Trading Techniques   

Common mistakes most investors make

Don buy/sell or hold on sentimental news or when it publisher it out on paper or analysts say this is good or that is good, this is oni time for ppl to let go, alway find out more and do some home work on stock that U know, like eg px when it hit a low and when it hit a high. SGX can provide some cue on stock chart under each individual coy names.

 

They is always certain amount of risk.

1) hi risk, hi gain, usually bot when stock is very volatile up/down not knowing when U can buy/sell just like head u win, tail i lose and usual one have to lose most of d times.

2) I usually go for a more stable stocks w/o having to much stress over it and w/o having to moniter it all the times.

3)When times come, win to take profit, lose to cut lost, win or lose. I buy with my mean. 

 

Most people buy on news. If the news is better than expected, then the price has more upside. If not, the price is likely to fall. Don't chase after a stock when the price is rising. Try and find out the reason first. Find out whether the price has already risen the past few days. Because it's likely that investors will start selling when the news is out. 

 

Hi Irene,

Thanks for your best wishes. I'll wait for a while then maybe start to "nimble"

 

Yap...err...very dangerous. Looking for a low low bottom to bottom fish some good stocks, maybe watch for stocks that is youe usual flavour, stocks that u r familier with and look at the low low volume and U will know when is d rite time.

 

hmm.. if dangerous to enter bearish mkt...

then when s the right time?

pls enlighten... ;)

 

Hi Livermore

Many thanks for the encouragement.  My wish for you is the same.

But tanglinboy may be right, about being dangerous to get into the market in this bearish situation.

My thinking is "on a balance of probabilities".

 

better to have empty portfolio now. very dangerous to play stocks now!

 

Hi Irene,

My portfolio is empty too. Hope you win back your money.

 

Hi Livermore

My portfolio, right now, is empty. But I am looking out for defensive stocks. 

May average up where necessary.



Many thanks.

 

I used to trade through two remeisers. One was a "churner". Every week, without fail, he would called me a few times to recommend me "lobang stocks". I did not listen to him otherwise I would be in a deep "lobang" now. He has since left and I do not know what he is doing now. The other remeiser would never give any advice although I had traded through him for more than twenty years. This one is still in his job.

In stock trading here, the only broker that I heard of (and I believe everybody in Singapore who is in stock trading also know) who makes a lot of money is Peter Lim, the Remeiser King.

All others, I believe, are either broke or will make you broke, that's why they are called "brokers"!  

 

That is a funny story indeed! Does that apply to brokers too? I have brokers but I find that their advice is usually not very accurate.

 

Many years ago, I read a report published in ST about an American professor conducting a test to prove that equities trading is pure luck. He got a dog to point out a portfolio of stocks on a piece of paper and a stock analyst to do another list. After a year, the dog's portfolio gained 30% and while the stock analyst lost 10%. Strange isn't it! Try it out if you have a good dog and a deep pocket. You may strike gold!

 

Sometimes they recommend a buy so that they can let go of their holdings.

 

Makes you wonder ... doesn't it?

I read somewhere before... there was a study conducted in US, if you do the OPPOSITE of what most analysts would do, you would have a HIGHER probability of making a profit.  :)

 

Oh yea. We have to alert each other. On 28 Jun 06, CIMB recommend Sarin Öutperform.  U know what, SARIN crash about 40% before 10 Jul 06!

Recently too,  Phillips recomend buy STX PO at 84.5.  It crashes in less than 10 days after the recommendation!

 

Hi IreneL,

Oh it is a pity to hear about your loss. Yes, I do read research reports with an open mind. HTL, Fibrechem did come out with good company write-up prior to them releasing good results and prior to their price surge. Ultimately Mr Market is always right. Maybe try to average up next time?  

 

Hi IreneL,

U r welcome. KS Energy is one of the top oil & gas stocks. As for Sembawang Kimtrans, you can read free reports on it at SGX research.

 

Hi Nostradamus

Many thanks for your posting of July 6.

At one time I was monitoring counters like KS Energy, and Aqua-Terra.  However I wasnt sure about buying them as each time, oil price goes up, the price of KS Energy similarily heads north, and vice versa. 

I am also interested in Sembawang Kimtrans (integrated logistics provider for the Indonesian coal industry, and lately signed up with some Thai company) and have been monitoring their price ranges. Do you have any info in this counter?

Rgds 

 

Hi Livermore

Many thanks for your post of July 6. My apologies for this late response as I was away over the weekend.

Yes, I do read Biz times and thats where I got the info about Asia Tiger which I bought and then end-up losing $3600/-.  This indicates that some of these reports/write-ups/analysis, etc are not necessarily written/provided without the respective writers' personal agenda. I have learn to take them with some misgivings.