Glove stocks fell off the cliff again.

I bought too much across the board. The curse of modern technology. Click, click, click.

As long as we can hold beyond T+2 and we don't need the money for emergency use, it should be OK.

Nobody knows how Mr. Market will behave tomorrow. Otherwise, we will all become instant millionaires.

It will either continue to fall tomorrow and flush out the weak traders or it will rebound.

What I don't want to see is the price trading sideways for weeks. That is bad for traders. The price should go up or down.

Good morning folks. Looks like the show is over for the morning session. No more fire sale?

I sold Adventa, Careplus, Ruberex and Comfort just now for a reasonable profit. I bought them yesterday.

I am still holding Harta, Kossan, Supermax, TopGlove and YTL Reit.

Kossan, Supermax and Topglove were added yesterday.

Things might still get ugly later. To hunker down in case more missiles rain down on the Big 4 glove stocks company.

YTL Reit is inching up nicely in the style of Inari.

No thanks.

Well, not for now anyway. I bought Poh Kong recently and nearly got burnt. I still can't understand how the price of gold will affect Poh Kong and Tomei. These are jewellery stores not Gold ETF.

I find Poh Kong and Tomei to be even more volatile than glove stocks. So, I better stay away.

Not really, sis. I did suffer losses after MCO for the glove stocks. You can check my earlier postings.

But I managed to preserve my capital and recover my losses after that.

This glove stock trading is like a boxing match with 10 rounds. You may lose round one and win 3 rounds after and so on. The main point is not to suffer TKO during the 10 rounds, i.e. losing your capital. That would the end of the boxing match for us.

Sold YTL Reit today for a reasonable profit. Today is ex-date for dividend payment. So I gained quite a bit.

To continue topping up Supermax and Kossan.

Win big or go home.

This post has been edited by Vanguard 2015: Aug 13 2020, 03:44 PM

Buy low, sell high.

4 simple words. Until now, many investors/traders including myself do not understand the meaning of these words and how to apply them.

Scenario 1

When a share is trading for RM25.00, we say the price is too high. We confuse price with value. We don't buy.

When the share drops to RM20.00, we say this is scary. The price will drop further. We don't see it as a discount. We don't buy.

or

Scenario 2

When a share is trading for RM25.00 and continue to rise, we believe it will go higher. We start buying and chasing it.

When a share drops to RM20.00 and we bought it earlier at RM25.00, we don't dare to average down and we will sell it at a loss.

So, what is the correct approach? Until we figure out the correct approach for us, we are destined to lose money in the giant casino known as the stock market.

Finally, we confuse luck with skill. When we pick a stock and it goes up 10% or more in a day, we think we are the next Warren Buffett. We forget that we are just lucky to ride on the wave like everyone else. But nobody can win consistently everyday at the share market by depending on luck alone.

As usual, this is only my 2 cents view on behavioural investment. Perhaps some sifus here can share their views.

This post has been edited by Vanguard 2015: Aug 13 2020, 05:30 PM

I am biased since I am presently holding the Big 4 glove stocks.

As long as a vaccine is not found and the number of Covid-19 cases worldwide keep on increasing, the glove stocks prices will have room to play. We can see the 2nd or 3rd wave of new cases hitting the countries which have reopened for business.

Glove stocks is not a luxury item, it is a necessity for the healthcare industry. The Covid-19 is here to stay for at least another year.

We also forget that Covid-19 is a virus, not a bacteria. There is no cure for a virus infection. The human immune system has to fight off the virus on its own. It is just like the dengue fever - no drugs to cure it.

The vaccine for Covid-19 is to stimulate the production of antibodies and provide immunity against Covid-19. The vaccine is not meant as a cure for Covid-19 patients.

Is there any doctor in the house who can correct my understanding, if I am wrong?

This post has been edited by Vanguard 2015: Aug 13 2020, 05:55 PM

Thanks for the info. Looks like what I learned in my biology class 30 years ago is outdated! 😃

Good morning folks. Thank you everyone who has responded to my post yesterday, "Buy low sell high".

The glove stocks are in red this morning. Some of you may be waiting for Top Glove to drop below RM25. Well, it is now trading at RM24.520 and still falling. So, what do you plan to do now? Is it a discount or a trap?

From the previous data, when the QR for Top Glove and Supermax were released with superb profit, their share prices dropped instead. Does this mean that all of the feel good factors have already been factored into the valuation of the shares?

I believe the next QR for Kossan is due next week. Will it suffer the same fate as Supermax?

Please place your bet, ladies and gentlemen.

Not for now. I had already topped up on Kossan and Supermax yesterday. Looks like I topped up too soon.

