Friday, 30 December 2016

Danger of Not Doing Your Homework

One of the counters that I picked up after my break from the market is Ezra.

This time round, I also went in as the volume was high and played on its volatility. In the end before I could let go of the shares, the price went down faster than I could imagine due to the oil price crash.

Other foolish plays of mine are the S chips.

I bought a number of S chip counters at different intervals. At first I managed to turn in small profits each time. However I soon started to incur losses due to the volatility in price.

Subsequently I decided to cut losses as I felt the companies that I held have a real danger of delisting anytime.

At this point of writing I am still facing paper loss from Ezra and realised loss from my S chips punting days. Yes, punting. Because buying stocks, S chips in particular, in 100,000 to 200,000 shares in one go without due checks is equivalent to gambling.

I deserves the losses but also learned a couple of good lessons from it – never touch S chips and importance of cut loss target 😀

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