Haha, I bought LIONIND again at RM1.26....... kiasu....

Small caps sell off today......

I think Genting & Resort will be hit by the H1N1 news......

Dumped my long-term friend LCL for peanuts...... dunno why construction going down........

Hope to pick up when it is lower......

Dunno whether it is a good buy at current price. OSK recommend a "sell" : http://sensecents.blogspot.com/2009/05/ste...update-osk.html

I think the first thing you have to evaluate is whether the company is fundamentally good or not and whether it gives good dividend if you need to hold for long-term. If you're not confident with the company, or you were just "gorenging", then it might be a good idea to sell at a loss.

If you are confident with the company, then, you may hold it and consider the next step of whether you should average down. How much it drops before you average down would then depend on how much capital you have. If you have enough capital, then I guess a 5-10% drop would be the general rule. If not enough capital, then maybe a 15-20% drop. Whatever it is, if you decide to hold, you also have to expect to hold it for long-term as a fundamentally sound company will definitely go up one day. May be months or may be years..... However, if you need some cash soon from this investment, then holding it might not be a good idea either....

I guess I can relate to your predicament as the same thing happen to me when I bought LCL at 77 cents. Dropped to 30+ cents. Almost pengsan. Average down to 62 cents. After much rally, and drop, decided to sell today at 64 cents......

My 0.0002 noob 6-months experience....

This post has been edited by kmarc: May 15 2009, 06:36 PM

If I'm not mistaken, I have an article from The Edge magazine about E&O. Will post up the details of the article later....

When I started stock trading, my first rule was to play safe and not be greedy i.e. no sai lang business. Because of this, since starting trading, I have not lost any of my trades yet. Of course, I entered the market when it crashed so I was very lucky. To reduce my risk, I usually wait for the market to fall, then start buying in small amounts. If the counter drops further, I will average down. Eventually, the counter will go up above my ABP (unless the company goes bankrupt).

So far, my realized profits is around 15% of my capital and came from trades as below:
Zelan x2
Gamuda x2
KNM x2
Scomi
Lionind
WCT
Resorts
Kinstel
LCL

Now I'm holding on to the following counters, all of which has paper gain except for Hektar (slow snail counter for dividend only):
Uchitec
Lionind
MRCB
Kinstel

Many people try to use their small knife to cut big tree. However, lots of time, the big tree will fall on you!!! Stocks trading is risky business. Chance to become rich.... of course.... but you also have a chance to lose all you money....

As cherroy has said - if you keeping jumping from one counter to the other (while make profits), you'll eventually jump into a wrong boat and lose.......

Trade safely. Less profit is better than losing your money right?

Edit : Oh ya, I only use cash account. No margin business for me.

This post has been edited by kmarc: May 15 2009, 10:57 PM

Errr.... I'm a noob in stocks trading myself and is not qualified to teach you la.... just that I apply some simple principles to lower my risk in this risky stock market.......

Don't take too long to brush!!

Found the article on E&O.... aikes... so long.... will summarize it tomorrow... sleepy now.....

Do you have any savings at all? Lending money to play stocks is very dangerous. Unless you can be 100% you'll earn money from stocks, it is better not to do it. What happens if you lose money?

I'm not in the financial business though... just giving some advice....

Found the article on E&O in "The Edge" weekly dated April 20, 2009.

Very long article with lots of information but the end summary is this:



I guess that means that for E&O, it could go either way.......

How about thinking long-term?

I'm thinking of going long-term after the next dip. Buy bit by bit if the prices drop then hold for long-term....

The only problem is when should I start buying?!?!!

Thx for the link. Was thinking of what to goreng tomorrow.

Ler, ask to take profit on MRCB when it is dropping like wat.....