Starhub Chart Aug2014

Interesting to note Starhub is at a crucial turning point. I used to trade this counter several times when it was below market value (like less than $3/share). Frankly i missed the ride to $4.00 haha Oh Well nevermind. Recently out of curiosity just looking at the price chart to see how is it doing, I noticed that it was at at very strong supporting line, bounced off at $4.05 - $4.11 range line several times. See below Chart:

 I have strong feeling, it will go for new highs towards the year end. However if it breaks through this strong support line, then it might go all the way down to below $3.50, which is when i will become more interested in Starhub. :D

Happy Investing!

Hectic June but quiet

It has been a hectic time in June in both at my work and financial markets worldwide. I have been quietly watching the markets for opportunities and let me tell you..opportunities are plenty right now. Most counters in Singapore have been correcting to attractive buy levels, but not all. My hands are itchy but i refrain myself from going crazy. Prior to June, i already reduced my exposure in volatile stocks and started to hold onto more cash. Hope you did the same...because short terms corrections do occur during a bull run. Personally i believe we are not hitting peak levels YET. I may be dead wrong and we are actually in the starting phases of a full blown market crash. I am still doubtfull. So lets get help from this famous chart below:

 
Could this be the perfect bull trap right now? YES
Could this be just a normal correction before we head to higher highs (pre 2008)? YES 

I guess we will only know for sure when it is over. My only advice is stick to valuations which are realistic. For example, Starhub has dropped 12% from its peak at $4.70 to $4.10 level now. Yes it is cheaper but i wouldn't put a single cent into it now because it is still too expensive. On the other hand, Chinese stocks have really been doing down ALOT and offer great value, have a look at China Life Insurance, the biggest life insurance company in the world. 

My Past Performance

Being a small-time retail investor and actually quite inexperienced, its vital to keep track of your investments so that we can learn from our mistakes. 

I want to share my past performance, and the kind of lessons it has taught me.

Below is a table of my recent trades. As you can see, some trades were closed at a loss...this is because i really did not see the counter moving higher anytime soon(6-18months), therefore would not justify holding on to a losing stock/unit. 

SMART TIP #1: Its important to cut your losses early and shift the capital elsewhere.

SMART TIP #2: Always stick to your target price and get out of the trade. (No point regretting later, like for example: why did i close Starhub @ $3.14 when now its trading at $4.20! That just was not my target, i never anticipated or valued Starhub at anything more than $3.20) So i don't regret my decision.

SMART TIP #3: Shift your capital around as you see fit during the fiscal year. Financials do well from Oct to Feb. Telecom and Consumer Goods are defensive plays and good to hold from March to Sept. Pharmaceuticals generally do well from May to Sept.

***Following fiscal cycle (business cycle) is one thing, trying to match with general Market cycle and trend is another. Therefore you need to match business cycle with Market cycle and trend. I will talk about Market cycle in another post.