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
- 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.
- 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...
- Lastly, I am know not metality/emotionally strong and disciplined to follow basic rules resulting in big losses...
1 comments:
I feel for u noob...
Used to do exactly like what you did, cutting losses and buying on signal. Buy on IPO, price fell, panic and made losses...Mess with warrants too.
I noticed that something it's not that the stocks I picked are bad...it's just that I didn't enter at right price (last time i always bought at high...the last fool) or didn't sell when trend reversed. If TA isn't spot on, holding a little longer would do the magic. Just compare the prices of the stocks you bought a few months ago and the prices now. See how many % of them rose up.
I also noticed you don't do trendlines, resistance level and support level for your charts. I think those are even more impt than the indicators (macd, stoch, rsi). Indicators are usually lagging, so at most i would treat it as extra evidence to support my views AFTER i determine the trendline, resistance and support level.
Exception is bollinger band. I consider bollinger squeeze only if it lasts for protracted period of time. A brief squeeze isn't counted for me. Look at osim between mid may to mid april for example.
Keep it up noob. NEVER EVER GIVE UP, cheers!
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