Went to a training-workshop yesterday ... and few pointers to reflect on as I m going to be full-time trader by next year.

Trading plans ... most traders have this (I said "traders" , not punters or gamblers) and the main issue that we faced is EXECUTION.

For example : we put trailing stops ... or stop-loss level. At times, the hesitation to close of our positions for losses.

Then ... we do put those level to sell for profit ... but then again, we do not have follow-thru.



Example : I grabbed LayHong last Friday, to sell at around 70cents resistance but in the morning itself, I closed my positions with smaller profits (few hundreds difference, ok?) and it went to hit 70cents. I know I need to close my positions as I m moving yesterday, and too busy to monitor. But I could always park it at 68.5 as planned? I also know KLCI will be red ... and that carried RISK of holding to the touch-n-go trades. So ... I took profit at 67-67.5, instead.

It is not what we know ... it is what we do.

DOW minus 180 points ... for whatever reasons. DOW up-down has nothing to do with KLCI much, very weak correlation ... but as newbies coming into market, they are 'bombarded' with DOW UP = KLCI UP .... then, DOW red ... KLCI expected to drift lower etc etc. These un-true myths can be found in IB-reports or messages sent to us. Of coz, forums r another place to find so many un-true noises.


KNM : at low 14cents while crude-oil up up to USD70-80 now.

I came into markets when KNM was very popular back then around RM2 ... they always talk about OIL PRICE UP ... hence KNM will go up. I was naïve and newbie some 10-years ago, no one really pointed out to me those un-true analysis were just noises to 'con' newbies and retailers.

Slowly ... we learn some pointers about trading ... we learn = we know. We know .... that could take about 2-3 yrs just to know TRUTH about trading, which not told in forums or whatever market-talks. There is always hidden 'agenda' behind what we hear, we read or we what THEY want us to know ...

Attending yesterday's training given me some time to reflect on I have went thru ... the whole 10-years of journey. 10 grueling long years where I m learning in DAILY basis. I do not stop a single day!!



I shared an article written by Mr Koon regarding Jaks yesterday. He pointed out the potential 40% profits in investing in Jaks at current RM1.05 as it is way below private-placement prices!! That is mis-leading!! While generally it is true that we could buy 'cheaper' price of the stocks than some 'private' investors ... that doesn't mean the stock prices SHOULD be above the pp-price or above, right? So ... if I m a newbie, I might be believing some myths again here ...

That is market ... many myths ... along the way, I got smarter (after lost so much la) and then more mature to understand how markets work. So ... we done many mistakes, get gained some knowledge and experiences ...

... yet, it is what we do that counts!!

So ... now we know LayHong was oversold and down below 60cents, hit 52cents low. Today, it is going back to 70cents. Those holding to LayHong at 90cents above are still not celebrating, at least their losses narrowed. But it has not reach 90cents plus of their cost price, right? They KNEW they SHOULD cutloss ? Do they know ... if not, WHY are those stuck up there in LayHong above 90cents? It is what you do ... that counts. Do you AVERAGE DOWN? crazy or do not want to lose syndrome?

Same goes to KNM ... why are those holding above RM1 STILL holding to KNM at 14cents? If they are going to average it down, that is mind-boggling craziness? It is fundamentally flawed ... and we NOW know that KNM's price is NOT correlated to OIL-prices, after years of believing such myth, right? What should we do with out holdings in KNM ... those bought 1-2 yrs earlier and sitting at huge paperloss? HOPE IT WILL REBOUND? Really??

We know we should put a cutloss level ... or we know we should check the fundamental-health of companies before we bought them ... WE KNOW?

Do what we know ... that would be more relevant ... ya.

Time to move around ... to be continued . go to https://cpteh.blogspot.com/ for updates.

TEH