and hope the third one will be exceptional!

Haha ok enough of the crap. Down to the earth, we have seen the cruelty of the society and some expectations that the guys need to live to in order to have the "license" to have a relationship that leads to a future marriage.

This is pretty sad but it's part and parcel of today life with the evergrowing inflation. With this, I urge all to look for alternatives

Recovery in progress but...

Today, counters in SGX looks pretty green indicating market recovery for serveral counters. Looking at my portfolio, there are totally no movements or only slight movements...

I am pretty depressed about it and is puzzled on the price movement on them. There have been news on reconstructing of the roads for the F1 racing event next year last friday. This means that OKP will have potential to raise. However, it only inch up an unimpressive 2 cents.. and i am still 20 cents down from my purchase price...

Next, my "Project FISH", Pac Andes, OCBC give a technical coverage expecting it to rebound. That should be a good piece of news to me but looking at the resistance they set 0.81-0.87.... taking the low price, I am 10 cents down. Seems that I hook onto a Rotten fish... Another Longcheer to be counter...

Next C & G Holdings, Its Q2 result shown an increase in profits by nearly 30%, for the 1st half od 2007 when compare with 2006. That should also sparks the counter up but there is not much buying interest today...

Lian Beng, a major worry in my portfolio, with negative cashflow, the management is planning to give dividends... Hopefully I can sell it off at a small profit before the XD date...

Conclusion, I am very disappointed with myself. It seems that my picks so far are all claypot picks... Feeling very lost now....

Summary of the week.

The heavy volatility has brought exciting times to many. Sideway trading has been going on for the whole of this week and skilled punters are happily gaining some kopi money where i only could watch from behind...The feeling of hearing people making gains where me myself is having all the sour losses is pretty sucks.

I am really tempted to do some swing trades as well but i do not have sufficient holding power to do swing trading..... haiz all i can do now is just watch the market...

Recently, central banks around the world are injecting/planning to inject money into the market to provide liquidity. This should be some good news as they are putting in effort to avoid the financial crisis. Hope my counters will recover fast.

ShowHand on Royal Flush?!?!?!

Singapore Economy has perform well during the Second Quater. With such a strong performace, serveral investors/speculator are confident in investing into our home growth companies and some other prospective overseas companies thus most of them including me go in and grab.

I have already showhand all of my capital into the market since the cards opened are the spades' royal family and the last unopened card is the Spade of Ace since the Singapore is so bullish!

Then came along two uninvited guest, Mr Bear Sterns Fund and his Ugly Friend Subprime Mortages before I get to open my last card... They seated beside me and do some wonderful tricks on my last card. Being nervous on the arrival of the unexpected guest , I look onto my card again and to my shock, my ACE is gone and now I holding onto a JOKER...

What I do now is pay protection money to Mr Bear Sterns and Subprime Mortages to delay the time so that I can rub the joker into my orginal spade of ACE....


Lesson: Never to be too confident on the bullish market. Things may not turn out to what we predict as there are external parties that may affect the market. Keep at least 30%- 50% of cash reserve instead of vesting all of them!

Itchy hand on Fujian IPO

OK... I did silly things on IPO again mounting my net losses to 3.3k.... I had repeated this mistake over and over again... This has shown that I do not have the mental edge to trade in the stock market .... Argh the failure to handle my emotions in trading has brought several downfalls onto me.

Greed and Patience
The incapabilities of human being to control the above thinking and emotions will result failure in serveral aspects of human life and partically to the me in the stock market.

Can someone please enlighten me in how they control this emotions???

Recent Actions:
Added Aztech and STI ETF.

Interesting Article!

5 Lessons for a Declining Market

1. EXPERIENCED INVESTORS USE FEAR TO THEIR ADVANTAGE. Only in markets where people are scared can you buy stocks cheap.


2. I own a private company. If I wanted to buy out my biggest competitor, I would want to pay as little as I could. Investing in stocks is the same thing. Why would I be upset if I could buy them cheaper? Shouldn't I be happy?