I think there is more money to be made in Comfort, Adventa, Careplus and Ruberex because they are falling more than 10% today. That is on the assumption that their price will rebound in the near future. Otherwise, it becomes a case of catching a falling knife...

Let's see what happens later. Now the prices are in a free fall.

If they continue to drop between 15% to 20%, I may go in. Only for the brave or foolish?

To hell with it. We only live once.

I re-entered Comfort, Adventa, Careplus and Ruberex.

Those with ammo, please come and support Supermax and Top Glove.

Stay calm. These too shall pass.

Thank you for your support.

Ok I have completed my day trading. Sold off Comfort, Adventa, Careplus and Ruberex just now for a reasonable profit.

Time to give back some money to society. We are benefiting from the misery of the Covid-19. Karma will come back to haunt us one day.

Thanks bro. But please note that I sold off Careplus and the 3 other three second liners just now for a profit.

I am just holding the Big 4 stocks now. We need stamina for this. No margin account and no contra playing. To hold beyond T+2. Otherwise, there will be panic selling.

P/S: For the second liners, we need to have the time to be in front of the computer screen the whole day. It can go up and down more than 5% in a few hours.

This post has been edited by Vanguard 2015: Aug 14 2020, 04:44 PM

Biawak bertenang semua.

Let's see how the glove stocks will play out next week. As long we are not playing with a margin account, it is fine. Otherwise, if things go south next week, we will be in deep trouble.

I remember in the early days, a creditor can make a debtor a bankrupt if the sum owing was RM30K. The cause of bankruptcy then was mostly business debts and later, credit card debts.

Then sometime in 2017, the bankruptcy amount was increased to RM50K because too many Malaysians were being made bankrupts. By this time, the main cause of bankruptcy were hire purchase loans. Note that a few years before that, the banks have increased the HP loan agreements to 9 years. The change in the law did not help. A lot of Malaysians still went bankrupt even with the higher threshold of RM50K.

Recently, the government is proposing to increase the bankruptcy threshold from RM50K to RM100K. This is timely. Rakuten is offering a collateral free margin account of RM100K. If new speculators especially from the younger generation Y or Z continue to pile into the stock market, the new cause of bankruptcy could be the losses from the margin account trading. Let us pray that we don't reach that stage...

Bro, stock trading or investment is a marathon, not a 100 meter sprint. Please don’t lose heart or give up so easily.

It is great to see such diverse views and healthy discussion in this forum.

If all the forumers/investors here think alike about the value of any particular stock at the same time, Bursa Malaysia will close shop within 24 hours.

Imagine if everyone thinks that glove stocks is overvalued. There will be a long queue of sellers but no buyers.

Same if everyone thinks that glove stocks is undervalued.
There will be a long queue of buyers but no sellers.

So, there must be a willing buyer and willing seller in the free market economy. E.g. I think Supermax is now undervalued but you as a shareholder thinks it is overvalued, then you sell to me and the cycle repeats itself.

In the meantime, life goes on. Have a good weekend everyone.

This post has been edited by Vanguard 2015: Aug 15 2020, 03:38 PM

Oh yes, you are 100% right. Trading should only be a small part of your portfolio. It is time consuming and high risk. I am only trading now because of the glove stocks mania. Once in 10 years or once in a lifetime opportunity. Eventually, we will be eaten by the sharks or crocodiles if we stay too long.

I think we need to diversify across time, assets and country. An example would be:

(1) EPF
(2) ASM, Wawasan 2020 (for non-bumi)
(3) Fixed deposit, advance payment into housing loan, etc.
(4) Unit trusts like FSM One Malaysia or FSM One Singapore.
(5) SSPN (if you have kids for tax exemption)
(6) PRS (for tax exemption again)
(7) Stashaway

The investments which did not work for me were:

(1) PSP lending like Funding Societies, etc (default rate too high)
(2) Gold investment like HelloGold (the spread is too high, no interest payment, etc).

Vanguard ETF is available in FSM One Singapore. I have opened an account in FSM One Singapore but I am stuck there because I have not opened a Singapore bank account yet.

Back on track now. Yes, maybe 10% of your money for trading if you have the time and skill.

You may want to allocate another 20% of your portfolio for stock investment in blue chips or growth stocks (this not trading stocks on a regular basis). Some people like the regular dividend payments. Otherwise, you may just opt out from stock investment and to dump it into unit trusts, etc instead.

Whatever it is, start early and have an emergency fund of 3 to 6 months first before thinking of investment. You don't want the decision of when you should sell your stocks or unit trusts to be determined by when your house roof leaks or when your car breaks down.

Buy some investment books to read. Read, read and read.

My 2 cents worth as usual. Sorry, a bit long winded during the weekend.

You are most welcome. I am glad you liked it.