Still TOMYPAK & AIRASIA

1. TOMYPAK
Other than being a bit slow and stagnant, this stock is not giving me problem. I have holding power so I will give it a longer time frame to decide on the direction of the price.

2. AIRASIA
This is giving me headache. I analysed the chart correctly but my position sizing does not allow me to sell to take profit even when the price went up to 3.3 at its highest. And today... the price is as low as 2.83 and closed at support 2.86. Today is the second black candle with decreasing volume. If the QR is good then I am fine. If it's bad then... good luck.

Lesson learnt: Position Sizing!  

Update: TOMYPAK & AIRASIA

TOMYPAK
To me the chart is showing positive sign as the price formed a doji today with high volume. Doji suggests uncertainty or indifference between sellers and buyers. I am of course hoping that the price will go up. hehe. Next resistance is around 1.8 or 1.81..

AIRASIA
Today airasia went up 4.5% and closed @3.25! impressive! I have not sold yet. However, the bad thing is that the volume is not picking up with the price increase. Tomorrow will be the third candle. If it's a white candle up with decreasing volume, then I will sell at closing, hopefully with a small proft.. hehe.

So tomorrow is a crucial day for me. It's good that I am working the morning shift these few days. I can monitor the price towards closing.

Another stock that caught my attention when I was looking at charts just now was ECONBHD. The price dropped with increasing volume and it hit trendline support today. Let's see if it rebounds tomorrow. I'm not buying as I have limited capital. Sad case... anyway, fingers crossed for tomorrow.

Recently bought TOMYPAK & AIRASIA

Not sure if this is the right time to buy stocks but I just couldnt resist and I bought TOMYPAK and AIRASIA this week. Here are the charts and the reasons for buying:

1. TOMYPAK

I bought this on Monday @1.70. Reasons:
1. it formed a hammer with high volume last Friday.
2. it hit the same level and rebounded.
3. Risk Reward Ratio at 1:2, I think this trade is rather safe. (I set my cut loss point at Friday low at 1.68. It hit my cutloss on Monday and yesterday but closed above it on both days. So I am still holding it and hoping to sell for a small profit @1.75. Moreover, when I look at the chart in a longer term, I know I have to follow my cutloss point strictly as the next support will be around1.53!)
4. Hopefully it bottoms out! (dangerous word - hopefully)

2. AIRASIA

 Bought this @3.08 around 3pm today for reasons opposite of TOMYPAK. Interesting combination of stocks. Let's try and see which one turns out a better deal.
Reasons for buying:
1. NICE trend
2. broke out of 3.00 with high volume - highest price in 3 years! Sky is the limit! (fingers crossed)
3. recently under spotlight and QR coming out soon (speculating on good news)
4. RRR at almost 1:2 (cutloss at 3.00 psychological level and take profit at 3.2)
Plan to hold this for short term. Ideally I should sell before QR is released. 

Karex sold

Finally sold Karex @ 2.50 but it climbed to day high of 2.55! Never mind. At least I got some profit in this miserable market *pat on the back*
The other stocks in my portfolio are depressing to look at. The only one that I am hopeful in is Biohldg. It has been swaying around trendline support at 0.38. Hopefully it surpasses it and surges to 0.43 then I can take profit!

Karex Follow-up

Looking back at my previous post on Karex, I was quite right - Karex's quarterly report announced on 25 May wasnt as good as its previous one. Its revenue dropped from 22,649,000 from the previous quarter to 9631,000. Hence the price dropped to its lowest at 2.13. As usual, I failed to cutloss or average down. My average now is 2.32 and the today it closes at 2.46. So I'm lucky if I can sell with a small paper profit tomorrow or this week if it hits my target at 2.5 (200MA at 2.53 now; previous target 2.55). Maybe this rise is due to the good news that Karex is featured as one of Forbes' Asia's 'Best Under A Billion' list. I am positive in Karex in long-term but not optimistic with the market sentiment. So, I am hoping I can see and buy back when price drops.

Karex Trade

Bought Karex @ 2.40 on 6.5.2016
My plan was actually to cut loss at 2.35 and TP was 2.55. Went below 2.3 but did not cut loss, hit 2.5 (hit 200MA resistance) but did not take profit. Today black candle with high volume. Suspecting that the quarterly result may not be good, hence the drop... but as a trader (haha.. still a long way to go), maybe I shouldnt guess. I should just focus on charts...

