Koon Yew Yin's Blog
Hengyuan: investors must follow the chart - Koon Yew Yin
Koon Yew Yin
Publish date: Tue, 21 Jun 2022, 09:13 AM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
As shown on Hengyuan share price chart below, it started to drop from Rm 7.39 on 17th May to close at Rm 4.34 today. It has dropped Rm 3.05 or 42% in the last 5 weeks.
Price chart takes preference over financial analysis. Price chart is more important than its profit growth prospect which is wishful thinking.
Price chart cannot lie. It is a record of the daily closing price. Currently there are more sellers than buyers every day. As a result, it is dropping continuously. Even financial institutions and syndicates cannot stop it from dropping because the daily volume traded is several million shares.
Hope is not a strategy
Hope is only a wishful thinking. It is only a dream. Despite the chart showing down trend, many investors refused to sell to cut loss because they still hope for Hengyuan to report better profit in the next quarter ending June which will be announced before the end of August. At the meantime, it continues to drop. Hope is not a strategy because your hope might not materialise.
Ukraine war
Russia invaded Ukraine on 24 February. NATO including US imposed economic sanction against Russia. As a result, the prices of consumer goods including petroleum products have been surging up. Ukraine and Russia produce about 80% of the wheat in the world. Moreover, Russia is the 3rd largest petroleum producer in the world.
The Western media do not tell the truth of the Ukraine war. It keeps saying Ukrainians are very brave and they would continue to fight. The Ukraine war has been going on for 4 months. The truth is that more than 500 Ukrainians are dying every day. Ukraine will soon surrender because Russia has more firing power. In another 2 months the war might be over and petroleum price might drop back to pre-war days.
Current situation
Investors must examine the current situation to make investment decisions. You should follow the chart and should not hope for Hengyuan to stop dropping. You should have sold as soon as possible when the chart started to show down trend. The earlier you sold the better. Even now, it is not too late to cut loss. It is more painful to lose than gain. But you don’t have to be right all the time. If you sold earlier, you could have used the sale proceeds to buy some other winning stocks.
Why investors refused to cut loss?
Investors hate to lose and hate to admit they are wrong.
But in life, losing is inevitable. Warren Buffet is wealthy not because he never loses money, it’s because he’s better at minimising his losses and capitalising on his wins.
Most investors refuse to sell a losing stock because of loss aversion, a term used very often in behavioral finance and economics. When we sell a losing stock, we not only lose money, we also lose our pride and ego.
My sole purpose for writing this piece is to prevent my readers from losing their hard earned money or life time savings.
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Discussions
Be the first to like this. Showing 40 of 40 comments
Refused to cut loss??
I remember somebody refused to cut his Xinquan till the shares dropped fm RM1.50+ to few cents b4 being delisted.
That fellow even bought millions of Xinquan on the last day b4 it was delisted saying he can wait to see the cash of RM1.00+ per share in their bank ac...
If he couldnt see then his grandchild can see one day in the future
2022-06-21 10:03
So noble of Old Con, after dropping 40%+ fm the peak of 7.70+ now only coming out to advise to cut loss...
Mayb he scare HY will be the next Xinquan??
2022-06-21 10:14
Wonder whether KYY appointed law firm already dig out the cash of RM 1.00 per share in their bank account?
2022-06-21 10:20
KYY asks to sell, it is the time to buy. I guess this popular quote in i3 will be chun again this time...
2022-06-21 10:28
Made RM800m fm Bursa? Got so much or not?
If so why lose less than RM100m in Jaks hv to sell lands to raise money leh?
2022-06-21 10:38
Must be giving out too many schlorships or to charity or to build student hostel or to DAP or to Bersatu or to someone to get a Tan Sri title.
2022-06-21 10:49
thank you uncle koon !
you are the indicator of stock buying & selling.
comrade....it is time to buy now !!!
2022-06-21 11:01
When this article published, HY instantly shoot up today.
When grandpa Koon buy, you sell, when he sell, you buy! Replay the chart for this play and see it yourself.
2022-06-21 11:20
Kyy is right the chart do not lie. Just few weeks ago the CPO chart and Subur chart show a beautiful up trend means buyer more than seller. So all of you that time should buy Subur at RM2.35 Now Hengyuan show a terrible down trend so all of you should sell HY now. Conclusion buy high sell low Remember buy high sell low.
2022-06-21 12:34
Uncle tell you sincerely, it is a bigger loss to loose a long time friend over money, especially one with you through many up and downs
2022-06-21 12:43
this KYY very funny. bursa got 1000++ stocks. why u want to follow OTB's recommendation? when hengyuan no UP, u blame OTB. go pluck your own choice la
2022-06-21 13:05
The prices are dependent from the factors of demand and supply.
