Punting

Signz, I feel so lazy, sitting infront of the laptop.

I hardly move from my seat. Watching 'live' prices moving up and down. I find it hard to go do something else for long. Ate in front of the laptop too. Its just looking at the prices. Checking both SG and Msia prices.

I observed the NIL Right issue price and watched it go up and down. When just 5 mins ago, it reached a bit lower, I decided to try "punting" a bit and keyed in an order for 5 lots. Seeing how there are a huge number of buyers, I shall see if it gets through by the end of trading hours (5.05pm) then only when I have the shares, I will think and talk about doing some punting.

Today a few situations occured in stocks that I monitored.

IF I had bought a Citydvt share yesterday at $9.00 and sold it off around now at $9.40, I could pocket gains of $220. Which theoretically is fast money but risks too much capital. Imagine risking $9k to earn $220, which is only 2.5%. Not worth it.

IF I had bought a CapitaLand at $3.68 and sold for $3.87, pocket $120. a return of 3.26%, it seems a better deal. The capital risked is $3.7k and if buy 3 lots, risking $9k like in the Citydvt amount, can magnifiy the gains to $360.

Yet I did neither.

WHY?

Cos the bulk of my ST capital are now in UIC, the amount remaining from the transferring and selling off of the 5 cheaper lots, is not high enough for me to feel comfortable to take such bets. Also to take such bets, ONE must be prepared for prices to go down instead and instead of quick gains, result in quick losses. Unless you are one who can 'cut losses' ie sell off to reduce losses and preserve most of the capital to take the punt another day, its not recommended. Currency traders who take bets make losses 3 time to 1 time of gains. They have a system of balancing out the losses and gains such that as long as for the 1 time that they gain, its about 3 times of the amt lost, they still profit. Its a whole complex thing I am not sure I wanna head into. Seriously I dont have the capacity to sell to cut losses.

The good thing is before I went to snooze around 2pm, prices of UIC was unmoving at $1.80. After I woke up, its up to $1.86, I am very near to break-even prices for the 20 lots bought. At least I am not sitting on paper losses. Almost break-even.

I wont sell off even if prices reach the break-even point. I am waiting to see if there is indeed the 5th wave. Given the corrective 4th wave seems to be quite weak, prices have not fallen as much. Either its on the way or its almost over. Hmm that I cannot say much, I am blind in this aspect still. I asked my dad and asked if wave 3 is over and we are into 4th wave? He said no, still at Wave 3. Huh? Think I better study faster the WT but the HOT weather and sense of boredom or just sitting in front of the 'live' prices keeps me from doing other stuff. I shall try later on again.

Anyway as for my policy for trading and investing. I have the holding power to hold until profits appear. I am confident in my selection of counters, ie they are worth the prices I am paying, cos I looked through the value. So I can "park" my money in them for longer term to earn money. That I cant say for just other counters. Hence the search for counters to invest in is very very high in priority. Just like the analogy that one wont bank your money in a dubious bank. The same thinking applies. So have to do "homework" to make sure that you are not investing in dubious companies that would fly-by-night and disappear, go bankrupt and you end up losing your money. The next step is to consider and decide the prices to buy-in or sell. That, again I am reminded by my Dad to be patient. He said we are at wave 3, we sold too early, so have to wait. If not, can lose if go in at wrong timing. True indeed, I wouldnt want my cash positive gains to become huge negative paper losses that overshadows the cash gains. So again I remind myself to be patient.

As for selling off too early and being left with little, that has changed with the glitch and now I am "invested". I hope prices for UIC can go much higher to hit the $2 mark, but then again I am just hoping cos prices hadnt reached that high yet for this counter. But I feel I am more knowledgable now compared to my initial foray. I have targets, MA, RSI to help set selling prices, I have ST and LT portfolios to manage the trading and investing part. I re-read my earlier posts about the initial forays into stock, I feel I have grown some.

Like to end off quoting my Dad, as he drove me to IMM several days back. "If you look at the Chart and can see/judge which wave we are at now, you have reached University level."

To that my answer was "Err I havent finished reading, I think I am at Primary level, maybe P1?"