Monday, February 05, 2007

GrowMoney Growth Fund Soared 45%

By a quick count, GrowMoney Growth Fund is up by as much as 45% since inception in July'06. This is slightly better than STI's 37% rise from July'06. When the market tanked May'06, i did not give up on the market for it is largely anticipated corrections and not a bear market. Economies are still sound. I cut my losses short and stood aside looking for signs of bottom and spotted correctly in July'06 low of 2319. At that particular bottom, i was very excited because it was a great chance to pick up strong stock with good FA and thus Cosco was bought at a great value! Greed got to me and I started to trade without my strict stock selection rules and my profits were capped. Then I traded HSI to great success by recording an averaged of 25% ROI in the 10 trades. I too thought I was just lucky to encounter this bull market. "Even the monkeys make money in a bull market" this was a statement I heard often. But it is not true. When someone make money in the market, the other party loses money. Someone will be losing in this bull market. I knew because I once lost a great deal of money in a bull market. To further proof it, from my workshops and talks, there are really people still losing money in this bull market. While I manage to graduate and move from being a loser to a winner, it is nature that someone will eventually take my place as a newbie. This is how market operates.

Trading the stock market is not easy. It is not easy because this is never a level ground to begin with. Do you really think a stock moves up because of it's great fundamentals alone? Did you notice how many times a stock rally before a piece of news is released? Star Cruise is a recent fine example. Why did the stock rally even before the news broke out? Do you think retailers alone are enough to push up a stock price? How many times have we seen a dead stock springs to life only for a day and then lay dead for weeks. Technical analysis to me is just a way to time the market. Stock Selection is a very important consideration too. If the sharks or Financial Instituitions are not going to push it, you can be sure your stocks will not move. Charts could be drawn for all we know. Repeatedly, I observed how the majority of retailers are drawn to penny shares or those laggards or those stocks laying low on the sea bed of the exchange while the really strong ones keep scoring new highs. It is this observation couple up with all my research that made me change my my approach.

Now that I have learnt how to survive in the market, scoring consistent profits is what I am doing now. After this stage, massive profits is what I should be gunning for. There are certain times i am right about the direction and i did not make big money from it. My next steps will be to capitalise on this. I read from many books, the best traders, the legends all made big money in major moves. However my shifu warned me, trading on convictions requires a higher level of emotional discipline. I must be prepared to make such a trade.

I am heavily vested in stocks once again after picking up FerroChina last Friday. The stock gap up swee swee and broke resistance 1.43. I just have to close my eyes and trade base on the gap theory. Hence I won't be buying stocks anytime soon.......HSI is what i'm gunning for... Huat arh!

GrowMoney Growth Fund
CoscoCorp @ 1.31
TatHong @ 1.16
JiuTian @ 1.05
MediaRing @ 0.325
Jasper @ 0.025
Amara @ 0.450
SeeHupSeng @ 0.470
FerroChina @ 1.42

Bought FerroChina at 1.42 on 2nd Feb

DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings. Copyright © 2006 GrowMoney Blog. All rights reserved.