Friday, October 26, 2007

Sold off straits too early

I'm human afterall. Even though I pyscho-ed myself not to feel the pain of selling a stock too early, it's still affecting me, honestly. But to be fair to me, it's not as painful as last time where I would even calculate how much 'gains' I would have made if I sell it today.

I'm talking about straits asia of course. Sold at 2.45 and got a big shock today when it went up 0.43 (16%) to close at $3.

Based on my amateurish TA views, the weight of evidence is to sell the stock. Weekly isn't that bullish too, but we all know what happened after I sold it. TA is about probability. I wanted to sell straits to reduce my realised losses. Based on my views, seems like there is a sell signal. I think no skill and no luck, hahah :)

I think what HH said is correct. Buy something that you do not need to sell. But of course, the stock must be valuable enough and stable enough not to go bankrupt after say 20 years? Must know how to do the proper analysis first.

Enough of that already, let's move on.

STI rallied 64 pts up to close at 3771 with a volume of 2.5 billion. DBS announced rather good results despite providing some allowance for their writeoff of their CDO. Bank stocks rallied strongly. Somehow, my stocks didn't really go along with STI. Either down a little or flat for the day. Haha, STI went partying without me :)

GK Goh announced that their wholly owned subsidiary, Solanum investment pte ltd had entered into a subscription agreement with DAS nominee pty ltd and Austock Group ltd to acquire 25 shares in an Australian company, Pemeca Pte Ltd for S$617,452. Pemeca would then become an associated company of Solanum. Not going to be impactful enough to create a stir in price I think.

Portfolio gains so far: 6.5 k
Dow is up 50 over pts.

Though feeling a bit sore over my early selling off of Straits, my plans to reduce my stock holdings continue. I plan to cash out 50% of my invested capital (perhaps more), holding only the ones that I think are fundamentally sound over the next 2 months. My rationale is that I still have 20k realised losses and 26.5k paper profit. If something happened, I'm back to 20k losses again (perhaps even more!). Protect my capital first, and live to fight another day. If anything happened, I will at least be net zero.


Noob-trader said...

Well, it only indicates that TA indicators/oscillators are not 100%... or we sucks keke... of course I am the worse LOL.

Need to equip with FA asap liao.