Summary of trades:
This month put me back into profits and I am thankful for what the market was willing to give me. Similar to last month, I was focusing my trades on Chinese companies listed in Hong Kong but I have learnt my lesson that profit protection is beneficial in a volatile market and this set me to push up my stop loss limit higher as the price goes up. You can see that the profits are smaller as my stops were tighter. In the later part of the month where the rally was stronger, I was more willing to set my stop loss at -8% to allow more room for fluctuation and not get stopped out so soon. It is true that the bigger profits came from the last few trades. Currently, I still have paper gain positions carried over to June.
In addition, I have also practised the position sizing limits this month of not allocating more than 1/3 of my capital on any one trade.
Lessons learnt:
There were 2 losses (China Aerospace and Ajisen) and they were very bad mistakes. I went for these trades for the sake of being in the market. They were not providing convincing buy signals but I just went ahead with them. China Aerospace was stopped out the same day that I got in and Ajisen was stopped out the following day. Having the patience to curb the eagerness to be involved in the market is important, so that one can select the appropriate stocks that really have profit potential.
Volume then becomes a key indicator to show whether the counter is worth buying. Alexander Elder cautions about false breakouts which are usually coupled with low volume. Valid breakouts must be supported with higher than normal volume. Hence, by really applying strict criteria to select stocks that have high potential breakouts will yield more profits.
To have big profits for a breakout system, one must not profit protect too much. One shall only profit protect when the gain is about 15-20%. In this way, the system is better to generate big enough profits to cover all the losses.
| Counter |
Date In
|
Date Out
|
Action
|
No. of Shares
|
Price In
|
Price Out
|
Profit/Loss
|
| China Cosco |
04/05/09
|
05/05/09
|
Long
|
2,000
|
HK$6.55
|
HK$7.00
|
+S$180
|
| Maanshan |
04/05/09
|
06/05/09
|
Long
|
4,000
|
HK$3.34
|
HK$3.59
|
+S$200
|
| Jiangxi Copper |
04/05/09
|
06/05/09
|
Long
|
1,000
|
HK$9.55
|
HK$10.23
|
+S$136
|
| Harbin Power |
06/05/09
|
07/05/09
|
Long
|
2,000
|
HK$6.52
|
HK$6.80
|
+S$112
|
| Zijin Mining | 07/05/09 | Long | 2,000 | HK$6.35 | |||
| China Aerospace | 11/05/09 | 11/05/09 | Long | 20,000 | HK$0.55 | HK$0.51 | -S$160 |
| Ajisen | 11/05/09 | 12/05/09 | Long | 3,000 | HK$4.41 | HK$4.10 | -S$180 |
| Zhaojin Mining | 13/05/09 | 26/05/09 | Long | 2,000 | HK$10.75 | HK$11.95 | +S$480 |
| China Cosco | 18/05/09 | Long | 2,000 | HK$8.29 | |||
| Maanshan | 19/05/09 | Long | 3,000 | HK$4.45 | |||
| China Cosco | 29/05/09 | Long | 2,000 | HK$9.60 | |||
| Total | +S$768 |
For those rows without profit/loss are counters that are still held in my account. They should reflect in June’s report if they are closed in that month.
{ 2 comments… read them below or add one }
You high class le, all listed from HK.
Haha, what’s high class got to do with HK?