Preparing my mental to invest - Trading Psychology

There is two important words in trading or investing which can affect your making decision in trading either FEAR and GREED. Because it is said that the reason that most traders lose is because they are not psychologically prepared to trade, that is they are not prepared to accept financial risk for something of which they have no control over the outcome. Trading is much more of a psychological problem then a methodological one, only the traders who have first accepted this have a chance of being consistently successful traders. Without an understanding of trading psychology and the various issues that circumvent method, there will be virtually no chance to overcome the fear, confusion, and despair that can be inherent in trading. Ultimately, after a series of consecutive losses, method becomes replaced with a feeling that it is impossible to do anything right; if for no other reason than this situation, trading psychology is more critical than trading method.

Luck....Why not always on my side

Luck...Luck where are u. I mean GOOD luck and not bad one. I want only GOOD luck not bad luck. But bad luck always there for me. I want to grow rich and not living as a poor people. So i can contribute more to unfortunate people. No such thing free nowadays, so i need more money to live happily with my family and people around me. At least, i don't need work day and night. I want money work for me and not working for money.

What am I doing today??

Market open in red today. Like no strenght and no stamina to move further up.

Transaction today:

Trading like pro but hampeh. Just plain wrong judgement and luck always not in my side. Let see tommorow.

Market sooo sleepy

Our market today looks like sleepy and not active. Maybe not taking Viagra last night.

My position : KBunai (100000) buy at 23.5 sen -- sold at 23 sen
To collect back at 22.5 sen

Kinstel - flat
Keuro - flat
IRCB - moving lower

What to buy??

Planning what stock to buy is very important. First is the price. What price is the best price?? Buy at support is very safe and least risk. But we don't know when it will going up. Buy stock in momentum also okay. But make sure that stock is not in overbought position and less aggressive. More risky and must be careful. So, the choice is yours.

Kbunai - hope it can break pennant today. Planning to buy more to average down.

MHB - maybe profit taking today or pushed higher

Keuro - at support. Less risky

Kinstel - pushed higher ...Plan to clear at 1.05

12.10 am

Buy Airasia 8000(2.51) . Going up at 2.60. But profit taking activity coming so fast. EVen i cannot sell for profit. Now , price at 2.50. What la. Keep, sure going down. Sell then going up somemore.... What la stock like this..

Another bloody day...

MMC Ca is my latest bloody lost for me today. As usual, if i'm keeping the price will be going down without recovering. Even at one time the price going up to 0.27cents. But going down fast. So I have to sell at loss with price 0.205. Bloody hell. But don't angry. This is what we call learning process. Moral of the story, cut fast the losing stock because we don't know either they will against you or not.

Today, buy GenCS 300000shares at 27cents.

New Strategy To Adopt

After few times failed in my trading, I need new approach and strategy to be successful in my trading. At the same time i need to improve my skills and careful when selecting certain stocks

My strategy:

1. Long holding
2. Cut loss if loss more than 7%
3. Increased my capital to cover shot.
4. Pay full concentration to all stocks that i buy
5. Dont buy so many stocks

Good stock to buy

Unlucky don't have enough capital.....this stock is my stalk list but...

MMC CORP

I bought MMC Ca yesterday at .25 cents. Today morning the price shot up very till 0.27 cents. However, euphoria only short lived. After a while profit taking set in. Now the price drifting lower follow the mommy price in the red. Decision now either to keep or to sell. Maybe keep for one more day to sell tomorrow if the price increase back to 0.25 cents.

Silly mistake again

Kencana CD : I make some profit from this stock. However, everything i win must give back to the market. At the end i'm losing more. Keeping so long when the trend going down. My strategies to cover short also not on my side. After selling at the lowest price, the stock going up till .185 cents. What la?? So, i'm hoping the price going down again to collect slowwly. I think the best price to buy is around 16cent or 17 cents.

Bjretail: not much moving since i'm buying at 42 cents. Hoping for breakout but failed. Drifting lower to 40 cents. Now up to 41 cent. Planning to clear at 42 cents to go in another stock.

