KFIMA Follow#2

Remember the TA entry I mentioned on 24/Oct under http://reiccs.blogspot.com/2011/10/kfima-momentum-play-value-invest.html (Entry will be 1.64, Stop loss close below 1.55 & Profit at 1.69) ? Well, she need about 3 weeks to achieve the first Profit 1.69 target. And in my 2nd follow-up , I still maintain to call for HOLD if one that have entered the stocks much earlier.




2 ways of trading using TA,

1) if one using TA based on break out strategy, one would have entered on 27/Oct at 1.65 during closing but considering the non attractive risk reward ratio , he may hesistated to entered. If he were to enter, he may profited at 1.69 (gaining only 2.4%), as he would not wait further as the psychology overwhelms him during 28/Oct~10/Nov where KFIMA drops to 1.60.

or

2) using TA based on "Buy at Support" Strategy (back-up by MACD >0), one would have entered between 2~10/Nov around 1.60~1.61 and using FA (intrinsic value around 1.86) as psychological strength to counter the FEAR . Given such overall market bearish sentiment, one may decide not to wait till 1.83 (3rd resistance or near intrinsic value), he should take profit at 1.75 (gaining 9%).


In conclusion,

1) Buy at support strategy is always better than breakout strategy in such volatile/bearish environment.

2) Buying good FA (with low PE) and undervalue stock (entry price is below intrinsic value), will help in boosting up some psychology mindset to hold for 3 weeks plus before closing position while acheiving decent profit.