A dummy's investment experience

A dummy's trading experience Part-4: Profit Taking

Dummy Blackie
Publish date: Fri, 18 Sep 2015, 02:07 PM
Note down every mistakes, so you can minimise the risk in future.
Enhance your skills, so you can win against the storm!
Never stop learning

http://adummyinvestor.blogspot.my/

Actually, it has been almost 2 years(3months to go) since I started investing in stock exchange. Well... honestly, I probably loss more than earn. In fact, I'd experienced 2 times of biggest dropped so far which the first time was crude oil slumped(last year) and another one just happened recently(after July this year). My biggest loss was around 30% last year(but slowing recovering to less than 20%) and this is the reason why my blog always have the terms of cutting loss(see this Cut Loss). However, not much to share about how I locked my profit as this is so subjective. As the matter of facts, my preferred level of profit taking is when it hit 30% in short term(6 months) but my initial strategy was to keep for more than 2 years if the company is paying dividend. There is no right or wrong but, I learnt to take profit that if noticed the market sentiment is weaker and the company ROE/EPS starting to drop(and many more factors). Why no right or wrong? For your info, my brightest star last time, SBC(bought at RM1.3 shown in pict) has once went all the way to RM1.9 and I'd sold all at RM1.85. Speechlessly happy, when you think you won the market huh? Lol, it somehow went above RM2 after APRIL the same year :)... and thats the meaning why no right or wrong about it as long as you earn then is considered good.

 

 

Lucky, I didn't chase the high as everyone were so excitedly screaming here TP(Target Price) RM3 or even more.

Well, what am trying to say here is set some target price and sell it when reached. Unless you are very confident with your research for it to gain more in longer term, otherwise lock the profit first. Notice that we have many choices if you have capital on hand rite? Anyway, It's always about your strategy as different people may have different objective. Try to note down what is your preferred level of profit taking and execute with your strategy. Improve it from time to time, and hope one day we will achieve what we seeking for(of course is $$$).

 

Aww... guess now I have to start all over again as I'd loss all the profit earned last year(around 40%). It's difficult but I think is just another 'dot' of my life which lead me to understand deeper in how to survive in stock exchange.

 

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

Still learning and always will be :)

 

Discussions
1 person likes this. Showing 4 of 4 comments

Equityengineer

In bear market none of the stocks are a gem.

2015-09-18 20:10

Dummy Blackie

maybe we should think differently? buy when all are no confident... :)

2015-09-19 00:53

JT Yeo

I learnt to take profit that if noticed the market sentiment is weaker -> if you didnt see oil slump coming. how will you know when market sentiment is weaker?

2015-09-19 11:57

Dummy Blackie

yes JT Yeo, oil slump was just first hit when other issues not emerging(considered weak only). Then the weaker(which weaker the sentiments) comes later like 1MDB/politics un-stability(Najib rumours)/ RM low/ Yen depreciated/ Euro/ FED hike rate?/ foreign fund leaving(Foreign reserve low)/ misused of 20bil?... and so... these are some we know but what if there are more that the local media has covered up? thanks

2015-09-19 20:09

Post a Comment