Few thing need to be improved

After some times investing in share market, few things very important to remember when investing in KLSE

1. Control emotions
2. Enough capital
3. Cut fast the losing stock
4. Follow the trend
5. Always review what is wrong with the strategies if you losing money

Loss oppurtunity

Yesterday, i bought Siggap at price 0.807. Today, suddenly moving very fast and closed at 0.86. Unlucky, i queue to sell at 0.82 cents. Haiya, always like that. When keeping the price will be stagnant or going down, when sell the price surely going up. I missed the oppurtunity to make more money today. However, enough to buy KFC.

Bought BJRETAIL. Somebody buying a lot today. Maybe to push up tomorrow. Let's see.
Formed bullish ascending triangle. Breakout expected!!! Target price => 0.58


Tattgiap moving today but i don't buy any. Unfortunately, capital still tight and some shares stuck in lower price. So can't buy to keep.

Magna will be pushed higher tomorrow. Let's see..

Good stock to trade

Tatgiap

Looking at the chart, it looks like to form a cup. Price going up slowly from 0.53 cents and highest 0.565 cents. I think we can buy and hold this stock. Target price .68 cents. Volume also looks promising.

Stupid buying Taliwork-wa

This is my real stupidity. Buying something i don't know what happening to the shares. At the end, i end up buying rubbish and money gone into thin air. What happen to me, i don't know. Lesson learned in hard way.

Buying Bjretail 5000 at 0.395. Want to keep or take profit. The share is new IPO but lower everyday. Maybe today just technical rebound...wait and see. I plan to sell at 0.415 for small profit.

Sell Tatgiap 2200 at 0.445 for small losses. I bought at 0.485. The price going up to 0.46.

Transaction on 27/8/10

Buy
IRCB 0.465 8000 shares Cost : RM 3740.74
TALIWRK-WA 0.055 109100 shares Cost : RM 6034.51
MAGNA 0.803 25000 shares Cost : RM 20186.35

Target to sell

IRCB 0.485
Taliwork - wa 0.06
Magna 0.825

Axiata (BUY, TP: RM4.82)

Axiata (BUY, TP: RM4.82)

2Q10 Results: 30% Dividend Policy
§ 2Q10 Revenue, EBITDA, and EBIT were in-line with our forecasts but above consensus.
§ Announced dividend policy of 30%.
§ Axiata will not be participating in Thailand’s 3G bidding.
§ Group level tax rates should trend lower.
§ Celcom’s revenue growth weakened qoq due to weaker prepaid ARPU and slower postpaid net adds but has potential for further EBITDA margin improvements.
§ XL is self-financing and will not divest its tower business, still has spare capacity on its 3G network.
§ Robi is taking subscriber market share while Hello faces stiff competition in Cambodia.
§ Our EPS for FY10, FY11 and FY12 is revised by +7.6%, +5.8% and +4.2% respectively.
§ Maintain Buy. Raised target price to RM4.82 (from RM4.78) based on a Sum of Parts methodology. Announcement of the dividend policy is expected to narrow the discount valuations gap with its peers.

Talam and Tiger

I' m stuck in Talam and Tiger, not moving much. I don't know how long it will stuck there. Lately, my stock picking not very good. Not much return from my investemnt( i mean in KLSE) and not enough capital to invest more in market.

Talam still stuck in 11 cents - cut loss or wait???
Tiger stuck in 15 cents - cut loss? or wait

Keuro moving very much for the past 2 days. Unlucky not collecting when the price at 0.865.

GPacket not moving

Today, i have sold my GPacket wA at loss since today T+4 for that stock.
My Talam still stuck at 11.5 cents level. I hope it will move soon.

No other trading today except to clear Keuro. But there is obstacle to clear it today. Maybe have to wait for next week.

No activity today

Our market today is not moving much. Most my favourite counter still up and down in limited territory. No loss or gain

Keuro up to.945 cents. Failed to clear at that level. Wait tomorrow to clear. target 0.95 cent. Ressitance level.

Talam also still stuck in 11.5 and 12 cents level. Hope can breakout soon. Next level will be 13 cents. I had 300000 shares at 12 cents.

