- Buy good "fundamental" stocks, sell if achieving good profit (10-50% gain).
- Never thought to hold a stock for long term.
- There was no target price and no clear concept of stock value.
- Buy and sell when the "feel" is right.
- No time to monitor the stock market.
Phase 2 (mid 2009 - mid 2013):
- Started to taste the excitement of speculating in stock market (using technical analysis).
- Allocated half of the fund for speculating, another half for "fundamental stocks".
- If speculated successfully, usually will sell for little profit.
- If failed in speculation, usually will cut loss at <10%.
- If "fundamental" stocks perform well, usually will sell for profit of 10-50%.
- If "fundamental" stocks perform badly, not willing to cut loss while hoping for a fairy tale turnaround.
Phase 3 (mid 2013 - present):
- Resist from speculating in stock market
- Plan for longer term investment in fundamentally sound growth stocks.
- View buying shares as investing in a business or companies
- Bought WCT @ 3.32, Sold @ 4.74 (+43%) in 7 mths (My first ever stock purchased) - WCT share price reached RM10 one year later even with a bonus issue in between!
- Bought YTL @ 5.30, Sold @ 8.55 (+61%) in 14 mths
- Bought PBB @ 6.80, Sold @ 8.05 (+18%) in 5 mths
- Bought IOICORP @ 5.15, Sold @ 7.47 (+45%) in 6 mths
- Bought Topglov @ 6.35, Sold @ 8.19 (+29%) in 20 mths
- Collected Mahsing since 2007, Sold all (+45%) in 2011 (My biggest gain in value)
- Collected KNM since 2009, Sold all (-50%) in 2011 for massive loss
- Collected MEGB since 2010, Sold all (-80%) in 2013 for massive loss (My biggest loss in value)
- Collected Notion since 2010, Sold all (-40%) in 2013 for massive loss
- Collected Tambun since 2011, still holding (My biggest paper gain so far)
- Collected Masteel since 2011, Sold all (-45%) in 2013 for massive loss
So those in red above are the "Four Big Heavenly King" or “四大天王” that were responsible for wiping out my previous gain. Luckily Tambun does help to ease the bleeding.
Phase 2 was the period of time that I have plenty of time to watch the market live in action in front of a computer. It also marked the worst period in my stock investment journey so far. So, we actually don't need to watch the market everyday to be successful in stock market investment.
Referring to Amedia chart below, I decided to sell after a sudden surge in share price just 2 weeks after I bought it. I was happy with a 20% gain (white arrows).
|Amedia||Buy||Sell||Net Gain (%)|
From the time I first bought Amedia to the last time I sold it, its share price has appreciated about 12% (34sen to 38sen). However, I gained almost 40% in this same period of time by speculating on its price movement.
This is the "beauty" of speculation in stock market which is why so many people are venturing into it.
- Bought BJCorp @ 1.08, Sold @ 0.985 (-9%) in 1 mth
- Bought CIMB @ 7.78, Sold @ 7.55 (-3%) in 1 day
- Bought HSL @ 1.81, Sold @ 1.76 (-3%) in 1 mth
- Bought Hiaptek @ 0.99, Sold @ 0.99 (-1%) in 3 days
- Bought Huayang @ 0.985, Sold @ 0.99 (-1%) in 1 mth
All my stock transaction in phase 3 have been recorded in this blog.
- Set financial goals or targets
- Look deeper into company's balance sheet & cash flow
- Look for more free investment info online (blogs etc)
- Set stock target price using PE method
- Set buy & sell criteria
- Try to be as disciplined as possible
Nevertheless, recent market correction has hurt my portfolio to a great extent, and the bearish sentiment might not have finished yet.
Perhaps I should sell to pocket the profit first, but I actually prefer to buy more in a bear market.
Everyone has different styles in stock market investment. Two persons who use the same method may have totally different results. So I'm not in a position to tell people what method should they use.