Bye bye 2005

Time flies, this is my 4th year in share trading and this is the worst year I had. I guess you can say that I'm in my own mini-bear situation. Many stocks that I had has reduced in value like the great Malaysian sales. Playing in 2nd or 3rd liner and warrants is a dangerous game. Dreams are shattered. Wounds are so deep it will take some time to heal.

I have change a lot since I first buying share. I started out as an investor. Turn greedy and becomes a speculator, suffered tremendously and now slowly becoming a smart trader.

I was out of work for a few months, it was a blessing in disguise. It gave me time to think what have gone wrong. I found out that it was due to a combination of wrong techniques, false hope, couldn't sit tight, short sightedness and refusal to cut lost. I guess that I was lucky as I didn't go bankrupt. I considere myself to be lucky as I found a technique that suits my style before all my capital is depleted. So now I'm crawling back, slowly getting back the capital that has been lost.

How effective is my new found technique? Well, lets see
Closed out winners: RHB, Carotech, Huatlai-WA
Closed out losers: Timecom, OSKvi, THGroup-WA, Carotech, MBFCorp
(I didn't list out losers that are due to previous bad techniques)

The amount won is slightly more that the amount lost. Well, I consider this to be good as the KLCI index has been sliding during the time I used this new technique. I have learn how to cut lost and now it seems that I'm already numb to it already. Bad trades are just like a organ with cancer, you cut it off so that it won't effect other parts (which is your ability to trade)

I'm still holding:
D&O (slightly negative, not yet reach cut lost)
Kurasia (enough to pay commission)
MTDInfr-WA (threatening my cut lost level, but still believe in my analysis)
Flonic (above breakeven)

Well, it is still a long way to becoming a good trader. I have no sifu, so everything have to learn from books. Currently reading two great books:
Market Wizards: Interviews With Top Traders by Jack D. Schwager
Trading Rules: Strategies for Success by William F. Eng

Very interesting books both of them. One new thing that I have learned from the book by Eng is that every trade is consits of 3 parts: analysis, execution and management.
Well I give myself a B in analysis, C in execution and a D in management.

That's why I missed out in Farmbes, LHH and should have earn more in Huatlai-WA.

Okailah, Happy New Year to whoever that is reading this. May we have better harvest in 2006.