Bought on 05 Jan 2018 = RM1.28/share
Sold on 01 June 2018 = RM0.505/share
Loss of RM0.775/share (-60%)
On 04 June 2018 = Bounceback to RM0.58, increase of 15%.
Lesson learned: Must set a cut loss point. Sell the share when it on the downtrend, remember don't buy a downtrend share. Always be patient, the share will go lower and lower, buy when the Company starts to earn a higher profit. Don't buy because of your high self-expectation, sell when reaching your cut loss point because when it reaches the cut loss point mean you are making wrong expectation. You could sell first then buy back after the recovery of the Company's profit.
Besides that, must sell the share if the insider such as director sells their share before the quarter result out. They will sell their share mean there are some problems. Always remember when the share price drop more than 50% means you need to earn 100% back then only able to recover your loss.
Below show the example between cut loss and no cut loss
If cut loss:
Buy 100 shares at RM1.28 = RM128
Set cut loss point at 15% = Sell at RM108.8
Loss of RM19.2
Buy 200 shares at RM0.505 = RM101+RM19.2 = RM120.2/200 = RM0.601/share
If no cut loss:
Buy 100 shares at RM1.28 = RM128
Buy 100 shares at RM0.505 = RM50.5
200 shares = RM178.5/200 = RM0.893/share
A difference of 48%. This shows an example of the importance of cut loss.
Other than that, don't sell when there is panic sell, should wait for the share price bounce back then sell. However, we still need to see the situation.
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