Recommendation by DALI

Best Stock To Buy For A 1-3 Month Trade
The most frequent question friends and acquaintances would ask me is which is the best stock to buy - used to make me frown as its like asking a medical doctor during a dinner party about the gout problem you have and how to treat it - just because you are in a casual setting does not mean you can ask "professional" questions and not getting a fee for it.
I mean, you never ask a mechanical engineer at a dinner party how deep you need to lay the foundation for your house, as if you are going to do it yourself, ... though it seems for certain professions, doling out free advice is OK. Thats human nature I guess.If the other person is a good friend, I would then ask how long they want to hold their stocks - the reply usually will be: "as short a time as possible, contra better still". Of which my sarcastic self will morph and say "IF I can do that confidently, why bother telling you the stock at all ... you might as well tell me how many lots you want to buy NOW ... and I will just give you the cash right now". OK to be fair, you have to at least be willing to pick up the stock for 1-3 month. Since I think that the markets are going to be good for 2H2010, my best pick is .... (drum roll please) .... SP Setiaa) 2Q net profit of RM51.2m (+26% YoY, +34% QoQ) was mainly contributed by strong property sales recorded, on track construction works as well as an improving operating margin,b) EBIT margin improved from 13.6% in 1QFY10 to 16.2% in 2QFY10 due to lower construction costs c) the company chalked up commendable sales of RM598m in 2QFY10, vs RM608m in 1QFY10. Inclusive of May ‘10 sales, total property sales are around RM1.4b, accounting for 70% of its FY10 sales target of RM2b
Major Shareholders: Skim Amanah Saham Bumiputera 20.6% EPF 16.1% Tan Sri Liew Kee Sin 11.1% PNB 7.0% Shares Issued: 1.016bn If you look at the shareholding structure, its evolving rapidly into a major GLC. I expect PNB and EPF to continue to up their stakes in the company. Just last few weeks alone, EPF has upped its stake from 15.8% to 16.1%. Strategically I believe EPF and PNB have planned to use a reputable, proven and branded mixed developer to lead some major property development projects in the future. Just think of the bigger planned land developments over the next 2-4 years.Made RM171m net profit for year ended Oct 2009 (eps 16.7 sen), I think they will make RM220m (21.6 sen) net for year ending Oct 2010. EV/EBITDA will go down to 12x based on this year's expectations. P/BV is at 2x, not cheap but not expensive for a company like SP Setia. Fully diluted RNAV is RM4.59 according to CIMB. The shares should move a lot higher than the fully diluted RNAV figure. Reasons why I think RM5.00 (1-3 month view) is an easy target, a longer term target would be RM5.40 (6-9 month view): 1) The free float is technically at 59% but PNB has been gobbling up shares, and so too are long term funds, hence the effective free float should be less than 30%. 2) Though I think there has been some froth in Malaysian major cities' property market, I think there is no danger of a major correction. The strong liquidity in the system and regional Asian wealthy blanket should keep intense interest in good developers. 3) Anecdotal evidence that their major upcoming launch near Mid Valley was hastily postponed following some smaller development launching in the same area recently. The silly thing was the launch was 30% higher in price than SP Setia's proposed launch prices - and SP Setia's development is of a "higher value band". 4) Regional funds are looking to get a proper exposure into Asian property markets. A number of major private investors have been collecting good property shares in a big way (over the past few weeks) - think of it this way, if you are a Singaporean or HK private investor worth US$100m, you are not going to buy 2 condos here and 3 houses there, think of the logistics, costs and fees ... better off buying good developers' shares, plus its more liquid.5) This is the key to my liking the shares, there is a dearth of choices for funds to plow their funds into Malaysia even though they might like equity exposure here in general. Ringgit looks positive and many want to have a double whammy exposure as well.
6) The final catalyst is quite silly in reality. If you get hold of most analyst reports, you will find that those which follow or has an international rating template will have almost the same target price for SP Setia (i.e. around RM4.00-4.05). That has been surpassed easily, but even when an analyst is still bullish on the company, they cannot just simply upgrade target price as that would mean having to upgrade the projections. Usually there is a 15% band limit in upgrades. They will only be able to do an upgrade till the next quarterly results are out. As things stand, many houses are stuck at a target price of RM4.00-4.05, but having talked to some, many are preparing to improve that to RM5.00 as soon as practicable.The houses that are not contrained by that template, such as CIMB, have much higher target prices. CIMB has a RM5.51 target price.NOTE: The above opinion is not an invitation to buy or sell. It serves as a blogging activity of my investing thoughts and ideas, this does not represent an investment advisory service as I charge no subscription or management fees (donations are welcomed though). The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
Posted by Salvatore_Dali at 9:19 AM
Labels: Song Hye Kyo, sp setia

Comment on stock

GPacket -Wa
Yesterday, but the stock open at 47 cent then move downward to 45 cent(immediate support level). To sell if break below this level. Next support level is 43 cents. Upside potential is 47.5 cents.

