Hahaha..its time for another short story to end the week..or should I say start a new week....Lesson number 2: When trading with Singapore stocks, unless they have really good fundamentals, neber hold for long term!
I remembered some time back, I asked my Business Finance teacher Mr Bobby, "Sir, if you are to buy a stock, would you choose on positive techinical analysis or positive fundamental analysis?"
He replied."Fundamentals of course. Technicals are for short term and unless you feel extremely confident, go with the basics, i.e. companies with good fundaments."
It was a number of years back when I started trading stocks. One of the first local companies which I invested in was Allied Technologies Ltd. It was a good move then. The market was booming and all the technology stocks were all in high volume. Allied Tech was one fo them. I see it grew beyond 100% profit! I was trilled when I calculated that I could earn a neat sum of 10k if I was to sell at that moment in time! My first mistake was my greed and I wanted more thinking the stock should be able to reach a higher peak.
Disaster struck and it went tumbling down...everyday. My second mistake was watching it fall withou doing anything! I was thinking..."whatever goes down will go up again!" Of course a person's greed will make him fall. I was thinking that why should I settle for a profit much lesser than before! I mus wait for that moment again! But....that moment never came. It fell rock bottom and now that stock has dropped beyond the price which I initially bought! It was a turnover of at least 150%!
It was a painful lesson which I have learnt and never will forget! Always monitor the market closely; Do not let greed guide you instead of fundamentals; Minimise losses or profits when necessary.
I remembered some time back, I asked my Business Finance teacher Mr Bobby, "Sir, if you are to buy a stock, would you choose on positive techinical analysis or positive fundamental analysis?"
He replied."Fundamentals of course. Technicals are for short term and unless you feel extremely confident, go with the basics, i.e. companies with good fundaments."
It was a number of years back when I started trading stocks. One of the first local companies which I invested in was Allied Technologies Ltd. It was a good move then. The market was booming and all the technology stocks were all in high volume. Allied Tech was one fo them. I see it grew beyond 100% profit! I was trilled when I calculated that I could earn a neat sum of 10k if I was to sell at that moment in time! My first mistake was my greed and I wanted more thinking the stock should be able to reach a higher peak.
Disaster struck and it went tumbling down...everyday. My second mistake was watching it fall withou doing anything! I was thinking..."whatever goes down will go up again!" Of course a person's greed will make him fall. I was thinking that why should I settle for a profit much lesser than before! I mus wait for that moment again! But....that moment never came. It fell rock bottom and now that stock has dropped beyond the price which I initially bought! It was a turnover of at least 150%!
It was a painful lesson which I have learnt and never will forget! Always monitor the market closely; Do not let greed guide you instead of fundamentals; Minimise losses or profits when necessary.
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