We r into a biz of cutting losses according to stock mkt legend, Bernard Baruch.

We r into a biz of cutting losses according to stock mkt legend, Bernard Baruch.



It is just old normal to have made wrong bets. 
According to teachings of stock mkt expert Bernard Baruch, adviser to 3 USA Presidents : 

" If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong ". 

Doing the math, that means we r into a biz of cutting losses, 5 to 7 times out of 10 stocks. 

And in a down trend, 1st loss is the Best loss !

For some of us who r long enough in the mkt, we can recalled the worst period in the history of KLSE during the Asian Financial Crisis. KLCI crashed from a high of 1278 points on Feb 1997 to a low of 262 points on Sep 1998 in the longest recorded purebear cycle of 18 months. Mind boggling to imagine a drop of more than a 1000 points, from 4 digits to 3. 

How did those involved handle this ? 
n how did I able to manage this great escape ?

PESTECH      PureBULL . > Jan 18, 2013 11:12 AM | Report Abuse 

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PESTECH 108, above 107 is uptrending again...

View more co. info here,
http://klse.i3investor.com/servlets/stk/5219.jsp

PureBULL . > Jan 18, 2013 09:16 AM | Report Abuse X

HAIO, out 246-248.

WHERE R THE TRUE BLUE FUND MANAGERS IN KLSE ?



Yes, there seems no more true fund managers in KLSE already.
All taking private corporate proposals of plc thus far r successful to the great advantage n prosperity of the plc owners.

PLC owners r smart n they definitely know the true worth n prospect of their co. going forward...
There must be a strong compelling reason for them to take private their once hard earned listed vehicles.
It all boils down to valuation. Of course the current price has to be in deep discount to its true value.
I believe the final price is worth more than 30 to 50% higher than the take private price before any owner would ever consider taking private !

We also know the take private price. There r so many knowledgeable financial engineers n investment experts who know how to value n calculate like Warren B. in the mkt. I often can hear them talking so much about FA n all that bombastic financial numbers. Why r they not analyzing n working on those stocks that r going private = reverse listing ? So 'chicken' meh !

And yet why is there no one fund manager who dares to bid it up higher ? 
Why funds think like retail investors and always conveniently 'belanja' their stocks to the owner ?

Why is this happening always ?
Where r the MBA, CPA, CFA  in Invest Malaysia n what have u ?

We certainly need to groom some activist investors in KLSE.

TCHONG      PureBULL . > Jan 16, 2013 11:03 AM | Report Abuse 

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TCHONG 505, above 501 is uptrending again...

View more co. info here,

http://klse.i3investor.com/servlets/stk/4405.jsp

NB:

PureBULL . > Jan 11, 2013 04:51 PM | Report Abuse X

ORIENT, out 8.59/8.60

PureBULL . > Jan 17, 2013 09:12 AM | Report Abuse X
INCKEN, out 102.

PureBULL . > Jan 17, 2013 04:51 PM | Report Abuse 
TWS, out 907

R U taking your Money in KLSE every week ??



Mkt has been up consecutively every week for the last 5-6 weeks in a row. Profit taking activities n stock rotation plays r expected to ran its course.

I would like to highlight that there r in fact 2 types of bull run. 

1.  FROM THE TOP
I prefer purebull run from the TOP, more specifically amongst the new recent cycle highs. I did a portfolio performance analysis based on strategy types. The result shows very good chance of consistently high speed success rate for this 'niche' play - In a Blue Ocean space. Let's why I zero in into this 1 class this season with the power of Gap Up Strategy. I am confident I have a well defined methodology to seize this opportunity n at the same time handle Risk with a clear 1 sell out/cut loss floor price for every stock. 
Bottom line is, 
If I am Right, I will continue sitting on the position till 1 Best guessing price to sell all. 
Or if wrong, rush in to give it to the buyers soonest possible. This is to limit Risk if the price slides back to the floor price = failure swing = RAN for life!

Our 'financial warehouse' is for storing profitable stocks. As a matter of fact  stocks can be moody n is highly 'perishable' in nature.   

2.  FROM THE BOTTOM
This way is from the low/bottom up among the weakest n recent most bearish stocks.
After 5 weeks of mkt uptrend, the sentiment in general becomes pure bullish for all stocks. Stocks r fairly similar to all children born in the same year. Given good food n nurture they will all grow up in heights except that some r shorter or fatter. We r seeing some purebear stocks performing so well now. Of course those who faithfully held on to them r so happy. It can be a rebound with spike or spurt of up prices. Many will end in volatile fashion n they will struggle for quite awhile before finally able to go uptrending again. 

A good example is Genting. It took almost 3 months of 'torturous period' from lowest price. n just last Fri Jan 4th it went up decisively above 940. It is finally on its way to uptrending again...  Genting could still show old behaviour with wild swing anytime because the volume transacted is low n not empowering enough.

It is ironic that this strategy is high risk. Past experiences found that many stocks end in losses using this buy low strategy. Worse still they jam packed the 'warehouse' n having to monitor losses full time !  


Nice to do some harvesting n re-balancing act last few days. 
UMW 10.34   out at 11.58. Too early but can fund other stocks on the way. 
EON 12.12    out at 14.12  At Window dressing price.
IHH 3.33      out at 3.40.  Slow, could be due to rich AhPek not willing to enter hospital biz.
HLFG 13.00   out at 14.24
ADVENTA 36 out at 48. A fast replay of previous CIHLDG model.