Talam

The price is still stuck in 12.0cent and 12.5 cents. This stock has potential to move higher if the property stock is moving. The next potential target is 13.5 cents. Have to wait a bit longer to break resistance at 12.5 cents.

EAH

Still in selling mode. I don't know how low it will going. But what i see in sellling na dbuying pattern,it looks like the support will be 47.5 cents. But it still can moving downward if the support broken.

Target to buy:

Keuro
MKLand
IRCB

Property and Steel Theme

Today, i expect our market will continue wirh bullishness. So, the theme for today property and steel sector.

My plan for today is buy more share in steel and property sector. What stock to buy??? That my problem now. Let see the market and decide.

6.00PM

Profit taking day. Most of the stock in the negative territory today afternoon. So, cannot sell anything today.

Buy 6000 shares EAH at 0.495. Reason : oversold and in freefall.

Hope no more fall tomorrow.

Bullish day

Our market today is very bulllish. Majority is positive. Property stock is main theme for this week.

Sold stock today - 3A, Tebrau and Keuro. Just bought last week. Plan to accumulaate more if the price going down, very unlikely
Buy today,

Talam 100000 shares at 12 cents. Target to sell 15 cents
Gpacket Wa 20000 shares at 47 cent to sell at 50 cent.

Don't be greedy. Enough for today.

Must relax and think back

I think i must relax and think again about my investment. I have lost so much money in investing so far. Even, the KLCI index increasing but i'm still losing money. What went wrong?? That is why to think back what i have done in investing. What i can summarized from my trading activity, few aspects that affected my decision making.
1. No patience
2. Too greedy
3. Buy at higher price.
4. Late for cut loss.
5. Still no enough capital so cannot hold a bit longer.

Today, my transaction as below

Buy :
3A Buy 08:31AM 6,000 1.8400 11,040.00

KEURO Buy 04:19PM 15,000 0.9250 13,875.00

TEBRAU Buy 08:31AM 5,000 0.7000 3,500.00

Miss the boat. IRCB

Today, i planning to clear all my holding stocks. Looks all stagnant and no activity.

Luck is always not in my side. I 'm planning to dispose IRCB at 0.60 but loss my patience. So, i clear it at 0.57 at a loss. After that somebody whacked IRCB and pushed to 0.62. Aiyah, in investing sometimes luck also important. If we keep, the price keep going down or stagnant. If we sell then the price going up.

Also cleared Harvest - no activity ( at loss)
Cleared Keuro - still stagnant( at loss)

To plan new strategy tommorow since no more bullet to shoot today....

Talam-- when will you are going to move. Wait till i dispose first.. Heh...hehh...

No transaction today

Today, no more bullet to buy. Very unlucky because most the stock i eyeing increase today with very good profit. I hope hold stock will start moving tommorow. I cannot do trading today since my account in negative balance.

My holding stock as below

Talam: buy at 0.12> Stagnant. Wait until rebound but to cut loss below .11 cents.
IRCB - Also stagnant. Wait for rebound or to clear at T+3
Keuro - lucky clear yesterday, to buy back later
Harvest - still maintained at 0.14 cent. Wait for rebound. Or cut loss at T+3.

I just got the call from ECM Libra and it's offer very good. I think i want to try their trading platform.

Theme for today : Insurance. Tommorow???

Control emotion. Don't be greedy.....

I have to remind myself that in investing, we need to control our emotion. Please don't be greedy when buying an explosive growing stock in short period as what happen to me in MTDACPI today. The stock suddenly become very active in very short period. i don't know what the news as so many people chasing this stock. Initially i make some handsome profit from this uptrend but the tide turn against me when the price going down after i'm buying some more at higher price. This is greedy and at the end, i'm the become the loser...so many time happen to me... This the thing i need to manage and control myself in the future. Greedy, greedy always end with the sadness......

Target for 1/7/10

To clear Keuro today - look toppish. Done at 98.5 cent. Same as the price i bought yesterday.