Trading Plan - Karex

Yesterday, I made my first trading plan on a stock that I like very much - Karex. I like it because I profited from trading it twice and also because it produces something which I believe will only get more and more important - condom!

So my plan was to buy it at 2.45 and sell it for 2.60 if I get lucky. Too bad, I woke up late today and when I watched it, it already went up to 2.49 I think. I was immediately put off as my reward is reduced significantly and at the same time, my risk increases (cutloss below 2.4) and my Risk-Reward Ratio will be as low as 1:1 if I chase at 2.49. Karex closed at 2.46. Very tempted to buy but did not do so. Shall watch and see how it goes tomorrow. I cant analyse it as something is wrong with the candlestick of Karex shown on Chart Nexus. I will post here..

 I am pretty sure the day low is around 2.44. But why is the chart showing 1.9 something?

Risk-Reward Ratio

When a stock hits resistance, take profit; breaks support, cut loss. With this in mind, we can find out our Risk-Reward Ratio. Eg if I buy a stock at 1.00 and its support (my cutloss point) is at 0.95. This means when I sell to cutloss, I lose 0.05. If the stock's resistance is at 1.10 (point to take profit), I potentially gain 0.10. So 0.05 potential loss and 0.10 potential gain. Every 5 ringgit I risk, I potentially gain 10 ringgit. Is this stock worth buying? Is the 1:2 risk and reward acceptable? hmm.. maybe the risk is still too high for a newbie like me...

Two days ago (11/4/16), I bought a small amount of genm @ 4.50 as I thought it hit support. Yes, it rebounded from support yesterday and hit resistance @ 4.60 and it came back down today. I was pretty happy with myself and was waiting for it to break out of 4.60. Now I realised I DID NOT make a good decision as the support level is @ 4.40 and resistance is @ 4.60. So my risk-reward ratio is 1:1!! For every ringgit I risk, I potentially gain 1 ringgit! What?! I should have bought when it breaks out of 4.6 or even 4.7 to be on the safe side. Now I can only hope for it to break out or I will have to cut loss @ 4.40..

When a stock breaks out, it is a good buying opportunity as there is no resistance above - sky is the limit! But of course, I need to be able to recognise the peak and the change in momentum i.e. how far can it go and when will the stock turn around and goes down again.

GHLSYS

GHLSYS is a company which provides integrated end-to-end payment solutions encompassing physical and virtual payments on sale and rental basis, including Electronic Data Capture (EDC) terminals compliant to the Europay-Mastercard-Visa (EMV) platform, contactless readers, network access routers, and online payment gateways (Source: http://www.ghl.com/overview/).  GHLSYS, a leading payment solutions provider has recently appeared on the news.

From what I understand, GHLSYS's profit mainly comes from its transaction payment acquisition (TPA) division, which comprises two components — providing telecommunications companies (telcos) with prepaid top-up facility and bill collection services through electronic payment.

GHL's coming revenue is promising as out of 40 million telco subscribers, 80% are prepaid top-up users out of which almost two-thirds are still using scratch cards for mobile top-ups. WOW! I am convinced! 80% of 40 millions is 32 millions and 60% of that is close to 20 millions! I believe, if given time, e-pay will replace the traditional way of paying using cash.

I bought at 0.85 support last year and did not cutloss when it broke - I was less worried about this counter as it is a net cash company. After waiting for several months, finally I got my 10% paper gain. Still holding - immediate resistance is at 0.945 or 0.95, next 200MA at 0.985 at which I may sell to take profit as I am not convinced with this current hot market.

KLCI MACD crossover

Learned about MACD during tonight's e-learning.. KLCI's MACD showing bearish crossover (signal 9 crossed and is now on top of the MACD blue line; when the blue line crosses and goes on top the signal line, it is bullish crossover or a buy signal).

Let's wait and see if KLCI comes down in the near future.

Tutor said this chart explains everything... KLCI peaks get higher but MACD peaks get lower - confirmation that KLCI is coming down (possibly sharply!)

