Tuesday, December 28, 2010

Reflections on my first six months in the stock market (Part 1)

Time really flies. More than six months have passed since I first set up my trading account with Phillip Securities and it is almost six months since I bought my first stock using my own trading account.

Although my stock investment / trading journey has been rather bumpy like a roller-coaster, and my own stock performance has not beaten the STI, I am overall still very pleased and satisfied that I have learnt quite a lot these few months.

Below are some of my lessons I learnt from my painful losses:

1) Genting SP - never buy on rumours, do your homework before you buy (both fundamental and technical analysis) ; stock prices dont go up indefintely!

2) Capitaland - dont try to catch a falling knife...

3) Wilmar - sell on news, especially when profit drop by so much...

4) Tiger Air, Fragrance Group - dont panic sell...

Then, there are those pleasant surprises and happy moments:

5) Noble Group - Bought a few days before it had a trading halt (and announced that it was acquiring an American company) and stock price rallied strongly thereafter.

6) GLP - my first ipo since I set up my own trading account ; made a decent profit in a short time.

7) SembMar, Golden Agri - made good profits in both of them.

8) And many other companies - made decent profits in them too.

I admit that during these six months I have done a lot of "quick trades", many of my stocks I have held them for a few months and sold them thereafter. For the next year, I would like to move towards "longer-term investments", and learn to "value-invest" like Warren Buffett, although not totally forgoing the joy of "quick trades".

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