3. You should enjoy declining markets. Declining stock prices... nervous investors... predictions of impending doom. It's during times like these that you have to keep your head.


4. SCARED MARKETS ARE THE ONLY KIND OF MARKETS THAT CAN MAKE SAVVY INVESTORS VERY RICH.


5. The creeping anxiety most investors feel in a bad market is like a human’s internal "flight or fight" signal. But if you keep your emotions in check, it could make you a lot of money. Most people don't know how to interpret the signal correctly.

Came across this interesting article! Hehe hope you gained more knowleade after reading!

Emotions Part 3! Pharse preceding the fall!!

Today we have another correction whipping 115.95 points of STI to 3431.71. All the stocks has drop 5-10%, a lot of margin calls to reach speculators, resulting in more selldown.


I begin to feel numb from this correction when I see my portfolio falling deeper eating into my capital. Guess it part of the learning journey where I have to curb emotions and selling in frenzy realising and piling on more to my net losses.

I believe I can protect my capital by holding them through the storm.

Below are the pharses of the correction:

Pharse 1
End of June to first 2 weeks of July: Pennies stocks like jade, oculus and many others that no one notice raise vigorously where some has gone 4-5 folds from their usual prices. Speculators at work.

Pharse 2
A series of short lived rallies(e.g stocks that rises high but close back at the end of the day/stocks that rises alot and fall on the next day) went across serveral stocks. This is a good time to lock profits and get out of the market.

Pharse 3
Catastrophe strikes, all stocks jus keep falling everyday. Good entry when bottom is formed.

With this experience, I must be better prepare for the next correction!

What seems to be cheap got cheaper...

Ok I have loaded up Raffles last friday based on a technique from Tycoon Report. Basically, it talk about using moving averages to determine your entry and that fundamentals solid company will tends to rebound quickly when they break the 200MA. Using this technique, a friend of mine manages to make quite some profits from some counters.

Without giving another thought, i make my entry into Raffles Education @ 1.91 as it break the 200MA line.

Last Friday Today

OK from the above chart, I concluded whatever I brought turns into claypot. LOL, jus another learning process.

The other similar chart will be Midas. Both company are fundamentally strong company that got some scandals lately that caused their prices to fall sharply. But I never expect them not to (hold/trade sideways) under 200 MA.

Well, from this, I learn

1) you never know if the bottom the real bottom.

2) that we should wait for confirmation in reversal trend then make the entry.

Market Correction Part 2

A Raining Saturaday, seeing the Dow Jones performance again. it went down by another 208.10... Whao, that will be quite an impact to the world indices again. I glad that I did not manage to get hold of the STI ETF 100 yesterday as I could get it at a cheaper price on Monday.

Everything in the stock market will be dirt cheap now. Singapore Economy Q2 is strong, i may see Jospeh cycle prediction coming true, where STI will mark its peak to 4300. If you have cash, i believe this is a good opportunity to make entry into the market already.

Market Correction

Ok, the market went down as expected due to Dow bad performance last night. Everything gaps down and some even delcine further. Today should be a great shooping day for all yet i am out of cash, thus I turn to my alternative option, to use my CPF.

the STI ETF looks to be a great buy today and I set to 34.5. Well, it didn't hit my buy price again. It only manage to hit 34.74 the lowest, 0.24 cents higher then my buy price... I change my buy price a few time till i finally settle at 35 which is also the 1st in queue at that price...There are no kind souls to sell me at that price... and at 4.55pm or so... some investor got impatient and brought 300 shares at 35.79 make it close nicely to formed I think the term is call hammer..

Well, waiting to get is alway sian... that's life, let hope monday I may have the chance to get it.

STI Status: Our STI is finding its support at 50DMA now, I expect a rebound from there.

Uncle down having bad temper!!!

Ok, things look pretty bad on the world economic leader, I think Uncle Dow will gave markets around the world a tight slap to lower all the heat that has been genearate over the past few months. I believe that will be a good time to pick out undervalued stocks which may need to held for quite a while for the market to recover.

