A dummy's trading experience Part-0: Start from Zero

Dummy Blackie

Publish date: Sun, 06 Sep 2015, 10:23 PM

I think nothing much to talk about myself as just an ordinary man who trying to earn some pocket money by investing in stock exchange(we normally called it KLSE: Kuala Lumpur Stock Exchange in Malaysia). I'm still remember my first counter chosen was AIRASIA(5099), during year end of 2013 which I bought it at RM2.2 and felt so happy because it went up 6% few days later. Since that day(lucky) I thought "hey... this is so easy to make money in KLSE". Soon, I'd started to pump more money into the trading account and hoping to get "fast" money. After that, I've gained more attention in stock market everyday, watching news and even using apps to monitor it. Hoping to understand more and learn more about the market... so, I could make more money in the stock exchange. My second IRIS(0010) had helped me to get more than 10% during the Chinese New Year(2014) and then I bought SBCCORP(5207) later which also made some handsome profit about(30%+). It's seems to be so easy and I started to think 'am a god' in investing. I also topped up even more later as i thought this will help me gain more and of course 'FAST'. Happy huh? seeing someone without any of this so called 'stock exchange' knowledge can make money so easily.

A while later, I made more moves to buy in some counters like GUH(3247), OKA(7140) and more. However, everything seems to be so fine until the world oil price slumped! See, I have no idea what it has to do with my stock that time and it just impacted(more than 30% of Malaysia Government revenue were depending on oil). Without knowing what to do, i just saw my portfolio had turned red for all the counters I've bought over months. People panics, force selling and never see a clear sky during that time. Then, I learnt the terms 'cut loss' during the discussion with my friends. Hence, I also cut my losing and parked my cash until I feel is right to re-enter again.

Since that day, I was trading very patiently and not rushing into the market as 'that' fears me off so badly. I know some who earned and I assumed, mostly have at least 30% negative in the account and still trying to think they know the market so well which can bring their money back after that storm. See, I was so naive and trying to pretend myself knowing the 'Mr Market' very well(but is not true). Am, writing this because I'm still learning and wanted warn those(newbie) who are out there trying to earn fast money like I do. You guys saw how the past months goes as FF(foreign fund) kept selling off, Czech refused the bailout(initially), more lower oil price it goes, RM and Yen depreciated, and not to say our political un-stability. For your info, I have sold all again as to locked in some profit last 2 months before it touches 1500 points(another lucky time for me). I am not asking to sell at this time but, you should start reconsidering whether this is the right time to hold long or sell in the current situation. Think I've missed a lot of details which i will continue to share it soon...

*this is not a buy/sell call and it's merely a sharing*

*don't rush and always play safe*

Hope you enjoy reading, good luck and to be continued...

Still learning and always will be :)

Discussions

1 person likes this. Showing 9 of 9 comments

calvintaneng

You sold all and escaped?

You are the Smartest of All. No dummy at all.

All who stay on might go over the Niagara Falls this October

2015-09-06 22:37

dummy_blackie

hi calvin... i have no earning but cover some of last year loses... :(

2015-09-06 22:40

calvintaneng

The First Loss is the best loss. It is better to lose 10% or 20% than to lose 50% to 90% later in a market carnage.

In year 1997/98 during the Asian Financial Crisis my friend Mr. Gan told me to sell all my cars (I was a Car Dealer then) at losses of 10% to 20% and consider it "profit". Later at the peak of crisis Proton & Perodua cars alone lost 50%. For other brands a crash of up to 80%.

So for speculative 3rd liners there might be a crash of up to 90%.

Only thing that will avert the Financial Armageddon is QE4 till QE infinity

2015-09-06 22:47

dummy_blackie

now we know what "cash is king" is...

2015-09-06 23:11

ehteoh13

Gd sharing,I am newbie here but too sad i burn some of my $$...should I cut lost especially AA counter.

2015-09-06 23:38

JT Yeo

Ks55 if you don't see the current situation coming unfolded, how do you expect you going to see sept and oct will be the 2 hardest months?

2015-09-07 05:23

dummy_blackie

JT Yeo, we should not ask whether the coming months will be hardest or not as we are not able to predict the market. however, what is really important is we can see and ask ourself why the FF is leaving MYS and why RM is so low comparing few years back... most of thats are seems to be threat to our market and holding more cash>share would be a wise choice... indeeds, we should always see this as an opportunity if yr preferred counter come to a level you think is cheap and acceptable to hold it for long... thanks

2015-09-07 11:10

mario888

market correction or crash comes suddenly if we are not carefully checking the trend and signals of the market. we had reached market high and the klci did not seem to go higher anymore. this can be taken as a warning, together with slowing world economy and other factors like oil, china, usa, russia, middle east and so on. china is very important and has a strong affect on every country. we want china to do well otherwise our market will not improve. from 1800 the index is now around 1580.

2015-09-07 16:21

Dummy Blackie

+ if US FED decided to increase interest rate... then good luck all... trade carefully...

2015-09-07 17:41

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