Back to HK Stocks

Having had a year of learning in forex, I finally lost a substantial amount of my initial investment ($600).

Having experienced the risks (and returns) involved in forex trading, I think a safer bet would be to stay in the stock market  instead.

Having learnt valuable lessons in forex, I believe trading markets would be an easier but slower platform to earn money.

Back to my HK market :)

Bought - KWG Property (1813.hk)

This is what happens when you buy a stock immediately after ex-dividend day: You take the gap down at the highest price and ride it all the way down... :(

Results of my first foray into stocks trading - Pass *sort of*

After the minor debacle with Milan Station (1150.hk), I decided that it was a good time to take stock of what I've learnt so far over the last 2 months.

As such, my remaining open position with Shifang (1831.hk) was closed with a loss of HKD$26 and the total profit/loss was calculated.

Having started my first trade with Jimei (1159.hk) on 9 Mar and ending with Shifang on 29 April, I conducted a total of 13 trades (buy and sell) on 11 different stocks and had a nett profit of HKD$946.

While this is not a very big amount (when converted into SGD, it's about $167), but when compared with my initial capital of $3K, this gives me an ROI of 5.65%.

I've also just completed my prototype stock trading and evaluation system and will be testing it out in the next phase of my trading journey.

Stay tuned :)

Sold - Milan Station (1150.hk)

The bloodbath started as soon as the suspension was lifted...

Apparently, the controlling shareholder and the chairman of the company has placed at least 280 million shares and up to 375 million shares (which represents all his shares), representing 41.33% and 55.43% of the share capital of the company.

Consideration was $1 per share (Share was trading around 1.23 when it got suspended).

I nearly didn't want to put in my stop loss level but decided to do so half an hour before the market opened this morning. So, I got stopped out at a "better" price ($1.08), but still at a loss.

This trade reminds of my very first trade with Jimei (1159.hk) bought on 9 March just when I started this blog.

Total damage = ($1.16 - 1.08 x 2000 shares) = HKD$178.

Sold - Jiangnan Group (1366.hk) and Haichang Holdings (2255.hk)

Taking two small losses today as I just realised that both shares were trading in a symmetrical pattern.

Bought 2K of Jiangnan Group (1366.hk) at $1.35 on 14 April, sold on 27 April at $1.32. Loss of HK$79.76 (3%).

With almost $27M in OBV and the share trading in a symmetrical pattern, I anticipate that the price for Haichang (2255.hk) will be going down. So rather than take it when my stop loss level is reached, I decided to just take a small loss and exit now until a breakout occurs.

Bought 1K of Haichang Holdings (2255.hk) at $1.65 on 18 April, sold on 27 April at $1.63. Loss of HK$32.45 (2%).

Sold - Ozner (2014.hk) and China Sanjiang (2198.hk)

Got stopped out at $1.34 for 3K Ozner (2014.hk) shares (2+1 pyramid) today.

Profit of $139.26 (3.6%). I think I had tightened my stop loss levels a little too tight.

Sold 1K China Sanjiang (2198.hk) shares @ $1.42 as I thought MACD levels were heading south.

Yet, today's trading opened at $1.37 and hit a high of $1.55 before closing at $1.49 :( Bummer.

He who hesitates is lost

"When a stock turns against your premise

and moves hard opposite your position,

you need to sell as soon as you recognize it.

Yes, it could turn and you could permanently book the loss,

but it might keep going and you can lose it all."

Achieving the Zen state of trading

"You want to get to an emotional point

where you don't feel the pain of a loss

or the ecstasy of a big win.

It's just a job, just numbers - not money."

How to sell "Losers"

" When you need to sell a lose, tell yourself, 

   "I'm right on this trade, but it's taking too long.

   I can do better, faster with my new idea."

This avoids the emotional roadblock of admitting you are wrong."

Use of moving averages as stop loss levels?

Got this inspiration while reading another book (Invest Like a Shark by James Deporre).

My current profitable trade in Brightoil (933.hk) has seen quite a fair amount of profit. I think I will try this method to establish my stop loss levels once the current one placed yesterday expires this evening.

My second open trade in Yuhua (2728.hk), while (slightly) profitable, is tying up quite a fair portion of my total portfolio. As such, I've tightened up my stop loss to $1.02 (quite substantial with little leeway for any price decrease) to get out.

Youyuan (2268.hk) was my previous trade that I closed at $1.77. If I had used this method instead, I would have been stopped out at $1.795 due to the long lower  shadow on 31 Mar. Otherwise I would have still been in the running for this share.

However, if we look at Jimei (1159.hk), the very first stock that I bought that stopped me out on the very same day, the stock volatility would have easily kicked me out of the trade as the price penetrates the 30-EMA levels too frequently.