Tuesday, 28 February 2012

Be discipline

Did you notice that you always change your buy and sell price very easily because you got influence by something or someone? In the end, you either missed or buy/sell at a bad price.

I used to do that and still have the tendency to do that, but I am trying to change.

Few strategies which I adopt:
  • I know that I cannot be a discipline frequent trader that keep buy and sell. However, I always has to desire to buy and sell to trade/speculation. (bad me!) Thus, I ensure that no more than 10% of my portfolio per trade. This makes me sleep more peaceful at night.
    (My savings and thus investment captial will grow overtime, hence the majority of capital will still be for growth/undervalue stock with decent yield.)
  • Only speculate bluechips. Fast in fast out. Chances of bluechips bankrupt is lower. (for speculation only.)
  • Write down all my buy and sell price in my handphone. Hp is something which I bring around everywhere and touch it most often everyday, thus it would be the best equipment to remind me that I must not be so emotional.
What are your strategies?

7 comments:

Singapore Man Of Leisure said...

OT83,

I wish you luck with your blue-chips.

I prefer to be less sanguine. This way, I will constantly monitor and ask questions.

I not sure whether Kodak and Elpida were considered blue-chips, but being called blue is no guarantee against red-ink... no matter how big you are.

Imagine GM and AIG almost went "kaput" if not for govt bail-outs. That means all SGX blue-chips can go that way too if management fell asleep on the wheel.

I better watch the driver! LOL!

OT83 said...

Hi SMOL,

Yes! Blue chips can also die. Just that lesser chance if they are fundamentally strong.

But then this post is intend for trading/speculating based on chart only, so its wrong for me to say good management/good fundamental as part of the point.

Headpain, so how should I describe it? My england not powderful de.

thepotatotimes said...

When you change your buy sell decisions during the last minute chances are high that you probably heard or read something which everyone else did. New information doesn't reach most people before they are reflected in the price, so just tell yourself to stick to your guns, again chances are higher that you probably made those decisions in the calmest of minds. That said I also agree with what Jared said about watching the driver and there's no certainty behind a blue black chip.

Blackjack

Ray said...

I too have the same problem with keeping myself away from trading. Plus the fact that I'm a bad trader (always buy and sell at the wrong time) makes me a very sad person.
The saving grace is I always play small, so win lose is about $100.
I guess I need to really get rid of this bad habit. :(

OT83 said...

Hi BJ,

"chances are higher that you probably made those decisions in the calmest of minds."

I like the above phrase of yours.
Anything can crash and die. Thus always think of risk first before investing.

Hi Ray,

Thanks for the visit :)
Let's work hard and get rid of this bad habit together :)

Cory said...

Write down in handphone ? Be serious, get an excel and records your trades. :)

OT83 said...

I got excel, but my excel is at home. Don't want to bring to office phone. I am a diligent worker :)

So normally during office hour, just refer to phone for target price just in case I got waver last minute:)

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