Quick Updates:
Always have so much to share... but due to the limited time, I can only do some quick updates. =.="
Friday
Buy back Dapai @17cents - went up as high as 19cents on Thursday when I sold off @17cents. Hence I decided to queue for 17cents on Thursday 5:15pm to buy back the stock to hope for a second chance to ride the rebound. Luckily(or unluckily), I managed to get my queue. The stock closes at 17.5cents on Friday. This time round, I would just trade portion of it and keep the rest for long term as to avoid missing the big rally if there is any( I always have this idea in mind but eventually, I would just sell everything when the price is right.. =.=". I guess thats the 'trader' or some say, the 'gambler' mindset). TP - hope it would run up to 19cents again and most prob I would release them.
Queued to buy back ISDN @14.5cents but didn't manage to get any due to the low volume transaction, and all the transaction is at 15cents on Friday. Will continue to play this stock and queue at 14.5 and 14cents. price quite stable at this level hence the risk is low. Company proposing to give out 0.5cents dividends for this quarter. Company prospect is good with the introduction of new industries(food and mining).
And due to the low price of the stock, every bid up is about 3% difference. (from 14.5 up to 15cents is about 3.4% increase). At this level, I would think the risk is low, and the return is potentially high.
For example:
A 40lots @14.5cents( valued at $5800), will see a profit of about $200(before tax and commission) if it goes up to 15cents. But of cos, every half cent drop will see a higher amount of losses(due to the commission) in the trade. Hence, to trade this stock, one must have the holding power as the trading volume for this stock is pretty low, except for few occasions.
Next week:
After going in for a buying spree for the past 2-3weeks, its time to wait for the stocks to rise and take profit when the stocks go into 'over-bought' region. However, there are still some stocks worth looking at, and can buy in more when it dip from here.
ISDN - Queue @14.5 and 14cents
China Taisan @15 and 14.5 cents -
(Just to clarify: I am still holding on to China Taisan stocks, in fact, it is the biggest percentage one stock that I am holding in my portfolio now. The amount that I sold @13.5cents is the amount that I bought in @13cents. And in fact, thats actually a contra trade as it would be troublesome to get capital if I want to hold that.)
Market outlook:
According to the 'fortune-teller' chart that I have shared in my earlier post, month of April is the time where stocks will go up. And observing some trend base on some individual stocks, April is also the time where stocks will rise, in anticipation of receiving dividends given by some companies. However, I would still be mindful as the recent recovery has made some stocks up by about 20% or more base on the lowest point they reached during the recent correction. (e.g. China environment 18cents during 15/03/11 to now 22cents. About 22% increase). Hence some traders will still take this chance to take profit and stock price might take a dip before it continue its rally in April. Hence my take would be, buy in dip, sell into rally. To be more specific, buy in when stock drop more than 5%, and sell after hit 5-10% profit . In the month of May, I will think the stocks will take a dip after giving out their dividends. Hence, I would try to offload more holdings in April when the price is right.
Thats all for this update! Cheers and Huat to everybody! (no soccer again tml!! sianz.. haiz.)
