Hi all! Today i'm in a good mood... why? because i did something no other rational trader would do! I sold off shares which i bought yesterday.
For those of you who didn't know, the sharemarkets around the world has suffered the WORST streak of losses, even SINGAPORE was also was losing, what was called a BULL market is now officially a BEAR market. Think about black friday, if you guys know? Yea, for the past couple of months (especially since the beginning of 2008), losses on the stockmarket has been so much till it's somewhere the 2006 level. Yesterday, the Australian Stock Exchange recorded a 7% decline! That's around a 25% decline since it's november high. Disgusting, it's like even blue chip companies losing 2/3 their value. E.g, DBS was $25, Now $16!
Anyway, as i said, yesterday dipped 7%, people were busy selling the shares they had. Even popular stocks were soooo oversold that there was even nobody bidding to buy for it! NOBODY WANTED TO BUY! EVERONE'S CASHING OUT! But yours truly, believed in the markets, believed in the 'quality' education i had received from my university, belived in the technical analysis which i've been reading up, and most importantly believed from the much experienced i had gained over the past 4 years of trading was to be put to a good test now!
I was chatting with kelvin, and wilson (ben's friend) with regards to the market. I told them that it was indeed a good day to buy, and i was definately sure that tomrrow will be a better day (but 99% of the traders out there disagreed). I analysed and re-analysed and RE ANALYSED the markets, the companies, and the logic! It all dosen't make sense for the over sold shares! Both shrugged me off with ridicule... haha.. not really, but somewhere along the same line... negative sentiment runs deep in everyone who has been burnt!
Therefore, i plucked up enough courage, put money into a stock which is close to everyone's heart, SINGTEL! Yups, i went ahead and bought some of it's shares! Then, that night, i went to sleep, thinking what beholds the market the next day (today).
And when i was in a cofffee shop having breakfast, i read the news on my handphone, the US Feds cut the rates by 0.75%! The boldest move yet by them to stem the market slide! A true blessing from the gods! It's something like the government of spore saying they're re-building the whole of Orchard Road! Think of how much stimulation it would do to the economy!
The 'CONTRACT' of me buying
The 'Contract' of me Selling.
See the differenced i earned? It was almost AUD3K in just a short 24Hrs... If only i could do it evey day! But what's the shitty thing? Singtel shares reached a high of AUD3.03 today but i sold them off at AUD2.85 (just to ensure i made something)... meaning selling around 18cents below the 'high'... This mean that i could have earned over AUD6K today! Damnnit! AUD6k... tt's like almost SGD10K... w-o-w.
However i remembered what i read in this book which taught me much knowledge about share trading...
*you'll never go broke with a profit, you'll only go broke losing*
True, and something to be revered.
For those of you who didn't know, the sharemarkets around the world has suffered the WORST streak of losses, even SINGAPORE was also was losing, what was called a BULL market is now officially a BEAR market. Think about black friday, if you guys know? Yea, for the past couple of months (especially since the beginning of 2008), losses on the stockmarket has been so much till it's somewhere the 2006 level. Yesterday, the Australian Stock Exchange recorded a 7% decline! That's around a 25% decline since it's november high. Disgusting, it's like even blue chip companies losing 2/3 their value. E.g, DBS was $25, Now $16!
Anyway, as i said, yesterday dipped 7%, people were busy selling the shares they had. Even popular stocks were soooo oversold that there was even nobody bidding to buy for it! NOBODY WANTED TO BUY! EVERONE'S CASHING OUT! But yours truly, believed in the markets, believed in the 'quality' education i had received from my university, belived in the technical analysis which i've been reading up, and most importantly believed from the much experienced i had gained over the past 4 years of trading was to be put to a good test now!
I was chatting with kelvin, and wilson (ben's friend) with regards to the market. I told them that it was indeed a good day to buy, and i was definately sure that tomrrow will be a better day (but 99% of the traders out there disagreed). I analysed and re-analysed and RE ANALYSED the markets, the companies, and the logic! It all dosen't make sense for the over sold shares! Both shrugged me off with ridicule... haha.. not really, but somewhere along the same line... negative sentiment runs deep in everyone who has been burnt!
Therefore, i plucked up enough courage, put money into a stock which is close to everyone's heart, SINGTEL! Yups, i went ahead and bought some of it's shares! Then, that night, i went to sleep, thinking what beholds the market the next day (today).
And when i was in a cofffee shop having breakfast, i read the news on my handphone, the US Feds cut the rates by 0.75%! The boldest move yet by them to stem the market slide! A true blessing from the gods! It's something like the government of spore saying they're re-building the whole of Orchard Road! Think of how much stimulation it would do to the economy!
The 'CONTRACT' of me buying
The 'Contract' of me Selling.
See the differenced i earned? It was almost AUD3K in just a short 24Hrs... If only i could do it evey day! But what's the shitty thing? Singtel shares reached a high of AUD3.03 today but i sold them off at AUD2.85 (just to ensure i made something)... meaning selling around 18cents below the 'high'... This mean that i could have earned over AUD6K today! Damnnit! AUD6k... tt's like almost SGD10K... w-o-w.
However i remembered what i read in this book which taught me much knowledge about share trading...
*you'll never go broke with a profit, you'll only go broke losing*
True, and something to be revered.