To clear Measat - done at 3.11 and 3.12. Small profit.
To clear Yeelee - due today.
To keep Talam - plan to sell at 13 cent. Buy at 12.5

Jcy - buy 5 lot at 1.47. To sell at 1.50.

Catch the falling knife..

I always like to catch the falling knife but my skill still need to improve. More bleeding than expected. Yes, high risk high return. Life is always about loss or gain. So, sometimes we loss some times we gain.

Today, i try to catch the Keuro.
Buy at 75.5 cents but selling pressure started. Catch at 72.5 and 72.0 cents. Again the sellign prerssure continue. But i think lowest it can go is 70 cents. Maybe i will grab at 70 cents to break even. If not i loss my pants today.

Also try to grab Petra at 1.40. Hope, the price go up to 1.45.

The most heaviest transaction in KLSE

Yes. Today is my heaviest i'm investing in KLSE. In and out few times to get more money and finally, i loss all the earlier gain. However, this is my experiment and experience for me for the future investing. So far, my analytical skill quite okay but my greedy always make me loss a lot. I must polishing and upgrading my skill in order to win the war.

I must hold the principle, loss small and win big. That's my goal.

3rd time big losses

Our market is going down due to bear market. My portfolio also going down with realised big losses. this is the third I'm having similar experience. After making some profit then the bear sentiment coming in. So, cutting the losses late is the main reason losing big. The fault is mine and not the market because the market is always up and down as we see before.

Sharpening My trading skills

Investing in share market needs more skills than expected. Discipline also very-very important.

Lesson learn from trading

Lesson learn:

1. Don't chase the stock who appreaciate quickly


2. Buy the stock when there is pullback in the uptrend


3. Buy the stock at the support level with low RSI and oversold position


4. Manage the money efficiently

Same mistake again??

I'm always do the same mistake. No patient at all. Today, i'm supposed to make more profit, but sell to early but then the momentum still high. Aisyeh.. Always scare when the price go down too fast. In reality, this is a selling for profit only, the the price can climb again after that. What lah happen to me. Always loss the oppurtunity to make alot of money.

Psychology ??

After few trnsaction done, i can recognize my weaknesses

1. Hurry to sell when the momentum is still strong. So making less profit what supposed to be. Easy to say that i don't have profit target and cannot recognize well the price action
2. Late to sell when the price down - the momentum down. So making losses alot.
3. Still not enough capital to roll or hold for some time.

Still no more interest

I'm still keeping Petra 1500 shares. Currently, the price is up and down like yo-yo. I'm planning to add some more if i have enough capital to bring down my buying price. I think the support level at 1.41. Resistance at 1.65.

No trading so far

I'm still in the consolation mode. No capital to invest at this moment. Waiting for new capital invest. So far, i'm still learning to be good in investing. My planning is to be good investor in the future even though i already been investing since 2003 but still not good enough.

Currently, i'm still holding Petra about 1500 shares. I want to keep until at reasonable level. I bough at 1.91. Sincerely, i'm still need a lot learning and study about investing.

How unlucky??

I don't know what should i improve in investing. So many times i'm always unlucky. When i sell the stock, it' going higher and higher. But when i keep the share, it going lower and lower. At the end, i loss more than gain.

Few thing i should improve,

1. Don't get so much emotion when seeing the selling.
2. Be careful when the price shot up very fast
3. Choose the stock that inthe trend.
4. Discipline..


So far, I still keeping

Petra : 3500 buy at 1.92 yesterday. Today down to 1.68. Whoa, so much loss.
Let see on Monday, may be cut loss.

Alright, i must learn more for investing. Need the technique that really good to make money.

1 st day trading in 2010

Our KLSE performs very well today. Majority of the counter in the positive. At the moment i don't hold any shares. All sold out last week to get my cash back. So far, 2009 is the worst performance for me. I'm lost almost 30%.

Today's transaction:

Buy Hohup at 1.44 (3000) and sell at 1.46 (3000) . Luck get out early because the price going down to 1.40.
Buy Jaks at 0.68(5000) and sell at 0.70 (5000) but the price going higher. Closed at 0.735.

Maybe looking for some quick gain tomorrow.

New Year Resolution

1. Improve my investment strategy
2. Make more money
3. No more loss money
4. More hardworking
5. Find more money as investment


Hope i can realised my dream to retire at 50. He..he...