Recent Done Trades

Sell Hankore @ 0.05

Entry price 0.04 X 12,000 on 17.03 - $480

Exit price 0.05 X 12,000 on 16.09 - $600

Capital gain 20%, $600 – $480 = $120

Transaction cost: $26.99 + $27.06 = $54.05 – 11.2%

Realized gain: $120 – $54.05 = $65.95 - 13% in 6 months

Reason to sell:

·         Company still in debt current liabilities more than current asset, a negative net current liabilities of RMB 133,593,000.

·         0.05 is the highest price within the past 6 months.

Sell HockLianSeng@0.265

Entry price 0.31 X 5,000 on 27.01 - $1,550

Exit price 0.265 X 5,000 on 21.09 - $1,325

Capital loss 14.5%, $1,550 - $1,325 = $225

Dividend Received: $81.25 – yield 5.2%

Transaction Cost: $27.54 + $27.43 = $54.97 - 3.5%

Realized loss: $225 + $54.97 - $81.25 = $198.72 – -12.8% in 8 months

Reason to sell:

·         No new projects/Contracts awarded since I entered this trade.

·         Low trading volume, not spot by institutional investors & analysts.

Hu Li Yang(胡立阳)’s Talk

Finally I got the chance to listen to Hu Li Yang’s talk at the Shares Investment Conference 2011(《股市资讯》2011年投资研讨峰会) held on last Saturday (17.09) at Raffles City.

Below were the main picks from his talk (definite a very useful trade rules to follow):

1.     Cut loss rule

·         Drop 7% in one day

·         Drop 10% in two days

·         Price continues declining for three days

·         Four out of five days price is going downwards

2.     To realize/protect capital gain rule

A simple rule to follow always set 90% of current price as the selling off point.

3.     Best & Worst trading month(s)

Best month(s) – Nov, Dec, Jan

Worst month(s) – Aug, Sep

4.     Double Resistance – when recovering from the bear market

When stock has doubled from the lowest point, it will face resistance.

E.g. S&P500 – bottom was about 700 points in mar’09, the resistance level will be 1,400 points.

5.     Correction & Support level

Once market correction is reached15-20% from the peak it will have a strong support level.

Same for upwards market it will also have some adjustments/pull-backs once moving up more than 15-20%. E.g. S&P500 - peak was about 1,370 so the support level is about 1,100 to 1,160 range.

6.     Moving Average

To use 10 days & 10 weeks (50 days) MA line to identify short/long term trends.

7.     Technical Analysis (FA) is more applicable to general investor

Our capital (bullet) is limited - have limited time & trade.

Fundamental Analysis (FA) is more favorable to Buffet (with large capital and are also able to hold it for long term).

What I have achieved so far.

Just received my RES exam results on 1st Sep, managed to clear these two papers on my 2nd sitting.

In Summary I have cleared below papers covered in different areas for this year:

1. CMFAS module 5;
2. CFP module 4 & 5;
3. Certificate in Business Skills for Start-up from RP;
4. RES exam Paper 1 & 2.

My next challenge will be ACCA Diploma in Accounting & Business as well as CMFAS module 9 (which I failed twice).

Life is short we have to continue moving on and upgrading ourselves. Cheers!