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| Wednesday, October 31, 2007 |
| advSCT, Tat Hong, Okp |
Price weakness recently presented a buying opportunity.
For advSCT, I was right and wrong in my suggested support. I initially thought that it would be very well supported at $1.01 since it surged from that point. However, I guess it is very well supported at $1.07 or $1.08 region. I've thus loaded my second tier at $1.07 today bringing the average to around $1.04. This is done using my CFD account.
For OKP, this is more for trading purposes. It is supporting well at around $0.78. Price weaknesses are seen but they are hovering steadily this prices. It is recovering well recently. I bought some at $0.805 and $0.79. This brought the average to about $0.80. This is done using my CFD account. At the moment, my CFD account is a little bit stretched, even though overall portfolio risk is still within limits.
For TatHong, I bought small lots at $2.98. This is one counter that escaped right before my eyes. If you have followed my brother's blog, he is an investor in TatHong since $1.20. In fact, I have been telling him that I will load the counter but it never realized. Up till recently, I told him at $2.50 that it is a very resilient counter judging from its trading activity. And coupled with the times and sales analysis, it hinted that the pressing down of prices was intended. BUT the thing is, why did I not buy it? Well, at that moment, I wanted to focus on 4 main stocks. Yes, being more focused will allow me to reduce transaction fees. But is that ideal? For a technical trader, a lot depends on being able to invest in counters that has potential to show movement. If that is the case, why haven't I done it recently?
I came to realize that it is difficult to fuse two schools of thoughts together. On one hand, I want to sit on a good counter, but on the other, I want to ride on the good waves. So what should I do? Maybe 4 counters is too little for a technical trader. If there are things I should do, I should
1) Create a better filtering system for counters that might have a good run. This will be first screened by TA, followed by a brief FA, which gives assurance that this company is decent. Notice that I used the word decent. Because in reality, stocks don't necessarily move according to proper valuations. It is usually affected by macro economics and sentiments and of course the business fundamentals. And thus at times, one will see that macro events and sentiments take over. So this IS an opportunity for technical traders.
2) Find the best fit of number of counters. It is difficult to maintain seriously. If you looked at past posts, I have been struggling to find the best fit for a looooooooooong time. In the past, I trade fully on technicals. I can't say that I didn't work, as I am able to unearth counters like StraitsAsia, Cosco (at 1.70 before the gave bonus shares), Capitaland, CAO (1.17), FerroChina (1.95), BH Global (0.38), KepT&T (1.41), GoldenAgri (1.40 before the share issue or split). Not to mention OKP (at 0.54? I can't remember), Rotary, TiongWoon, which gave me good returns.
But what I failed in is the management of counters. While I sold on the counter on technical weakness, should I buy then on technical strength? Counters that show good increase are bound to have significant technical weaknesses. So should I actually follow this counter till the long term trend breaks? Maybe this would be better. But then comes financial constraint. It is not effective for me to do technical short as my positions are quite small. Then again, it boils down to good management, which I think I still lack
Ideally, TA can unearth running stocks while FA can discover the potential. Maybe that would be a good way to start trading/investing.Labels: advSCT, OKP, TatHong |
posted by Nenix @ 10:58 AM   |
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| NenixDreams Fund |
| Fund launchprice on 1st August 2006= $1
Target for 2007 = Beat STI index
Current price of NDF as of 1st Oct 2007 = $1.58
Current price of STI as of 1st Oct 2007 = $1.54
Difference with STI index is 0.04
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