I guess it's a bit too late for me as I am stuck in many stocks and I didnt cutloss.
Tutor stressed "Mindset, Money Management then only Method"... hmm...

SKPETRO - narrow escape

It was pure luck that my SKPETRO order did not match the other day when it dropped. I DID NOT realise that it's financial results would be announced the next day -- and it suffers substantial loses!

From the chart, I cant see sign of rebound although 20MA just crossed 200MA.. it may just turn around... and the next support level is around 1.76.. unless of course, crude oil rebounds sharply... 

Narrow escape from being stuck in this stock... as if im not stuck enough... phew...
So...
What is the lesson learnt?

• There is always a reason why a share drops or goes up suddenly - check the date of the release of their quarterly report!!

KLCI RSI 70

23/3/2016
KLCI RSI touches 70 today and I am still holding many stocks.... sweating cold sweat...
When will I break out of this cycle of being at the wrong side of the market?? and today I thought of buying SKPETROL... luckily my order didnt match..

IFCAMSC - my trades

IFCA - a stock that I have traded a few times since it was as low as 0.40. My mum bought when it was 0.125! I sold with a profit at 0.8 after it shot up and broke 1.00 last year. I remember i3 forum was so "happening" and noisy as people were "celebrating" IFCA leaving penny stock and some even predicted that it might go to RM2 just like Inari. Now thinking back, I was really ignorant as I was hopeful that what those "sifu" said would really come true. I hung on tight to my IFCA. But as we all know now, my sweet dream did not come true - the price came down sharply and I had to sell to lock my profit.

Early this year, I bought IFCA again... emotions... I know I should not ... but I guess I was hoping to "revenge" on this stock and prove that I can earn more from it. I entered at support 0.85 - it broke my support, I failed to cutloss and of course, it went on to break 0.7 and gave me mini heart attack a few times. I have been stuck in IFCA for a few months now, waiting for chance to sell... seems like a long way to go for me to break even...

So, lesson I learnt from trading IFCA?

1. Do not listen to rumours, look at charts.
2. Cutloss by following your own plan.
3. Do not carry emotions - dont fall in love or search "revenge" on a stock.

9 months and what have I done??

I remembered the day I started this blog and i have always wanted to update it... but my bad friend, Mr. Procrastination, kept me from doing it. Finally after 9 months, this is my second entry. So what have I done, in these 9 months, to work towards my financial freedom??

1. I opened an account with Malacca Securities
I started small by depositing 2k (read about someone starting with a capital of rm500... so, I guess I can try out with 2k, the amount that I can afford to lose it all - Guess what? I already did. and I deposited another 2k and another 4k so far. So the total will be around 8k?? Not really sure if this is a correct decision -  to "dump" real money when I lack knowledge in trading...

2. I joined CP's Stock-Watch group (but quit early this year)
In fact, I joined before my first blog entry. CP is an inspiring man. He was a teacher - I am a teacher. If he can do what he is doing now, why cant I?? And I have a few advantages over him - I started earlier than he did and I am single which means no burden! His SW group was good as I learned a lot from his weekly meeting and analysis of stocks. However, it can be confusing and distracting sometimes as too many stocks were mentioned by other members and as a newbie, I do not know how to choose. Many of his members make money but I did not. And CP's trading period is too short for me. As I only buy small, I need to wait for the price to go up more to be able to sell for profit. So I quit SW group but instead, I joined his e-learning!

3. E-learning
So from a blind follower, I become one of CP's students. I like learning especially about things I am interested in. I do read books about reading charts but they are just knowledge on paper. I need experience and CP generously share with them with his students. I have joined a couple lessons and so far I learned a couple of things:
a) How to reduce risk (prolong trading period, buy only fundamentally strong stocks, calculate the downside that I can afford to lose)
b) Price-volume divergent (when a stock goes up, so should its volume or else when no volume supports the price, it will come down soon; when a stock comes down, its volume should go up as it means someone is absorbing the selldown or else the price will move sideway)
c) Moving averages (for overall trend - above 20MA, short term uptrend, above 200MA, long term uptrend; as support and resistance)


I am glad that I write this as I am having difficulties remembering what I have done and I begin to realise maybe this is all I have done in such a long period of time. My progress is way slower than I imagine!