Hehe seems like got opportunites for STI ETF 100 lor keke.

Emotions Part 2

Feeling depressed in trading lately, perhaps I held too much anxiety in reaping profits and overstressing myself to make those them. In the impatient state of mind, I have made serveral fallecies in trading, especially on contra trades...

I remembered Master Dec say that trading should be fun... I think I gave myself too much pressure and trading became unenjoyable....
I will not be trading in the near term, will be just watching the market and do more research on the stock market.

As for stocks I currently hold, I will be reverting to investor role and continue holding them till it hit my target price.

Current position:
Realised NET LOSS: Ard 2700

Will continue to blog on and test my methodolgy before I make my entry into the market for a round 2 fight!

Managing Market Emotions (-_-")

When everything in my watchlist is rising without retracement while my holdings are trading sideways. I feel miserable and sad doubting my stocks selections. This has made me have the urge of doing contra on the winners on serveral occasions and today, I did put buy order for meiban grp 3 times and withdrew them.... The devils and greed in me and the worrisome mentality that I will miss out a good buy made me submit to the devil. However, I managed to withdraw my trades 3 times... it was difficult....

Urgh weak mentality... Must to trade within my capital... Still trying hard to learn that...

Important Note: Opportunities are always abound, do not be silly to look for short gains by putting a hugh amt of capital on stakes!

Insider Trading! Pac Andes after thought.

Glancing through the charts today, I come across another counter with what I will presume as "Insider Trading". I have spotted this in China Essence before. Charts below.

I expects some sideways trading and the a sudden surge in Gallant like ChinaEssence before.

Pac Andes thoughts:

The charts looks pretty bad, with the issue of rights for investors to subscribe, and the scandal on Midas that affect most china counters, Pac Andes seems to have more downside ahead... well will be keeping this counter on hope analysis now....

Some Sharing!

Ok, I understand that making investment in stocks may scare most of you my peers away! I will highlight one low risk investment that will yield significant returns. I know many of you will think what i mention is too good to be true and feels unconvincing about it. Well be patience, read on, and decides later.

Introducing to you the Fanastic Investment Vehicle!
TATA!!! Exchange Traded Funds!
I will just give the rough details of the STI ETF 100. Basically, it make investment in the top 100 performing companies when it started out. Now, it has strink the size to 50 and going to cut down further to 30.

This instrument is like unit trusts where professionals do their research and build up the fund with equities, bonds, currencies . Same things goes here and the professionals comes together to evaluate companies that will have strong performance and build the Exchange Traded Fund up.

The ETF is review yearly ensuring strong perfomers in the market constitutes to the fund, making the fund more valuable. Thus, it can be said this fund will just head higher very year with the slightest chance of heading down.

Investing in the STI ETF, you will be entitled to dividends as well and so far, it has effectively give dividends twice a year since 2002. With this, it edge out unit trusts as it constantly rewards its investors and from what i see has a faster gain then most unit trusts.

The best part of the story is 100% of your CPF-OA can be use to invest in it whereas only 35% of your CPF can be invested in stocks. With the ETF, you can easily beat the 2% CPF interest that the government gives with the dividends you get from it and you still get to have capital gains from what you invested.

Do give ETF a thought! There are other ETFs offer by Lyxor on Singapore Stocks Exchange, you may do more research on them before investing.

Over-Xposed... Poor Management In my Fund.

C & G Hldgs @ 0.68
CapitalandDBeCW070924 @ 0.155
Hiap Seng @ 0.73
Lian Beng @ 0.48
Longcheer @ 0.84
OKP @ 0.97
Pac Andes @ 0.92

Looking at my portfolio today, I felt overexposed. With a small capital, I am now holding 6 stocks and 1 warrants... hmm that has practically stretched all my available cash and even eat into my CPF...

This is unhealthy. Diversifying myself into many counters with little lots make my profits grow in a slow pace... Hmm, I will need to re-organise myself after selling some counters.