Whenever the supply (selling) of the stock is greater than the demand, ceteris paribus, the price of the stock will be depressed. On the contrary, the price will be increased whenever the demand is greater than the supply.
However, the supply of the stock could be manipulated or under panic selling at certain events/circumstances and therefore the price of the stock may not reflect the reasonable market value.
2022-06-21 13:22
1. When buying a house/building, the important factor for the consideration is the Location.
2. When buying stock and shares, the important factor is the Timing.
If the cut loss transaction was done at RM5.50 last week, the same investors can buy now to get back the same quantity of shares at a lower price thus making the total cost of investment cheaper.
Those who bought yesterday at RM4.40/share could have timed their entry correctly.
2022-06-21 15:57
Those who has sold above RM7.00 not long ago, can buy now generously without bargaining at all.
2022-06-21 16:02
NTA evaluation is not factoring in any potential profit or losses of the company. Instead, the NTA is based on the existing value of the company and the capability of the company to reimburse each share at the least in the event of dissolution after liquidating all the assets and discharging all the liabilities in the Balance Sheet.
In the the case of HY, the NTA is calculated at RM6.60 at least else I would have been misguided by the report.
2022-06-21 16:20
Posted by emsvsi > Jun 21, 2022 3:31 PM | Report Abuse
DEAR KOON,
ARE YOU BUYING HENGYUAN
Answer : It seems you read his mind all too well!
2022-06-21 16:29
Still the same rules
When Koon asks u to buy u sell
When Koon asks u to sell u buy
Stands a much higher winning chance if u do so...lol
2022-06-21 18:17
1. Following the opening of the borders at the end of March 2022 for travelers after uplifting the restriction from the COVID19, the demand for the fuel/oil from many countries were surging to the level of pre-pandemic. The price of oil has increased a lot since then.
2. Those countries like the Saudis or Russia have been making huge profit presumably and therefore Russia has got their currency (Ruble) even better than before the war. The Saudi king had refused to kind of cooperate with the US government to deal with the oil production and the prices.
3. The profits for even the Refinery will be tremendous because of the larger demand of oil, the production volume and the higher margin of profit especially during the period of APRIL, MAY and even JUNE 2022. These periods of time are forming the coming QR of HY.
2022-06-21 23:51
Posted by Want2MakeMoney > 10 hours ago | Report Abuse
Chart never lies, this old man always lied
I like this....Chart Never Lies, Oldman always lies
2022-06-22 06:49
Uncle K, you lose money then blame ppl ar? Recession coming and old fart like you that been (claiming buying stocks since I haven’t born yet) know it will tank mar. Even buffet is on papers loss since last buying this year. Who you think you are wor….. crack spread is in all time high la
2022-06-22 09:26
if charts can tell, there are no losers in this world.
it is unscrupulous sharks like you manipulating the market haha.
2022-06-22 10:06
Peter Lynch: How To Make Millions During a Market Crash?
https://www.youtube.com/watch?v=Un__lPWu3E0
2022-06-22 16:43
"Chart don't lie" Ha..Ha...Ha...Ha....
Of course ma... why ? Because the Chart is based on HISTORY data... the things that already happen... So how could the chart lie.... hahaha...
Even a low IQ people with a understanding of what is chart is about will also know that.
2022-06-22 17:07
this joker should die together with mahathir....their era is past. they bring shame to their family
2022-06-22 17:55
Crude oil falling due to perceived Less demand as a consumer discretionary but palm oil is a consumer necessity will find support for these reasons
1. Last 4 years since 2018, 2019, 2020 and 2021 no more conversion from forest lands to palm oil while world population increased by 320 millions (each year an additional 80 million people born (1% of world 8 billion people)
So demand exceeds supply
By 1st July we will see cooking oil price rise
2. Ukraine war impact sunflower planting and export so shortfall of Vege oil
3. La Nina last year caused floods and drought which caused spike in Vege oil prices and might happen again
So there is fundamental support for palm oil
2022-06-22 19:42
poor guy going kuku! i clearly see CPO price dropping everyday since 7th June until now!
2022-06-22 19:57
never shoot the messanger...... info for you to absorb and make ur own decision, nothing less nothing more....when anything goes south only have oneself to blame
2022-06-23 00:22
$$$ Price chart takes preference over financial analysis. $$$
THE PRICE of a stock reflects what the market players know about the stock NOW and in FUTURE
Those comments up there reflects the individuals competency in stockmarket
Either They good enough to use it OR dont understand it at all
$$$ Why investors refused to cut loss?
Investors hate to lose and hate to admit they are wrong. $$$
Users in i3 forum are always RIGHT
2022-06-23 10:40
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Since Bursa index is droping non stop and many stocks also droping and etc. Chart don't lies but people do.
So next logical thing to do is sell everything and keep your cash under your pillow
2022-06-21 09:53