Wednesday, December 20, 2006

Removed a lot of stones, now can fly! Total profits: +130

Today is an exciting day for me!

Here's the good news:
1. I managed to break off my lousy stocks like fabchem. Sunshine is not lousy, though I don't really like the slow action so I sold off all of them. ALL of them. I felt much lighter now, haha! It didn't matter that fabchem and sunshine (esp sunshine) rise up after I sold. Actually, I think after dealing with warrants for some time, my reaction is too fast! I recognise all the signals for rebound, but forgot that stocks, unlike warrants, react over a longer period of time. Stocks will take days or weeks to finish off a pattern whereas warrants will all happen within a few mins. So, I think after looking at the signal for rebound to sell, I reacted too fast and forgot I'm dealing with stocks.

I need to remember this point!

2. I made a hefty 1.8k today by trading call warrants on hsi. The holding on of the call warrant yesterday turns out to be a blessing in disguise after dow closed strongly in the green, followed by nikkei's strong opening in the morning. I added even more first thing in the morning. It just shot up and up, even before the market opens for hong kong! I entered and exited around 4 times, looking at the momentum for my signal to buy/sell. Each trade can be as little as $40, but it's okay, because when I'm buying or selling, it dosen't matter whether it's high or low. If it has a high probablity of moving in the direction I want, I would buy, even at a high. When it loses steam to move forward, I would sell.

At then end of the day, I was feeling satisfied by my own trading. This is the best trading day I've ever had. I had the wrong mentality, clear thinking of what I want, strong beliefs followed by fast action. Splendid!

Now, I have only 3 stocks left, pac andes, longcheer and yellow page. I'm currently sitting on a total profit of +$130.

Pac andes - I won't be looking to sell it anytime soon. I think it has good fundamentals, and anyway, the short term momentum for this stock suggest more upside to come. I'm holding a measly amount of stocks for this one too.
(not selling, waiting for more upside, waiting for opportunity to buy in more too, currently at a loss)

Longcheer - Not selling too, perhaps until after they posted their quartely results in feb next yr. China gng to award 3G license and this stock will stand to benefit. Anyway, good fundamental backed by strong earnings too, sitting with huge cash reserves with no debts. What more can you ask?
(not planning to sell, waiting for more upside, not gng to buy more at this stage, losing a bit, at the margin of making profit, depending on daily swings)

Yellow page - one of the first batch of stocks I owned when i started in april. Deep loss because i bought near all time high. Not gng to see yellow page reach this high anytime soon. Not much confident in this stock, but not gng to sell since I carrying 1 lot only. YES, 1 LOT! What am i doing with 1 lot? You must travel back in time to ask me then.
(not planning to sell cos no point, i don't like their business and prospect, but since they give me very decent dividends for the measly 1 lot that i hold, i'll keep this for the time being. How much lower can it get anyway?? Definitely not planning to buy more just for the dividend, really no confidence in yellow page's future)

As for tmr, perhaps put warrant. All depends on dow tonight and nikkei in the morning. My feeling is to bet on put warrants because dow don't look very strong tonight. What's more is that hsi and nikkei rebounded so strongly, sti too. So maybe tmr will be coming down a bit? Hmm, we'll know tmr.

Total profit: +130
(looking at much more upside to my total profits after selling off my laggard stocks. Longcheer rebounding also)