Proceeding On:
Without ammo left, I can only practices technical analysis on my charts now...
Alternate Options: Negotiate with my Mum for funding, but looking at my poor skills I doubt i will make that move...

Lessons: Too much Diversification with a Small Capital make you see slower/small profits... It will be better for Small Capital Beginner like me to hold just 2-3 positions.

Great Stocks Sale!

Over the last two days, Negative News has drove SGX to make lots of offers to the general public. Majority of the public erm ok perhaps maybe only me is too scare to enter on the previous two trading occasions. Today is the last chance but I am on External Seminar!!! Argh!!!

Finally manage to access a computer at 4.00 p.m.! Serveral prospective counters I wanted had flew... In the end, I loaded up with OKP with simple analysis. I have a lot of interests in this company as it builds all the roads in singapore and now it is expanding it business into oil industry collaborating a project with Rotary. I see it as a good headstart for the company to enter the lucrative oil business.

Featuring Midas

Midas has been a shock for many today especially to my fellow friend, Neo, who is heavily vested on it! Its prices kept free falling from the open price 1.84 till 1.30(beyond 200MA) where the company request a trading halt at 10.30a.m for investigation.

Midas is a aluminium leader in China's market with serveral hugh contracts under its wing!!! With such a high book order value, I believe many value investors were trying to get at a discount as it was extremely undervalued (OCBC give a target of 2.19 earlier on this year) in today's meltdown. I would also have enter positions if my poems trading platform didn't hang. Luckily, I was not able to place order.

The Meltdown is puzzling and everyone is desperate for news. A piece of news then come out from an article in China Cai Jing (now removed from Cai Jing web, content can be found here) that the director, Chen Wei Ping (rumoured to have stakes in Raffles Education and Sitra Holdings) was involve in a big bribery and that Midas is an empty shell.

Whew!! Thank God that I did not manage to get into any positions.

Neo was panic and lost when i reveal the news to him. He was in immerse thoughts thinking about ways to protect his capital but never took actions. Seeing his tension, I tried to clam him down.

After investigation, the company denies the allegations amde to the director and resume trading at 3.45p.m after lifting the trading halt. Prices soared to ard 1.73 and retrance back finding support at 1.43. With serveral uncertainties and fast price actions during the last hour, I could imagine the tension Neo was facing and he did not made ay actions

Reaching home, he did more research and discovered the article I give him was removed! Hmm, seem that it could be an unethical report/allegations (content of the report can be found here) made on the director.
To further confirm, he manage to find,
1. Its board of director consists of Chan Soo Sen, one of the MPs. Our MPs could not be investing in a shell company.
2. Another important evidence that has also recently declared it dividend, something that a shell company will not be able to do!

With this, he managed to develop his plans to execute tomorrow. Hope that he can ride through the storm.

Another China Company Allegations: Delong
All these alleagations has made me worried as I have 4 China counter. Hope that they are fine...

Market Rebound?

Attended Master Dec talk on KLSE yesterday. As usual, with his technical tools he always spice the crowd up.

Ok, back to the business, Master Dec give a few insights to watch out for Uncle Dow support @ 13350, hit that level, cut losses! Personally, I hated the idea cost when I cut losses on China Essence last weakness 2 weeks ago, it hit new high.. making me heartache.

This time round, I adopted HA (Hope Analysis) on my counters and will ride through the storm for the correction holding them till I see daylight.

Last night, Dow Jones has fallen as expected but did not do badly. This has triggered STI to closed abt 20 points higher today with most industries has climbing back today. A sign of rebound is seen and my counters recovered!!! With serveral uncertainties, I will more cautious as a 2nd wave may be coming.

*Properties/Land Developer Industries pulling back
The increase in development charges has evidently made properties/developers counters topping the top losers chart. Capitaland did not fare badly today and manage to close at open price. Will revert back to old plans on report earnings play! Hope that a strong Q2 earnings will reduce the damages done.

