KLSE (MYR): UEMS (5148)
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Last Price
0.97
Today's Change
+0.025 (2.65%)
Day's Change
0.94 - 0.97
Trading Volume
5,160,000
2024-11-29
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Mat Cendana
2,340 posts
Posted by Mat Cendana > 2015-12-16 10:52 | Report Abuse
@Annetan Thank you for sharing your experience with a lot of honesty in the feedback. It's posts like this at i3investor that I appreciate the most due to the very valuable lessons. One conclusion: to try make a profit, we MUST take a position. While staying at the sidelines and just observing is safe, doing so won't bring in anything either.
It's always easy to say we should have done this or that (or not do) in retrospect. I've been following UEMS and the warrants over the past several weeks. Those weren't really 'bad' buys for the technical indicators had looked promising. Unfortunately, the rebound was shortlived. Not only that, UEMS continued to slide. With the charts turning negative, it only panicked traders into selling and further depressing the price.
With warrants, especially a counter like this, we often have to jump the gun. That is, buying when things are depressed and everyone pessimistic. And waiting for a sudden spike in interest. Often, a minimum 30% profit or more is possible when the crowd jumps in. This is a calculated play whereby it's critical for the warrant to have reasonable life remaining (at least 5 months), and above the ex. price or very close to.
But must have an exit strategy - if it goes below a certain level, with the indicators showing more pain ahead, MUST sell and cut loss there and then. No "Wait a bit...might go up next week". Most of my losses with warrants were due to this procrastinating, which resulted in much bigger losses. It's easy to talk here about "discipline" - implementing when the time comes is often a different story.