[weekly summary] 2017 w 40

Foreword

Work has not been good for me, while i relish the stability of my job, i frown upon how my human capital goes to waste. If only i had the earlier wisdom back then to think more long-termed. like where else can i go after my stint ....

Anyway i decided to relish these times where i have spare mental capacity and detach myself from the negative emotions and do some stock scans. In fact i did quite a fair bit this week just that many were penny or reversal play types... so i was not very convinced by putting in money.

I guess this should be how we trade, we put up a case on why we should trade a counter, putting in all the analysis ( tech or funda) and then make a plan, then analyse if the risks are worth the pay-off. Maybe i will spend some time creating some kind of scorecard/system. But thats for another post.

Counters Activity

Lian Beng. Bought. Speculative.What made me look into this counter was: i) the consolidation period; ii) the price spikes matched with volumes, and bearish candles matched with weak volume; iii) convergence of the two major moving averges; iv) the build-up pattern (encircled). the trigger was when price peeped above 64c, and i entered this as a breakout play.

Preliminary FA ( not too much done, just for simple understanding), is that this is in construction sector and the govt has pumped in quite a bit of dollars for infrastructure. Company gives dividends of 3.5%  but not a lot but likely to increase, trades at 0.56XNAV( like all construction counters) and has a low P/E ratio. 

When i planned the trade, i set a deep stop loss at 59c, however now i review the charts, looks like 62 or 61.5c could have been a better stop loss for a breakout play. But anyway my strategy is still the same, to hold onto this counter and scale-up where there is a good setup in fixed increments of ~2/3 of existing holdings. will wait and see!

Chip Eng Seng. As i mentioned earlier ( here ), that i was planning to add more where opportunity present itself since i had a psychological edge (of having profits) but was not nimble enough and also probably do not know how to use my platform proper to execute conditional buys. will continue to buy and spot for position to trade around this counter if possible.

Speculative counter

Banyan Tree. low volume bearish moves again.

Golden Energy. another week of low volume consolidation movements. The exit will be soon if price does not move in my favour when 50ma catches up.