One developer gem is spotted in the pull back, that is LC Dev. This counter has impress me by making a peak of 0.565, closing remarkably at 0.56, 0.06cents higher. Most probably is that its development projects are all overseas so it does not have any impact from the rise in development charges. If I have not remembered wrongly, Kim Eng Seng has given a coverage with a price target of around 0.76. May be a good chance to load up.

Other prospective counters that I will be looking are in the oil and marine sectors. Construction Giants also seems attractive on the discount it offering now. More contracts annoucing in Aug/Sept, high chances of rallies again. Sian so much opportunities so little money especially when I vested all my cash in the stocks already!!!

Lesson:

• Money management is crucial! Money is every traders/investors lifeline. It is important to have a fair amount of capital reserve with you as it will come in handy in such situation!
• At the point that the market corrects, think of what counters that you will buy!

Big Meltdown!

18 July 2007 (Market correction or incoming of the berserk bear??)

Impact Number 1 : MND (Ministry of National Development) has give the death sentence to majority of the land developers in singapore effectively by rising the development charges from 50% - 70%. These has finally amke me understand why the properties counters did not join in with the market recent rallies. Several warnings - (MM Lee mentioning about the property, burst failure of indicators) has been hinted to me but I did not hailed them planning for my cut loss on caps warrants. Now, it only left two months of time value... and I need to quickly decide on the actions to take....


Impact Number 2 : Selling Pressure was high this few days, there was a ususal tension in me and decided to withdraw my buy order on project fish. Got too chatty on the market direction. Glancing back to my trading platform at around the price was already beyond my buy price... In fact, at 3.30 p.m. there is a massive sellout across all counter in SGX.
This may be link with the collapse on the 1.3 billion hedge fund in US... Thereafter, the markets across the world is filled with bloodshed!

Hang Seng - 215.38

Nikkei 225-201.69

STI -67.08

Conclusion: Dow to fall tonight!

Heavy casualties to contra players!
There are alot of contra trades going on lately. Will advice to cut losses! For those who failed to cut due to system failure in trading platform better act quickly tomorrow!

Damages report: My portfolio is badly affected as well will be planning for my cut loss price tonight....

Action: Will revert to bear operation to tame the big gizzly bear!

===Project Fish===

Ok, there is one gem that had been residing in my watchlist for quite a while with one i fail to get it for quite a number of trading sessions. Let me unveil it to all!

====Project Fish====

Code Name: Pac Andes

Equipment: Fishing Rod????

I have been eyeing this counter since after I mention shorting to a fellow trader friend of mine. As the business fundamentals is still good, I have been looking for a good entry point after the downtrend stops. When the RSI hits 20% and start to retrace up, I starts queuing for it.

Never knew that fishing is so hard!!! A few occasions and practically week everyday last week, I been queuing for it, setting a 3 bids safety margin away from the open price but fails to get hold of it! Argh! This ikan bilis is really getting on my nerves! I will try my luck again tml!

&%$%&&*)**^$#) GOT IT ON MARKET MELT!!!!%$#&^&**(*#

(-_-")

Pennies's play

Pennies stock have been activly traded this few weeks topping the top 30 volume daily making lots of break out but too bad I wasn't in the boat. Counters such as Rowsley, Bakertech, Contel, Jade, Alantac has made many folds for the past 10 days doubling, tripling their normal prices. That has made a lot of people happy except me.

I could have be in equation boat but did not darn to enter, haiz lack the confidence... and it increase 7 cents since yesterday haha I should try eating "se dan" to gain confidence heard it will helps!

Well, have to scout for new gems liao. Currently, IPO is still in play, rotating around one another. Chances for multi bagger is still around! I will be digging out on some potential pennies that has not move much!

Below is the list of pennies that I feel will move.
Pennies Watchlist!

• Acma
• Oculus
• Eagle
• Oniontech
• Excelpoint

Do keep a lookout!

Reflections from 5 months of trading...

