Tuesday 29 May 2012

Update on Trading a company that being take-over (Leader)

In Nov2011, I mentioned on trading/investing on Leader would be a safe strategy if one manage to observe the chart carefully. The price movement will tell whether the takeover really is serious or not. And on 16/May, she has traded at RM1.10 (the take over price), so I decided to take profit. I only managed to sell at RM1.09 since too many lots were queued at RM1.10 which I've tried for a few days and not successful.

So, is it okay for a gain of 11% for a 6 month period ? Well, I think is quite good, imagine you only can get 1.5% for 6 months period if you put your money in FD.


For more details of how to observe a chart, you can check back the link below.
http://www.reiccs.blogspot.com/search/label/Privatisation

Friday 18 May 2012

Lesson to be learned from May Momentum play

On 1st May , I wrote the below for TSH momentum play

" Entry would be around 2.44. (maybe can get around 2.42 or maybe 2.44 would be the lowest)
Stop Loss = 2.26
Profit = 2.67 (1st target) 2.81 ( 2nd target).
Target time = 2 ~ 4 week max "

On 16/May, she broke down & straight punch through the support without a pause. She then close at RM2.18 which is RM0.06 below the plan stop loss 2.26.  For such a BEARISH MARKET where index fell more than 20 pts, one would take action as below :

a) During intra-day, if he/she is monitoring the market closely, no need to wait for end of the day, immediately cut,  maybe can cut at 2.24~2.26. At least is still near or according to the plan cut loss.

b) If he/she is not monitoring the market, cut the next day, even the next day is an up day, just cut at 2.18 or just observed a bit if index up, so maybe can cut around 2.21. Remember a cut loss plan is a plan that must follow strictly as a trader though one may like to tweak a bit on the cut loss criteria (see comment c). In this scenario, she keeps going lower & further away from thecut loss target. On 18/May, she is at 2.10, you will lost another RM0.16 per share in addition to the cut loss target (-RM0.18). Imagine if you have 10 lots (10,000 units), you would have lost another RM1600 in just 2 day of hesitation or procrastination.

c) What if the scenario is the index is NOT in such BEARISH situation. If the stock slowly creep lower and broke below the 2.26, say by RM0.02. One can still wait for the next day to see how she closes. If close above the support, then there is a chance there is a whipsaw here or some syndicate purpose flush out the tight stop loss trader. So, is good to hold 1 more day to observe the price direction if the general market does not have a BEAR charging at you.

d) What if you miss the boat, and now is too painful to cut, there is still a last chance where she may have a technical rebound back to 2.26 though the rebound may realize or may not realize. So, thats where the HA (Hope Analysis) come in.......;)




Sunday 13 May 2012

Happy Mother's Day


Wish every mother a HAPPY MOTHER'S DAY !!! 

Yesterday, we have celebrated and this time we celebrated at home by having steamboat. We celebrated with 2 mother (my mom and my mother in law) together with my brother in law family. The above cake was custom order by my beloved wife. The above cup cakes represent everyone that were in the celebration and the center cake will represent my mom & mom in law. 

Wednesday 9 May 2012

VI with TA ?: Coastal May2012 followup

Finally Coastal has rebound from her down trending and now there is a TA buy signal in the making. See the purple oval shadow ? Would it be a history repeat ? A close above 50MA (above 2.11) would signal a buy. Again for those hardcore investor, its time to accumulate againor average down for those who got in a bit too high (with careful money management). Lets see this strong FA stock able to climb up and go against the overall weak market sentiment.
Time will tell.
As always caveat emptor.



Tuesday 1 May 2012

A Momentum Play for May ? TSH would be a good bet



A purely TA play. Weak overall market sentiment but this stock is a strong uptrending stock. As one of my trading comrades name it, TSH is having a perfect chart.

Candle : Inverted hammer sighted
Stochastic : At oversold (would be safer to entry)
Support : Buy at 20MA support (buy low sell high ?)

Entry would be around 2.44. (maybe can get around 2.42 or maybe 2.44 would be the lowest)
Stop Loss = 2.26
Profit = 2.67 (1st target) 2.81 ( 2nd target).
Target time = 2 ~ 4 week max

Lets see hows she react from this.

Just a side note :
My nuffnang advertisement earnings is very low, hope to get more support ;) from all my readers here.

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