Year 2019 will be a volatile trading year (said my Cikgu CP Teh; at the current market sentiment, do trust him). Hence, trading stocks should be in 'touch-and-go' mode. First quarter of the year gave me a net profit of RM3749.93. i made 39 trades [23 wins (59%) vs 16 losses]; ranging from RM6.49 to RM1460.95 per winning trade. Putting numbers aside, all trades were done as I followed every trade made by my teacher. And every trade carried risk. RISK, my dear Law. Seven years of learning from Cikgu CP Teh were meant for one thing only. To buy one stock in big portion when KLCI collapse in the coming months. Confidently.
One of the most used strategies are breakout trade. FRONTKN (0128) breakout trade was the most memorable trade because it moved far far up soon after I sold it off.
On 3.4.2019, FRONTKN broke out from its rectangle. A nice white candle breakout. 10k unit were purchased at RM1.03 (done at 11.13 a.m.). I sold it off at its previous day high at RM1.08. The stock price flew off in the next three weeks to the highest RM1.43. A cool 32.4% increase. What a gem but I hardly learnt to control emotion.
The real issue was stock volatility. Would the breakout fail? In 2019, I must remember that stock could swing wild. Emotional control was part of the 'training' when the imminent crash finally arrives.
In less than a year, SENDAI (5205) lost more than 50% from its peak. An opportunity arose recently when the price broke out from its rectangle.
When the breakout happened, I did not take take the trade but did so the next day (5.4.2019). But alas, the breakout failed. It closed a black candle. I did not sell it off but sold at the opening the next trading day. The price of the stock flew off as soon as I sold it off. It's a deja vu feeling. If I sell the stock, it will definitely fly off. If only we know..
Another rectangle is appearing. A nice hammer appeared too. Any takers?
On 10.4.2019, MALTON showed a breakout. I should bought that very moment but only did so on the next day at 9.24 a.m. (RM0.60; 10k unit) I sold it off in less than an hour (RM0.615) with a RM127.53 profit. This was a close call because it closed not a nice candle.
It had been a scary emotional four months. Exciting when there was profit to be made. At the end of the day, what matters is I learn to buy big and learn to leave emotion at bay.
