My Trading Adventure

Technical rebound expected

CP TEH
Publish date: Wed, 12 Sep 2012, 07:47 AM
CP TEH
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All the writings in this weblog are mainly for PLEASURE reading purposes. I am in NO position to recommend a call(BUY/SELL). Please check with those know-hows before you make a decision. Yes, I am just a learner, with only five years experiences in KLSE. So, please BEAR with me.
Following Message


KLCI : Formed a nice hammer and with DOW closed higher, we expect a rebound today!! Do we buy yesterday when we saw a hammer forming or do we buy today, waiting for confirmation? As it is below 20MA, obviuosly, do we wait for it to be above 20MA?

I bought yesterday ... I was greedy when I saw hammers formed. So, I bought DRBHicom and AirAsia(oversold). I was also queueing for CIMB but it is not done. So, I will re-look at CIMB later.



AirAsia : This is a knife, and it is risky if one do not know how to cut-loss if it dived further. I told my e-tratles on Monday that I will queue at RM3.15 and yes, I was lucky(or unlucky if it dived lower) as it was done. There are a few 'daredevils' followed my buying and many bought below RM3.20. I jumped, they jumped ... haha. We shall see later if the selling is over.



DRBHicom : As RM2.30 is a support, I grabbed at 2.32-2.33 levels when it rebounded from the low of RM2.29. I told my whole group about it, posted in my stock watch too but I do not know how many followed to buy. The risk is there but we certainly could see the hammer formed and expect a rebound.

Last night I have an urgent e-meeting with my tratles group to analyse some charts. Most of them knew that I bought AirAsia and DRB as they were with me(in chatbox). Now, I need to point out that it is risky to buy a strong down-trending stock. If the technical rebound fails, one needs to sell at cost or even at small losses. In trading, we talk about PROBABILITIES. We should be thinking in such manner ... or else, we are illogical to guess. Some even guess how high it could go ... with certain target prices!! I don't believe in crystal balls concept in predicting. I do use a lot of COMMON SENSE and LOGIC. Coupled with experiences and sharings by my whole group, it gives me confidence to take certain riskier trades.

Yes, I do like waterfalls ... the current dive is not strong enough. I do hope we could see a few more black candlesticks ... long ones. ouch.

Learning to trade well will take quite some time. But, it is worth it. At least we need to learn to protect ourselves from losing too much of money. Losing is a part-n-parcel and protecting our gains are as important too.

Happy Trading.

TEH
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Discussions
3 people like this. Showing 8 of 8 comments

herbert456

I am STRONGLY with you, as I also see the same in the past weeks.... Good Luck!!

2012-09-12 08:51

fzank

heavy selling .... due to new low cost carrier from Indonesia jv with m'sian government

2012-09-12 09:03

ayub

waiting for RM 3.00

2012-09-12 09:35

herbert456

Then, u should sell now at 3.06 to make contra profits....

2012-09-12 10:21

CP TEH

Hi all

it is very risky to catch a knife. Please note.

I did ask the group to cut-loss if 3.15 broken, but i dont know if they did. I told them I will buy more nearing RM3, my queue at 3.02 and 3.03 done so far. We plan, then we could reduce the risk. No one could tell anyone how high/low it could go. Just plan your trade and trade your plan.

TEH

2012-09-12 11:56

Mat Cendana

Thanks for the post, CP Teh. It's really comforting to know that you have bought... because I did too with AirAsia just now and FGV yesterday. After the sharp falls, I'm banking on some sort of a rebound. But whatever, the prices have become attractive enough. Even if they were to drop further, and I'll cut my hand with the knives, at least I know that these aren't impulse buying. Good luck to us all.

2012-09-12 12:03

CP TEH

hi Mat

well, it is not to comfort others or adding salts to the wounds. I m just pointing here because I m responsible of my own trades. Everyone should. I am a novice, trying to read market pulse ... in real. Not those so-called guru who will only come out to yell how much profits they have gained. I do understand the RISK involved.

I am not worry about so-called reputation or such. I m writing here before it rebound or fly off later. At the moment, it is crashing ... hard landing. It is just another trades for me, but for those who seldom taking trades, these knives catching is NOT for them.

So, I am NOT asking anyone to buy/sell. I am merely stating I am buying. That is not giving anyone what-so-ever logic to buy into such risky trades. If they profit, they will say u r good(mostly, they will just keep quiet and stating THEY are the one taking the risk, they are good) but if they lose money ... imagine all those unwanted words coming out from these gamblers.

Note that I am not trying to comfort anyone. Please consult those know-how or your brokers/dealers for trading advices.

Note : I do NOT buy to hold.

TEH

2012-09-12 12:16

lotsofmoney

It is very difficult to beat the Market, even if you have billion to spend. Most of us just follow the market trend and as for my self , I take profit or loss wnenever I can. I do not believe in averaging. Remeber the German billionaire who killed himself lying on the railway line because he committed billions in trading losses in the process of averaging. Just cut lost and wait for better luck next time.

2012-09-12 16:57

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