[lesson] FA needs to be coupled along with TA to give a beautiful story

Summary of Action
i) sold GLP at $1.79 ( profit of $20)
ii) Sino Grandness burst into a 15% increase


Thoughts of the week
Had my first taste of  "success" in stock picking, and it was through a combination of FA and TA. I will explain why it is best to use FA to shortlist shares and then use TA to initiate a Entry Price, target price and stop loss.

Imagine these two scenarios:
i) Imagine having done your "FA" then "TA" and you enter a counter and there is an immediate appreciation of the share price by $100.
ii) Imagine having done your "FA" and due diligence then sinking in 10K and within the first hour the counter drops and u encounter $100 loss.

Even though the counters may all end up with a $1000 profit if you stay vested in it, it is likely that only i) scenario will survive to talk about that $1000 profit. the sole reason because psychologically it is less comforting to live for most people to live with a loss at hand. and the brain will try remove this psychological imbalance through different means ( think panic sell), or take it as paper loss which is also not very good for investments (basically no stop loss mechanism).

so really hope my friends out there spend some time to learn more TA techniques that will help reduce their panic sell due to discomforting in hold loss. and also set trailing SL to maximise profits and preserving profits. so eventually it leads to " Winning more and losing lesser"

Review of earlier "picks"
Starhub. I posted sometime back in Mar 2016 about taking a look at Starhub and wrote reasons why it was a stock to buy for potential growth. the price then was $3.2-3.3 and now it is 3.6 and heading up. This translated to a 10% returns in 3 months (inclusive of Dividend received). A performance not easily replicated. and when I look at the charts again with new found TA knowledge, i realised that the ROI of my capital could have been at a better rate with less risk* simply by assessing the counter with a TA slant to it.  With TA, i actually would only have "entered" and reap similar profits at a shorten timeframe. looking at the Pink Arrow compared to the Yellow Arrow, timeframe is reduced by half.


Exiting from GLP. i exited from GLP, which i should have done long ago. i bought GLP based on " FA", news that it made profit and was undervalued. within the day, it rose nearly 10% before retreating to 6% gain for the day. the next day, the counter dropped, and continuously drop for a few days. retrospectively, If i had put a trailing SL on it i would have reaped partial of the suppose $500 profit. so just take a look, that if i were to put a typical 3 bid down SL( see pink arrow), i will actually have taken profits of $350 or so, instead of just $20. but oh well luckily i didnt lose any money added to my realised loss.


Checking out Sino G.Still holidng onto Sino Grandness, as of today, its price is 75c. that is an approx 14%  gain. my SL is at the 71-70c range resting on support. the drops on friday was not be, within a normal day deviation. hoping it will trend up further more . looks like it can go up till $1 or more. but will keep a look at the charts again.


i will post my investment holding review on another post as they are not as time sensitive.
enjoy in the meanwhile