Wednesday, January 17, 2007

Cut losses triggered

Today I had to cut loss on a number of stocks because my stop loss has been triggered.

Never had the discipline to exercise my cut loss, so today, having to cut 2 of my stocks is really an achievement. I believe it will get easier over time and through time, I'll find a good stock that runs instead of me cutting loss.

First to go is fabchem. I never knew why I bought it in the first place. I detected strong selling early in the morning, and in fact throughout the day. I cut loss near market close because the selling is really vigourous. The good thing is that I only bought 5 lots so it wasn't that bad. Still...a loss is a loss, not excuse. I bought at 0.675 (on impulse!!) and had to cut loss when it nears my cut loss of 0.62 (on high vol). Basically this stock has no support whatsoever, it just keep dropping. I might look at it when the charts are more favourable, but i guess that's not anytime soon.

Second to go is ellipsiz. I already noted the weakness in this stock a few days ago. So, today it really crashed on me. Price went below both ema20 and ema50, break through the strong support at 0.78 and the moving average line. I cut loss immediately even though the volume is not high (it was at average vol 50 days). If 0.76 short term support breaks, it'll go even lower, so I cut loss at 0.765. I bought at 0.7925 sold at 0.765.

Longcheer I didn't cut although it dropped quite a bit at low volume. Short term weakness detected. Might test support at 1.18 soon. I might add more then, we'll see.

Bought put warrants for hsi too. Luckily didn't buy in the morning because all the warrants (call or puts) all fell due to the lack of direction by hsi. It rose slightly up by 30 points today. I bought 15 lots at average price of 0.22667, sold 5 lots at 0.225 (a loss after commission) and still holding 10 lots overnight. I could have sold at a slight profit, atlas..but the dbs website really died on me. I missed two chances to cash out totally while stupidly waiting for the website to load. WHAT THE HELL ARE YOU DOING DBS?!

I seriously need to look at opening another account. I'll die if this happens again, esp. if I holding huge position. WTF is dbs doing, who's going to pay for all these losses man!

In a series of bad trading recently, so I'll stop trading for a while. After I close my position for the hsi put warrants tmr, I'll just do other things. Time for a deserved break. There's definitely more in life than just looking at numbers ticking up and down.

Although I lost some money, overall I'm glad that my portfolio management has improved vastly. At least, I dare to cut my losses and I already calculated my exit and entry strategy (except for that impulsive fabchem buy which I paid my lesson) before I enter a trade. I know I just had to manage my losses well, the profit will come after that.

I think i'm in phase 1 again: how to survive the market. Let's not talk about vast profits for the time being, let alone trading for a living.