Wednesday, January 03, 2007

Earned $140 from warrants : )

I didn't follow what I said last night when I wrote that I won't be trading today. The feeling was just too strong to ignore. So, before I went to work, I just bought half my usual size of call warrants and hope for the best.

When I came back, it was slightly negative. Could have made around 700 if I'm around. Sigh, days like these made me think if it's worthwhile to earn $70 in 3 hrs (for work) compared to $700 in just one morning. I stil love my job, but knowing that you could be out there having an easier life earning more money makes me think twice.

After lunch, hsi went downhill but I wasn't that worried. I can't explain why. I was quite confident that it'll rise up so I bought another half of my usual size of warrants to average down, with my average buying price coming down close to the price at that time. This is impt because if you're sure of the direction, average can help you turn a losing trade to a winning trade. The key word here is : "if you're sure".

Using my super doper spreadsheet, I calculate my profits to be $140. Nearing 330pm, I wanted to enter but the stochastics was at the middle, not right at the bottom, which is my usual buy signal. Didn't think that it was worth the risk to enter, especially when hsi would close at 4pm, and I don't want to hold overnight. After fighting the temptation to enter again, I once-and-for-all decided not to enter. Just not worth it to risk what i've earned for what I could have earn. SO, that's all the trading I've done today.

On the whole, the market is crazy! STi shot up 30+ points at this point in time, shows no sign of weakness yet. However, HSI didn't surge up as strong as yesterday. Cheong too much, I think. Today, I saw a lot of stocks increase their price by 0.5 (wilmar), reminds me of last year's may. I rememebered seeing all these great increase in price (and wondering why my stock wasn't like those). Ominous signs indeed. What's more? All the top 10 vol stocks are held by penny, a sure sign of a bull's run end. I'll be pretty cautious at this point in time and will be looking to sell my stocks. I definitely won't be adding anymore, no matter how much they cheong. I've learnt my lessons well. So, this month and next, I'll be doing intraday trading. Holding anything overnight is a big nono, unless circumstances change.

Since sti touches 3030 now, probably might rise a little more before correction. Time will tell if this correction will herald the coming of the bear, but somehow I don't think so yet. Reporting season will be coming up in feb, that'll be an excellent excuse to take profit. And when everyone does that, the inevitable big crash will come. Alright, enough of doomsday prediction.

All my holding stocks went crazy today. Pac andes went up by 0.035, yellow page went up 0.03, and my precious longcheer went up by 0.04 as I'm typing this. In this bull run, if your stock is stagnant and not moving up, or even going down, you got to seriously examine your portfolio. I remembered this lesson clearly in May when my stocks just hover around the same price. It's these laggards that will kill you when the market crashes. In a bull run, if these laggards won't cheong, what will happen when a bear raids?

Of the stocks I'm holding now, I'm thinking of letting go of yellow page. This stock shows the least potential for future growth (when's the last time you ever flip yellow pages for help?). I'll check the charts tonight to look for a good time.

Half an hour to market's close, total earnings: $1,730