Trade war issue is important cause of the impact on profits..

I am cutting loss everyday. suffering from losses. prepare bullet after window dressing.

Technical analysis - die
Trading based on news - die
Trading based on latest QR - also die
Buy low sell high - die , all like catching falling knife !

whatever method also losing money.

This post has been edited by Cloud9Nos3: Dec 11 2018, 06:09 PM

Do not agree...

Simply chasing after beaten down stocks is never ever a good strategy.

I understand you...

If you trade long enough things like this does happen.
It's not the matter of the strategy been used but whether it was the right moment to use the particular strategy.
Sometimes it's best not to do anything...

Like I mentioned many times before... One just cannot trade all the time... sometimes if there's no trade... just wait and do nothing.

I mean if trade war is cancelled, then those good fundamental stocks that got beaten down because of it will be a good buy?

No ah?? Why??

Not long ago, when I talked about the trade war in this thread, many only look at it in an extremely optimistic manner.
If no buy from China, this and that Msian company will benefit...they opined... look at the irony at what you are saying now..

ps.. not all beaten down stock can be bought lah....
You need to get this terrible investor mindset out....
Most stocks get beaten down for real good reasons lah...

Take GenM again as an example.
It was trading close to rm6.
Now it's less than rm3.

So does this mean that because GenM (with its well known reputation as a good 'fundamental' stock) means a good buy?

Well the misconception here it's 'recent high' price.
They cement their mindset on that rm6.
And they use a 'traders mindset' and anchor this high as their POINT OF REFERENCE to calculate their discount.

Well what's the risk?

The risk is this rm6 point of reference might not be reached again anytime in the near future.

RM6 was during the time when the market was still bubbly.
Market was willing to chase the stock up (in regardless of its earnings multiples)

Then we have the gambling tax issue.
Unless this changes in the near future, the tax will eat heavy into the companies profit.

So to anchor the GenM using rm6 as a point of reference is simply suicidal.

And of course next we have the outdoor theme park issue.
Putting aside any impairment losses or litigation losses, without a well known brand for its outdoor theme park, future outdoor park will not be rosy.
Which means, earnings will not be as rosy as being projected....

all this will hurt GenM earnings.

so what's the ball park opportunist valuation for GenM?

3.20 or even maybe 3.60?

What's the price now?

Is the current beaten down price so attractive?

The market is getting more and more interesting?

I have been planning my strategies for the near future. Doing some paper trading.. testing..

Generally, I am avoiding beaten down stocks. Doesn't make much sense searching for value in big dark holes...

Ok avoid beaten down stocks..

Wrong strategy..

How about stocks that has corrected but it is still in long term uptrend and stocks that has found its bottom and turning up? In both cases the stock must still be good fundamentally and cheap in valuation..

PASS OR FAIL??

Look the strategy has got to fit you. You attack the market with your best game plan, one that's best suited as per your ability.

You cannot just follow others.

Let's look at your strategy. You got to ask what could go wrong and why this strategy will bring you the moolah.

Without a stock name is hard to discuss more as in most cases each stock is different.

You need to ask your remisser bro.

These are the rules of the game. You need to know it inside out before you engage...

Yours was a technical question which is best answered by your broker..

Sorry I do not believe in shorting.

Fail, if used without thinking.
The recession has NOT started yet. Many of Malaysian stocks are currently trading far below their historic lows (2009 recession).

I have strong feeling that the bottom we see are false bottoms.

As for when you are making your strategy, you need an out.
ie if my guess is wrong, how do I get out. At the moment I think only RHB has "stop loss order" to automatically eject you from a position.

This post has been edited by JayCkat: Dec 19 2018, 07:25 PM

I do not do short selling. But I have researched the topic a little.
In this situation you will be hit by a penalty as you were not able to cover your position. Not your fault but that is the risk you take

You can only escape if the company goes bankrupt. In which case, the company share has zero value.

I for one, could never get any satisfaction searching and playing bottoms. Never ever good at it.

Two simple examples on bottom searching...

Dialog



* early morning screnshot *

how would you want to play the bottom... especially when you take into consideration the bigger picture below

** Dialog having a bounce now as I make this posting ....



Yinson



... and again taking into consideration the bigger picture .....





it's simple...
you don't need to know all sort of trading to make money...
you don't need to be a day trader if you cannot be one...
it's not a crime...

a trader do not have to trade all the time...
when there is no trade, do not feel obligated to make one...

Dielog...

Up 22 atm...

Hmm... at 2.97..it still trades at pe of 36+..
Plus most recent quarter earning, profits slump 28.8%..
If that was a one off slump..then.. perhaps..
But if it is not a one off then... the downside risk potential is massive...

U manage to enter at low?

LOL. Do read my posts again... Anyway no I did not buy as I couldn't grasp a handle on my exit point.

But... it was on my notepad... But 2.81.