Stock Monitor: RMG & YZJ

These 2 are one of most steady counters around. I rate them together with Genting as can keep stock although I don't keep most often. I have some RMG at CPF after disposing my free SingTel Share of 10 years at 3.12. If you have stock them 2 months ago, you should have at least 30% gain each. In fact, I rate YZJ above all S-stocks, it has the most turnover 400 million compare to Cosco 200 million. The only problem - it is S-stocks. I have some doubts about S-stocks like Midas and Cosco, a lot of contracts won but no little dividend given to shareholders. Better be safe than sorry, I won't stock up pick up any s-chips as much as possible.

YZJ

RMG

Trades Review: Genting & Goodpack

I highlighted Goodpack breaking at 190, I took 191 and run at 194.
I highlighted Genting breaking at 159, I took at 161 and it close 166 as of yesterday, hopefully can sell asap.

As for the rest, no breaks means no buy for me. In fact, WingTai broke down 1.66 because of the government's property cooling measure.

Lesson learn: Trade according to Market Conditions

Market jialat - Adopt Hit and Run Strategy (2-4 ticks sell)
Market good - Let profit run.

Half-time: Funny Name

Anne Chang (Mandarin)- Dirty
Anne Chin (Mandarin) – Keep quiet
Faye Chen (Mandarin) – Dusty
Carl Cheng (Hokkien) – Buttock
Monica Cheng (Hokkien) – Touching your buttocks
Lucy Leow (Hokkien) – You are dead
Jane Tan (Mandarin) – Frying eggs
Suzie Leow (Hokkien) – Lost till death
Henry Mah (Mandarin) – Hate your mum
Corrine Tai (Hokkien) – Poor fellow
Paul Chan (Mandarin) – Bankrupt
Nelson Tan (Mandarin) – Bird laying eggs
Leslie Tong (Mandarin) – Rubbish bin
Carmen Teng (Hokkien) – Leg hair long
Connie Mah (Mandarin) – Call your Mother
Danny See (Hokkien) – Squeeze you to death
Rosie Teng (Hokkien) – Screws and nails
Pete Tsai (Hokkien) – Nose droppings
Macy Koh (Cantonese) – Never die before

Stock Monitor: Thomson Medical & GoodPack & WingTai

WingTai

Goodpack

Thomson Medical

Lesson learn: Always follow chart

I saw Olam at 2.62 - 2.63, breaking 2.58. It was a clear buy. I hesitate and ask my broker can long. He ask me what does chart says? I should have follow chart and take 2.61-2.62. In the end, I queue at 2.61 and end up with nothing only to see Olam surge to 2.70.

Stock Monitor::China Fish & Genting

This is not a buy call till they breakout. China Fish at 1.90 and Genting at 1.59. 

When it breakout of this level, resistance becomes your support for the counters.

China Fish

Genting

Lesson learn: Don't underestimate the bear

Typical market will drop faster than climbing. Typical ratio can be estimated to be 5:3. It means it takes 5 days for bull to climb but 2-3 days for it to drop to same or even lower. Dow and Europe is typical having red days everyday only STI and SSE is not following. Be cautious in these red days, all long should be kept best at intraday and adopt a hit-and-run strategy. If you are daring, take a look at DOW and STI chart below.

Head & Shoulder

Double Top

Lesson learn: Be patient and wait for signal.

Alot of people like to anticipate the market, saying stuff like 1130am will crash or using EW to predict the next market move. EW only is accurate when things had happened. We should not be interested in the things of the past, we should spent our effort waiting for the next signal to appear. Today most of the day, stocks are flat except Genting, I waited patiently for Olam to clear 2.57 or Noble to make 1.63 break before making any move. True enough before the day ends, Noble breaks 1.63 and I have to take 1.65 without any thinking. The decision is straight forward. See chart and follow it. The 3 white candle is call 3 white soldiers in candlestick term.

Lesson learn : Average Up tactics

Always average up 2-3 ticks above 1st batch buy price. 1 tick is too insignificant. For instance, if you have 8 lots Wingtai at 1,69, maximum u can load is 2-4 lots at 1.71

Lesson learn : Cut loss is essential to survive

Two cut loss examples that save my skin just last week.

• CAO at 1.51, I have set a cut loss of 1.48 but cut too late at 1.46. Although, it is a painful loss, CAO went to 1.42 after that.
• Kepcorp bgt 9.00 with 8.92 cut loss pt in mind. I cut 8.91 and yesterday it just close 8.70.

STI View : 2885 a critical point for STI

Lesson Learn : Never let a profit becomes a lost

Set protect profit to prevent the scenario from happening. Trust me it feels stupid to have that happened. I long CAO at 1.52 but never sell at 1.55. Due to overconfident, never even bother to sell at 1.52 when it drop back. Do not be over familiar with a stock.

Profiling : CAO

This stock is a monster when it runs. When it runs, NEVER QUEUE just TAKE THE QUEUE.

Lesson learn : Never force a Position

1 day back, I tried to bottom pick Yanlord at 1.93 because market very boring. It was a mistake, I cut loss 1.91 the next day. When there's no signal, no position is also a position. No income better than losing $$.

Lesson learn: We can never predict market just follow it

Adam Khoo once said, there's no right or wrong in the market just make sure you are on the right side. Do not go against market trend. I don't think EW is an accurate tools. EW is only accurate when things had happened which is too late. We are just small fishes following where the Big Fish goes.

Lesson learn : Primary aim is not to lose $$, Winning $$ is a bonus.

Every trade is a calculated risk entry.

Most people lose $$, your primary aim is not to lose $$, Winning $$ is a bonus.

There are 3 fears trader have:

1) Fear of losing - As long you set your cut loss point, you have nothing to fear.
2) Fear of losing Profit - At most don't win anything. Winning is just a bonus.
3) Fear of Winning not enough - Do not be greedy.

Lesson Learn : Have patience with Winners and impatience with Losers

You can't win all the times, infact you will lose alot of times. Always cut loss losers quickly and let winner runs. Bought Swiber at 1.07 some times back because it breaks 1.07 but it can't seems to cheong and range from 1.05-1.07, so decided to cut at 1.06 at due date. Although it is lose 100+, it keeps your mind off thinking about this loser when trading. Healthy Mental health and morale is very important. True enough, next day it went to 1.03.

Bought SoundGlobal at 0.79 because it breaks 0.78. Sold 0.820 the next morning. By the next day, it went 0.845. Gap fill thoery target is at 0.85. I should have hold winners longer because I already have buffer. The worst case scenario is don't win anything.

"Have patience with Winners and impatience with Losers"

Lesson learn : Capital gain over Dividend

2 Days back before Kepcorp XD it was at 9.4+. It was giving dividend of 0.16 cent per lot. The effective gap down should be 9.40 - 0.16 = 9.24. Yesterday after it XD, it ended 9.12.

Alway take capital gain over dividend paid out. Do not be greedy, infact 2 days before XD should have taken profit.

Bought $9.02 and sold $9.38. Never sold at 9.4+ is a regret. I have set myself a profit protection at 9.40. When $9.40 breaks, its a sell signal.