A Happy Happy Me

Yar its funny, one day I am blogging about being unsatisfied and sian, the next day, I am blogging about being happy, in simple terms.
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Today I reached my first SGD$10k realized profit from trading in stocks, the combined total so far from SG cash portfolio and Msia cash portfolio gains. So basically I am looking at the cash portfolios only. My CPF portfolio is adopting the Warren Buffet way. YEAH!!!!! One small target reached. The next few targets are at $15k, $20k, $25k and even $30k if possible.

(Err those expecting a treat, my book closure is at the end of the year, so until then first cos I wanna reinvest the gains)

I would like to credit the positive gains to

1)good stock selection
-possible through reading up on Share Investment Book ($6) available at any news stand or 7-11 (where my sister works at)
- SGX website for news and dividend, rights information

2) Actively monitoring of share prices to get some idea of the price range, value of the stocks.
Eg if it was previously $6, but then droppped to $2 and its a good company with strong assets and biz. Its undervalued. Buy-in. Compared to a share that prices has fallen since its listed all the way. Dont buy.

3) Making up Buy-in and Selling target prices from these information.

4) Acting on the information and make actual decisions and carry out.

5) The continued actively monitoring, refining decisions and targets depending on market conditions.

It is a continous process. I have been only using the above methods 1-5 to make decisions about stocks. I realized I needed TA as well as some Fundamental analysis ' to make even better Buy-In and Sell decisions to 'Time' the market based on trends, companies earnings ie financial results and the economic climate. Need more Macro-economics knowledge also.
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Been pushing myself to read up the Technical Analysis book and finally I got past the middle of the book. Usually I stopped at Chapter 7 Volume. But now I have almost finished Chapter 10 about Oscillators.

The surprising thing today is that I login to Poems and looked at the Historic chart. Then I noticed that there is a Moving Average line. Then I looked and saw that there is an option to add the TA tools eg 2 Moving Average lines, Oscillators by just clicking. It adds to the historic chart. POOF, I can understand what those tools are and how to use them! Suddenly I can interpret the signals for 'Buy-In' and 'Sell' timing. Woah I feel so EMPOWERED.

Though it should be mentioned, that these tools are still secondary compared to charting the TREND of the prices, which is the PRIMARY focus. Then use these secondary tools to CONFIRM the trend. Not use these secondary tools to make buy-in/sell decisions alone with no regards to Trend. Cos there could be false signals given eg Whipsaws, false upwaves
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I didnt based my decision to sell today on that moving average thingy. It was too early and I had to go to work early so I just keyed in my next higher target price, thinking to try my luck. Didnt expect it to go through around 4pm. So I may expect to see price of that counter go even higher than what I've sold it for today. But for this initial stage I am alright with not using TA for buy/sell decisions cos I havent gotten the complete picture, nor have I started observing the market with these tools to build a whole complete picture, though I have to get started eventually.
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Regarding hitting an initial target, I didnt immediately feel euphoric cos I only saw my hp at the end of the day. I had signed up for the sms service using reward points accumulated to be informed IF my trade transactions went through. Then when I saw the sms, I realized that I had hit the first target. Was busy updating my monitoring files, calculating returns and thinking of when to re-invest, which counters to go for or wait. Which counters to divest? Which counters to put in more? Which counters to remake decisions. Its a whole lot more of decisions to make after every trade.

Yet I enjoyed this ALOT. Its real-time, its "playing for keeps", its an alternative income source, its decision-making with consequences. It has real tangible rewards and losses. Its not gambling cos there are strategies. Its not blind luck cos homework has to be done. Its fun!