Saturday, April 27, 2013

WE Holdings - Crazy or Fake Buying?

On April 24th, 2013 at 3.30pm, I was chasing after the price of WE Holdings and got hold of the shares at 0.104. During that time, the stock was being heavily eaten up with humongous buying. Of course upon seeing that, as a normal human being, I went to chase after the price and thereafter I knew I commit a crime of chasing price. If you know me well and read the history of my blog, I seldom chase after price. I would normally buy before the breakout and sell on excitement.

Yesterday, April 26th, 2013, once the market opened, WE Holdings once again exuded the humongous buying up of shares. However this time round, I learnt to be smarter and was watching very closely like a hawk so as not to average up or do anything silly. At that moment, I was also being fooled, thinking that it would go higher so that I can either cut loss lesser or book some profits.

I was totally wrong the moment I went to check on the price of Aussino. Aussino was on trading halt since April 25th 2013 and the pre halt price was from 0.198 to 0.15. I was totally alert this time round and decided to cut loss without hesitation. I then went to check the Yoma chart and some other Myanmar play counters. Their prices were all jammed and not moving much except Ntegrator which I also decided to unload just to play safe.$file/Aussino-RTO26Apr13.pdf?openelement

Last night, Aussino released the news for it's trading halt which I believe that it wasn't a good news and had something to do with Myanmar. What will happen on Monday to WE, Ntegrator, Aussino, Yoma, etc..? If I am correct, there will be a flush in these Myanmar play stocks before we see a rebound/rally.

Overall, I paid the price of 3K SGD for this unearthing lesson. It was definitely a well worth lesson and it's something that cannot be taught or found in books. The money was well spent to buy a thrilling experience.

Ronald K - Market Psychologist - The Big Speculator