Wednesday, January 24, 2007

Taking profits on the way up

This is the second time I posted with this title. Yes money is made by taking profits and not just sitting on paper profits. I swung from massive loss to profit and more because I take profits off the table from time to time and reinvested when the opportunities come. I will be stupid to relax at one corner and everyday "wah wah wah my cosco, oh my jiutian, wah my amara" That is what market calls "falling in love with your stocks" This will paralyse you when the market turns! Beware!!!

I was reminded that I should lighten up my holdings. With 10 stocks in my Growth Fund, if a bad event ala Sept 11 is to happen, I will requires at least 10 mins to key in the orders!!! haha Not to mention the risk of SGX suspend trading if lao too much, then all the money will be stuck inside!!! Hence today I took profit on PineAgritech and sold half of my stake in Amara. The rest of the trades still looks good on the charts and I'll continue to observe weakness and take profits accordingly. I didn't like the way market went up for 3 consecutive days with no shakeout of holders, it tips the balance scale more to the buyer side leaving the equation unbalanced. Also the way the stocks are chased up reminded me of being nimble. My Growth Fund has now recorded it's highest growth rate at abt 40% since inception. This was achieved by riding the trend and cutting my losses short. The extreme bullishness helped. But I will be stupid to sit on it and watch it erodes should a pullback happen.

There is a saying, with many string of wins, comes a bad loss! I'm going to avoid that!

I'll be setting a trap for the bulls as I anticipate at least 1 black weekly candle before Chinese New Year. Also a reminder that next week Fed Minutes will be released. HSI warrants loaded into watchlist and all ready to pull trigger.

GrowMoney Growth Fund

It is very nice to see my stocks rockets off one by one...jiutian being the latest. However this only reminds me that this is an abnormal behaviour of the stock. I must be alert!

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