2008 second trade

====Recent Activites=====
Fed Reserve held an emergancy meeting on tuesday and announce a 0.75% cut on the interests rate. Together with the simulus package, Asian Market rallied to ridiculous height where we see HSI rebounded strongly from a low of 21709.63 on tueday to a high of 24,966.17 on thursday ( wide range of 3256.54) and STI recovered to a high of 3050 from 2746( 300 points range). During this 3 days, I saw heavy volatilies on the indexes which are swinging like a roller coasters. Many professional full time traders benefits from such volatilities.

====Jeopardizing Myself====
Again not learning my mistakes - seeing fellows traders share their wonderful profitting encounters has planted in seeds of desires to be like them earning back monday losses. I traded blindly this time and got myself into troubles again... YZJ - realised another 180 of losses as i buy high and sell low once more.... as i read through a possible bad news from our US counterparts data.

YZJ - I am condamning this stock now.... everytime i trade this counter I made losses ( 3 trades up to date mounting -1630.56 on this counter alone)

So far all 95% my losses are attributed by contra trades.... (contitutes by trading on emotions, envy, greed, temptation and stock chasing). My desire to get profits has jeopardize me and my plans. I never learn my mistakes even though I know them. I have no one to blame but myself and is getting rather sick to blame myself.

I REALLY REALLY have to stop looking the the live prices and perhaps block myself from communicating with others....

Procceeding ahead -
1) Restructure my personal finance... my last two trades has inflicted $740 damages to my saving cum expenses( had intend to put them in MMF to grow...) Life's going to be really tough ahead for me as I have to live more fragully keeping track on my expenses.

2) Need to heed fellow blogger LP's advise to keep 6 mths of expenses aside... Also need to heel mentor advices on reading up more and not get myself 100% vested. (Both had thought me alot but i failed to applied...)

3) Been too slothful on learning and my mind is always pre-occupied with other stuffs... Need to get those sorted out as well.

4) Stay out of the market for the time being....

2008 First trade

====Expect the Unexpected====
Last week, B & B(ben & bush) announce plans to give stimulus package to help the US economy. Pscyhologically, market's outlook will be optimisstic since the government finally get involved to resolve the problem. In additional, the earning season is here once more with major blue chips giving their reports within the next 2 weeks. All this will boost the market.

Such combination has entices me to do open another position in hope for some quick gains on friday. (Greed) I have done my homework and queue to purchase YZJ at 1.44 to sell at 1.50(2 bids higher then the resistance of 1.48) later.. And I was right the prices are within the intra day trade.(1.43 -1.53).

However, I did not manage to get my lots at 1.44... I tried to control my emotion to give it a miss but alas emtions overruled me once more and I chased at 1.50 and plan to sell at 1.55. towards the end of day, it closed at 1.48(resistance zone) not a good sign but i held on to my belief of the key reversal in price.

This morning, I felt something is wrong when I saw heavy selling( had the chance to offload at 1.45), however, I still stubbonly cling on to it and hope it will reverse soon. After lunch, my face turn green when major support of 1.43 was broken, within an hour it raced down to 1.38 ( when trade turned wrong I should have do a market order at 1.42 but i didn't...)

Eventually, I manage to sell at 1.40 near aug low..... felt like a someone gave me a heavy punch on my face....

****Every Prediction is not 100%, you'll never know what Mr Market it up to... *****

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.

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...

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

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.

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....

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.

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.

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!

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!