All in a day's work

Week 2
24/9/07– 28/9/07

Second week into trading has made me clear of my approach in the market. Emotion Control and objectivity. Once again, there are lessons learnt and well, as compared to last week, I wouldn’t say that these are less important, so read on….

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1. Plan your purchase and quantity.

With a credit limit set at 10,000, there are only so limited stocks that you can buy. Take my ChinaKangda, (CK), trade for example.

At that time of purchase, I had another pending order and that effectively, limits my purchase for CK. In the end, I’ve gotten only X lots, a few lots lesser than what I intended to buy. When I’ve withdrawn my other order, I realized that I’d need to pay another charge if I were to get and I wasn’t willing. So in the end, I stayed with X lots.

Well, looking back, I should have spent that commission charge! Anyway, the point here is, do your calculations properly.

2. Review your portfolio often

Once again, with the fact that I’ve got a limit of 10,000, it’s normal that I have to give up a few positions to get another position, which can give me possible higher returns. Take CSC for example.

A construction stock that has been performing, well… Stably. It would not hurt to hold on to it when your have X lots at it and liquidate it at a later date, since I’ve bought it at .33, a relatively safe entry point, imo. But YangZiJiang (YZJ) came into the picture and I had to let CSC go, albeit with a lesser profit, for YZJ.

Sometimes, there’s only so much we can do.

3. Read more.

There are easily about 500 stocks that you can buy, available in SGX. Is it possible to monitor all 500 stocks or is it more realistic to read/know what people are looking at and from the named stocks, make you own analysis and then decide.

Trading, if played alone, is boring. Views and comments are definitely worth listening to. Be flexible in your view after all, the market never always moves in YOUR direction. No one is always right.

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Well, all these lessons learnt are meant for sharing. It’s not good to make mistakes in the market but well, have these lessons in mind if you were to trade.

Stock picking should not be treated as a gamble and I'm no guru...

Week #3 ….