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!