Why do I call it an art? In my opinion, art is a subject
hard to be understood by amateur. It is a subject no common crowd will understand
what’s the abstract message the artist was trying to deliver and why does the art piece cost so
much. If I put that perspective into stock trading, both matters seem to be quite similar.
When trading, an amateur does not know when is the best
time to buy-in and when is the best time to sell. Of course, this decision-making skill will develop based on experience over the time.
In this article, I would like to share something about my
trading history. As I have mentioned in my previous posts (4/2016), I have observed
Solution Engineering Holding (0093) for some time but I did not take any action until
recently. I had missed the boat, I made wrong decisions in trading it, and I traded it at a wrong timing.
Let’s take a look at the chart.
As you can see from the chart, the stock price has been moving side-way and its value had been lingering around RM0.40 for the past week. The RM0.40 resistant was strong and it closed at RM0.40 last Friday. But when the market opened yesterday(18-Jan-16), it opened at RM0.39 and broke through the resistance. The lowest price of the day was RM0.375 but it managed to raise back up and closed at RM0.39. Today was the same, it dipped for several cents before climbed back up to form a new resistance at RM0.39.
I bought-in last week at a slightly higher price. Well, the difference was not that big (yet) but I lost the satisfaction in making good judgement and lost the best deal. So, in this case, experience calls and good judgement is needed as well as being patience. In stock trading, no one knows for sure how
the market works in a short time frame. That is why I call it an art.
There is still some space for improvement to polish my
patience, my decision-making skill and knowing how to speculate market
sentiment correctly. I will put more time and effort into trading activities to make sure there will
be some improvement.
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