Looking back on my past trades. I have closed 33 trades , averaging to 5-6 trades per month (a sense of overtraded for a beginner with small capital). While some are good trades, many of them are bad ones.... Need to really look onto them to fine tune my techniques....

Let review some of them briefly:

(16/02/07) 1st virgin trade made: Cityspring
A company doing infrastructure for the city! A lot of excitment over the company as it has gain strong backing from Temasek Holdings - our country's second investment wing other than GIC. With the backing, it can tap to vast network/resources that Temasek has established.

With such exciting prospects, I made my entry on the fouth trading day @ 1.48 without any piror trading/investing knowleadge. Held for one and a half month and let it go of 1.52 before the counter turn ugly(count myself lucky). Around $24 of profit! Something much better then the bank interest!

2nd trade: Longcheer (Still dun have any knowleadge)
Just heard it a good company from my friend and made the entry @ 0.84 on 22 feb, 3 trading sessions before the China Sneeze that tanks the whole world on 27th feb.... Struck in it till now... Will be selling off this laggard soon!

3rd Trade: Noble Group (woke up from wrong side of the bed)
Buy on friend's recommedation again.
Ok some clog up in the trades - when buying, I submitted a sell order, shorting the counter. Panic on my mistake, I immediately buy back at a higher price doubling up quantity to save some transcation costs as i still want the counter... This results in a lame and unnecessary loss of nearly $84 bucks! (big joke!)

Major losses.
Begin to start contra trades after learning MacD indicator and a bit on reading Volume, where I gained small profits and got hugh losses.

Genting International (-463.97)
Saw abnormal high volume going on in the counter! (Must be insider news) Made a 10 lots entry on 9th April @ 0.95. The prices start to decline... sold at a lost @ 0.91 due to contra day expiry at 12th April... Thereafter, prices soared to a peak of 1.12 on 17th april after the annoucement of securing the casino license on 16th april - monday six days after I made my entry.

YangZhi Jiang (-889.42)
IPO play! Protential to become next Keppel Corp or Sembcorp Marine of China!
I manage to get 10 lots @ 1.34 near the low of the day on its debut day on SGX. The counter kept soaring and hit a high of 1.39. As it rises, I got greedy and withdraw my sell order, raising the selling price higher till I set 1.4 where it never hit... Fast rise, greater fall. It make a U-turn the next day.. and never came back the following few days of my contra period... settling for my losses at 1.26 right at the support level at that time. Now the price is 2.20... almost a 65% return from my buy price...

HSI warrants (-920.82)
Warrants are high leveraging tools for traders. It is a double-edge sword where one could reap big profits or big losses! As for this trade, I did not understand warrants at that point of time and just join my friend in his trades. Now that I know the basics of them, I strongly urge beginners to avoid warrants especially Hang Seng Index Warrants. They are not for the faint hearted! I respect the aunties and uncles of Hong Kong as they can stand such fast volatility in their market!!!

Yongnam (-334.41)
Contra 10 lots on the following day - 10th May after knowing that it manage to secure a million dollar project in dubai the night before from SGX annoucement. To my surprises, it just went down... Cut losses on the next day! Hmm, seems like I cut losses till used to it liao.

ChinaAngel (-1060 est)
Got too carried off in my recent IPO contra profits.... Went in to contra with my biggest Lots ever vested- 15 lots... Things look bad and cut my losses at a low price... marking my biggest losses ever...

Lessons

1. Contra trades is like betting that the stocks will go up within 4 days after you buy it.The chances are 50%-50%.... erm as for experts traders, I do not know their chances. Most people does contra trade out of greed and resulted in more losses than gain thus it is not wise to do contra trade.
2. Going on the long term on good stocks are much more rewarding then doing contra. Looking back ar a few counters that i have brought, they almost brings back nearly 100% return from the capital if i held till now...
3. Lastly, I am know not metality/emotionally strong and disciplined to follow basic rules resulting in big losses...

The Angel that gives A Devilish Blow!!!

