Trend channel follow-up -Paramon

On 10Mar2012, I mentioned Paramon when she is trending near the bottom of her channel, see below for part of my comment or you may need to refresh in details what I have wrote at http://reiccs.blogspot.com/search/label/Paramon

......"So, how to play ?
To those traders that does not want to miss the opportunity, one should enter position if Monday intraday can goes higher than 1.61. These again based on probability, the true support may not be 1.58, so one should enter with a smaller position and keep some remaining bullets to average down at 1.52 if really the trendline A is the way the market really wants Paramon to go.

What about you are conservative ? So, just wait till 1.52 to enter, if she really doesn't goes down to this level, just forget about her and moves on to hunt for another better probability stocks....."



Today's comment

On 23Apr, she started to trade around 1.52 which even the conservatives also can enter. Remember ! even with TA, one cannot be accurate till the exact cents level when I mention about target entry price.

As of 21/June/2012 (is been 3 months +) , she has finally reach back her upper channel line, awesome right ? One can have his own sweet time to purchase around 1.51~1.62 as she fluctuate on these range for about 2 months. Meaning there is no rush in buying when she has reach the bottom of the channel line.

So, is it time to sell now? If on3 were to follow the trend channel game plan, it is time to sell. Again, remember one cannot get every juice out of an orange. She may breakout from the upper channel line but hey with this channel range, one already profit 18% for a mere 3 months period. One should not be greedy.

FBMKLCI trend: Sideway or Downward ?

Our CI is at the edge of the "Megaphone" channel. Looking at the Stochastic, she has a high possibility to move downwards if the 100MA not able to sustain. Let see how she goes on tomorrow. If she breaks back into the channel, then we must get ready for the rough ride downwards....

Follow up on TSH

On 18May, I post on the missing the cut loss point & hope for a fruitful rebound.
"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.......;)"

 Finally, today she has reached the 2.26 initial cut loss point. For a Trader who follow his/her strategy strictly, today he should cut loss at 2.26~2.27 and do not "hope" there is further upside to recover his loss. This is due to his initial trading plan has failed and he has to bear the small loss. For a trader, the strategy is to maintain cash always to fight another day by having small loss and having more than 50% success rate of overall position taken.

But for an medium term investor, one would have average down around 2.12 and wait for this rebound to check one can profit from his average price. In this circumstances, being and investor and to let him escape the pain of being actual real money loss while bearing only paper loss. Being a medium term investor, he must have enough money in his portfolio in order for him to average down (the best method is dollar cost averaging).

So, which Method you prefer ???? Again whether one is a pure trader or investor, a well trained MIND, a proper defined and back test METHOD and MONEY MANAGEMENT still applies.

TPMS is really useful !

Since the market is bearish, there is nothing to buy at the moment. I'm hibernating in terms of trading.

So, I decided to blog on Tyre Pressure Monitoring System (TPMS) which I find it very useful for a car owner. Well, not many car have this, to my knowledge, BMW has it but the feature is only a light indicator which will light up when the tyre pressure is low.

I have one install in my car, an accessories selling after market. The display shows information on Pressure & Temperature of my car's each tyre. I find having it is very useful, as just today itself, I was safe the hassle of having to change a punctual tyre or maybe worse still, damage my tyre sports rim.

 I was driving home around 8pm+, suddenly I heard a knocking sound below my car. Then in less than a 10 sec, I heard my TPMS beeping. The display showed my back left tyre only left with 145 kgf only of air pressure (Normally, I pumped to 210 kgf according to my car factory recommendation).

Immediately I turned to a nearby petrol station. Once reached, eventhough is less than 2 minutes, 

my tyre pressure has left with 47 kgf. I said to myself "shit!", is a serious punture.

I tried to pump the tyre pressure up, in order for me to have some air pressure to drive to a nearest tyre shop if there is still any "OPEN" at this point of time (is 8.45 pm). But, the pump not able to put in any air into the tyre. Again, I feel more anxious. 

Then, a guy who has just pumped his motorbike told me, I got to get it repair and just point me to a shop just beside. Mind me, I was so engrossed on getting my tyre pump up, didnt really realise there is a tyre shop still open just beside the petrol station. So, I just drive my car slowly there, bearing in mind that my tyre is totally out of air and I dont want to damage my sports rim.  

When the repair guy remove my tyre, I saw the tyre was totally puncture about a centimetre crack line. Really wonder what causes this damage. Bad luck !!! In my heart, I was hoping, the repair guy able to repair it. He put in the first "glue nail" (dont know what is actually call), and the soap water bubble still poping, then he put in another "glue nail', still bubbles popping. Then I thought to myself, like this I got to spend RM200 for another new tyre and the worst thing is my tyre is just 1 month+ old ! Luckily he didnt give up, he give another  "glue nail", then he check the bubbles again, he smile to me and said , DONE !. I'm a bit skeptical on the repair success as the 3 "glue nail" was put into a single crack line. So, he assembled back my tyre and I paid him. 

The only thing to do now is, I got my TPMS to monitor whether the repair has definitely stop the leakage or not. When the TPMS is running, I found he has pumped up to 255 kgf which is very high pressure but I don't bother to release the air as I want to monitor whether there is any more leakage or not. The distance from the shop till my home is less than 2 km, I monitored the pressure and is still at 255 kgf when I reached home. But I still need to monitor it tomorrow to be sure of the the sealing job.

So, you see, a TPMS installed in a car is really useful. Thanks to the TPMS, my tyre puncture problem

can be known earlier and able to avoid things like accident, rim or tyre damage or even miss an appointment  due to last minute only found out the tyre is totally flat.