| Author | Post |
|---|
tanhin
Forum Addict
| Joined: | Tue Jul 11th, 2006 |
| Location: | |
| Posts: | 72 |
| Status: |
Offline
|
| Mana: |    |
|
Posting #11: Tue Oct 9th, 2007 07:18 |
|
Sell losers, keep winners eh?
my take.....why loser? when you buy, is it based on chart/rumour/tips/theme and not looking at the fundamental?
If yes and you are going for the thrill then you should have an exit plan or rather the percentage of loss you can tolerate 5/7/8/10% when the thrill turn to horror and you must have ample time to monitor to execute your plan, otherwise why buy in the first place.
So when to sell winner and take profit?
my take ..... when 1)the fundmental started showing some changes be it bad quarter/bad debts increasing/revenue dropping/receivable increasing blah blah blah. 2) when you can find a better stock 3) when you need money for personal matter.
again buying and selling very subjective and individualise.
|
Moolah
Forum Whacko
| Joined: | Sun Jul 9th, 2006 |
| Location: | Moo Moo Land |
| Posts: | 12813 |
| Status: |
Offline
|
| Mana: | |
|
Posting #12: Tue Oct 9th, 2007 07:27 |
|
my take.....why loser? when you buy, is it based on chart/rumour/tips/theme and not looking at the fundamental?
If yes and you are going for the thrill then you should have an exit plan or rather the percentage of loss you can tolerate 5/7/8/10% when the thrill turn to horror and you must have ample time to monitor to execute your plan, otherwise why buy in the first place.
Errr... I would agree with what u said... BUT .... i find it strange.... am i missing something here?
See hor... no matter how careful ur entry plan... MISTAKES will happen.
yes?
oopsie.... deviating from this randomly posted topic... ( need to keep on topic else i will be randomly whacked... :s1: )
So do you AVERAGE UP doc?
:s18:
____________________
|
stockraider1
Forum Novice
| Joined: | Tue May 15th, 2007 |
| Location: | |
| Posts: | 525 |
| Status: |
Offline
|
| Mana: | |
|
Posting #13: Tue Oct 9th, 2007 08:11 |
|
If we sell losers or keep winners based on market quotations without refering to the underlying business value of the share, we are actually letting the mkt to dictate the investment term on us and take advantage of us.This is useful if we investment based on TA.
But if we invest based on value we should take advantage of Mr Mkt ie sell when overvalue and buy when it is undervalue.Always have a feel what is the fair intrinsic value.
Hence decision to average up is that ; is there adequate margin of safety for us to buy more ?
|
Moolah
Forum Whacko
| Joined: | Sun Jul 9th, 2006 |
| Location: | Moo Moo Land |
| Posts: | 12813 |
| Status: |
Offline
|
| Mana: | |
|
Posting #14: Tue Oct 9th, 2007 08:15 |
|
So assuming that you want to average up, ie you had reasoned out that the reasoning exist for you to do so, how would you average up?
Meaning to say, what kind of guidelines would you follow when you average up?
____________________
|
tanhin
Forum Addict
| Joined: | Tue Jul 11th, 2006 |
| Location: | |
| Posts: | 72 |
| Status: |
Offline
|
| Mana: | |
|
Posting #15: Tue Oct 9th, 2007 08:41 |
|
yes, I do averaging up for some of my darling stocks.
Mistake in the intial reason of buying......cut and run as fast as possible.
|
madviruz
Forum Addict
| Joined: | Wed Nov 8th, 2006 |
| Location: | Malaysia |
| Posts: | 162 |
| Status: |
Offline
|
| Mana: | |
|
Posting #16: Tue Oct 9th, 2007 09:11 |
|
Interestingly I find it very difficult to buy higher after I have bought in at a lower price. Its just a trade. Moving the sale price higher or lower is understandable; but to reduce profit margin by buying higher does not seem right.
One need to be clear and differentiate trading from investing long term.
____________________
madviruz
|
stockraider1
Forum Novice
| Joined: | Tue May 15th, 2007 |
| Location: | |
| Posts: | 525 |
| Status: |
Offline
|
| Mana: | |
|
Posting #17: Tue Oct 9th, 2007 09:37 |
|
| For me i need a margin of safety of at least 40% for example mkt price Rm 1.00 intrinsic value at least Rm 1.40 based on latest info.Then can pyramid up.
|
random
Forum Addict
| Joined: | Tue Jun 19th, 2007 |
| Location: | |
| Posts: | 508 |
| Status: |
Offline
|
| Mana: | |
|
Posting #18: Tue Oct 9th, 2007 10:58 |
|
That's the thing.. Example you think one particular stock should be valued at RM1.40 and now it is quoted RM1.00. So you buy some. Then it goes up to RM1.20 so do you buy more and consider selling some of your holdings to reduce cost/lock profit?
Moreover if you are so confident that the stock at RM1.00 is indeed 40 sen undervalued shouldn't you just "sai lang" everything in order to get the biggest gain?
|
random
Forum Addict
| Joined: | Tue Jun 19th, 2007 |
| Location: | |
| Posts: | 508 |
| Status: |
Offline
|
| Mana: | |
|
Posting #19: Tue Oct 9th, 2007 11:03 |
|
Consider this, after you bought into a stock, and the price tanks, chances are that you made a mistake; if not in the stock then in the timing (meaning that you could have gotten it at an even cheaper price if you look at it from a value investor point of view)Maybe you might consider cutting loss or at least holding to see if the price will go lower (and hence cheaper?)
Consequently if the stock you bought goes up, then you were right in buying it at the first place. Isn't it natural to want to buy more of your "right pick" ? Regardless of being a trader or investor I would think this would be a good choice for most. Of course you have other factors to consider i.e. the new price (is it too high compared to your original buy in price) and your personal cash allocation
Last edited on Tue Oct 9th, 2007 11:07 by random
|
stockraider1
Forum Novice
| Joined: | Tue May 15th, 2007 |
| Location: | |
| Posts: | 525 |
| Status: |
Offline
|
| Mana: | |
|
Posting #20: Tue Oct 9th, 2007 12:25 |
|
When we buy stocks at Rm 1.00 based on intrinsic value of Rm 1.40 if price goes up to Rm 1.20 cannot buy anymore ie no more at least 40% discount.
But when price goes up due to rerating such as stronger earnings or disposal of assets which create value assume now the new intrinsic value is Rm 1.90. Share price now Rm 1.20 then can buy more bcos within 40% discount.
On the otherhand if we buy at Rm 1.00 and the price drop to Rm 0.80 assuming no change intrinsic value 0f Rm 1.40 can actually buy more !
If there is rerating in the stock intrinsic value due lower earning prospect and now the stock intrinsic value is worth Rm 1.05 then cannot buy more at Rm 0.80 bcos does not fulfil greater than 40% margin of safety.
Correct or wrong is not confirm by share price movement but actual financial info released where u revalue the intrinsic value..
|
Current time is 23:19 | Page:   1 2 3   |
|