~**Friday the thirteen - An Unpleasant day!!!

Today, a new company ChinaAngel made is debut on SGX. Having made 2 quick gains on IPO debutes, I just went on in and whack! It increase 2 cents within 2 mins of trading to 0.820! I then set to queue at 0.805 and waited, hoping the transactions get through. In a blink of seconds it gone through! And as usual I always felt negative things will happen after the transaction goes through! Lack of confidence! Something I should overcome from more good trading!

Things started to look bad... At 9.15a.m, 13mins later after I got my positions, it drop to 0.775... I hold on to it as i think the rallies will come in anytime. However, it never came... It falls deeper down to 0.765 at 9.50am. Then, I set a selling price looking to settled with some profits at 0.815 before going to a meetin and pin hope that it will goes through during the 10 am rally.

Coming back to Office At 12pm, I quickly check the price. The Angel thrust his sword into my heart as it proceed to made newer Lows! Checking back on the transaction history, the 10 am rallies only hit 0.78.... In a panic, I decided to cut losses and sold of my positions at 0.740 netting a 1040 losses!!! Argh, just when I recovered my losses yesterday and the glory ends here... bringing me back into the red zone!

Lesson Not learnt: I know this fatal mistake for quite a while, yet I am still committing it! That is Stupidity! Greed is the root to all the foolishness in me! Another redundant and expensive fees paid for not learning!

Moving On, after I cut losses, I proceed to what I originally plan and brought on C & G Holdings, the other part of my plan to buy Pan Andes is unable to execute as I had jus netted a big loss. This two counters have been give me buy signals. I chose C & G as it cheaper, hope that it don't disppoint me.

Below is C & G Holdings chart.

System Or Luck!

You will get to meet all sort of trader/investors when you start trading! Ok, below are two friends whom I knew that trades.

Lady Luck
A friend of mine Mr A, have made a hugh profits of out luck. Let me give you a general description of him, he is a person that does not do analysis to buy shares, always hantam any particular counter ask me for opinions. This happens often and is very frustrating! I have preach him to read up on books attend courses etc but he does not make the effort.

2 Weeks ago, he brought LC Dec and told me it a good counter to buy. I then question him what made him buy the share? Did he look up on the fundamentals, or basic on technical indictors to buy? And he gave me an answer mentioning it has good prospects as LV Dec is doing properties.... this kind of answer is well... like going to a food court with 3 fried kway tiao stall and one of them has the yummy food posters so it will be nice that kind of answer...

After hearing the answer, I just ignore him and dun even bother to look at the counter. Lately, LC Dec has been appearing in top vol for a few trading sessions and drew attention to me but is too late... it has risen 30 cents from the time I heard from him...

Doing a research on it, I found out this company has udnergo a demerger from Lum Chang Holdings and focusing onto its hotel business. It is asset rich with stakes in the three holiday inns hotels and some other hotels in china and london, it also has a land parcel in koh samui where they are planning to developed into a resort and some residential properties to sell. It a turnaround company!! Argh miss the boat!!! I doubt A know what the company protential the company has... Lady luck has just gave him a smile!

Unbeatable System!
Then there is B, who buys on financial institutions/brokerage firms coverage that yields high returns. He is disciplined to follow his system and now is enjoying the fruits of joy with more then 50% returns from the capital in half a year!

Me
Well as for me, I am still searching for a right system and gaining more experience to time my entry/exit to and from the market! On and off, I still tried my luck on contra trades out of greeed, but going to cut down as it only have 50% -50% chance and is mentality taxing . I hope to be more emtionally discipline to do my trades. I have been interacting with other investors/traders getting to know their past experience. These sharing are valuables as not people are willing to share out their trading methods.

Conclusion
It will be advisable for beginners to interact more with other investors/traders as you can learn much more from their experience! Here is this blog named GrowMoney where i frequents. A group of experience and amatuers traders/investors gather and interact daily. Its a good learning ground as the owner often shares his analysis/methology with us. Do take visit there.