Losses? Hell yeah! Back in 2000, I speculated on oil and semiconducter counters, and was losing up to RM2,000 a day because I couldn't bear to cut losses. Total damage? RM100,000.

That's why I'm very careful with stocks nowadays. I also don't dare give predictions and warned about taking people's advice word for word, since we all differ with time, experience, money, etc.

I'm usually in for the long term, e.g. I have over RM100k in unit trusts across different classes and regions. For speculation, here's what I abide by:

1. Buy only stocks you've familiar with, i.e. stocks you've been monitoring.

2. Buy only stocks you're willing to pick up.

3. Don't gamble with money you need in the short term.

4. Be realistic. Don't go in expecting to be a millionaire in a month.

5. Don't think you're the smartest. Whatever you know, the big boys already know earlier.

6. Always consider the trend of other stock markets.

7. Have enough savings to average down - I never gamble beyond 1/3 of my cash.

And yeah, having some luck is good too!

Look at STI - also +ve now.

Bought 80 lots at $2.79. Hopefully don't need to average down.

Yup. Bought 50 @ $2.80 and then 30 @ $2.78 so average around $2.79. Let's hope it can end up like my previous buy of IOI.

Short-term. But if drop then become long-term lor ...and collect dividends.

Didn't checked. But since they de-merged into TM and TMI, TM is supposed to become a dividend stock with earnings coming from fixed-line and broadband.

Hence, my earlier rules of speculation ...only buy stocks you won't mind picking up, don't gamble with short-term money and make sure you have enough to average down.

This post has been edited by wirelessdude: Nov 12 2008, 05:12 PM

Yup, pretty close now. Question is will we hit the old lows and rebound or will we make new lows this time.

Bought 40 more at $2.60. Queue 50 lots at $2.40 too.

Yeah, that was my $100k lesson in stock investing.

Will buy more aggressively as the price drops.

0257 GMT [Dow Jones] STOCK CALL: Citigroup maintains Telekom Malaysia (4863.KU) at Sell, cuts target price to MYR2.60 from MYR3.00. Warns TM may disappoint players by failing to meet expectations of dividends much larger than its MYR700 million minimum commitment, its sustainability beyond 2008. Notes company stressed commitment to return excess cash to shareholders; "management pointed to the need to conserve cash to fund growth initiatives." Also notes timing of TMI's MYR4.0 billion debt repayment to TM still unclear; reckons net gearing will be at 0.7x in 2009 vs 0.2x house estimate, without cash from TMI repayment. Lowers normalized profits by 10%, 48%, 42% for 2008-10 to reflect disappointing 3Q08 results. Shares down 5.0% at MYR2.65.

Shit just came back, missed TM above $2.80. My average is now $2.71 at 150 lots.

Even late predictions can be so different from the end results because of current volatility. Hence, my warning for forummers to be careful of overly optimistic predictions if you don't want to lose your shirt.

Sold 50 lots of TM at $2.86 (bought at avg $2.71), so gain = $750.

Still holding 100 lots balance for higher price.

gogo2: you can NEVER buy at the lowest or sell at the highest.

Die lah, if I make decisions like you.

Yeah, would like to know too. Was looking at the historical performance yesterday. I thought it's a blue chip so didn't expect it to be so speculative.

What about the company itself? Is it doing ok?

Because if the company's fine but the stock price is down because a major shareholder is forced to sell (like KNM), then it's good value. Seems to be close to the 52-week low and way off the high.

Ok, thanks. Just bought some since I sold my TM shares today.

Hahaha... actually I sold all my 150 lots already at avg $2.84.

Bought Zelan and KNM.