At least 1-2 weeks back, the stock market went up. I was sitting on some profits, around 15% of the capital invested for one of my counters but I didnt want to sell cos I wanted to get about 22% cos though percentage-wise, seems high, the absolute amount of the profit is not that much, several hundred dollars. Then shortly after, it started falling... Monitored the whole of last week and it kept falling until the price that I had bought it at..... Now waiting for it to rise again...
Just managed to sell off another counter (trying to apply the lesson below)
Trading lesson:
IF I had sold off and reaped the profit. Then when it went back down to the initial price I bought, I can buy back again and wait for the rise. BUT since I didnt, it has now gone back to the initial price I paid for AND I have to wait for it to rise again. Now the outcome in both decision is that I would still have to wait for the price to rise. But in the first scenario, there is profit realised and sitting in the pocket. Can even channel back the profits and then buy slightly more lots cos can use profits+capital.
But the other counter-argument is that ONE never knows, IF after sellling, prices shoot up even more. It becomes a scenario of selling too early and actually reap lesser profits. So that's the other scenario that can happen, everytime prices of your counter start rising and you are sitting on 'paper profits'.
For my case, I am still trying to find a balance between WHEN to sell for profits to reap during downtrends and when to hold during uptrends. But again, I havent utilised any trend tools unlike my dad. A bit too busy with current schedule to do extra. Would work about it slowly. But for now, I use my familarity with the price range to make a gague of when to Buy-in and Sell. Not the best way but so long as dont make stupid decisions, should be fine with the capital protection and retention. Making a good decision of which counter to buy is way more important than when to buy and sell into an unknown counter.
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Tomorrow Tab and I have somewhat decided to go for Steamboat dinner around Chinatown area cos on my way home on bus, I saw a whole row of steamboat shops open up there. The weather is also making me yearn for soupy stuff. I dont mind a place where I can sit and talk and eat for a longer duration. Think it'll be good. The last time I ate steamboat (excluding Krynnder's New Year Steamboat dinner) was several years ago with Tab at a steamboat at Bugis area. Already just the thought of eating steamboats makes me look forward to dinner tomorrow. Think I will drink lots of soup.
Plus assignment is cancelled for today and Sat, so that freed up time enough for me to Go to the gym, though I have cca today cos tomorrow going to eat a lot and practice guitar. Moving into lead guitar playing and its not easy. Especially trying to let the fingers run around on the frets. Need to practice more or else I'll be left behind in the class. Its bad enough I am one of the slowest there already... Some things I just dont get it that fast. Well I console myself that I am gradually getting better IF I make time to practice enough and think of the Music theory in terms of which notes on the strings, the positions to press. Need some more memory work.
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